Delivering robust Year-over-Year Growth of 57% in Operating PAT
Chennai: Nuvama Wealth Management Limited (NSE, BSE: NUVAMA), one of India’s leading Wealth Management companies, reported its financial results and business performance for the quarter and year ending 31st March 2024.
Nuvama Group: Consolidated Performance
- Revenues: Q4 FY24 stood at ₹596 Cr, grew by 35% YoY and FY24 at ₹2,063 Cr, grew by 31% YoY.
- Operating Profit After Tax (PAT): Q4 FY24 stood at ₹181 Cr, grew by 57% YoY and FY24 at ₹597 Cr, grew by 62% YoY.
- Sustained robust growth in Wealth and Asset Management, FY24 revenues grew by 18% YoY. Capital Markets FY24 revenue grew by 64% YoY supported by robust primary and secondary Indian markets.
| Particulars – ₹ Cr | Q4 FY23 | Q4 FY24 | YoY% | FY23 | FY24 | YoY% | ||
| Revenues | 440 | 596 | 35% | 1,575 | 2,063 | 31% | ||
| Costs | 286 | 358 | 25% | 1,086 | 1,279 | 18% | ||
| Operating Profit Before Tax (PBT) | 154 | 238 | 55% | 489 | 784 | 60% | ||
| Operating Profit After Tax (PAT) | 115 | 181 | 57% | 368 | 597 | 62% |
Commenting on the performance Ashish Kehair, MD & CEO of Nuvama Group said, “India’s structural growth journey continues, with robust GDP, healthy corporate earnings, sustained domestic demand and stable macros. Equity markets saw highest ever institutional flows in FY24 making India, one of the best-performing markets. With Nuvama’s comprehensive, diversified, and scaled wealth management platform we were able to leverage full potential of these trends. We closed fiscal 2024 with PAT of ₹597 Cr, growing by 62% YoY.
Our client assets stood at ₹3.5 trillion, growing by 50% YoY, powered by ‘client-first’ philosophy, and supported by strong markets. We delivered revenues of ₹2,063 Cr led by growth across our business segments. Execution of our strategic priorities remains on track. In Wealth Management we scaled sales capacity and expanded our footprint. In Nuvama Wealth we added 200+ RMs. In Nuvama Private we added 20 RMs and expanded to 3 new locations in India. We have made important progress on launch of our offshore proposition. In Asset Management, we continue to scale our strategies. Our public market funds AUM witnessed strong flows, grew by 155% YoY, and crossed ₹ 2,000 Cr mark. Our newly launched commercial real estate fund with Cushman & Wakefield is on track to raise funds as planned. We are expanding our distribution by building network across wealth managers, banks, and Institutions. In our Capital Markets business, we ended the year with a stellar performance supported by increased market volumes and growth in our market share.
As we enter fiscal 2025, we remain watchful on some of key global and domestic trends that may play out in coming quarters. We are confident on the long-term growth prospects of Wealth Management industry in India and excited to grow our capacity and capabilities and sustain this leadership.
Key Highlights
Wealth Management
a. Revenues: ₹330 Cr in Q4 FY24, grew by 16% YoY and ₹1,188 Cr in FY24, grew by 17% YoY
b. PBT: ₹113 Cr in Q4 FY24, grew by 15% YoY and ₹416 Cr in FY24, grew by 24% YoY.
c. Client Assets: ₹2,47,835 Cr as at end of Q4 FY24, grew by 36% YoY.
d. Added ~230 new RMs this fiscal, taking our RM count to ~1,200.
e. Nuvama Wealth: Revenues and net flows from Managed Products & Investment Solutions (MPIS) remains robust. In FY24, MPIS contributed 86% of the total new flows.
f. Nuvama Private: Revenue and net flows from Annual Recurring Revenue (ARR) earning assets continues to grow at a faster rate. ARR revenues were 57% of total revenues.
Asset Management
a. Revenues (ex-carry): ₹12 Cr in Q4 FY24, grew by 27% YoY and ₹49 Cr in FY24, grew by 34% YoY.
b. AUM: ₹6,967 Cr as at end of Q4 FY24, grew by 25% YoY, of which Public Markets AUM stood at ₹ 2,070 Cr, grew by 155% YoY.
Capital Markets
a. Revenues: ₹248 Cr in Q4 FY24, grew by 71% YoY and ₹805 Cr in FY24, grew by 64% YoY.
b. PBT: ₹133 Cr in Q4 FY24, grew by 123% YoY and ₹376 Cr in FY24, grew by 180% YoY.
c. Client Assets for Asset Services: ₹91,156 Cr as at end of Q4 FY24, grew by 109% YoY.
d. Robust primary & secondary capital markets and increased market share led to the growth in business revenue and profitability.
