 Will maintain EBITDA margins at 41%: Motilal OswalPublished on Tue, Jul 14, 2009 at 10:45 | Source : CNBC-TV18 Updated at Wed, Jul 15, 2009 at 12:23 2442 Investors following Motilal Oswal Financial Services. Share this News with them.
Motilal Oswal, CMD, Motilal Oswal Financial Services , said traders should remain cautious on the market in the shorter term. "However, we are positive on the markets for long-term investors," Oswal said, speaking after the company came out with its quarterly results. The company's consolidated net sales were up by 60% at Rs 142.89 crore versus Rs 89.4 crore on a quarter-on-quarter (QoQ) basis. Its operating profit margin was at 38% versus 37% on a QoQ basis. Motilal Oswal has a 3.75% market share and the company's chief said its focus would be to maintain EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margins going forward, which currently stood at 41%. Q: Very strong performance from the equity broking side - just walk us through what kind of jump you saw in terms of volumes both for cash and derivatives? A: I think the last quarter was very good in terms of volumes. As you know that market volumes were high, average daily volumes for the last quarter was high at about Rs 90,000 plus crore daily against last year 's average of about Rs 57000-58000 crore. The mix was more or less same for cash and derivatives. Even during the month of July although compared to June the volume is slightly lower but we will say that compared to the last year I think even the month of July is turning out every daily volume at about Rs 85,000 crore. Q: But volumes have dipped over the last few days? A: Yes, definitely. As I said that July month daily average till yesterday is about Rs 85,000 crore a day, much lower than June, June was about Rs 97000-98000 crore a day. But overall on year on year basis, on quarter on quarter basis it is still much higher levels. Q: What are you doing with cost right now? Has there been a big scale down of cost over the last 3-6 months. I am asking this because if you do get a bounce in volume could there be margin expansion because costs have been vital down during the difficult period? A: Of course yes. When the time was tough I think the whole focus was on the cost and when slightly better environment is there the whole focus shift from the bottomline to the topline. If you look at our numbers, the EBITDA margins have remained same at about 41% compared to the last quarter. Although on year on year basis it is much higher and our focus is definitely that we are able to maintain our EBITDA margin as well as our PAT margins.
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