Q1 2027 Nuvama Wealth Management Ltd Earnings Call Transcript
Key Points
- Record quarterly performance with client assets crossing Rs 5 lakh crore, quarterly revenues exceeding Rs 900 crore, and PAT surpassing Rs 300 crore, an all-time high.
- Strong growth in the MPIS model with revenue up 20% year-on-year and net new money crossing Rs 3,000 crore, one of the highest quarters ever.
- Successful closure of the first commercial real estate fund at Rs 4,000 crore, exceeding the initial target of Rs 3,000 crore, with plans for a second fund and a potential REIT platform.
- Offshore business is gaining traction with Dubai breaking even and Singapore expected to break even by year-end, contributing to a highly accretive ROE model with no capital usage for lending.
- Asset services segment saw significant business growth of around 20% quarter-on-quarter, with full-year revenue growth expected to be more than 20%-25%.
- Credit rating upgraded by Crisil from AA- to AA (stable), reflecting the company's financial strength.
- Intense competition in the private wealth segment for relationship managers, leading to increased costs and pressure on retention.
- Net new money into managed accounts (ARR) was slightly soft at Rs 1,000 crore due to the deliberate weeding out of extremely low-cost, historical mandates.
- Asset management business is expected to incur a cumulative loss of around Rs 35-40 crore this year due to investments in new categories and the MF license, with a path to break-even only after that.
- Primary market activity was very selective with only 8 IPOs in Q1 compared to 15 in Q4, and total fundraise fell by around 60%-65%.
- Some fixed income revenue of about Rs 15-20 crore is considered non-repeatable, stemming from a one-time market opportunity related to tax-free G-Sec capital gains.
- Operating expenses increased by 24% year-on-year, partly due to seasonal marketing and business promotion expenses, and the company is also looking for a new office which could add to future costs.
Ladies and gentlemen, good day and welcome to the Nuvama Wealth Management Limited Q1 FY27 Earnings Conference Call.
As a reminder, all participant lines will remain in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal the operator by pressing then 0 on your touchstone telephone.
Please note that this conference is being recorded.
I will now hand the conference over to Mr. Ashish Kehai, MD and CEO for opening remarks.
Thank you. And over to you, sir.
Thank you.
Thank you so much.
Good afternoon, everyone, and a very warm welcome to all of you for joining us today.
As always, it's a pleasure to connect with you all. Joining me today on the call is Bharat, our Group CFO, along with our investor relations advisor, SGA.
We'll begin with a
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