Nippon Life India Asset Management (NAM-INDIA) Q1 24/25 earnings summary

Executive summary

• Achieved record profit after tax of INR 3.32 billion in Q1 FY25, up 41% year-on-year, with highest-ever quarterly operating profit of INR 3.08 billion and robust growth across all business segments.

• Mutual fund AUM rose 54% year-on-year and 12% quarter-on-quarter to INR 4.84 trillion, with market share increasing to 8.20%, the highest since December 2020.

• Systematic flows reached INR 75.3 billion in Q1 FY25, up 7.5% quarter-on-quarter and 120% year-on-year, with digital transactions contributing 68% of new purchases.

• Maintained position as 4th largest AMC in India, with the highest investor base at 26.3 million folios and 17.5 million unique investors.

• Market share increased for the fifth consecutive quarter, with equity market share at 6.88%.

Financial highlights

• Q1 FY25 revenue was INR 5.05 billion, up 43% year-on-year and 8% quarter-on-quarter; total income reached INR 6.36 billion.

• Operating profit rose 59% year-on-year and 9% quarter-on-quarter to INR 3.08 billion.

• Profit after tax increased 41% year-on-year to INR 3.32 billion, slightly down from INR 3.43 billion in Q4 FY24.

• Standalone PAT for Q1 FY25 was INR 316.64 million, up from INR 222.45 million in Q1 FY24.

• Other income stood at INR 3.31 billion, up 12% year-on-year and 42% quarter-on-quarter.

Outlook and guidance

• Continued focus on scaling core products, expanding passive offerings, and reviving market share in high-yielding segments, with a cautious approach to new asset classes and thematic funds.

• Employee headcount expected to grow by about 10% annually, mainly in sales, distribution, and alternative investments.

• Other expenses (excluding ESOP) projected to rise 12%-13% annually, driven by digital and brand investments.

• Ongoing evaluation of market conditions and optimal utilization of IPO proceeds.

• Industry AUM continues robust growth, with significant headroom for expansion due to low mutual fund penetration in India.