Nippon AMC posts mixed set of numbers with AUM growth being healthyNAM-INDIA - 272 Change: 1.20 (0.44 %)
News: For Nippon AMC, revenue from operations was up 26% YoY, 3% QoQ and lagged AUM growth trajectory. Margins (revenue/AUM) have declined 3 bps YoY and 1 bps QoQ to 0.48%. Opex was largely steady on yearly basis. PAT was down 18% YoY and QoQ to Rs.174 crore. On the growth front, performance was healthy with AAUM growth of 32% YoY and 6% QoQ at Rs.280600 crore where in equity AUM was up by 45% YoY and 5.7% QoQ while debt AUM was up 11% YoY and 5.7% QoQ. Overall AUM market share improved by 22 bps to 7.34% on YTD basis. Traction in retail assets was also healthy at 34% YoY and market share in terms of unique investors was up 30 bps QoQ at 32.5%.
Views: In our view, Nippon Life AMC posted a mixed set of numbers for Q3FY22 with MF AUM growth being healthy while operationally there were some niggles that impacted PAT. Decline in other income mainly led to reduction in overall PAT, mainly due to MTM impact of decline in equity, also due to decline in fixed Income yields towards the end of the quarter. Going forward, pressure on yield will be from NFOs at low yield. With good product mix and with stability in market share and further expected stable market share we remain neutral on the stock.