ICICI Prudential AMC Reports 10.4 Percent Profit Growth
The firm posted a profit of 7.63 billion rupees as domestic retail investors increased equity holdings. Revenue grew 19.5 percent despite market volatility.
India’s ICICI Prudential Asset Management Company reported a 10.4% rise in fourth-quarter profit, reaching 7.63 billion rupees ($81.76 million) for the period ending March 31. This growth, up from 6.92 billion rupees a year earlier, was primarily driven by substantial domestic capital inflows as local investors capitalized on market corrections.
Revenue from operations for the asset manager climbed 19.5% to 15.17 billion rupees. The firm, which is the country’s most valuable asset manager by market capitalization, also declared a dividend of 12.4 rupees per share. The quarterly average assets under management for its mutual funds saw a 24.9% expansion, largely supported by the performance of equity-based funds.
The surge in domestic participation helped mitigate the impact of significant foreign portfolio divestments. Inflows into equity mutual funds jumped 56% to an eight-month high in March, according to data from the Association of Mutual Funds in India. This retail-led momentum occurred even as global investors pulled back due to concerns over rising Brent Crude Oil prices and geopolitical instability involving Iran.
The asset management firm operates as a joint venture between ICICI BANK LTD, the second-largest private lender in the region, and PRUDENTIAL PLC, a major insurer based in the United Kingdom. Since its trading debut on December 19, the company’s shares have gained approximately 30%.
Despite the firm’s positive results, the broader equity market faced downward pressure during the quarter. The benchmark Nifty 50 index fell by 14.5%, impacted by heightening inflation and economic growth concerns as international tensions escalated.
