Motilal Oswal Financial Services (MOTILALOFS) Q1 24/25 earnings summary

Executive summary

• Achieved record consolidated profit after tax (including OCI) of INR 1,021 crore, up 52% year-over-year, with return on equity at 44%.

• Net worth reached INR 9,784 crore as of June 30, 2024, up 41% year-over-year.

• Assets under advice surpassed INR 5 lakh crore, up 91% year-over-year, with client base expanding to over 72 lakh.

• Strategic shift from broking and distribution to comprehensive wealth management, leveraging digital platforms like the RISE super app.

• ICRA upgraded rating outlook to AA Positive.

Financial highlights

• Consolidated operating net revenue reached INR 1,133 crore, up 32% year-over-year.

• Operating profit after tax was INR 431 crore, up 41% year-over-year.

• Market capitalization stood at INR 34,120 crore as of July 25, 2024.

• Net worth increased to INR 9,784 crore from INR 8,732 crore sequentially.

• Borrowings rose to INR 15,942 crore from INR 13,752 crore sequentially.

Outlook and guidance

• Optimistic about sustaining or improving the 10-year operating profit CAGR of 34%.

• Dividend payout to remain around 20% of operating profit, subject to business needs.

• Focus on maintaining/improving IRR of 19.6% for treasury investments.

• Positive industry tailwinds from Demat and SIP account additions.

• Strategic shift to integrated wealth management to meet evolving client needs.