Motilal Oswal Q2FY23 PAT down -7.3% at Rs509.27 crore as operating profits of wealth management vertical fall sharply

26 Oct 2022 , 09:02 AM

Motilal Oswal reported flat growth in total revenues for the September 2022 quarter on consolidated basis at Rs1,327cr.

Revenue growth was 74.49% in sequential terms. In terms of segment revenues, the revenues from the broking and the equity funding business grew sharply yoy.

While fund based activities and home finance businesses saw flat revenues, the sharp fall in revenues came from the asset management and the wealth management business.

This vertical saw revenues falling by 42% on a yoy basis from Rs402 crore to Rs233 crore.

Consolidated Profit after tax (PAT) for September 2022 quarter was down -7.32% at Rs509.27cr and it was up nearly 15-fold on sequential basis fair value change giving gains compared to losses in the sequential quarter.

While fund based services were broadly lower contributors to operating profit, broking did better than expected. However, WM and AMC fees fell sharply by -38.5% on a yoy basis.

The net profit margins at 38.37% in Q2FY23 were lower compared to 41.35% in Q1FY22 but substantially better against 4.11% in Q1FY23.

Financial highlights for Sep-22 compared yoy and sequentially

	Motilal Oswal
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 1,327.27	₹ 1,328.97	-0.13%	₹ 760.66	74.49%
Net Profit (Rs cr)	₹ 509.27	₹ 549.48	-7.32%	₹ 31.26	1529.14%
Diluted EPS (Rs)	₹ 34.27	₹ 35.97		₹ 2.07
Net Margins	38.37%	41.35%		4.11%