Reliance Nippon Life Q1 profit climbs 13% to Rs 125.4 crore; AUM grows 6%

Reliance Nippon Life Asset Management (RNAM), asset manager of Reliance Mutual Fund, on Monday reported 12.91 per cent year-on-year growth in its consolidated net profit at Rs 125.40 crore for the first quarter ended June 30, 2019.

"The company, a joint venture between Anil Ambani-led Reliance Capital and Japan's Nippon Life Insurance Company, had posted a net profit of Rs 111.06 crore in the April-June quarter of the previous year," RNAM said in a filing to the Bombay Stock Exchange.

Consolidated total income, however, declined by 15.09 per cent to Rs 360.41 crore in Q1FY20, as against Rs 424.46 crore in Q1FY19.

The operating profit increased to Rs 145.20 crore versus Rs 132.80 crore in the year-ago period, while operating expenses declined to Rs 179.90 crore as against Rs 261.70 crore in the same quarter last fiscal.

During the quarter under review, RNAM's assets under management was Rs 4,30,661 crore, a YoY increase of 6 per cent. MF assets under management (QAAUM) stood at Rs 2,22,576 crore, the company said.

The company's equity assets, including ETF were at Rs 1,15,746 crore, a growth of 19 per cent on a yearly basis.

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Commenting on Q1 earnings, Sundeep Sikka, ED & CEO, RNAM, said, "We continue to build on our core strengths of growing retail assets, SIP book and beyond top 30 cities AUM. In line with our strategy of getting higher flows from international markets into India, we launched the first Indian ETF to be offered in Australia."

He further stated that RNAM is in advanced stages to launch Indo-Japan emerging Technology and Innovation fund which will increase foreign inflows into fast-growing Indian start-ups. Despite near-term challenges, the company has been able to deliver steady growth in profitability during the quarter, he added.

Earlier this month, the Competition Commission of India (CCI) had given its nod for Japanese life insurance major Nippon Life Insurance to raise its stake up to 75 per cent in Reliance Nippon Life Asset Management (RNAM). Reliance Capital, which is in the process of exiting the mutual fund business, aims to raise up to Rs 6,000 crore by selling its shareholding in RNAM.

Ahead of Q1, shares of Reliance Nippon Life Asset Management ended at Rs 227.35 apiece on the BSE on Monday.

Edited by Chitranjan Kumar

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