Motilal Oswal Group net soars 78% to Rs 89 cr

Motilal Oswal Financial Services today reported a 78 percent jump in consolidated net profit at Rs 89 crore in the December quarter, led by a robust performance by its home loan business.

While consolidated revenue grew to Rs 456 crore, up 54 percent, the company said this was driven by the housing finance arm which clipped at 143 percent and the asset management businesses that notched up a 56 percent growth, followed by the capital market businesses at 26.

The capital markets businesses collectively contributed 38 percent of revenues compared to 46 percent a year ago, while housing finance related income jumped 143 percent to Rs 153 crore as its loan book rose 136 percent to Rs 3,320 crore and broking and related revenues rose 18 percent to Rs 157 crore.

"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," Chairman Motilal Oswal said, adding profits from all segments picked up strongly in the quarter.

Margins improved to 20 percent from 17 percent a year ago, while ROE rose to 23 percent from 12 percent. This was excluding the unrealised gains on investments in Motilal Oswal's mutual fund products of Rs 193 crore, it added.

Oswal 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 mobilisation continued at a very strong pace. 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 percent ROE on a sustainable basis," he said.

In retail broking and distribution, online business continues to grow, forming 44 percent of retail volumes from 31 percent. Mobile app continues to form an increasing share within the online volume with over 50 percent of new accounts being opened with e-KYC, and over 50 percent of leads generated through online sources.

Its monthly addition of retail clients grew at a brisk 52 percent. Investment banking fees at Rs 15 crore grew 306 percent.