Nippon Life India Asset Management (NAM-INDIA) Q4 15/16 earnings summary

Executive summary

• FY16 net profit was Rs 3,764,335,088 consolidated and Rs 3,701,754,221 standalone; mutual-fund QAAUM reached Rs 158,408 crore, up 15.5% YoY.

• Managed assets across mutual funds, PMS, pension funds and offshore strategies totaled Rs 2,87,000 crore at year-end; the mutual fund business ranked third by QAAUM.

Financial highlights

• Standalone total revenue was Rs 12,710,154,754 vs Rs 9,301,150,837 in FY15; profit before tax was Rs 4,958,715,259 vs Rs 4,433,178,131.

• Standalone PAT was Rs 3,701,754,221 vs Rs 3,573,341,092; consolidated net profit was Rs 3,764,335,088 vs Rs 3,621,970,928.

• Standalone revenue from operations, mainly investment-management fees, was Rs 11,641,971,646 vs Rs 8,218,472,440; other income was Rs 1,068,183,108 vs Rs 1,082,678,397.

• Marketing and publicity expenses were Rs 3,582,392,822 vs Rs 1,438,655,051; employee expenses were Rs 2,018,039,388 vs Rs 1,510,880,036.

• Standalone exceptional expense was Rs 4,028,535; reported standalone EPS was Rs 321.33 basic and diluted vs Rs 323.21 and Rs 322.82, respectively, in FY15.

Outlook and guidance

• Growth plans prioritize digital investor services, product innovation, investor education, wider distribution, customer service and expansion into Tier III and Tier IV locations.

• Digital initiatives are intended to simplify onboarding and transactions and support higher business volumes without increasing technology infrastructure and human-resource costs.

• The strategy includes pursuing domestic and international fund-management and advisory opportunities; the market’s smaller-city potential is significant, with over 85% of industry AUM from the top 15 cities.