Motilal Oswal Financial gains on strong Q4 result, buyback plan

28 Apr 2022 , 04:25 PM

The financial services provider announced its results for the quarter and year ended 31 March 2022 today, 28 April 2022.

In Q4FY22, consolidated revenues grew by 21% year-on-year (YoY) at Rs 1100 crore, consolidated profit after tax (PAT) stood at Rs 300 crore including gains on investments. Operating profit (excluding gains on investments & PE share of profit on investment) for the quarter was highest ever at Rs 262 crore, up 41% YoY.

In FY22, consolidated revenues grew by 33% YoY at Rs 4050 crore and consolidated PAT stood at Rs 1310 crore. Operating profit for the FY22 was highest ever at Rs 905 crore, rising 69% YoY.

The company said all its businesses demonstrated stellar performance. Capital markets business, comprising of retail broking, institutional equities and investment banking business, contributed 55% of consolidated revenues. The segment profit grew by 79% YoY at Rs 144 crore in Q4FY22 and 68% YoY to Rs 490 crore in FY22 led by healthy volume growth of 106% YoY / 29% QoQ and improvement in cash market share.

In FY22, profits in Asset & Wealth business rose 31% YoY led by 14% YoY increase in AMC, 116% YoY surge was reported in Wealth Management segment and 46% YoY jump was recorded in Private Equity business.

Motilal Oswal Home Finance (MOHFL) reported highest ever profit of Rs 45.6 crore in Q4FY22, up 148% YoY and Rs 92.9 crore in FY22, up 133% YoY. NII grew by 11% YoY and NIM expanded to 7.3% in FY22. Yield on Advances stood at 13.9% in FY22 while Cost of Funds was down by 105 bps YoY to 8.2%, resulting in expansion in Spread by 66 bps YoY to 5.7%. The company has raised Rs 1400 crore on FY22 at an average cost of 7%. Disbursements grew by 2.4x in FY22 to Rs 643 crore. Business is geared up for stronger growth in disbursements.

The board has declared final dividend of Rs 3 per share. The board has also decided to consider share buyback in its separate board meeting to be held on 17th May.

Speaking on the performance of the company, Mr. Motilal Oswal, MD & CEO, said: All of our businesses have delivered strong & sustainable performance in Q4FY22 & FY22. This was second consecutive year of highest ever performance in terms of Revenue, Profit and AUM. Our retail broking business which is our cash cow business has achieved new highs on various parameters and benefitting from market expansion and industry consolidation. Our strategy to invest business profits in our own equity investment products yielded strong returns and as a result our Net worth has touched new high. Moreover, our strategy to diversify our business model towards linear sources of earnings continue to deliver results. Our Asset Management business is likely to gain from process driven investing and its niche offerings. Our Wealth Management business has delivered stellar performance this year and on its way to achieve scale in this business. Our PE business has delivered on both successful exit of its investment and fund raise of its largest ever fund. Our Housing finance business has witnessed turnaround by registering highest ever profitability and now geared up for sustainable growth. Each of our 7 businesses offers headroom for growth.

Motilal Oswal Financial Services 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.

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