AMCs, general insurers see growth in Q1 even as most firms report fall in revenues: Report

MUMBAI: Asset management companies and insurance companies saw some growth during Covid pandemic as per their June quarter audited results, a report said.

This comes at a time when top 200 companies in India saw a 30 per cent fall in their revenues in the quarter ended June due to Covid-19 pandemic as against the previous quarter this year, as per an EY India report.

The EY report– Impact of the pandemic on Indian corporate results— analysed top 200 listed companies (BSE 2000) based on their results announced in June quarter.

As per the report, EBITDA (earnings before interest, taxes, depreciation and amortisation) margins for most sectors also dipped in the June quarter compared to March quarter. Life sciences, oil and gas, power, and media were the only sectors that beat the trend and improved their EBITDA margins in the June quarter as against the March quarter.

“Growth in asset under management and profit after tax mainly on account of growth in digital subscriptions and higher subscriptions for gold fund. However, for one company in our dataset, there has been an addition to its institutional investors’ portfolio after it took over the management of funds from another company which exited the operations. There is a marginal drop in equity-oriented funds. However, it is pertinent to note that we only have two listed asset management companies in our data set,” the report said.

As far as insurance companies are concerned the increase in profit after tax was for two out of three general insurance companies in our dataset as a result of an increase in net written premium, the EY report said.

“This was mainly due to an increase in premium for health, fire and crop segment. There is a decline in premium income for the motor segment as new vehicle sales are much slower due to slack in economic activity. The overall fall in PAT is mainly on account of the loss reported by state-owned general insurance companies compared to the huge profit reported in the March 2020 quarter. As far as life insurance companies are concerned, the growth in profit is largely attributed to positive renewal premiums. However, new business premiums have been impacted, except in case of protection products,” the report added.

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