Nuvama Wealth Management (NUVAMA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenues rose 60% YoY to INR 668 crore ($80M), with operating PAT up 133% YoY to INR 221 crore ($26M).

• Board approved consolidated and standalone unaudited financial results for the quarter ended June 30, 2024, and declared an interim dividend of INR 81.50 per share (~$0.98), totaling INR 290 crore (~$35M).

• Client assets grew 50% YoY to INR 389,000 crore ($46.6B), with strong growth across all business segments.

• Strategic focus on multi-product, multi-channel, and multi-customer segment model is driving consistent growth.

• Financial results were reviewed and approved by the Audit Committee and Board on July 26, 2024.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was INR 949.43 crore, up from INR 647.71 crore in Q1 FY24.

• Net profit for the quarter was INR 220.77 crore, compared to INR 122.98 crore in the same quarter last year.

• Client AUM grew 50% YoY to INR 389,000 crore ($46.6B); Nuvama Wealth AUM up 45% YoY to INR 88,000 crore ($10.5B); Nuvama Private AUM up 51% YoY to INR 186,000 crore ($22.3B).

• Asset management AUM up 50% YoY; capital markets custody and clearing business up 115%.

• Cost increased 28% YoY due to headcount growth and variable expenses.

Outlook and guidance

• Targeting 20% annual growth in both wealth and private segments over the next two years.

• Asset services expected to become 60% of capital markets revenue in 3-4 years.

• Dividend payout policy set at 40%-60% of annual profits.

• Focus on doubling RM capacity in 3-5 years and expanding client assets 2-2.5x in five years.

• Asset Management AUM targeted to grow 6-8x in five years.