Nippon Life India Asset Management (NAM-INDIA) Q4 17/18 earnings summary

Executive summary

• Total AUM reached ₹3,96,370 crore at March 31, 2018 across mutual funds, managed accounts, AIFs, pension funds and offshore mandates.

• FY18 included a successful November IPO, a five-year strategic partnership milestone with Nippon Life Insurance and continued expansion of digital and physical distribution.

Financial highlights

• Consolidated revenue rose 26% YoY to ₹1,814.67 crore; revenue from operations was ₹1,585.80 crore, including ₹1,546.59 crore in investment management fees.

• Consolidated PAT increased 30% YoY to ₹522.12 crore; PBT was ₹725.75 crore versus ₹581.31 crore in FY17.

• Standalone revenue was ₹1,745.99 crore versus ₹1,400.44 crore; standalone PAT was ₹504.85 crore versus ₹404.78 crore.

• Other income included ₹119.77 crore profit on sale of investments and ₹81.85 crore interest income on a consolidated basis.

Outlook and guidance

• Industry AUM was forecast by AMFI to grow at 20% CAGR from FY18 to FY22, reaching ₹45 lakh crore by March 2022; rising retail participation and savings financialisation could support faster growth.

• Focus areas include profitable growth, product innovation, investor education, wider distribution and stronger customer service; smaller cities and towns are expected to provide significant growth potential.