Nippon Life India Asset Management (NAM-INDIA) Q2 24/25 earnings summary

Executive summary

• Achieved highest ever quarterly profit after tax of INR 3.6 billion and operating profit of INR 3.65 billion in Q2 FY25, with strong growth in equity and SIP market share.

• Mutual fund AUM reached INR 5.49 trillion, up 57% year-on-year and 14% quarter-on-quarter, with market share at 8.29% (+83 bps YoY).

• Maintained position as 4th largest AMC in India, adding 2.5 million investor folios in Q2 FY25, reaching 28.8 million, the highest in the industry.

• Systematic flows for Q2 FY25 at INR 90.3 billion, up 19.9% quarter-on-quarter and 91% year-on-year.

• Digital transactions comprised 70% of all purchases and new SIPs in Q2 FY25.

Financial highlights

• Revenue for Q2 FY25 was INR 5.771 billion, up 44% year-on-year and 13% quarter-on-quarter.

• Operating profit rose 57% year-on-year and 19% quarter-on-quarter to INR 3.65 billion.

• Profit after tax increased 47% year-on-year and 8% quarter-on-quarter to INR 3.6 billion.

• Other income stood at INR 1.21 billion, up 55% year-on-year.

• Interim dividend of INR 8 per share declared and paid.

Outlook and guidance

• Expense growth expected to be around 50% over the next 6-12 months.

• Continued focus on profitable growth, digital expansion, and further investments in talent, technology, and AIF business.

• New India-dedicated funds to be launched in Japan within 6-9 months; ongoing international fundraising, especially from Japan and Middle East.

• Asset growth and market share revival in high-yielding segments expected to drive further earnings rise.

• Management continues to evaluate market conditions and business dynamics for optimal utilization of IPO proceeds.