January 27

Motilal Oswal Financial Services has reported that its net profit in the December quarter was down 29 per cent at ₹240 crore against ₹339 crore logged in the same period last year, largely on higher operational cost.

Revenue from operation was up eight per cent at ₹1,025 crore (₹948 crore). Overall expenses increased to ₹734 crore (Rs 528 crore). The board has declared highest ever interim dividend of ₹7 per share.

Revenue from capital market business increased 68 per cent to ₹726 crore, contributing 55 per cent of the consolidated revenue. Its profit grew 99 per cent to ₹148 crore. Financial product distribution AUM grew by 39 per cent to ₹16,553 crore with only 16 per cent of the 2.6 million client base tapped.

Asset management business

AUM across mutual fund, PMS and alternative investment fund was up 20 per cent at ₹50,700 crore with 38 per cent increase in net profit at ₹53 crore. Equity MF AUM was at ₹31,000 crore.

Private equity has fee-earning AUM of ₹8,300 crore across three growth capital PE funds and four real estate funds. Its net profit was at ₹10 crore on a revenue of ₹32 crore

Motilal Oswal, Managing Director, said the cash-cow retail broking business achieved new high on various parameters benefiting from market expansion and industry consolidation.

The strategy to invest business profits in the company’s own equity investment products led to highest-ever profits and as a result our net worth has touched new high.

“The asset management business is likely to gain from process driven investing and its niche offerings while each of the seven businesses offer enough headroom for growth,” he said.

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