Nuvama Wealth Management (NUVAMA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenues reached INR 949.43 crore (US $80 Mn), up 60% YoY, with operating PAT at INR 221 crore (US $26 Mn), up 133% YoY.

• Client assets grew 50% YoY to INR 389,000 crore (US $46.6 Bn), with strong performance across wealth, private, asset management, and capital markets segments.

• Interim dividend of INR 81.50 per share (INR 290 crore/US $0.98 per share), representing 48%-50% of last year's profits, was declared.

• Strategic focus on multi-product, multi-channel, and multi-customer segment model, with continued investment in technology and talent.

• Board approved consolidated and standalone unaudited financial results for Q1 FY25.

Financial highlights

• Wealth management revenues grew 18% YoY to INR 516.03 crore; capital markets revenues surged 153% YoY to INR 405.38 crore; asset management revenues up 23% YoY to INR 25.21 crore.

• Client AUM grew 50% YoY to INR 389,000 crore; Nuvama Wealth AUM up 45% YoY to INR 88,000 crore; Nuvama Private AUM up 51% YoY to INR 186,000 crore.

• Asset management AUM up 50% YoY; capital markets custody and clearing business up 115% YoY.

• Total costs for Q1 FY25 were INR 375 crore (US $45 Mn), up 28% YoY, mainly due to headcount growth and variable expenses.

• Basic EPS for the quarter was INR 62.51, up from INR 35.10 YoY.

Outlook and guidance

• Targeting 20% annual growth in wealth and private segments over the next two years, with plans to double RM capacity in 3-5 years.

• Asset management AUM targeted to grow 6-8x over five years; asset services expected to become 60% of capital markets revenue in 3-4 years.

• Dividend payout policy set at 40%-60% of annual profits.

• Expecting 30%-35% growth in managed products and ARR flows, with revenue growth of 20%-23% in wealth and private segments.

• Continued investment in technology, talent, and ESG initiatives to support scalable growth.