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Nippon Life India reports nearly 9 pc drop in net profit for Q4

IANS April 28, 2025 266 views

Nippon Life India Asset Management experienced a nuanced financial quarter with a net profit decline of 8.9% to Rs 296 crore. Despite the profit drop, the company showed strong performance in other financial metrics, including a 21.9% revenue increase and a 25.9% EBITDA growth. The company's EBITDA margin improved to 68%, demonstrating operational efficiency. The board has recommended a final dividend of Rs 10 per share, signaling confidence in the company's financial health.

"Our EBITDA margin improved to 68% in Q4" - Nippon Life India Management"
New Delhi, April 28: Nippon Life India Asset Management on Monday reported an 8.9 per cent decline in its net profit to Rs 296 crore for the fourth quarter of the fiscal year 2025 (Q4 FY25), compared to Rs 325 crore during the same period last fiscal.

Key Points

1

Quarterly net profit falls to Rs 296 crore

2

Revenue increases 21.9% to Rs 526.5 crore

3

EBITDA grows 25.9% to Rs 358.4 crore

4

Final dividend of Rs 10 per share recommended

Despite the fall in profits, the company saw a significant rise in its revenue, which increased by 21.9 per cent, reaching Rs 526.5 crore in Q4, up from Rs 431.8 crore in Q3.

However, on a quarter-on-quarter (QoQ) basis, the company's revenue saw a slight dip from Rs 587.89 crore in Q3.

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw a robust growth of 25.9 per cent, rising to Rs 358.4 crore, compared to Rs 284.6 crore in the year-ago period.

The company’s EBITDA margin improved to 68 per cent in Q4, up from 65.9 per cent in the same period last fiscal year.

Total income for Q4 FY25 was reported at Rs 589.58 crore, while it was slightly higher at Rs 603.30 crore in Q3 FY25.

On the expense side, total expenses in Q4 were Rs 211.77 crore, almost flat as compared to Rs 211.59 crore in Q3. However, they were up compared to Rs 186.46 crore in the year-ago period.

The board of Nippon Life India Asset Management has recommended a final dividend of Rs 10 per share for the fiscal year 2025.

Nippon Life India Asset Management Limited (NIMF) is a leading Indian asset management company, previously known as Reliance Nippon Life Asset Management.

It manages Nippon India Mutual Fund, one of India's top fund houses, and provides a range of investment products and services, including mutual funds, managed accounts, and offshore funds.

Reader Comments

R
Rahul P.
Interesting to see revenue up but profits down. The 21.9% revenue growth is impressive though! Shows they're expanding their business even in tough times. That dividend announcement is a nice silver lining for investors.
P
Priya K.
The EBITDA growth looks healthy at 25.9%! 🚀 But I wonder why profits took a hit when everything else seems positive? Maybe higher operational costs? Would love to hear more analysis on this.
A
Amit S.
Respectful criticism here - the article could benefit from explaining why profits fell despite revenue growth. The numbers tell part of the story, but context about market conditions or strategic investments would help.
S
Sanjana M.
That 68% EBITDA margin is 🔥! Shows they're running an efficient operation. Short-term profit dips happen, but with fundamentals this strong, I'm bullish on their long-term prospects.
V
Vikram D.
As a Nippon MF investor, I'm not too worried about one quarter's numbers. Their track record has been solid, and Rs 10 dividend is a pleasant surprise. The asset management industry as a whole had a challenging year.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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Tags:
Nippon Life India Q4 Financial Results Asset Management Mutual Funds Indian Finance
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