HDFC Securities: Nippon Life’s Market Share Remains Elusive

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Report.Nippon Life India Asset Management Ltd.’s Q1 FY21 revenue at Rs 2.33 billion (-28.3%/-15.1% YoY/QoQ) was 5.1% below our estimate as outflows from the credit risk fund and a reduction of equity in the mix resulted in a lower yield.Debt/equity quarterly average assets under management (QAAUM) market share deteriorated 246/235 basis points YoY to 7.5/6.8%.Debt funds QAAUM declined 9.0% QoQ due to outflows and write-downs. The core operating profit was at Rs 966 million, -33.5/36.6% YoY/QoQ, mainly due to lower revenue.Recovery in equity markets and decline in bond yields resulted in treasury income of Rs 1.03 billion (up 192% YoY), raising adjusted profit after tax by 24.3% YoY to Rs 1.56 billion.Management stated that it raised capital from high networth individuals/family offices (75 plus), corporate (26/100 BSE 100 began reinvesting), and institutions (adds: 120 plus since October 2019).Nippon Life is revisiting its investment policy with the intent of reducing the volatility of treasury income..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Securities: Nippon Life’s Market Share Remains Elusive

Nippon Life is revisiting its investment policy with intent of reducing the volatility of treasury income, HDFC Securities says.

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