Reliance Nippon Life Asset Management (RNAM) on Monday posted a 25 percent surge in net profit to Rs 122 crore for the three months ended September of the current fiscal. The company's total revenues rose to Rs 436 crore for the second quarter of the current fiscal from Rs 361 crore in the year-ago period.
Sharing further details of the numbers and the outlook going forward, Sundeep Sikka, ED & CEO, Reliance Nippon Life AMC said the asset under management (AUM) in the AMC business has been at 21 percent.
First half of FY18 saw a healthy earnings growth, said Sikka in an interview to CNBC-TV18, adding that the focus has been on profitable growth. Moreover, post demonetisation flows have come in from lot of smaller cities and towns.
He said the AMC businesses are going to be the key beneficiaries of the digital drive of the government of India. The government's push to convert physical assets to financial assets will drive growth going forward, he added.
He said, post capital infusion the return on equity (RoE) was 24 percent and expected it to improve going forward.
The Indian asset management industry in the last 3-4 years has been growing at CAGR of 20-30 percent and expect growth to continue, said Sikka. The penetration of Indians in the AMC is still very low, so there is lot of scope for growth going forward, he added.
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