Nippon Life India Asset Management tumbled 5.20% to Rs 230.75 after consolidated net profit plunged 97.5% to Rs 3.72 crore on a 62.4% decline in total income to Rs 149.56 crore in Q4 March 2020 over Q4 March 2019.
Profit before tax (PBT) declined 87.1% on a year-on-year (YoY) basis to Rs 27.35 crore during the period under review. Total expenditure was down 34.1% to Rs 122.21 crore. Current tax expenses contracted 65.8% to Rs 24.11 crore in Q4 FY20 over Q4 FY19.
As on 31 March 2020, NAM India's assets under management was Rs 2,55,265 crore (US$34 billion). For the quarter ended 31 March 2020, equity assets contributed 42% to NIMF's AUM vis-vis 39% for the corresponding quarter in the previous year.
Sundeep Sikka, ED & CEO, NAM India, said: "FY20 has been an eventful year for us as Nippon Life Insurance became our principal shareholder. Post rebranding, Nippon India Mutual Fund (NIMF) took positive strides towards regaining its lost industry market share and investor base. Growth in AUMs reflected the increased investor confidence in NIMF, both in the individual and corporate segments. H2 FY20 saw a growth of 16% in operating profit driven by better investor stickiness, ability to preserve yields and cost efficiencies, despite turbulent equity markets and former legacy issues.
Responding to the overall economic slowdown due to the Covid19 crisis, and the resultant market uncertainties, the board, on a conservative note, decided that all NIMF's schemes will make fresh investments in AA and above rated issuers only."
He added that, despite the lockdown, the company's business operations continued without any disruption, using digital platforms.
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"Our business fundamentals continue to be strong, primarily driven by unstinted support from Nippon Life Insurance, dominant market position, stable management team, vast and granular distribution network, robust risk management framework, superior digital ecosystem, and a vibrant domestic growth story. Our focus on profitable growth will continue in the future too", the CEO said.
Nippon Life India Asset Management is one of the largest asset managers in India, managing (directly & indirectly) assets across mutual funds, managed accounts, alternative investments and offshore funds. NAM India is the asset manager of Nippon India Mutual Fund's schemes.
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