Motilal Oswal Financial Services Ltd's Q3FY19 consolidated net profit stood at Rs40cr vs. Rs5cr qoq and Rs248cr yoy

The company’s consolidated total income stood at Rs648cr, down 20.07% yoy and 0.35% qoq.

Jan 16, 2019 11:01 IST India Infoline Research Team

Motilal Oswal Financial Services Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 qoq
Total operating revenue 647.6 -0.3%
Revenue - Broking business 269.5 -7.6%
NII - Aspire HF business 52.3 -25.3%
GNPA (%) - Aspire HF business 8.7 168
NNPA (%) Aspire HF business 7.0 137
Net profit (adjusted) 40.1 782.2%
GNPA and NNPA change in bps

Motilal Oswal Financial Services Ltd’s revenue declined by 20.1% yoy and 0.3% qoq to Rs648cr. Revenue of broking business declined by 9.6% yoy and 7.6% qoq to Rs269cr. NII of Aspire Housing Finance business declined by 9.4% yoy and 25.3% qoq to Rs52cr. In its Aspire business, GNPA and NNPA stood at 8.7% and 7% respectively, which grew by 408bps and 337bps yoy respectively. While on qoq basis, GNPA and NNPA grew by 168bps and 137bps yoy respespectively. Company’s adjusted Net profit stood at Rs40cr, down 83.9% yoy and up 782.2% qoq. 

• ADTO (Average daily turnover) of broking business grew by 18% yoy to ~Rs17,200cr.
• AUM of asset management business grew by 7% yoy to ~Rs37,400cr.
• Aspire Home Finance loan book stood at ~Rs4,400cr vs. Rs4,940cr yoy.
• Wealth management AUM grew by 7% yoy to ~Rs16,400cr.
• Revenue from asset management segment grew by 27.5% yoy to Rs188cr.
• Revenue from fund based activities stood at Rs56cr vs. Rs140cr yoy impacting overall revenue growth of the company.
• Revenue from Investment banking segment stood at Rs5cr vs. Rs46cr yoy.
• Other expenses stood at 41% of sales vs. 12.3% yoy.
• Employee benefit expenses stood at 19.9% vs. 16% yoy impacting the profitability of the company.

Looking at the current market scenerio, we expect the revenue growth to remain subdued in near term. We expect near term weakness in the stock price.

Technical View:

Motilal Oswal Financial Services Ltd ended at Rs. 678.60, down by 1.2 points or 0.18% from its previous closing of Rs. 679.80 on the BSE.
The scrip opened at Rs. 698.90 and touched a high and low of Rs. 698.90 and Rs. 678.60 respectively. A total of 41,737 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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