LiveMint reported an intraday 9% decline in Nippon Life India Asset Management shares to ₹881.95 on the BSE Friday, while the company posted a sharp drop in September-quarter profit. The outlet also reported a 19% fall over five sessions.
For the quarter ended Sept. 30, consolidated profit was ₹324.37 crore, compared with ₹503.70 crore in June and ₹344.64 crore a year earlier. The declines were 35.6% sequentially and 5.9% year over year. Revenue from operations reached ₹795.75 crore, 20.9% above the year-earlier level and 3.8% higher than in June. Other income was ₹23.14 crore, down from ₹170.21 crore in the June quarter.
The company’s ₹96.76 crore exceptional item included ₹89.08 crore for management-fee reversals and applicable interest. A further ₹7.68 crore covered settlement amounts involving the company and certain officials. The company said the Securities and Exchange Board of India (SEBI) had communicated its in-principle acceptance of the settlement terms during the quarter. Formal communication was still pending.
The company linked the proceedings to a SEBI show-cause notice dated Aug. 30, 2024, concerning certain mutual fund schemes’ investments in Yes Bank Additional Tier 1 (AT-1) bonds. The notice alleged securities-law noncompliance. The company and certain officials filed settlement applications on Oct. 28, 2024, without admitting or denying the notice’s findings or conclusions.
Separately, on Oct. 15, India’s Supreme Court dismissed appeals against a 2023 Bombay High Court ruling on the ₹8,415 crore write-down of Yes Bank AT-1 bonds in March 2020. The asset manager said investors in the affected schemes would receive any recovery, with no effect on its financial results.
The board approved an interim dividend of ₹9.50 per share, with Wednesday, Oct. 28, set as the record date. Payments are scheduled to start on or after Nov. 5. EconoTimes previously covered the approval and annual profit comparison in its earlier dividend and earnings report.
