Nippon Life Asset Management saw its profit after tax (PAT) rise 6% to Rs 145.23 crore in the September quarter, compared to Rs 136.73 crore in the same period a year ago. While profit before tax was up 21% from the year-ago period, higher tax provision of Rs 38 crore as compared to Rs 18 crore in the previous year capped net profit. The fund house’s revenue from operations during the quarter was flat at Rs 322.60 crore from last year.
The asset manager saw its more profitable equity Assets Under Management (AUM) as a percentage of total assets dip from 43% in September 2019 to 39% in September 2020. In the same period, this percentage for the industry declined from 42% to 40%.
Nippon Life saw gains in the debt and liquid space with its AUM rising by 1% and 3% basis points respectively. The industry saw its debt AUM rise from 31% to 33%, while it saw its liquid AUM decline from 22% to 19%. The asset manager’s average equity assets under management fell from Rs 1,10,000 crore in September 2019 to Rs 98,600 crore in September 2020. Monthly flows through the SIP route dipped from Rs 760 crore in September 2019 to Rs 620 crore in September 2020. Nippon shares rose by 0.59% on Tuesday to Rs 273.4. In the past one year, the stock has declined by 17%.
Credit: Stocks-Markets-Economic Times