Nippon Life India Asset Management rose 0.62% to Rs 348.35 after the company reported a decent Q3 December 2019 result during market hour today, 23 January 2020.
Consolidated net profit rose 36.4% to Rs 149.32 crore in Q3 December 2019 as against Rs 109.52 crore reported in Q3 December 2018. Total income fell 10.73% to Rs 360.64 crore year-on-year (YoY).Profit before Tax (PBT) rose 18.56% to Rs 193.64 crore in Q3 December 2019 as compared to Rs 163.32 crore in Q3 December 2018. Total tax expense fell 17.25% to Rs 44.34 crore on YoY basis.
Asset under Management (AUM) for as on 31 December 2019 stood at 3,10,100 crore. Post takeover by Nippon Life, the company witnessed a reversal in AUM growth after four quarters of decline, MF assets under management (QAAUM) stood at Rs 2,04,370 crore.
The company is one of the largest ETF players with approximately 16% market share (in terms of QAAUM).
The company declared an interim dividend of Rs 3 per equity share for a record date of 4 February 2020.
Commenting on company's Q3 performance, Sundeep Sikka, ED & CEO, Nippon Life India Asset Management, said," Post rebranding, overall feedback from our customers and distributors has been very positive. This is also reflected in our AUM inflows, we have seen return of several leading Corporates, SME's and HNI's. We will continue to capitalise on our strong distribution network and make inroads into smaller cities and towns to attract more investments from retail investors for our future growth and part of our profitable growth strategy."
The company rebranded itself from Reliance Nippon Life Asset Management' to Nippon Life India Asset Management.' Nippon Life Insurance of Japan on 27 September 2019 announced that it has successfully completed the acquisition of 75% stake in Reliance Nippon Life Asset Management (RNAM) from Reliance Capital.
Nippon Life India Asset Management Limited (NLIAM) is one of the largest asset managers in India, managing (directly & indirectly) assets across mutual funds, managed accounts, alternative investments and offshore funds.
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