Motilal Oswal Financial Services posted a net profit of Rs 129 crore for the first quarter of current financial year, a rise of 25% from the previous year.
Motilal Oswal Financial Services posted a net profit of Rs 129 crore for the first quarter of current financial year, a rise of 25% from the previous year. Consolidated revenues stood at Rs 655 crore with asset and wealth business being the highest contributor to profit for the quarter, ahead of capital market business.
Asset & wealth management business contributed to 32% of the profit for the quarter, followed by capital market business at 28%, fund based investment 27% and Housing finance at 13%.
“Our strategy to diversify our business model towards linear sources of earnings continues to show results, with bulk of the revenue pie now coming from these new businesses. Asset & wealth businesses are now the largest contributor to profits. Our housing finance business also started contributing to consolidated profits and likely to scale up further in near future under the new leadership team,” chairman and MD Motilal Oswal said.
Consolidated net worth stood at Rs 3,232 crore, gross borrowing was at Rs 4,783 crore, while net borrowing stood at Rs 4,089 crore (including MOHFL). Asset management business across MF, PMS & AIF stood at Rs 38,809 crore worth of assets under management (AUM). Revenues and PAT stood at Rs 144 crore and Rs 36 crore, respectively. “Our Equity MF AUM of Rs 19,855 crore is just 1.9% of the Industry Equity AUM of Rs 10.4 lakh crore,” MOSL said in its release.
Overall asset and wealth management revenues were Rs 190 crore and contributed 29% of consolidated revenues. Profits were Rs 40 crore. Revenues for the capital markets segment were Rs 278 crore and contributed approximately 42% of consolidated revenues. Profits were Rs 35 crore in Q1FY20 and contributed 28% of consolidated PAT.