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Motilal Oswal Financial Services reports one of the highest quarterly PAT of Rs 509 cr in Q2FY23

Mumbai 21-Oct-2022

Motilal Oswal Financial Services reports one of the highest quarterly PAT of Rs 509 cr in Q2FY23

Mumbai, October 21, 2022: Motilal Oswal Financial Services Ltd. announced its results for the quarter ended September 30, 2022 post approval by the Board of Directors at a meeting held in Mumbai on October 21, 2022.

Performance for the quarter ended September 30, 2022:
  • In Q2FY23, consolidated revenues grew by 13% YoY/14% QoQ at Rs 1,098 cr. Profit after tax for the quarter was Rs 509 cr, up 11% YoY (excl. PE profit share).
  • Capital market business PAT grew by 9% YoY/46% QoQ to Rs 132 cr; Asset & Wealth businesses PAT stood at Rs 67 cr, up 2% YoY/15% QoQ. Housing finance business profit grew by 67% YoY/4% QoQ to Rs 33 cr.

Particulars (Rs cr)




Total Revenues




Operating PAT








Note: PAT excluding PE profit share in Q2FY22





Revenues Rs 1,098 cr up 13% YoY

Revenues Rs 1,098 cr up 14% QoQ

PAT  Rs 509 cr up 11% YoY

PAT  Rs 509 cr up 1542% QoQ

Asset under Advice Rs 3.2 lakh cr up 11% YoY

Asset under Advice Rs 3.2 lakh cr up 10% QoQ

  • Most of our businesses have delivered strong and sustainable performance.
  • Our Assets under Advisory (AUA) across AMC, Wealth, Private Equity and Broking & Distribution businesses was Rs 3.2 lakh cr.
  • Capital Markets –Overall ADTO market share improved by 50 bps QoQ through robust growth of 45% QoQ in ADTO volumes. Margin Funding book grew by 44% QoQ to Rs 2,920 cr. Distribution AUM grew 8% QoQ to Rs 18,600 cr. Investment Banking business successfully completed 3 marquee deals with total fund raise of Rs 2,330 cr.
  • Asset & Wealth Management–Most of Active Equity MF schemes saw strong turnaround in performance with top quartile rankings. Net revenue yield was intact at 78 bps during H1FY23. AMC onboarded Prateek Agrawal to lead business and investment strategy of AMC business. He brings 28 years of experience in the business. Successfully launched 7 passive MF schemes across various themes and sectors. Wealth AUM increased by 22% YoY to Rs 38,400 cr. Achieved final close for our largest ever PE fund (IBEF IV) with fund size of Rs 4,500 cr within a year of fund launch.
  • Home Finance – Strong pick-up in disbursements of Rs 275 cr, up 65% QoQ, traction in login/sanction pipeline, expansion in sales force and diversification of liability franchisee. ICRA upgraded long term rating to ICRA AA/Stable from ICRA AA-/Stable.
  • Consolidated net worth of Rs 5,970 cr, net debt is Rs 5,520 cr. Excluding Home finance, net debt is Rs 3,010 cr. Total D/E stood at 1.3x. Ex-MOHF D/E stood at 0.9x.

Speaking on the performance of the company, Mr. Motilal Oswal, MD & CEO said “We have achieved one of the highest quarterly profit of Rs 509 cr, following robust & sustainable performance across the businesses. Our retail broking business which is our cash cow business continued to improve its market share and benefitting from market expansion and industry consolidation. We continue to focus on our strategy to diversify our businesses towards linear sources of earnings. Our Asset Management business has seen strong improvement in performance and is likely to gain from process driven investing and its niche offerings. Our Wealth Management business has delivered consistent performance over years and on its way to achieve scale in this business. Our PE business has successfully delivered on fund raise of its largest ever fund. Our Housing finance business has witnessed turnaround by improving disbursements and asset quality trend which is now geared up for sustainable growth. There is immense potential and opportunities in the market for each of our businesses to flourish.”
Performance of Business Segments for the quarter ended September 30, 2022

Capital markets Businesses (Broking & Investment banking)
o  Capital markets comprise of Retail Broking and Distribution, Institutional Equities and Investment Banking business. Revenues for this segment were Rs 719 cr, +18% YoY/18% QoQ in Q2FY23.
o  Profit grew by 9% YoY/46% QoQ at Rs 132 cr in Q2FY23 led by healthy volume growth of 198% YoY / 45% QoQ and improvement in retail F&O market share by 63 bps QoQ.
In Retail Broking & Distribution, total 351,000 clients acquired in H1FY23 with traction witnessed in online channel. NSE active clients have registered 26% YoY growth at 9.1 lakhs as of September 2022.
o  Distribution AUM grew by 17% YoY at Rs 18,600 cr as of Q2FY23. Robust Distribution Net Sales of Rs 710 cr during H1FY23. We see immense opportunity to cross sell financial products to 52 lakh clients and improve fee income going ahead.
o  Interest income increased by 28% YoY to Rs 166 cr primarily due to 39% YoY increase in MTF Funding book of Rs 2,920 cr.
o  Currency market share improved by 150 bps QoQ to 12%. Commodity market share stood at 7%.
o  Launched Research 360 app, a one-stop solution to get 360-degree knowledge and research.
Institutional Equities successfully hosted 18th Annual Global Investor Conference which saw participation of 160+ corporates.
Investment Banking successfully completed 3 marquee deals with total fund raise of Rs 2,330 cr in Q2FY23. Further, there is a strong pipeline of signed IPO, Equity Capital Market and Private Equity mandates with equity fund size of about Rs 200 bn in coming quarters.

Asset & Wealth Management businesses (AMC, PE and PWM)
Asset Management business AUM across MF, PMS & AIF grew by 8% QoQ to Rs 46,700 cr. In Q2FY23, revenues stood at Rs 143 cr.
o  MF AUM grew by 6% QoQ to Rs 29,140 cr. We have seen significant improvement in performance of several schemes with top quartile rankings resulting in improvement in gross sales and decline in redemption market share.
o  Added around 55k new SIPs in Q2FY23, with traction witnessed in active funds (+16% QoQ).
o  Our share of Alternate assets, comprising of PMS & AIF, is one of the highest among AMC’s at ~37%.
Private Equity business fee earning AUM of Rs 8,520 cr across 3 growth capital PE funds and 4 real estate funds. In Q2FY23, revenues (ex-share of profit on investments) grew by 41% YoY/23% QoQ at Rs 39 cr. The 1st growth fund (IBEF 1) has delivered an XIRR of 26%+. Successfully achieved final close of our largest PE fund IBEF IV with fund size of Rs 4,500 cr within a year of fund launch.
Wealth Management business AUM grew by 22% YoY at Rs 38,400 cr as on Sep 2022. Wealth business revenue grew by 7% YoY to Rs 51 cr in Q2FY23. Strong net sales of Rs 3,360 cr in H1FY23. Our RM count improved from 123 in Sep 2021 to 155 in Sep 2022. Our trail revenues predominantly cover our fixed costs. Operating margins were lower due to addition of new RMs. We continue to invest in this business by adding more RMs.
o  Overall 
Asset and Wealth Management revenues were Rs 234 cr, +5% YoY/7% QoQ in Q2FY23. Profits were Rs 67 cr in Q2FY23, +2% YoY/15% QoQ.

Housing finance business
o  Motilal Oswal Home Finance (MOHFL) reported profit of Rs 33 cr in Q2FY23, +67% YoY/4% QoQ.
o  NII grew by 11% YoY and NIM expanded by 88 bps YoY to 7.8% in H1FY23.
o  Yield on Advances stood at 13.8% in H1FY23 while Cost of Funds was down by 53 bps YoY to 7.9%, resulting in expansion in Spread by 46 bps YoY to 6.0%.
o  Disbursements grew by 74% YoY/65% QoQ in Q2FY23 to Rs 275 cr. Business is geared up for stronger growth in disbursements.
o  GNPA improved to 1.5% as of Sep 2022 with collection efficiency of 100% during Q2FY23.
o  Net Gearing stands at 2.3x and Tier 1 CAR remains robust at 49%.

Fund based investments includes sponsor commitments to our AMC, PE funds, RE funds and strategic equity investments.
o  Total investment including unrealised gains was Rs 4,720 cr as of September 30, 2022.
o  Total equity investment including alternate funds was at Rs 4,290 cr as of September 30, 2022. XIRR of 27% on PE/RE investments.
o  Cumulative XIRR of ~19% on total investments (since inception).

About Motilal Oswal Financial Services Limited
MOFSL is a financial services company. Its offerings include capital markets businesses (Retail broking, Institutional broking & Investment banking), Asset & Wealth Management (Asset Management, Private Equity & Wealth Management), Housing Finance & Equity based treasury investments. MOFSL employs 10,000+ employees serving to 52 lakh clients via distribution reach in 550+ cities. MOFSL has AUA of Rs 3.2 lakh cr.

  For further details, contact:
Mrs. Rohini Kute
(Head of Corporate Communication)
Motilal Oswal Financial Services


Mr. Shalibhadra Shah
(Chief Financial Officer)
Motilal Oswal Financial Services


Mr. Chetan Parmar
(Head of Investor Relations)
Motilal Oswal Financial Services