Nippon Life India Q3 Results Review - Steady Performance; Yields Expanded Marginally: Axis Securities

Axis Securities Report

Nippon Life India Asset Management Ltd.'s revenues grew 4.5/6.7% YoY/QoQ to Rs 354 crore accelerating growth in quarterly average assets under management at 4.3/2.7% YoY/QoQ highlighting yield improvement.

Overall AUM's market share remained stable in Q3 FY23 at 7.3% QoQ. Its share of the direct channel was 53% in AUM while the share of MFDs, banks, and NDs within distributed assets was 58%, 22% and 20% respectively.

On the opex front, management indicated that about 60% of the increase in opex was relating to one offs being IT and consolidation of office.

Sequentially, better yields improved Nippon Life’s operating profit margins to 60.3% from 58.4% QoQ. Healthy AUM growth and increase in other income by 104% YoY aided uptick in profit after tax by 18% YoY.

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