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Motilal Oswal Financial Services Ltd. announced its results for the quarter ended June 30, 2024 post approval by the Board of Directors at a meeting held in Mumbai on July 25, 2024.

Key Highlights for Q1FY25

·Consolidated PAT including Other Comprehensive Income (OCI) of Rs. 1,021 cr, up 52% YoY and RoE of 44%.

·Consolidated operating net revenue of Rs. 1,133 cr, up 32% YoY

·Consolidated operating PAT of Rs. 431 cr, up 41% YoY

·Assets under Advice (AUA) crossed Rs. 5 lakh crore mark.

·Wealth Management business PAT of Rs. 177, up 69% YoY

·Asset & Private Wealth Management business PAT of Rs. 157 cr, up 30% YoY

·Capital market business PAT of Rs. 57 cr

·Housing finance business PAT of Rs. 28 cr

·Robust Net worth of Rs. 9,784 cr as of June 30, 2024 up 41% YoY

·ICRA has upgraded the rating outlook from AA Stable to AA Positive

·Motilal Oswal Financial Services is celebrating its 37^th Foundation Day on 26^th July, 2024

Speaking on the transition of Broking & Distribution to Wealth Management, Mr. Motilal Oswal, MD & CEO said, “Today’s investors are more informed and seek personalized, holistic investment advice that considers long-term financial goals. They desire comprehensive wealth management strategies that encompass diverse asset classes, retirement planning, and tax optimization, moving beyond mere transactional services. Modern investors are driven by a sense of purpose, expecting meaningful engagement and purpose-driven advice from their financial advisors. As we transition from traditional services to Wealth Management services, our aim is to enhance client relationships and offer comprehensive financial solutions that align with their aspirations for wealth creation and preservation. The business is well geared to meet the varied client needs through our integrated wealth platform, bespoke research, a vast partner network of 8,800+ external wealth managers, 2,000+ internal advisors, large HNI client base, geographical footprint covering 98% of pincodes and open architecture for product distribution. We are well-positioned for this transformation. It is a strategic evolution that reflects our dedication to providing holistic, purpose-driven financial solutions, enabling us to better serve our clients and help them achieve their financial aspirations with confidence and clarity.”

Performance of Business Segments for the quarter ended June 30, 2024

Wealth Management

·Net Revenue for Wealth Management grew to Rs. 530 cr, up 42% YoY in Q1FY25.

·PAT in Q1FY25 grew to Rs. 177 cr, up 69% YoY.

·Strong blend of 2,000+ internal Relationship Managers and 8,800+ External Wealth Managers

·Total Assets under advice grew to 2,65,113 cr, up 105% YoY. Distribution AUM grew by 42% YoY at Rs. 26,171 cr as of June 30, 2024. Distribution Net Sales grew to Rs. 1,449 cr.

·Cash market share in Q1FY25 grew to 8.0%, up 186 bps YoY.

·F&O Premium market share in Q1FY25 grew to 9.5% up 225 bps YoY.

·Acquired 1.5 Lakh clients in Q1FY25.

·Extensive Geographic reach of 2,500+ business location covering 98% of the PIN codes

Capital Market

·Capital markets comprise of Institutional Equities and Investment Banking business.

·Net Revenue for Q1FY25 stood at Rs. 134 cr. PAT for Q1FY25 was Rs. 57 cr.

·Strong team 50+ research & corporate access team covering 300+ companies, 24 sectors catering to 850+ institutional clients

·Investment Banking has successfully completed 6 deals with an issue size of Rs. 5,369 cr during the quarter

·Ranked #1 on the QIP league table in Q1FY25.

Asset & Private Wealth Management businesses

·Asset & Private Wealth Management segment comprise of Asset Management, Private Equity and Private Wealth Management businesses.

·Net revenues for Q1FY25 was Rs 385 cr, up 32% YoY. PAT was Rs. 157 cr up 30% YoY.

·Asset Management business AUM across MF, PMS & AIF grew to Rs. 87,580 cr, up 70% YoY. Net revenue for Q1FY25 was to Rs. 164 cr, up 46% YoY.

·Strong performance across MF, PMS & AIF schemes resulted in gross sales of Rs. 8,840 cr in QFY25, up 299% YoY

·Net flows have increased from negative Rs. 1,020 cr in Q1FY24 to positive Rs. 5,021 Cr in Q1FY25

·MF AUM grew to Rs. 60,508 cr, up 81% YoY.

·Alternates AUM grew to Rs. 27,072 cr, up 50% YoY. AIF AUM crossed Rs. 12,000 cr mark

·Added 5.70 Lakh new SIPs in Q1FY25. SIP flow for Q1FY25 stood at Rs. 1,198 cr. SIP AUM stood at Rs. 14,606 cr

·Private Equity business fee earning AUM of Rs. 10,640 cr across growth capital funds and Real Estate funds. In Q1FY25 net revenues stood at Rs. 36 cr.

·Private Wealth AUM grew by 65% YoY at Rs. 1,38,863 cr as on June 30, 2024. Net Revenue for Q1FY25 grew to Rs. 185 cr, up 27% YoY.

·Total RM grew to 576, up 37% YoY which has led to increase in the operating expenses. 31% of RM's have a vintage of more than 3 years.

Housing finance business

·Motilal Oswal Home Finance profit for Q1FY25 was Rs 28 cr.

·AUM grew to Rs 4,122 cr as on June 30, 2024, up 9% YoY.

·Disbursements grew sharply to Rs 252 cr in Q1FY25, up 171% YoY.

·Net Interest Income for Q1FY25 stood at Rs 83 cr, up 9% YoY.

·Yield on advances in Q1FY25 stood at 14.0%, Cost of funds 8.4% and spreads at 5.6%.

·Sales RM strengthen to 951 RMs, up 117% YoY, resulting into higher cost to income ratio.

·GNPA/NNPA as on June 30, 2024 stood at 1.17%/0.63% respectively.

·Net Gearing stands at 2.0x and CRAR remains robust at 46.5%. ROA of 2.6% in Q1FY25

Treasury investments includes sponsor commitments to our AMC, PE & RE funds and strategic equity investments.

·Total equity investment including alternate funds grew to Rs 7,021 Crores as of June 30, 2024 up 47% YoY. Robust XIRR since inception of 19.6%

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