Nippon Life India Asset Management (NAM-INDIA) Q4 14/15 earnings summary

Executive summary

• FY15 total revenue ₹9,301,150,837 and net profit ₹3,573,341,092, both higher YoY; growth supported by higher management-fee income and asset growth.

• Managed assets reached ₹244,649 crore across mutual funds, PMS, pension funds and offshore strategies; domestic and international expansion remained central priorities.

Financial highlights

• Total revenue ₹9,301,150,837, up from ₹7,801,760,231 in FY14; management-fee revenue was ₹8,218,472,440 versus ₹6,618,042,633.

• Profit before tax and exceptional items ₹4,463,992,077 versus ₹3,893,717,787; FY15 profit after tax ₹3,573,341,092 versus ₹3,039,423,887.

• Other income declined to ₹1,082,678,397 from ₹1,183,717,598; marketing and publicity expense increased to ₹1,438,655,051 from ₹940,073,456.

Outlook and guidance

• Planned to deepen investor reach in Tier III and Tier IV locations, expand technology use, improve distribution and customer service, and continue product innovation.

• Intended to launch additional international equity funds subject to market attractiveness and strategic fit; offshore growth efforts targeted Japan, the Middle East, Asia, the US and Europe.

• Management expected India’s growth prospects, household savings and low retail capital-market participation to support long-term mutual-fund industry expansion.