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Financial Analysis

Motilal Oswal Home Finance Big Bang Numbers – 23.01.2020

Motilal Oswal Financials Services( Holding Company ) has come up with Q3 numbers for the FY19-20 and the same has been informed to the exchanges on 22.01.2020. The board has also declared a dividend of Rs.4 for FY19-20.

A) Motilal Oswal Financials Services( Holding Company ) provides the following services through its subsidiaries:

1. Broking Services

2. Asset Management and Advisory Services

3. Fund based Services

4. Investment Banking

5. Home Finance.( Motilal Oswal Home Finance Unlisted Share)

Results Analysis( Consolidated)

(i) Consolidated revenues stood at Rs 644 Crores, +3.2% YoY in Q3FY20.

(ii) Consolidated PAT was at Rs 168 Crores in Q3FY20 vs Rs 35 Crores in last year the same period.

(iii) Consolidated revenues for 9MFY20 were at Rs. 1873Crores, +.4% YoY and consolidated PAT for 9MFY20 was at Rs 442 Crores, +213% YoY.

(iv) Some of the key highlights for the 9MFY20 include;

a) 7% YoY growth in AMC AUM.

b) 8% YoY growth in PE & RE AUM.

c) 15% YoY growth in Wealth AUM.

d) 16% YoY growth in Distribution business AUM.

e) Positive net flows in MF for consecutive quarters amid moderate industry flows, Accelerated pace of new client addition in the broking business.

f) Rating upgrade from CRISIL for MOH FL to AA- (Stable) from A+ earlier and MOHFL’s NPA pool sale to ARC.

B) The Motilal Oswal Financial Services holds 97.94% shares in the Home Finance company( Motilal Oswal Home Finance).

Let us check how Home Finance is doing the business and how well it has performed this quarter?

(i) Motilal Oswal Home Finance (MOH FL) reported a profit of Rs 21.4 Crores in 9MFY20 and Rs 16.1 in Q3FY20.

(ii) Margins have improved to 5.2% in 9MFY20, on account of improvement in yield and lower cost of funds.

(iii)  The loan book stood at Rs 3800 Crores as of 9MFY20. Disbursements in 9MFY20 were Rs 146 Crores, new book sourced from April’18 validates the new credit policy with 11 cases in NPA out of-4500 loan cases.

(iv) CRISIL has upgraded MOHFL’s rating to AA- (stable outlook) from earlier A+ (stable). This will further benefit MOH FL in bringing down the cost of funds and improve spreads.

(v)  Strong support from parents continues with total capital infusion to Rs 850 Crores.

UnlistedZone Take

Overall, we can say the Home finance business is doing really good and started showing a sign of marked improvement in loan disbursement and profitability. The more detailed about Book Value and other valuation parameters are not generally available in quarterly results, however, the same will be studied and shared once the annual results or annual report is filed.

    1:38 PM, 13 February 2020


  • SEO Services
    1:20 AM, 1 February 2020

    Awesome post! Keep up the great work! 🙂

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