Nuvama Wealth Management Limited Announces Q3 FY24 Results, Demonstrating Strong Year-over-Year Growth of 66% in Operating PAT

Mumbai, 13th February 2024: 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 ending 31st December 2023. Nuvama Group: Consolidated Performance Revenues: Q3 FY24 stood at ₹558 Cr, grew by 38% YoY and 9M FY24 at ₹1,467 Cr, grew by 29% YoY.Operating Profit After Tax (PAT): Q3 FY24 stood at ₹176 Cr, grew by 66% YoY and 9M FY24 at ₹416 Cr, grew by 64% YoY.Sustained growth in Wealth and Asset Management, 9M FY24 revenues grew by 18% YoY and profitability grew by 26% YoY. Capital Markets continued to witness exceptional performance in line with macros. Particulars - ₹ Cr Q3 FY24 Q3 FY23 YoY % 9M FY24 9M FY23 YoY %Revenues 558 404 38% 1,467 1,136 29%Costs 328 270 21% 922 800 15%Operating Profit Before Tax (PBT) 230 133 73% 545 335 63%Operating Profit After Tax (PAT) 176 106 66% 416 253 64% Commenting on the performance Ashish Kehair, MD & CEO of Nuvama Group said, “The economic growth momentum for India has been strong in 2023 and our integrated platform captured many of the growing opportunities. In Q3 all our segments performed exceptionally well. We recorded 38% YoY increase in revenues and 66% YoY increase in Operating PAT, an endorsement of our strategy and a testament to our unique integrated wealth management platform built over years. Our businesses benefited from strong execution of strategic priorities in Q3. In wealth management, our platform continues to attract talent and we have further invested in human capital for growth. Our relationship manager count now stands at ~1100. We deepened our presence in existing locations and have also expanded to new cities. We upgraded our technology platforms for our relationship managers and external wealth managers in our Nuvama Wealth business to improve sales and service efficiency. These initiatives have helped keep our revenues streams diversified and of high quality. In the coming few quarters, we plan to launch our offshore wealth proposition starting with Dubai and Singapore. In Asset Management, we have been focused on completing our product suite and expanding distribution. We announced launch of our new commercial real estate fund of ₹ 3,000 Cr, a 50:50 JV with Cushman and Wakefield. In Capital Markets, we continued to retain our dominant position in respective segments, leveraging the market buoyancy. Overall we will remain steadfast in our strategic vision and are excited to continue ‘doing it right’ for our customers, employees, and stakeholders. Heading into 2024, we believe the growth momentum will continue as India will reap benefits of the reforms undertaken and its steady focus on business stability, job creation, industrialization, and an expanding digital economy. We expect the rate of wealth creation will continue to outpace economic growth rate, driven by financialization and increasing penetration of organised wealth management. Our fundamentals remain robust, and our business is well positioned to continue to benefit from these tailwinds.” Key Highlights Wealth ManagementRevenues: ₹305 Cr in Q3 FY24, grew by 18% YoY and ₹858 Cr in 9M FY24, grew by 17% YoY.PBT: ₹111 Cr in Q3 FY24, grew by 19% YoY and ₹303 Cr in 9M FY24, grew by 27% YoYClient Assets: ₹2,41,837 Cr as at end of Q3 FY24, grew by 29% YoY.Relationship Managers (RMs): Added ~15 RMs in Nuvama Private and ~100 RMs in Nuvama Wealth in last 9M, taking our RM count to ~1,100.Nuvama Wealth: Revenues and net flows from Managed Products & Investment Solutions (MPIS) continues to be strong. In 9M FY24, MPIS accounted for 80% of net flows received.Nuvama Private: Revenue from Annual Recurring Revenue (ARR) earning assets continues to grow at a faster rate, 9M FY24 grew by 25% YoY. Asset Management Revenues (ex-carry): ₹14 Cr in Q3 FY24, grew by 29% YoY and ₹37 Cr in 9M FY24, grew by 37% YoY.AUM: ₹6,573 Cr as at end of Q3 FY24, grew by 27% YoY, of which Public Markets AUM stood at ₹ 1,672 Cr, grew by 120% YoY. Commercial Real Estate (CRE) fund launched, a 50:50 joint venture with Cushman & Wakefield. Capital MarketsRevenues: ₹237 Cr in Q3 FY24, grew by 79% YoY and ₹557 Cr in 9M FY24, grew by 62% YoY.PBT: ₹121 Cr in Q3 FY24, grew by 202% YoY and ₹243 Cr in 9M FY24, grew by 225% YoY.Client Assets for Asset Services: ₹82,965 Cr as at end of Q3 FY24, grew by 88% YoY.Continued to witness exceptional performance in line with the surge in primary and secondary equity market activities. About Nuvama Group Nuvama has built a strong foundation of trust and reputation in the Indian market over 25 years. As one of India’s leading integrated wealth management firm in India, Nuvama oversees ₹3,31,375 Cr of client assets and caters to a diverse set of clients which includes ~11 lac affluent and HNIs and ~3,500 of India’s most prosperous families, as of Q3 FY24. Nuvama offers wealth management solutions, covering investment advisory, estate planning, investment management, lendin

JR Choudhary

Wed, 14 Feb 2024 05:17 PM (IST)

Nuvama Wealth Management Limited Announces Q3 FY24 Results, Demonstrating Strong Year-over-Year Growth of 66% in Operating PAT

Mumbai, 13th February 2024: 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 ending 31st December 2023.

Nuvama Group: Consolidated Performance

Revenues: Q3 FY24 stood at ₹558 Cr, grew by 38% YoY and 9M FY24 at ₹1,467 Cr, grew by 29% YoY.

Operating Profit After Tax (PAT): Q3 FY24 stood at ₹176 Cr, grew by 66% YoY and 9M FY24 at ₹416 Cr, grew by 64% YoY.

Sustained growth in Wealth and Asset Management, 9M FY24 revenues grew by 18% YoY and profitability grew by 26% YoY. Capital Markets continued to witness exceptional performance in line with macros.

Particulars - ₹ Cr Q3 FY24 Q3 FY23 YoY

% 9M

FY24 9M

FY23 YoY

Revenues 558 404 38% 1,467 1,136 29%

Costs 328 270 21% 922 800 15%

Operating Profit Before Tax (PBT) 230 133 73% 545 335 63%

Operating Profit After Tax (PAT) 176 106 66% 416 253 64%

Commenting on the performance Ashish Kehair, MD & CEO of Nuvama Group said, “The economic growth momentum for India has been strong in 2023 and our integrated platform captured many of the growing opportunities. In Q3 all our segments performed exceptionally well. We recorded 38% YoY increase in revenues and 66% YoY increase in Operating PAT, an endorsement of our strategy and a testament to our unique integrated wealth management platform built over years.

Our businesses benefited from strong execution of strategic priorities in Q3. In wealth management, our platform continues to attract talent and we have further invested in human capital for growth. Our relationship manager count now stands at ~1100. We deepened our presence in existing locations and have also expanded to new cities. We upgraded our technology platforms for our relationship managers and external wealth managers in our Nuvama Wealth business to improve sales and service efficiency. These initiatives have helped keep our revenues streams diversified and of high quality. In the coming few quarters, we plan to launch our offshore wealth proposition starting with Dubai and Singapore. In Asset Management, we have been focused on completing our product suite and expanding distribution. We announced launch of our new commercial real estate fund of ₹ 3,000 Cr, a 50:50 JV with Cushman and Wakefield. In Capital Markets, we continued to retain our dominant position in respective segments, leveraging the market buoyancy. Overall we will remain steadfast in our strategic vision and are excited to continue ‘doing it right’ for our customers, employees, and stakeholders.

Heading into 2024, we believe the growth momentum will continue as India will reap benefits of the reforms undertaken and its steady focus on business stability, job creation, industrialization, and an expanding digital economy. We expect the rate of wealth creation will continue to outpace economic growth rate, driven by financialization and increasing penetration of organised wealth management. Our fundamentals remain robust, and our business is well positioned to continue to benefit from these tailwinds.”

Key Highlights

Wealth Management

Revenues: ₹305 Cr in Q3 FY24, grew by 18% YoY and ₹858 Cr in 9M FY24, grew by 17% YoY.

PBT: ₹111 Cr in Q3 FY24, grew by 19% YoY and ₹303 Cr in 9M FY24, grew by 27% YoY

Client Assets: ₹2,41,837 Cr as at end of Q3 FY24, grew by 29% YoY.

Relationship Managers (RMs): Added ~15 RMs in Nuvama Private and ~100 RMs in Nuvama Wealth in last 9M, taking our RM count to ~1,100.

Nuvama Wealth: Revenues and net flows from Managed Products & Investment Solutions (MPIS) continues to be strong. In 9M FY24, MPIS accounted for 80% of net flows received.

Nuvama Private: Revenue from Annual Recurring Revenue (ARR) earning assets continues to grow at a faster rate, 9M FY24 grew by 25% YoY.

Asset Management

Revenues (ex-carry): ₹14 Cr in Q3 FY24, grew by 29% YoY and ₹37 Cr in 9M FY24, grew by 37% YoY.

AUM: ₹6,573 Cr as at end of Q3 FY24, grew by 27% YoY, of which Public Markets AUM stood at ₹ 1,672 Cr, grew by 120% YoY.

Commercial Real Estate (CRE) fund launched, a 50:50 joint venture with Cushman & Wakefield.

Capital Markets

Revenues: ₹237 Cr in Q3 FY24, grew by 79% YoY and ₹557 Cr in 9M FY24, grew by 62% YoY.

PBT: ₹121 Cr in Q3 FY24, grew by 202% YoY and ₹243 Cr in 9M FY24, grew by 225% YoY.

Client Assets for Asset Services: ₹82,965 Cr as at end of Q3 FY24, grew by 88% YoY.

Continued to witness exceptional performance in line with the surge in primary and secondary equity market activities.

About Nuvama Group

Nuvama has built a strong foundation of trust and reputation in the Indian market over 25 years. As one of India’s leading integrated wealth management firm in India, Nuvama oversees ₹3,31,375 Cr of client assets and caters to a diverse set of clients which includes ~11 lac affluent and HNIs and ~3,500 of India’s most prosperous families, as of Q3 FY24. Nuvama offers wealth management solutions, covering investment advisory, estate planning, investment management, lending and broking services for individuals, institutions, CXOs, professional investors, and family offices. It also offers a wide bouquet of alternative asset management products and is a leading player in capital markets.

For more details, please visit: https://www.nuvama.com