Nippon Life India Asset Management (NAM-INDIA) Q4 12/13 earnings summary

Executive summary

• FY2012-13 standalone revenue was Rs 7,126,740,652; net profit fell to Rs 1,975,381,922 from Rs 2,761,090,431, including a subsidiary investment impairment.

• Reliance Mutual Fund QAAUM reached Rs 94,580 crore at March 31, 2013, up 21% YoY; PMS AUM, including EPFO, was Rs 72,233 crore.

Financial highlights

• Revenue from operations, mainly management fees, was Rs 5,899,816,525 versus Rs 5,413,422,090; other income was Rs 1,226,924,127 versus Rs 1,009,478,083.

• Profit before exceptional items and tax was Rs 3,136,839,140 versus Rs 3,375,618,674; the Rs 556,411,399 exceptional charge reduced PBT to Rs 2,580,427,741.

• Net profit was Rs 1,975,381,922 versus Rs 2,761,090,431; basic EPS was Rs 177.93 versus Rs 262.71 and diluted EPS Rs 177.00 versus Rs 260.23.

• Administrative and other expenses rose to Rs 1,176,233,865 from Rs 792,612,086; marketing and publicity expenses rose to Rs 1,403,693,127 from Rs 978,773,539.

Outlook and guidance

• Growth plans target greater Tier III and Tier IV reach, technology adoption, investor education, product innovation, distribution expansion and improved customer service.

• Domestic and international growth opportunities remain a focus; management cited low retail participation in capital markets and the potential to expand beyond the top five cities.

• PMS plans included identifying opportunities for equity and fixed-income portfolios and expanding customized offerings for high-net-worth individuals and corporates.