Nippon India AMC Q3 PAT down -17.88% at Rs174.05cr on sharply lower other income in the quarter

29 Jan 2022 , 01:35 AM

Nippon India AMC Ltd reported -7.50% fall yoy in total revenues for the Dec-21 quarter on consolidated basis at Rs368.93cr. On a sequential basis, the revenues were lower for the quarter by -13.21%.

During the quarter, there was positive cues for the company from the enhanced flows into equity schemes. However, overall cost of money management as measured by TER has been falling.

In addition, the other income, which measures fair value changes of the equity / debt portfolio also gave tepid gains in this quarter ended 31-Dec.

The consolidated Profit after tax (PAT) for the Dec-21 quarter was down -17.88% at Rs174.05cr on lower fair value gains in the quarter on the equity and the debt portfolio due to tepid to weak markets and rising bond yields in the quarter.

The employee benefit expenses have also increased sharply in the quarter putting further pressure on the bottom line of the AMC. Net margins tapered from 53.14% in the Dec-20 quarter to 47.18% in the Dec-21 quarter. Net margins were also lower sequentially by 310 bps.

Financial highlights for Dec-21 compared yoy and sequentially

	Nippon India AMC
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 368.93	₹ 398.84	-7.50%	₹ 425.08	-13.21%
Net Profit (Rs cr)	₹ 174.05	₹ 211.95	-17.88%	₹ 213.72	-18.56%
Diluted EPS (Rs)	₹ 2.74	₹ 3.40		₹ 3.37
Net Margins	47.18%	53.14%		50.28%