Reliance Nippon Life Asset Management Ltd's Q3FY19 consolidated net profit declines 17% yoy to Rs110cr : Misses Estimates

The company’s consolidated revenue stood at Rs350cr, down 12.3% yoy and 10.6% qoq.

Jan 22, 2019 03:01 IST India Infoline Research Team

Reliance Nippon Life Asset Management Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 350 -12.3
EBITDA 116 -7.3
EBITDA margin 33.01 177
Net profit (adjusted) 110 -17.0
EBITDA margin change in bps

Reliance Nippon Life Asset Management Ltd’s revenue declined by 12.3% yoy and 10.5% qoq to Rs350cr. EBITDA came in at Rs116cr, down 7.3% yoy and 14.7% qoq. EBITDA margin expanded by 177bps yoy and contracted by 162bps qoq to 33.01%. Company reported Net profit of Rs110cr, down 17% yoy and 4.3% qoq. EBITDA and Net profit came below the estimates of Rs132cr and Rs114cr respectively.

• As on December 31, 2018, Its assets under management was Rs4,14,362cr, up 7% yoy.
• Equity assets (including ETFs) stood at Rs1,02,734cr, up 12% yoy.
• In Q3FY19, digital purchase transactions rose to Rs2.73lakh, up 71% yoy. 
• RMF has leadership position in Retail Assets at Rs83,005cr – added highest retail assets i.e. Rs12,007cr in the industry since December, 2017.
• Company’s equity AUM stood at 38% of total MF assets during the quarter.
• Company is one of the largest ETF player with market share of ~17%.
• Other expenses stood at 44.7% of revenue vs. 53.3% yoy aiding in EBITDA margin expansion. Same has been partially offset by higher employee benefit expenses, which stood at 21.5% of revenue vs. 15% yoy.
• Other income declined by 23.7% yoy to Rs54cr.

Technical View:

Reliance Nippon Life Asset Management Ltd is currently trading at Rs. 156.15, up by 3.5 points or 2.29% from its previous closing of Rs. 152.65 on the BSE.
The scrip opened at Rs. 152.95 and has touched a high and low of Rs. 170.80 and Rs. 149.20 respectively. So far 11,99,662 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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