Nippon Life India jumps 3.5% after firm announces highest every quarterly PAT at ₹343 crore

Shares of Nippon Life India Asset Management closed over 3.5% higher on Wednesday after the company reported its highest ever quarterly profit.

During the third quarter of fiscal year 2024 (FY24), Nippon Life reported a 5.84% year-on-year (YoY) rise in its total income at ₹561 crore. Operating profit rose 41% YoY to ₹282 crore while net profit increased by 73% YoY to ₹343 crore.

For FY24, the company reported a 26% rise in its operating profit at ₹958 crore. Net profit for the year rose 53% to ₹1,107 crore. As of March 31, 2024, Nippon Life India’s assets under management stood at ₹5.24 lakh crore. The dividend payout for the fiscal stood at ₹16.50 per share

Nippon Life India manages assets across mutual funds including exchange-traded funds, managed accounts, including portfolio management services, alternative investment funds, offshore funds, and advisory mandates.

For the quarter ended March 31, 2024, Nippon Life’s average assets under management (AAUM) stood at ₹4.31 lakh crore, registering an increase of 47% YoY. Share of equity assets rose to 49.2% of the company’s AUM as against 44.4% as of March 31, 2023.

The firm has retail assets worth ₹1.33 lakh crore which form 30% of its AAUM compared to the industry average of 27%. Its high net worth individual (HNI) AUM stood at ₹1.24 lakh crore. The firm believes asset growth and market share revival in high-yielding segments will drive a further rise in earnings. The company’s quarterly systematic flows rose 18% sequentially to ₹7,010 crore.

Nippon Life said that digital purchase transactions rose to 66 lakh in FY24, up from 33 lakh in FY23. The digital channel contributed 60% to new purchase transactions in FY24.

Shares of the company have risen over 28% since the beginning of the year. The stock has gained over 148% in the last one year.