Nuvama Wealth Managements Net Profit Soars in Q3

Mumbai, February 13: Nuvama Wealth Management, formerly known as Edelweiss Securities, announced a significant increase in its net profit for the December quarter. The company's net profit nearly doubled to Rs 178 crore, compared to Rs 90 crore in the same period the previous year. This growth was driven by an all-round expansion in fee-based businesses.

Representative image

Revenue and Expenses

Nuvama Wealth Management's revenue also witnessed a substantial rise of 38% in the December quarter, reaching Rs 558 crore. This momentum continued for the first nine months of the fiscal year, with revenue climbing by 29% to Rs 1,467 crore. However, the company's expenses also increased by 21% during the quarter, from Rs 270 crore to Rs 328 crore.

Sebi Approval for Alternative Investment Fund

In a significant development, Nuvama Group Managing Director & Chief Executive, Ashish Kehair, revealed that the company has received approval from the Securities and Exchange Board of India (Sebi) for its Alternative Investment Fund (AIF). This AIF will be established as an equal joint venture with Cushman and Wakefield.

Kehair stated, "We obtained the Sebi approval a few days ago for the Rs 3,000 crore realty fund that we announced with Cushman and Wakefield last month. With the regulatory approvals in place, we will commence road shows shortly to attract investors."

Wealth Management and Private Wealth

Nuvama Wealth Management's wealth management revenue grew by 18% to Rs 305 crore in the third quarter, while the pre-tax profit increased by 19% to Rs 111 crore. The company added 40,000 new customers to its wealth arm, bringing the total client base to 11.35 lakh, with 2 lakh clients managed by relationship managers.

Nuvama Private, on the other hand, added 160 family offices and now manages an AUM of Rs 1.68 lakh crore, up from Rs 1.51 lakh crore in December 2022. The overall AUM of Nuvama Wealth Management rose to Rs 2.4 lakh crore from Rs 1.8 lakh crore a year ago, making it the second-largest player in the industry after 360 One (formerly IIFL Wealth).

Strategic Priorities and Future Plans

Kehair attributed the company's success to the execution of strategic priorities and the continued attraction of talent in wealth management. The number of relationship managers has reached 1,100, and Nuvama Wealth Management plans to launch an offshore wealth platform in the upcoming quarters, starting with Dubai and Singapore.

Nuvama Wealth Management's strong performance in the December quarter reflects the company's commitment to growth and innovation. With Sebi's approval for the AIF and plans to expand its global reach, Nuvama Wealth Management is well-positioned to capitalize on the opportunities presented by India's growing economy and expanding digital landscape.