Motilal Oswal net profit falls 35% to Rs 300 crore in March quarter

Brokerage house Motilal Oswal Financial Services on Thursday reported a 35% fall in net income at Rs 300 crore in the three months to March, even though its revenue grew by 21% to Rs 1,100 crore

Brokerage house Motilal Oswal Financial Services on Thursday reported a 35 per cent fall in net income at Rs 300 crore in the three months to March, even though its revenue grew by 21 per cent to Rs 1,100 crore.

The company had posted a net income of Rs 461 crore in the year-ago period.

For the full year, the company, which also has a home loan arm, reported a 33 per cent uptick in revenue at Rs 4,051 crore and earned a net income of Rs 1,310 crore, which is a growth of 4 per cent.

All business continues to demonstrate stellar performance during the quarter and the full year, said managing director & chief executive Motilal Oswal.

 

While capital market business profit grew 68 per cent year-on-year, assets and wealth management profit rose 31 per cent, led by 14 per cent growth in AMC, 116 per cent growth in wealth management, and private equity business net income grew by 46 per cent while housing finance business reported highest-ever profit, he added.

Motilal said its cash-cow retail broking business has grown 68 per cent year-on-year, benefitting from market expansion and industry consolidation.

He noted that the company has been investing its profit in its equity investment products, which has yielded strong returns and as a result, its net worth has touched a new high.

Broking businesses added 43 per cent more clients at 8.8 lakh clients acquired in FY22.

Asset management business AUM grew 13 per cent to Rs 49,020 crore and chipped in with a net income of Rs 183 crore for the year.

Private equity revenue grew to Rs 47 crore and net income rose to Rs 20 crore, and wealth management AUM grew 36 per cent to Rs 34,389 crore.

Asset and wealth management revenue rose to Rs 947 crore and contributed 23 per cent of consolidated revenue.

Motilal Oswal Home Finance reported the highest ever profit of Rs 93 crore on margin expansion that rose to 7.3 per cent.

During the quarter, its largest PE growth fund has achieved its second close at Rs 4,000 crore within seven months of the launch and only Rs 500 crore short of the target, while the fifth real estate fund has raised Rs 1,200 crore.