Nippon Life India Asset Management announced that its net profit in the September quarter rose 48% to ₹ 214 crore from ₹ 145 crore in the same period last year, largely due to an increase in assets under management (AUM) and better margins.
Operating income increased to 328 crore (₹ 259 crore).
The Nippon India Alternate Investments Fund raised 4,000 crore in various asset classes, including equity, real estate, credit, technology and venture capital funds of funds. The Nippon India Digital Innovation Fund has received investment commitments and a letter of intent of approximately $ 100 million.
The average quarterly AUM rose 32% to 2.65 lakh crore from 2 lakh crore recorded last year. Assets under management in equities rose 47% to 1.45 lakh crore from 98,600 crore and fixed income assets rose to ₹ 1.08 crore (₹ 93,700 crore). The inflow through the systematic investment plan during the quarter under review edged down to 1,880 crore from 1,890 crore, but SIP assets under management increased 57% to 49,700 crore.
The fund company has offshore assets under management of 1.17 crore in Singapore, Mauritius, Dubai and Singapore. Of this amount, it directly manages assets valued at 8,700 crore and provides advisory services to the remaining 3,000 crore. The AIF received the approval of the authorities of the SEZ for the establishment of an AIF at the GIFT IFSC.
Sundeep Sikka, ED and CEO of NAM (Nippon Life India Asset Management Limited) India, said the profit was due to the fund’s strong performance, robust risk management and a granular distribution network. The fund company continues to focus on profitable growth, strengthening the digital ecosystem and expanding the overall size of the industry, he said.
Market share increased 21 basis points to 7.33% in the first half of this year. The board of directors approved an interim dividend of 3.50 per share.