Earnings Outlook
Nippon Life India AMC consol PAT seen falling 20% on year
This story was originally published at 15:57 IST on 26 April 2025
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By Kshipra Petkar
MUMBAI – Nippon Life India Asset Management Co. is expected to report weak earnings for the quarter ended March due to lower other income and changes in tax assessments, brokerages said in their pre-earnings reports. According to the average of the estimates of 10 brokerages, the asset management company's consolidated net profit for the quarter ended March is seen falling over 20% on year to INR 2.7 billion. On a sequential basis, the bottom line is seen falling over 8%. The range for the consolidated net profit is INR 2.43 billion-INR 3.04 billion.
"Nippon's core PAT is expected to decline by 4% YoY due to an abnormally lower tax rate in Q4FY24 as a result of: (i) reclassification of some investments from short-term to long-term and (ii) reversal of provisions following the completion of tax assessments," Phillip Capital (India) said in its report. The brokerage has revised the target price for the company to INR 825 from INR 875, with a 'buy' rating.
Some brokerages also said that the asset management company is expected to see a fall in equity assets under management due to marked-to-market losses. "We believe that trends as of March would be dependent on the trends seen till February while we additionally factor in Nifty return of 6.7% and Nifty Midcap 100 return of 9.1% for March. We pencil in an overall AUM growth of 1.3% QoQ," Centrum Broking said in its report. This fall in the equity quarterly average AUM could lead to a fall in the overall AUM, analysts said.
Equirus Securities said that the earnings before interest, tax, depreciation, and amortisation margin, or EBITDA margi, is expected to decline sequentially due to higher costs and lower income. The cost-to-income ratio for the quarter is expected to inch up.
The net sales of the asset management company for Jan-Mar are expected to rise 22.1% on year to INR 5.72 billion. Sequentially, they are seen falling 2.7%. The estimates for consolidated net sales are in the range of INR 5.6 billion-INR 5.96 billion. On the National Stock Exchange, shares of Nippon Life India Asset Management Co closed 4.6% lower at INR 640.20 on Friday.
The company is scheduled to report its earnings on Monday.
Following are the Jan-Mar earnings estimates for Nippon Life India Asset Management Co. based on reports from 10 brokerage firms in descending order of the estimate of net profit:
| Brokerage firm | Net sales (in INR million) | Net profit (in INR million) |
| PhillipCapital (India) | 5,836 | 3,036 |
| YES Securities (India) | 5,956 | 3,004 |
| Sharekhan | 5,680 | 2,780 |
| Equirus Securities | 5,653 | 2,755 |
| Prabhudas Lilladher | 5,711 | 2,687 |
| Kotak Institutional Equities | 5,746 | 2,642 |
| Motilal Oswal Financial Services | 5,692 | 2,612 |
| Nomura Equity Research | 5,600 | 2,600 |
| Nuvama Wealth Management | 5,600 | 2,600 |
| Centrum Broking | 5,704 | 2,433 |
| Average | 5,717.80 | 2,714.90 |
End
Edited by Avishek Dutta
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