Motilal Oswal Financial Services reports Q3FY17 Consolidated Revenues of Rs 456 crore

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Motilal Oswal Financial Services reports Q3FY17 Consolidated Revenues of Rs 456 crore, up 54% YoY; and PAT of Rs 89 crore, up 78% YoY

Mumbai, Jan 30, 2017: Motilal Oswal Financial Services Ltd., a leading financial services company, announced its results for the quarter ended Dec 31, 2016 post approval by the Board of Directors at a meeting held in Mumbai on Jan 30, 2017.

Performance Highlights

Rs Crore Q3FY17 YoY Chg 9MFY17 YoY Chg
Revenues 456 54% 1,281 65%
PBT 123 72% 378 122%
PAT 89 78% 270 121%
EPS (FV 1) 6.1 18.6

 Performance for the Quarter ended Dec 31, 2016

  • Consolidated revenues were Rs 456 crore in Q3FY17, up 54% YoY. It was Rs 1,281 crore in 9MFY17, up 65% YoY
  • Revenue growth in Q3FY17 was led by housing finance (up 143% YoY) & asset management businesses (up 56% YoY), followed by capital market businesses (up 26% YoY). The revenue pie is seeing healthy diversification with the asset businesses nearing critical mass and housing finance business scaling up as per plan. Broking continues to maintain market share, while growing its digital and distribution segments. Asset sales continue at a good pace, both for the distribution and the asset management businesses
  • Consolidated PAT was Rs 89 crore in Q3FY17, up 78% YoY. It was Rs 270 crore in 9MFY17, up 121% YoY
  • Profits from all segments picked up strongly in Q3FY17. The stability offered by the housing finance & asset management businesses is complemented with the upside offered by the capital market business
  • Impact of operating leverage is becoming visible, as PAT Margin improved to 20% in Q3FY17 from 17% in Q3FY16. Ample scope for operating leverage still exists in our asset management and capital market businesses
  • As of Dec 2016, Net worth is Rs 1,725 crore & Gross borrowing is Rs 4,588 crore (including Aspire)
  • Annualized ROE for YTD FY17 is 23% on reported PAT vs 12% in FY16, in line with our strategy to deliver sustainable 20%+ ROE following the transformation in our business model since the last two years. However, this does not include unrealized gains on investments in Motilal Oswal’s mutual fund products (Rs 193 crore, as of Dec 2016)
  • Declared an interim dividend of Rs 2.5 per equity share (Face value of Rs 1 per equity share)

Speaking on the performance of the company, Mr. Motilal Oswal, CMD said

“Our strategy to transform the business model is showing results, as our revenues and profits are now well balanced between Asset management, Housing Finance and Capital markets businesses. In broking business, we maintained our market share in the high-yield cash segment as we continued to add retail clients at a healthy run rate. Our asset mobilization continued at a very strong pace. Our expansion of the housing finance network and the loan book is going as per plan. We are working towards our strategic imperative to generate 20%+ ROE on a sustainable basis. We have been investing in critical resources, be it manpower, technology or network, and have built strong competitive positioning in each of our businesses. The opportunity size in our business segments is still huge. As we deepen our penetration in each business, we are well placed to benefit from the sizeable opportunities these businesses offer.”

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