Motilal Oswal Financial Services Limited · NSE:MOTILALOFS
Motilal Oswal Financial Services — Q4 FY2019 Earnings Presentation
70 slides from Motilal Oswal Financial Services's earnings presentation, May 11, 2019
Slide 1: Motilal Oswal Financial Services Limited
M O T I L A L 0SWAL Motilal Oswal Financial Services Limited CIN : L 6 7 1 9 0 M H 2 0 0 5 P L C 1 5 3 3 9 7 Re11d. Offk-e: Motilal Osw,11 Tower; Rahrmtullah Sayani Koad, Upp. Parel S I Uepot, rrabhadevi, Mumbai - '100025. Board: +91 22 7 1 9 3 4200 Fax: +91 22 5036 2365 May 11, 2019 BSE Limited Nat
Slide 2: Earnings Presentation Q4FY19 & FY19
Motilal Oswal Financial Services Ltd Earnings Presentation | Q4FY19 & FY19 Businesses building scale Annuity revenue driving visibility All biz offer huge headroom for growth
Slide 3: Key Highlights
Key Highlights Financials Businesses Interesting Exhibits
Slide 4: Key Highlights
Key Highlights Financials Businesses Interesting Exhibits
Slide 5: Diversified business model
Diversified business model Fund based Capital Markets Asset Management Housing Finance Investments AMC AUM: Rs 389 bn, Broking business profits Strong improvement in Total quoted equity +9% YoY; EBITDA +18% YoY in FY19. collection efficiency investment including margin +700 bps to 40%. MTM gains was
Slide 6: Business-wise RoE mix
Business-wise RoE mix Group RoE Segment-wise RoE, with % of net worth employed (NWE) MOFSL Capital Asset & Wealth Housing Fund based Consolidated Management Finance investments Markets 10% in FY19 127% in FY19 -17% in FY19 3% in FY19 89% in FY19 (10% of NWE) (3% of NWE) (27% of NWE) (60% of NWE) MOF
Slide 7: Awards and Accolades
Awards and Accolades xk MOFSL listed in top 20 BFSI companies as a Great Place to Work - India three years in a row to work for kkk a MOFSL wins “Best BFSI Campaign - Silver" award at the Media 360 Summit and Awards 2018 Kk AHFCL wins the “Digital Excellence i Urban Finance” award at the Digital Cus
Slide 8: Financials
Key Highlights Financials Businesses Interesting Exhibits
Slide 9: Consolidated financials
Consolidated financials Particulars (Rs mn) Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ (%) FY19 FY18 YoY (%) Broking 2,809 3,199 -12% 2,701 4% 11,334 11,209 1% Investment Banking 146 212 -31% 50 191% 381 1,116 -66% Asset Management 1,396 1,605 -13% 1,368 2% 5,786 5,198 11% Wealth Management 258 297 -13% 249 4
Slide 10: Consolidated financials – PAT Mix after Ind-AS
Consolidated financials – PAT Mix after Ind-AS PAT (Rs Mn) Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ (%) FY19 FY18 YoY (%) Broking 362 421 -14% 336 8% 1,734 1,436 21% Investment Banking 55 149 -63% -22 343% 81 595 -86% Capital Markets 417 570 -27% 314 33% 1,815 2,031 -11% Asset Management 344 317 9% 337 2% 1
Slide 11: Opening PAT Reconciliation IGAAP to Ind-AS
Consolidated financials – Opening PAT Reconciliation IGAAP to Ind-AS Particulars (Rs mn) Q4FY18 FY18 Net profit after tax as reported under IGAAP 1,535 5,613 Adjustments increasing/(decreasing) net profit after tax as reported under IGAAP Increase/(Decrease) in Interest income pursuant to applicatio
Slide 12: Consolidated balance sheet
Consolidated balance sheet Particulars (Rs bn) FY19 FY18 Sources of Funds Networth 30.5 28.9 Loan Funds 51.1 51.2 Minority Interest 0.4 0.4 Deferred tax liability 1.3 1.5 Total Liabilities 83.4 82.0 Application of Funds Fixed assets (net block) 3.0 3.0 Investment 26.9 28.1 Long term loans and Advanc
Slide 13: Reconciliation of Net worth - IGAAP and Ind-AS
Reconciliation of Net worth - IGAAP and Ind-AS Particulars (Rs mn) FY19 FY18 Net worth as per IGAAP 25,624 22,685 Adjustments increasing/(decreasing) net profit after tax as reported under IGAAP Gain/ (loss) on fair valuation of investments 6,675 7,496 Increase/(Decrease) in upfront (net) income pur
Slide 14: Financial performance
Financial performance Annual revenue trend Annual profitability trend 29 PAT CAGR: 28% (I-GAAP) 51 27 PAT CAGR: 20% (Ind-AS) CAGR: 36% 19 25 20 11 8 10 12 1.4 1.7 3.6 5.6 6.3 3.6 3.0 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 PAT I-GAAP (Rs bn) PAT Ind-AS (Rs bn) EPS (Rs) Revenues (Rs bn) Pro
Slide 15: Businesses building scale
Businesses building scale AMC AUM and Net sales growth trend Wealth AUM and Net sales growth trend 389 355 AUM CAGR: 43% 24 27 AUM CAGR: 59% Net Sales CAGR: 22% Net Sales CAGR: 16% 18 15 203 11 128 105 61 52 62 41 23 42 64 101 147 175 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 AMC AUM (Rs bn)
Slide 16: Financial performance
Financial performance Broking & Distribution: Margins led by Distribution Asset Management: Strong operating leverage • AMC revenue and profit for FY19 grew by 11% YoY and • B&D profit for FY19 grew 18% YoY. 36% YoY respectively. • Distribution AUM stood at Rs 96 bn, +27% YoY. • AMC AUM crossed Rs 3
Slide 17: Businesses
Key Highlights Financials Businesses Interesting Exhibits
Slide 18: Capital Markets / Asset Management / Housing Finance / Fund based
Asset Capital Markets Management Retail Broking & Distn Asset Management Institutional Equity Private Equity Investment Banking Wealth Management Stable share in high yielding cash segment Strong growth in AUM Strong operating leverage Significant operating leverage Robust growth in Dist
Slide 19: Broking & Distribution – Strong FY19 performance
Broking & Distribution– Strong FY19 performance Healthy volume Particulars (Rs mn) Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ (%) FY19 FY18 YoY (%) growth; stable Total Revenues 2,809 3,199 -12% 2,701 4% 11,334 11,209 1% share in high-yield Operating Costs 1,927 2,172 -11% 1,876 3% 7,495 7,616 -2% cash segmen
Slide 20: Broking & Distribution
Broking & Distribution Retail Broking & Distribution Distribution penetration (% of total client base of 1.2 mn) ● Traction in new client addition driven by Franchisee and retail channel i.e. 17.5% 16.3% ~1,50,000 clients in FY19. 15% 13.8% ● Online penetration gaining traction clients (38%) and tur
Slide 21: Broking & Distribution – Strong growth in Volume & Distribution AUM
Broking & Distribution – Strong growth in Volume & Distribution AUM DP AUM growth trend Rising Distribution AUM (Rs bn) (Rs bn) CAGR: 27% 607 590 96 450 75 44 256 227 35 15 18 16 17 2 7 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Distribution AUM (Rs bn) Distribution Net Sales (Rs bn) MOFSL Br
Slide 22: Broking & Distribution – Potential levers
Broking & Distribution – Potential levers Corporate profit to GDP trend Market cap to GDP trend (%) Decade average : 5.1% (%) 7.77 103 7.26 95 6.49 88 85 6.25 6.23 82 83 81 80 81 5.43 5.47 71 69 4.66 4.85 4.60 64 66 4.35 55 3.80 52 3.47 2.96 3.08 3.00 2.80 42 23 FY16 FY03 FY04 FY05 FY06 FY07 FY08 FY
Slide 23: Broking & Distribution – Potential levers
Broking & Distribution – Potential levers Retail ADTO registered faster growth (%) Higher returns in equity asset class in FY19 (%) 71 (%) 14.8 59 60 56 42 7.4 31 6.7 26 6.0 22 14 11 12 11 22 10 2.6 8 7 7 11 10 Retail ADTO MF AUM Insur.Premium Bank Deposits India Treasury Bank FD 10 Year G-Sec Gold
Slide 24: Investment Banking
Investment Banking Particulars (Rs mn) Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ (%) FY19 FY18 YoY (%) FY19 Total Revenues 146 212 -31% 50 191% 381 1,116 -66% Operating Costs 76 4 - 80 - 272 282 -4% M&A Advisory – Rs 8.3 bn PBT 70 209 - -30 109 834 - PAT as per Ind-AS 55 149 - -22 - 81 595 - PAT as per IGAAP
Slide 25: Capital Markets / Asset Management / Housing Finance / Fund based
Asset Capital Markets Management Retail Broking & Distn Asset Management Institutional Equity Private Equity Investment Banking Wealth Management Stable share in high yielding cash segment Strong growth in AUM Strong operating leverage Significant operating leverage Robust growth in Dist
Slide 26: Asset Management – Strong operating leverage
Asset Management – Strong operating leverage Particulars (Rs mn) Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ (%) FY19 FY18 YoY (%) AMC profit growth AUM (bn) 389 356 9% 374 4% 389 356 9% of 36% YoY in Net adds (bn) 2 31 - 8 -70% 41 128 - FY19 Total Revenues 1,396 1,605 -13% 1,368 2% 5,786 5,198 11% -Mutual Fun
Slide 27: Asset Management
Asset Management ● Market share in MF Equity Net Sales stood at 2.2%* (including balance) in FY19 in a rising pool of equity flows. Fall in net sales was on account of higher redemption led by subdued equity market conditions. ● PMS continued to have a positive net inflow through out the year and ab
Slide 28: Asset Management – Potential levers to scale business
Asset Management – Potential levers to scale business MOAMC’s has “Zero” share in FII driven domestic equity market which is 1.6x of size of DII. MOAMC AUM breakup and growth trend Market cap ( Rs 145 tn) proportion (Rs bn) Total market 389 Cap of CAGR: 59% 355 DII has 14% 28 Institutional 24 share
Slide 29: Asset Management – Potential levers to scale profitability
Asset Management – Potential levers to scale profitability MOMF Sourcing Mix on the basis of AUM MOAMC profitability trend 11% 8% 7% PAT CAGR:2.3x 0.40% 12% 0.40% 23% 14% 15% 17% 17% 13% 18% 0.32% 0.32% 23% 19% 13% 20% 35% 32% 42% 38% 51% 0.13% 25% 27% 9% 13% 52 264 498 1,104 1,499 0% FY15 FY16 FY17
Slide 30: Asset Management – Granularity of MF AUM
Asset Management – Granularity of MF AUM MOMF SIP AUM and inflows market share MOMF rising SIP proportion 1.3% 1.3% 27.2% 1.3% 1.3% 1.3% 24.4% 24.9% 1.3% 23.8% 23.1% 23.5% 22.9% 22.7% 22.3% 20.0% 1.2% 17.4% 1.2% 1.2% 15.5% 13.3% 13.9% 12.9% 12.4% 45% 45% 33% 39% 55% 56% 47% 55% 46% Q1FY18 Q2FY18 Q3F
Slide 31: Asset Management – Stickiness of MF flows to continue
Asset Management – Stickiness of MF flows to continue.. Rising Industry’s MF Equity AUM Rising share of Direct proportion in Asset management industry 10,207 55% 57% 50% 8,667 47% 44% 5,859 42% 41% 41% 38% 4,060 34% 3,583 16% 18% 1,807 1,995 15% 15% 11% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY15 FY16 F
Slide 32: Asset Management – Rising share of Alternatives
Asset Management – Rising share of Alternatives Rising share of Alternatives in Industry AUM Rising share of Alternatives in Industry AUM 4% 4% 4% 5% 6% 4% 5% 4% 4% 3% 3% 2% 3% 2% 2% 1% 1% 0% 0% 0% 1% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 408 473 739 1,054 1,006 FY15 FY16 FY17 FY18 FY19 Non Commod
Slide 33: Private Equity – Strong growth in AUM
Private Equity – Strong growth in AUM Particulars (Rs mn) Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ (%) FY19 FY18 YoY (%) Total AUM of PE Total Revenues 356 216 65% 319 11% 1,104 1,656 -33% business stands at ~ Operating Cost 216 141 53% 178 21% 633 597 6% Rs 64 bn , +36% YoY EBITDA 140 75 87% 141 -1% 471 1,
Slide 34: Private Equity – Exits from funds provides strong visibility
Private Equity – Exits from 7 funds provides strong visibility over next decade Launch period of PE Funds QGLP investments delivering higher IRR 61% 500 480 450 400 400 400 400 IREF IV 37% 33% Rs 12 29% 30% IBEF III 26% bn 200 Rs 23 IREF III bn 13% IREF II (Rs 10.3 12% IBEF II (Rs 4.9 bn) (Rs 9.5 bn
Slide 35: Wealth Management
Wealth Management Particulars (Rs mn) Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ (%) FY19 FY18 YoY (%) Robust Net Sales AUM (bn) 175 147 19% 164 7% 175 147 19% at ~Rs 24 bn Net adds (bn) 2 3 -31% 5 -53% 24 27 -11% Total Revenues 258 297 -13% 249 4% 1,088 981 11% Operating Cost 210 199 5% 210 0% 878 662 33% EB
Slide 36: Wealth Management
Wealth Management Wealth AUM growth trend Wealth net sales trajectory (Rs bn) 126 (Rs bn) 26.6 118 23.6 77 78 17.8 14.7 49 11.1 42 64 101 147 175 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 WM AUM (Rs bn) WM Sales RM WM net Sales (Rs bn) Higher investment in RMs increases Cost to Income ratio
Slide 37: Capital Markets / Asset Management / Housing Finance / Fund based
Asset Capital Markets Management Retail Broking & Distn Asset Management Institutional Equity Private Equity Investment Banking Wealth Management Stable share in high yielding cash segment Strong growth in AUM Strong operating leverage Significant operating leverage Robust growth in Dist
Slide 38: Motilal Oswal Home Finance – Loan book stood at Rs 43.6 bn
Particulars (Rs mn) Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ% FY19 FY18 YoY% Name change to Net Interest Income (NII) 514 567 -9% 523 -2% 2,311 2,383 -3% ‘Motilal Oswal Home Other Operating Income 39 61 -35% 33 21% 133 222 -40% Finance’ in process Total Income 553 628 -12% 556 0% 2,443 2,606 -6% Operating C
Slide 39: Aspire Home Finance
Aspire Home Finance Opening PAT reconciliation from IGAAP to Ind-AS Opening Net worth reconciliation from IGAAP to Ind-AS Particulars (Rs mn) FY18 Particulars (Rs mn) FY18 Net profit after tax as per Previous GAAP 276 Networth as per IGAAP 7,934 Adjustment due to fair valuation of Deposit &rent Adju
Slide 40: Aspire Home Finance
Aspire Home Finance Loan book and disbursement trend (Rs bn) ● Positive trends in New loans sourced in FY19 o Loan book sourced from FY19 had only a single case in 30+ and No 24.0 48.6 case in NPA with average seasoning of 6 months. 43.6 o Bounce rate has substantially reduced to 7.5% from FY19 sour
Slide 41: Aspire Home Finance
Aspire Home Finance Low gearing ● Average ticket size is Rs 0.85 mn, with loans extended to more than 6.4 ~52,500 families, as AHFCL is focused on the affordable housing 5.1 segment. 5.0 4.3 ● Organisation structure has been altered to move from a Branch banking model to a Vertical organisation with
Slide 42: Aspire Home Finance – Strong liability management
Aspire Home Finance – Strong liability management Liability Mix based on rates (%) Average tenor of outstanding borrowing (months) 67 67 31 50 45 58 53 61 58 57 69 50 55 42 47 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Floating Rate Liabilities (%) Fixed Rate Liabilities (%) Average Tenure of
Slide 43: Aspire Home Finance – Geographical diversification
Aspire Home Finance – Geographical diversification State wise disbursement – Rising new state contribution in FY19 Incremental 73% 10.0% contribution from new state leads to lower 55% concentration risk 8.0% 8.4% 8.0% 7.0% 46% 6.4% 6.6% 3.0% 15% 13% 2.5% 2.1% 10% 10% 7% 6% 0.2% 0.5% 0.1% 0.4% 0.5% M
Slide 44: Aspire Home Finance
Aspire Home Finance Higher investment in manpower Traction in Login to sanction ratio 1,273 70% 70% 1,174 67% 67% 63% 63% 63% 1,051 60% 57% 54% 54% 45% 44% 44% 45% 46% 496 120 120 41% 41% 113 37% 36% 38% 35% 34% 26% 155 51 14 FY15 FY16 FY17 FY18 FY19 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar B
Slide 45: Aspire Home Finance – Asset quality trend
Aspire Home Finance – Asset quality trend Net Slippages Traction in recoveries (Rs mn) (Rs mn) 1,200 400 1,000 330 900 870 740 690 210 440 150 130 100 90 160 50 20 60 Q4FY17 Q2FY18 Q4FY18 Q2FY19 Q4FY19 Q4FY17 Q2FY18 Q4FY18 Q2FY19 Q4FY19 Net Slippage Recovery amount does not include repossess assets
Slide 46: Aspire Home Finance – Industry asset quality trend
Aspire Home Finance – Industry asset quality trend Industry’s delinquency trend : 0+ dpd Industry’s delinquency trend : 30+ dpd 13.5% 13.9% 13.7% 20.1% 19.5% 19.9% 12.4% 12.1% 12.3% 18.1% 17.6% 17.3% 13.8% 9.2% 11.6% 7.7% 7.4% 7.6% 7.3% 10.5% 10.7% 10.7% 10.6% 7.1% 7.0% 6.6% 8.2% 7.1% 5.7% 6.8% 7.6%
Slide 47: Pursuing high quality growth
Aspire Home Finance Rich understanding from 60,000 live accounts Focus on Self employed / Self-construction / small ticket loans No builder loans 100% In-house loan sourcing Risk based pricing to ensure quality sourcing Pursuing high quality Created in-house technical team. Captive team conducts 40%
Slide 48: Aspire Home Finance – Strengthened credit, collection and processes
Aspire Home Finance – Strengthened credit, collection and processes Credit Collection Process Separated credit reporting from Rolled out Pre Sales app, Sales In-house Set up in-house collection and Cluster branch; cluster level credit layer Digital Collection legal team of ~400 officers with App, Co
Slide 49: Capital Markets / Asset Management / Housing Finance / Fund based
Asset Capital Markets Management Retail Broking & Distn Asset Management Institutional Equity Private Equity Investment Banking Wealth Management Stable share in high yielding cash segment Strong growth in AUM Strong operating leverage Significant operating leverage Robust growth in Dist
Slide 50: Fund based Investments
Fund based Investments Total quoted equity Particulars (Rs mn) Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ (%) FY19 FY18 YoY (%) investment including Total Revenues 535 -845 163% 565 -5% 591 2,485 -76% MTM gains was Rs PAT as per Ind-AS 528 -609 187% 563 -6% 612 2,025 -70% 14.4 bn as of Q4FY19. PAT as per IGAA
Slide 51: Fund Based business – Skin in the game
Fund Based business – Skin in the game Skin in the game in AMC Skin in the game in PE 3.8 25 389 64 AMC AUM (Rs bn) Sponsor & Promoter AUM in AMC (Rs bn) PE AUM (Rs bn) Sponsor Commitment in PE (Rs bn) Unrealised gain from quoted equity investments 5.6 4.1 3.3 1.6 1.2 5.5 5.9 6.4 9.8 10.0 FY15 FY16
Slide 52: Management team
Management team Aashish Somaiyaa, CEO – Asset Management Motilal Oswal, Chairman and MD Mr Somaiyaa has done his MMS-Finance from NMIMS. He has varied A CA by qualification, Mr. Oswal started MOFSL along with Co-promoter, experience . of more than 18 years in sales and distribution, channel Mr .Raam
Slide 53: Independent Directors
Independent Directors Praveen Tripathi, Independent Director (MOFSL) Mr Tripathi has done his PGDM from IIM, Ahmedabad and B. Tech Ashok Jain Independent Director (MOAMC) (Electrical . Engineering) from IIT, Kanpur. He is currently CEO of Mr .Jain is the Whole-time Director and CFO of Gujarat Borosi
Slide 54: MOFSL Journey 32 Years of Wealth Creation
MOFSL Journey - Asset Management AUM crossed $ 6 bn -Wealth & distribution assets combined - Reach expands to touches $.3 bn 2017 - Asset - Forbes super 2003 2010 over 100 business -Aspire Home finance Management 50 companies locations and name changed to launches its - MOAMC customer base Motilal H
Slide 55: Interesting Exhibits
Key Highlights Financials Businesses Interesting Exhibits
Slide 56: Capital Market – Rising market share of top brokers in an earnings upcycle
Capital Market – Rising market share of top brokers in an earnings upcycle Market ADTO is on a high YoY in FY19 Market ADTO break up (Rsbn) (Rs bn) 9,933 2% 2% 2% 1% 1% 4% 5% 4% 3% 3% 8,705 12% 9% 15% 17% 15% 6,791 4,068 5,663 3,340 83% 88% 78% 77% 79% 3,007 3,195 2,614 2,304 513 626 799 876 502 166
Slide 57: FII-DIIs remain volatile in FY19; IPOs remain muted
FII-DIIs remain volatile in FY19; IPOs remain muted FII & DII net inflows * Fund Raising – M&A, QIP, IPO (Rs bn) 65 (US$ bn) 1,113 1,145 52 804 721 40 561 308 29 28 260 269 26 21 16 12.5 FY15 FY16 FY17 FY18 FY19 9.4 4.3 (220) (142) 2.2 2.1 2.0 0.0 0.9 FII DII FY16 FY17 FY18 FY19 M&A PE+VC IPO QIP In
Slide 58: Asset Management – Strong AUM growth story
Asset Management – Strong AUM growth story MF AUM growth provides optimism ETF AUM has grown ~10x in past 3 years (Rs bn) (Rs bn) 1391 777 23,797 21,360 429 16,500 309 224 233 231 10,828 12,328 147 78 8 FY15 FY16 FY17 FY18 FY19 ETF AUM (Rs bn) ETF Net Flows (Rs bn) FY15 FY16 FY17 FY18 FY19 Equities
Slide 59: Asset Management – Stickiness of Equity asset class
Asset Management – Stickiness of Equity asset class Equity-oriented funds lead the charge in net inflows Smaller cities picking up pace, with increasing A-AUM* (Rs bn) (Rs bn) 19% 20,785 928 16% 17% 18,442 15% 16% 15% 1,206 15,487 171 2,608 159 761 98 128 10,185 11,365 241 809 938 1,070 1,187 395 7,
Slide 60: Asset Management – Stickiness of Individual investors
Asset Management – Stickiness of Individual (Retail + HNI) investors Mutual fund assets of individual investors on the rise (AAUM) Individual investors’ assets claim a bigger share of the AUM pie (Rs bn) 13,541 1.0% 0.4% 11,665 10,851 44% 55.1% 8,527 7,924 6,158 5% 5,581 5,167 3.4% 3,203 3,537 50% 4
Slide 61: Asset Management – Rising financialization of savings
Asset Management – Rising financialization of savings Shift of financial savings from ULIP to Equity MF Equity MF flows dipped in FY19 on Higher vase (%) (growth YoY %) 120 144% 100 80 60 25% 20% 17% 26% 15% 16% 15% 22% 15% 10% 7% 10%12% 7% 10% 40 12% 6% 11% 11% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY
Slide 62: Asset Management – Current Equity MF uptrend like FY02-08 cycle
Asset Management – Current Equity MF uptrend is just like FY02-08 cycle Significant inflows in Eq MF AUM in last up-cycle (FY02-08 ); Market performance drives MF net flows, a repeat of the last same traction has been witnessed from FY14 onwards cycle (Rs tn) (Rs bn) 2,608 9.8 8.4 5.9 1,187 1,070 4.
Slide 63: Asset Management – Financialisation of savings wave
Asset Management – Financialisation of savings wave... Higher financial savings signifying opportunity for MFs Low penetration of MFs provides headroom for growth (% of household savings) MF penetration (AUM/GDP%); Global AUM ($Tn) US$ 52% USA 104% 20.4 46% 48% 48% 49% 48% France 76% 2.9 46% 46% 46%
Slide 64: Wealth Management – HNI Wealth picking up
Wealth Management – HNI Wealth picking up; HNI assets in equity MFs growing Individual Wealth distribution shows India has a higher share of India is Home to ~0.3 mn HNIs, out of which ~0.16 mn are UHNIs; Alternates, but lower share of Equity, to global averages UHNI growth and count has seen steady
Slide 65: Housing Finance holds ample potential; moving from Banks to HFCs
Housing Finance holds ample potential; moving from Banks to HFCs India’s housing credit growing significantly HFCs gaining share from banks (Rs tn) 18.2 16.6 14.3 12.3 10.4 11.5 10.3 67% 65% 65% 64% 64% 64% 62% 63% 8.8 7.4 9.1 7.9 6.6 5.7 4.8 6.3 6.7 33% 35% 35% 36% 36% 36% 38% 37% 4.4 5.2 2.6 3.1 3
Slide 66: Affordable Housing Industry
Affordable Housing Industry Housing market Split in India – Dominated by Affordable Housing Affordable Housing (up to Rs 25 lacs) lending pie 15% 41.5% 48.0% 50% 35% 0.3% 10.1% Affordable Housing (upto Rs 25 lacs) Regualar Housing (Rs 25 lacs-75 lacs) PSU Banks Private Banks Foreign Banks NBFCs & HF
Slide 67: Affordable Housing Industry
Affordable Housing Industry Ticket size wise break-up of home loan book of Affordable All HFCs Ticket size wise break-up of home loan book of Affordable New HFCs 33% 36% 30% 34% 29% 33% 26% 21% 24% 23% 20% 20% 20% 18% 15%14%15% 15% 15% 15% 13%12% 8% 7% 8% 8%9% 8% 5% 7% 6% 6% 5% 4% 3% 3%4% 4% 4% 3% 3
Slide 68: Affordable Housing Industry
Affordable Housing Industry Trends in Home loan CAGR (FY15- FY18) for various lender groups Industry’s loan book proportion trend 64% 71% 69% 69% 67% 65% 29% 19% 20% 16% 17% 17% 17% 19% 14% 14% 14% 14% 11% 13% 1% 0% 1% 1% 1% Large HFC Small HFC Affordable New Affordable All Banks FY15 FY16 FY17 FY18
Slide 69: Safe Harbour
Safe Harbour This earning presentation may contain certain words or phrases that are forward - looking statements. These forward-looking statements are tentative, based on current analysis and anticipation of the management of MOFSL. Actual results may vary from the forward-looking statements contai
Slide 70: For any query, please contact
For any query, please contact : Shalibhadra Shah Chief Financial Officer 91-22-71934917 / 9819060032 shalibhadrashah@motilaloswal.com Rakesh Shinde VP–Investor Relations 91-22-71985510 / 9920309311 rakesh.shinde@motilaloswal.com
Motilal Oswal Financial Services — Q4 FY2019 Earnings Presentation on 6ix