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Motilal Oswal Financial Services Ltd. announced its results for the quarter and half year ended September 30, 2023 post approval by the Board of Directors at a meeting held in Mumbai on November 1, 2023.

  Performance for the quarter ended September 30, 2023:

• Reported Highest ever consolidated half yearly PAT of Rs. 1,058 cr
• Consolidated revenue stood at Rs 1,416 cr, up 30% YoY/11% QoQ in Q2FY24.
• Consolidated operating profit after tax (PAT) for Q2FY24 was Rs 288 cr, up 26% YoY/18% QoQ in Q2FY24.
• Highest ever quarterly Capital market business PAT of Rs 180 cr, up 33% YoY/14% QoQ.
• Asset & Wealth businesses PAT was Rs 68 cr in Q2FY24, up 2% YoY/ 4% QoQ.
• Housing finance business PAT was Rs 33 cr in Q2FY24, up 14% QoQ.

Speaking on the performance of the company, Mr. Motilal Oswal, MD & CEO said “We have delivered robust performance in Q2FY24. Our Capital market business has demonstrated remarkable performance, reporting an all-time high quarterly profit and strengthening our retail market share position in Cash and F&O segment to 7.1% & 7.5% respectively. We continue to focus on our strategy to diversify our businesses towards linear sources of earnings. Our Asset and Wealth Management AUM reached Rs 1.38 lakh cr. Our Asset Management business has seen improvement in performance & flows and is likely to gain from process driven investing and its niche offerings. The Wealth Management business is on its way to achieve scale as we have strengthened our leadership team and continued investments in Relationship Managers. Additionally, we are pleased to share that our launch of 6th Real Estate fund, adding to our diverse investment products. Furthermore, in our HFC business, we aim strengthen sales force and improve productivity for strong disbursements and AUM growth. We firmly believe that each of our businesses possesses immense potential and is well-positioned to leverage the numerous opportunities present in the market. As we move forward, we shall continue to pursue our strategic objectives diligently, aiming for sustained growth and continued excellence across all our operations.”

Performance of Business Segments for the quarter and year ended September 30, 2023

Capital markets Businesses (Broking & Investment banking)

*    Capital markets comprise of Retail Broking and Distribution, Institutional Equities and Investment Banking business. Revenues for this segment were Rs 1,019 cr, +41% YoY/15% QoQ in Q2FY24.

*    PAT grew by 33% YoY/14% QoQ to Rs 180 cr in Q2FY24.

*    Overall ADTO grew 137% YoY / 27% QoQ.

*    In Retail Broking & Distribution, Retail Cash ADTO market share grew by 121 bps YoY/88 bps QoQ to 7.1%. 

*    Retail F&O ADTO market share grew by 74 bps YoY/26 bps QoQ to 4.6%. Retail F&O Premium market share stood at 7.5% up 30 bps QoQ.

*    NSE active clients stood at 7.98 lakhs as of September 2023. Acquired 1,91,443 clients in Q2FY24.

*    Distribution AUM grew by 24% YoY at Rs 24,992 cr as of September 30, 2023. Distribution Net Sales of Rs 619 cr during Q2FY24.

*    Investment Banking successfully completed 8 deals in H1FY24. Further, there is a strong pipeline of ECM mandates, which is expected to fructify in coming quarters.

*      Asset & Wealth Management businesses (AMC, PE and PWM)

*    Overall Asset and Wealth Management revenues were Rs 253 cr in Q2FY24, up 8% YoY. Profits were Rs 68 cr in Q2FY24, up 2% YoY.

*    Our share of Alternate assets, comprising of PMS & AIF, is one of the highest among AMC peers at ~44%.

*    Asset Management business AUM across MF, PMS & AIF stood at Rs 55,144 cr, +18% YoY/7% QoQ. Revenues for Q2FY24 stood at Rs 150 cr, +9% QoQ.

*    MF AUM stood at Rs 35,831 cr. Strong performance in across Equity Active schemes resulted in gross sales of Rs. 2,114 cr, up 47% YoY growth.

*    Our Alternate assets, 16 out of 19 schemes have outperformed the benchmark.

*    Added around 210,000 new SIPs in Q2FY24, up 283% YoY/62% QoQ. SIP flows market share improved by 47 bps YoY.

*    Private Equity business fee earning AUM of Rs 9,790 cr across 2 growth capital PE funds and 4 real estate funds. In Q2FY24, revenues grew by 18% YoY at Rs 46 cr

*    Wealth Management business AUM grew by 91% YoY/10% QoQ at Rs 73,391 cr as on September 30, 2023. Strong net sales of Rs 2,278 cr in Q2FY24, +66% YoY. Wealth business revenue grew by 11% YoY to Rs 57 cr in Q2FY24.

*    Added net 24 RMs in Q2FY24, taking total count to 221 RMs as on September 30, 2023. We will continue to invest in this business by further RM additions.

      Housing finance business

*    Motilal Oswal Home Finance reported profit of Rs 33 cr in Q2FY24.

*    NII grew by 4% YoY in Rs 77 cr and NIM stood at 7.7% in Q2FY24.

*    AUM of Rs 3,758 cr as on September 30, 2023.

*    Disbursements of Rs 197 cr in Q2FY24, up 111% QoQ.

*    Yield on advances increased to 14.2%, up 30 bps YoY and spread stood at 6.0%.

*    Net Gearing stands at 2.0x and CRAR remains robust at 52.4%.

*    Strengthened our Sales RM team. Hired net 187 Sales RM during Q2FY24.

*      Fund based investments includes sponsor commitments to our AMC, PE funds, RE funds and strategic equity investments.

*    Total investment including unrealized gains was Rs 5,466 cr as of September 30, 2023.

*     Total equity investment including alternate funds was at Rs 5,105 cr as of September 30, 2023 which generated XIRR of 17.5% since inception.

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