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Motilal Oswal Financial Services has
posted 80.97% surge in the net profit to Rs 536.51 crore in the quarter ended September
2021 (Q2FY2022). The income from operation increased 63.80% to Rs 1307.92 crore
as on 30 September 2021. The revenue of Fund Based Activities (22.73% of total
revenues) segment has gone up 65.24% to Rs 336.33 crore. The revenue of Asset
Management & Advisory (27.20% of total revenues) segment has gone up
122.59% to Rs 402.48 crore. The revenue of Home Finance (8.97% of total
revenues) segment has gone down 2.37% to Rs 132.75 crore. The revenue of
Capital market (41.11% of total revenues) segment has gone up 43.62% to Rs
608.36 crore.
PBIT of Fund Based Activities
segment rose 69.12% to Rs 327.01 crore (accounting for 48.40% of total PBIT). PBIT
of Asset Management & Advisory segment rose 146.21% to Rs 155.46 crore
(accounting for 23.01% of total PBIT). PBIT of Home Finance segment rose 65.56%
to Rs 27.93 crore (accounting for 4.13% of total PBIT). PBIT of Capital market
segment rose 42.51% to Rs 165.18 crore (accounting for 24.45% of total PBIT).
The Capital employed for Fund Based
Activities (63.71% of total) segment has gone up 59.29% to Rs 3,469.90 crore. The
Capital employed for Asset Management & Advisory (4.54% of total) segment
has gone up 85.05% to Rs 247.39 crore. The Capital employed for Home Finance
(16.45% of total) segment has gone up 11.18% to Rs 895.77 crore. The Capital
employed for Capital market (15.31% of total) segment has gone up 85.29% to Rs
833.72 crore.
Overall OPM has increased to 59.69%
as on 30 September 2021 from 52.68% as on 30 September 2020, leading to 85.61%
rise in operating profit to Rs 780.70 crore. Other expenditure as a percentage
of total income moved down to 22.19% from 25.48% as on 30 September 2021. The
staff cost as a percentage of total income declined to 16.06% from 18.86% as on
30 September 2021. The provisions as percentage of total income declined to
2.07% from 2.98% as on 30 September 2021.
Other income increased 946.15% to Rs
4.08 crore. Interest cost increased 3.20% to Rs 112.59 crore. Depreciation
moved up 15.26% to Rs 13.14 crore. PBT moved up 119.32% to Rs 659.05 crore.
The effective tax rate declined to
16.63% as on 30 September 2021 compared to 21.58% as on 30 September 2020. .Provision
for tax was expense of Rs 109.58 crore, compared to Rs 64.84 crore. Profit
after tax rose 133.16% to Rs 549.47 crore.
There was profit attributable to
non-controlling interest of Rs 12.26 crore as compared to Rs 2.46 crore. Finally,
Net profit attributable to owners moved up 80.97% to Rs 536.51 crore.
Key Performance highlights
• Most of our businesses have delivered strong and sustainable
performance in Q2FY22 and H1FY22.
• Our Asset under Advisory (AUA) stood at Rs 2.9 tn mark led by
all-time high AUM across AMC, Wealth and Distribution businesses.
• Our organizational talent has reached over 8,600 serving over
3.4 mn clients.
• Our Net worth has crossed Rs 50 bn mark.
• Capital Markets – Highest ever broking revenue and profit in Q2
& H1FY22, growth in client addition led by traction in digital acquisition
channel, 96% growth in ADTO, 70 bps QoQ rise in cash market share, strong
growth in active clients, Investment banking participated in 3 IPOs and 1 OFS.
• Asset Management– Highest ever AUM, gross & net sales
gaining traction, strong response to AIFs offerings, increase in SIP addition,
continued traction in our international passive offerings. IREF V has achieved
its 2nd close at Rs 8.1 bn. Launch of largest ever PE growth IBEF-IV fund with
target size of Rs 40 bn.
• Home Finance – India Ratings assigned IND AA rating, outlook
upgraded by CRISIL to AA-/ Positive and rating upgraded by ICRA to ICRA
AA-/stable, Strong pick-up in disbursements, traction in login/sanction
pipeline, expansion in sales force and sharp reduction in cost of funds driving
margin expansion.
• Consolidated net worth is at all-time high at Rs 51.7 bn, net
debt is Rs 40.5 bn. Excluding Home finance, net debt is Rs 17.1 bn. Total D/E
declined to 0.9x. Ex-MOHF D/E stood at 0.5x. Net of investments, we have a net
cash balance sheet. RoE for H1FY22 stands at 37%.
Speaking on the performance of the company, Motilal Oswal, MD
& CEO said “All of our businesses has delivered strong & sustainable
performance in H1FY22. Last financial year was a landmark year for us with
highest ever revenues and profits. This year also we are witnessing similar
trend and we delivered highest ever quarterly & half yearly operating
profit. Our retail broking business which is our cash cow business has achieved
new highs on various parameters and benefitting from market expansion and
industry consolidation with its knowledge driven phygital offerings. Our
Institutional Broking business has been ranked #1 as local brokerage house in
Asiamoney poll 2020. Our strategy to invest business profits in our own equity
investment products has registered highest ever profits and as result our Net
worth has touched new high. Moreover, our strategy to diversify our business
model towards linear sources of earnings continues to deliver results. Our
Asset Management business is likely to gain from process driven investing and its
niche offerings. Our Housing finance business is geared up for profitable
growth. Each of our 7 businesses offers headroom for growth. “
Financial performance H1FY2022
The income from operation of Motilal
Oswal Financial Services increased 45.16% to Rs 2195.05 crore as on 30 September
2021. The revenue of Fund Based Activities (18.28% of total revenues) segment
has gone up 27.01% to Rs 447.17 crore. The revenue of Asset Management &
Advisory (24.85% of total revenues) segment has gone up 83.70% to Rs 607.84
crore. The revenue of Home Finance (11.02% of total revenues) segment has gone
up 0.13% to Rs 269.60 crore. The revenue of Capital market (45.85% of total
revenues) segment has gone up 46.17% to Rs 1,121.61 crore.
PBIT of Fund Based Activities
segment rose 29.27% to Rs 430.89 crore (accounting for 44.13% of total PBIT). PBIT
of Asset Management & Advisory segment rose 119.84% to Rs 230.94 crore
(accounting for 23.65% of total PBIT). PBIT of Home Finance segment fell 4.27%
to Rs 39.24 crore (accounting for 4.02% of total PBIT). PBIT of Capital market
segment rose 159.15% to Rs 275.30 crore (accounting for 28.20% of total PBIT).
The Capital employed for Fund Based
Activities (181.05% of total) segment has gone up 59.29% to Rs 3,469.90 crore. The
Capital employed for Asset Management & Advisory (12.91% of total) segment
has gone up 85.05% to Rs 247.39 crore. The Capital employed for Home Finance
(-137.46% of total) segment has decreased to 2,634.49 crore from positive
figure of Rs 805.72 crore. The Capital employed for Capital market (43.50% of
total) segment has gone up 85.29% to Rs 833.72 crore.
Overall OPM eased to 53.82% as on 30
September 2021 from 54.08% as on 30 September 2020, leading to 44.47% rise in
operating profit to Rs 1,181.37 crore. Other expenditure as a percentage of
total income moved up to 25.23% from 23.88% as on 30 September 2021. The staff
cost as a percentage of total income declined to 17.78% from 19.42% as on 30
September 2021. The provisions as percentage of total income increased to 3.17%
from 2.63% as on 30 September 2021.
Other income increased 219.90% to Rs
6.59 crore. Interest cost increased 0.41% to Rs 218.78 crore. Depreciation
moved up 11.02% to Rs 24.39 crore. PBT moved up 92.43% to Rs 944.79 crore.
The effective tax rate increased to
18.54% as on 30 September 2021 compared to 18.45% as on 30 September 2020. Provision
for tax was expense of Rs 175.21 crore, compared to Rs 90.58 crore. Profit
after tax rose 92.21% to Rs 769.58 crore.
There was profit attributable to
non-controlling interest of Rs 12.42 crore as on 30 September 2021 as compared
to Rs 4.44 crore as on 30 September 2020. The share of profit of associate
companies decreased 99.38% to Rs 0.42 crore. Finally, Net profit attributable
to owners rose 63.48% yoy to Rs 757.58 crore as on 30 September 2021.
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Motilal Oswal
Financial Services : Consolidated Results
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Particulars
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2109 (3)
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2009 (3)
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Var %
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2109 (6)
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2009 (6)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Income from Operations
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1,307.92
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798.47
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64
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2,195.05
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1,512.16
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45
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3,564.66
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2,319.09
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54
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OPM (%)
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59.69
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52.68
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701 bps
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53.82
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54.08
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-26 bps
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56.58
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34.99
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2,159 bps
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OP
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780.70
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420.61
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86
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1,181.37
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817.73
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44
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2,016.95
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811.51
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149
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Other Inc.
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4.08
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0.39
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946
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6.59
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2.06
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220
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5.44
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7.86
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-31
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PBDIT
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784.78
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421.00
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86
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1,187.96
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819.79
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45
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2,022.39
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819.37
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147
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Interest
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112.59
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109.10
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3
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218.78
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217.89
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0
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430.28
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494.47
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-13
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PBDT
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672.19
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311.90
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116
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969.18
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601.90
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61
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1,592.11
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324.90
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390
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Depreciation
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13.14
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11.40
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15
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24.39
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21.97
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11
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47.27
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39.71
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19
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PBT before EO
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659.05
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300.50
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119
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944.79
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579.93
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63
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1,544.84
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285.19
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442
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EO
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0.00
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0.00
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-
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0.00
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-88.96
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-
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-88.10
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0.00
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-
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PBT after EO
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659.05
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300.50
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119
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944.79
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490.97
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92
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1,456.74
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285.19
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411
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Tax Expenses
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109.58
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64.84
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69
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175.21
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90.58
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93
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259.05
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69.79
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271
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PAT
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549.47
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235.66
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133
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769.58
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400.39
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92
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1,197.69
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215.40
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456
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Profit attributable to
non-controlling interest
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12.26
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2.46
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398
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12.42
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4.44
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180
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14.01
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6.21
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126
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Share of Profit/(Loss)
from Associates
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-0.70
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63.26
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PL
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0.42
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67.45
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-99
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61.77
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-25.82
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LP
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Net profit
attributable to owners
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536.51
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296.46
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81
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757.58
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463.40
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63
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1,245.45
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183.37
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579
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EPS (Rs)*
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146.0
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80.7
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103.1
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63.0
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84.7
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12.5
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* Annualised on
current equity of Rs 14.70 crore, Face value of Rs 1, Excluding extraordinary
items.
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Figures in Rs crore
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Source: Capitaline
Corporate Database
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