Nuvama Wealth Management (NUVAMA) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenues reached ₹740 crore, up 51% year-over-year, with profits doubling to INR 4.9 crore and operating PAT for Q2 at ₹258 crore, up 77% YoY.

• Client assets surpassed ₹4.2 lakh crore (₹4 trillion), up 63% YoY, with significant growth across all business segments.

• Significant expansion in domestic and international markets, including new offices in Dubai and GIFT City, and Dubai operations commenced.

• Interim dividend of ₹63 per share declared for H1 FY25, with payment by November 23, 2024.

• Financials reviewed by independent auditors with unmodified reports for both consolidated and standalone results.

Financial highlights

• Q2 FY25 revenue grew 16%-50% YoY to ₹740 crore; all business segments posted double-digit growth.

• PAT for H1 FY25 doubled to ₹478.08 crore; Q2 ROE at 33.6%, H1 ROE at 31.5%.

• Cost-to-income ratio improved to 54% in H1 FY25 from 65% in H1 FY24, remaining stable despite significant hiring.

• Basic EPS for H1 FY25 was ₹135.07, compared to ₹76.49 in H1 FY24.

• Interim dividend declared at ₹63 per share, maintaining a payout ratio of 40%-60%.

Outlook and guidance

• Expect continued growth in AUM and revenue as new RMs become productive and market expansion continues.

• Wealth and Asset Management expected to drive 75-80% of future earnings; plans to double RM capacity in 3-5 years.

• Asset Management AUM targeted to grow 6-8x in five years.

• Cost-to-income ratio projected to fall below 60% over the next 2-3 years as operating leverage improves.

• Dividend payout policy to remain in the 40%-60% range.