(Alliance News) - Aberdeen New India Investment Trust PLC on Monday said profit and net asset value per share were down, while stressing its NAV per share total return was positive despite a turbulent half year.

The India-focused investment trust said its pretax profit in the six months that ended September 30 was GBP23.3 million, down 71% from GBP79.8 million a year earlier. NAV per share was down 1.0% to 738.57 pence from 745.95p.

Shares in Aberdeen New India were down 0.7% to 564.00p each in London on Monday morning.

Aberdeen New India said the half year period still resulted in a NAV total return increase of 5.9% despite rising prices causing concern. It said this was driven by growing post-pandemic consumer demand for goods, services and travel, and then further exacerbated by the war in Ukraine causing commodity prices to soar.

NAV total return still underperformed compared to comparator benchmark MSCI India Index's return of 8.9%. Aberdeen New India said this was due to positive allocation not fully offsetting negative stock selection.

Outlook remained positive. It said the Indian central bank and government were in a good position to withstand further macroeconomic shocks, due to a relatively high pool of foreign currency reserves and low levels of public debt.

Aberdeen New India added it was keen to ensure new Indian market opportunities were not overlooked in light of stressing favourable long-term trends, such as an expanding Indian middle class with a young population, more wealth and higher levels of disposable income.

"Business-friendly policies facilitate opportunities for domestic corporations and multinational companies alike. After performing below its potential over the last decade, due to a multitude of painful but necessary reforms, together with the effect of the pandemic, India is poised for a cyclical rebound," said Chair Michael Hughes.

"We expect our core quality holdings to continue to deliver resilient compounding earnings growth over the medium term, come what may in terms of macro conditions. The consistency of earnings growth within the portfolio remains healthy and fundamentals, including pricing power, strong balance sheets and the ability to sustain margins, remain solid," added Investment Managers Kristy Fong and James Thom.

Aberdeen New India declared no interim dividend for the period.

By Greg Rosenvinge; gregrosenvinge@alliancenews.com

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