Nippon Life AMC -
Q4 FY 25 results and concall highlights -
Industry AUMs on 31 Mar @ 67 vs 54 lakh cr. Out of these - Equity AUMs @ 41 lakh cr, ETFs @ 8 lakh cr. Rest are liquid and debt funds
Segment wise breakup of AUMs ( for the Industry ) -
Corporates - 40 pc
HNIs - 34 pc
Retail - 27 pc
Geographical spread of AUMs ( for the Industry ) -
Top 30 cities - 82 pc
Beyond Top 30 cities - 18 pc
Monthly SIPs @ 25.9k in Mar 25 vs 19k cr in Mar 24
Nippon Life AMC continues to be 4th largest AMC and the largest non Bank backed AMC in the country
Nippon’s AUM @ 5.5 lakh cr, mkt share @ 8.26 pc. Company’s equity mkt share @ 6.86 pc. Company’s ETF AUMs @ 1.5 lakh cr, ETF mkt share @ 19.1 pc
Breakup of company’s AUMs of 5.5 lakh cr -
Equity - 50 pc
Debt - 15 pc
Liquid - 8 pc
ETFs - 27 pc
Breakup of company’s investors profile -
Retail - 29 pc
HNIs - 30 pc
Corporates - 41 pc
Breakup of company’s geographical profile of AUM -
T-30 - 80 pc ( @ 4.4 lakh cr )
B-30 - 20 pc ( @ 1.1 lakh cr )
No of SIPs with age > 5 yrs @ 54 pc of the company vs 30 pc for the Industry
Q4 FY 25 financial outcomes -
Revenues - 566 vs 468 cr, up 21 pc
Core Operating profits - 354 vs 281 cr, up 26 pc
Other income - 23 vs 92 cr
PAT - 298 vs 342 cr, down 13 pc due lower other income
Company is holding the following investments on its books -
Debt MFs - 2435 cr
Equity MFs - 510 cr
Bank FDs - 366 cr
Other assets ( like AIFs etc ) - 389 cr
Company’s SIP mkt share (@ 10.25 pc ) is better than their overall equity mkt share
Final Dividend @ Rs 10/share. Total annual dividend @ Rs 18/share
FY 25 financial outcomes -
Revenues - 2231 vs 1643 cr, up 36 pc
Core operating profit - 1404 vs 958 cr, up 47 pc
Other income - 290 vs 394 cr, down 26 pc
PAT - 1286 vs 1107 cr, up 16 pc
Nippon Life AMC was the fastest growing AMC among the top 10 AMCs in India in FY 25
**Company has an investor base of 20.8 million unique investors - highest in the Industry **
Japan has revamped their NISA scheme allowing retail investors in Japan to invest in India. Company is at the forefront and is confident to driving greater Japanese retail flows into the Indian mkts
ESOP costs for next FY should be around 50 cr in FY 26
Segmental yields -
Equity @ 57 bps, Debt @ 25 bps, Liquid @ 12 bps, ETFs @ 15bps. Corporate avg yield stands @ 37 bps
Tax rate for FY 26 should be 25 pc
Aprox 3-4 yrs back, the share of corporates in company’s AUM was around 50 pc vs 41 now. Company has a razor sharp focus on the retail and HNI category - hence this shift. Corporates generally invest in the liquid + debt funds. Aprox 90 pc of Equity AUMs come from Retail + HNI segments
Added 160 employees in FY 25. May add another 80-100 employees in FY 26. Total employee strength now stands @ 1170
Company has been going slow vs Industry on NFOs specially in the thematic funds category. It’s a deliberate strategy. Company believes, launching too many NFOs don’t really help in long term. In long term, the track record of old schemes is far more important than launching new funds
Despite not launching NFOs, company is still the mkt leader in adding new / unique investors
For FY 26, company expects total cost increases to be in the range of 15 pc on FY 25’s base
As RBI starts to cut rates, the attraction towards MFs should only increase as the bank FD rates fall
Company expects its corporate level yields ( Equity + Debt + Liquid + ETFs ) to fall by 2-3 bps in FY 26
Top 5 of company’s equity funds contribute to 80 pc of their equity AUM
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
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