Reliance Nippon Life Asset Management (RNAM) on Thursday reported 21 per cent jump in profit after tax at Rs 137 crore for the September quarter, due to lower tax rate.
The company had reported a profit after tax (PAT) of Rs 113.07 crore in the year-ago period, RNAM said in a filing to the stock exchanges.
Total income declined to Rs 322.60 crore in the second quarter of the ongoing fiscal from Rs 424 crore in the year-ago period.
RNAM said that reduction in corporate tax rate resulted in improved profitability.
The company's profit before tax slipped 2 per cent from the same period last year to Rs 158 crore in the quarter under review.
RNAM is the asset manager of Nippon India Mutual Fund, which is one of the key players in the 44-member strong mutual fund industry.
In September, Nippon Life Insurance of Japan completed the acquisition of 75 per cent stake in RNAM from Reliance Capital. The Japanese firm initially acquired 26 per cent stake in 2012.
RNAM's assets under management (AUM) increased 12 per cent to Rs 4.53 lakh crore as on September 30, 2019 across mutual funds, pension funds, managed accounts and offshore fund.
However, the company's mutual fund assets base dropped 17 per cent to over Rs 2.02 lakh crore during the quarter under review.
"Nippon India Mutual Fund starts its journey with new brand identity, the management team remains committed to taking it to the next level of growth with the support of our investors and stakeholders. The company will continue its focus to increase market share and profitability.
"This quarter we were successfully awarded an international equity mandate and remain confident that we will continue to leverage Nippon Life's global network for our International and Alternate businesses to get higher share of foreign flows into India," said Sundeep Sikka, CEO of RNAM.
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