Motilal Oswal Financial Services Limited · NSE:MOTILALOFS
Motilal Oswal Financial Services — Q4 FY23 Earnings Presentation
34 slides from Motilal Oswal Financial Services's earnings presentation, Apr 27, 2023
Slide 1: Exchange filing cover letter for investor presentation
April 27, 2023 BSE Limited National Stock Exchange of India Limited P. J. Towers, Exchange Plaza, Plot No. C/1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (E), Mumbai - 400001 Mumbai - 400051 Security Code: 532892 Symbol: MOTILALOFS Sub.: Investor(s) / Analyst(s) Presentation – Financ
Slide 2: Earnings Presentation Q4FY23 & FY23
Financial Services Earnings Presentation Q4FY23 & FY23 BUSINESSES FOCUS ON SUSTAINABLE ALL BIZ OFFER HUGE BUILDING SCALE GROWTH HEADROOM FOR GROWTH
Slide 3: Group Structure
Group Structure MOFSL Group Capital Markets Asset and Wealth Management Housing Finance Asset Private Broking & Institutional Investment Wealth Management Equity & Distribution Equities Banking Management Company Real Estate Motilal Oswal Motilal Oswal Motilal Oswal Asset Motilal Oswal Motilal Oswal
Slide 4: Key Highlights for FY23
Key Highlights for FY23 Assets under advice Revenue Operating profit Total PAT * Net Worth ₹ 3.2 tn 6% YoY ₹ 43.2 bn 8% YoY ₹ 8.8 bn 6% YoY ₹ 9.3 bn 29% YoY ₹ 62.5 bn 10% YoY Lending Book ROA (incl. OCI) ROE Clients Employees ₹ 77.2 bn 40% YoY 4.4% 17.5% 5.5 mn 14% YoY 9,885 6% YoY Declared Final Di
Slide 5: Business Updates
Business Updates • MOFSL is amongst the top 4 broking houses in terms of gross brokerage revenue • Overall market share (ex-prop) was up 96 bps YoY to 3.4%; ADTO grew 182% YoY • NSE Active Client ranking improved to 8th position Capital Markets • Funding Book grew 18% QoQ/92% YoY to ₹ 39.1 bn • Dist
Slide 6: Resilience Trend across Key Parameters
Resilience Trend across Key Parameters Robust Net Worth Book Value Per Share Net Worth Book Value (₹ Bn) 423 Per Share (₹) 62.5 384 56.7 44.6 302 30.5 30.9 210 208 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Revenue Operating PAT Revenue Operating 43.2 (₹ Bn) 8.8 PAT (₹ Bn)
Slide 7: Consolidated P&L
Consolidated P&L PARTICULARS (₹ Mn) Q4FY23 Q3FY23 QoQ (%) Q4FY22 YoY (%) FY23 FY22 YoY (%) Capital Markets (Broking, Distribution & IB) 7,448 7,555 -1% 6,882 8% 28,326 25,454 11% Asset and Wealth Management(1) 2,517 2,502 1% 2,596 -3% 9,549 9,433 1% Housing Finance 1,386 1,357 2% 1,298 7% 5,319 5,28
Slide 8: Consolidated Profit After Tax
Consolidated Profit After Tax Particulars (₹ Mn) Q4FY23 Q3FY23 QoQ (%) Q4FY22 YoY (%) FY23 FY22 YoY (%) Capital Markets (Broking, Distribution & IB) 1,355 1,389 -2% 1,438 -6% 5,047 5,025 0% Asset & Wealth 660 672 -2% 804 -18% 2,584 2,870 -10% Home Finance 315 363 -13% 456 -31% 1,333 929 44% Intercom
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet PARTICULARS (₹ Bn) Mar 31, 2023 Mar 31, 2022 ROE* SOURCES OF FUNDS FY23 FY22 Net Worth 62.5 56.7 18% 30% (1) Borrowings 103.1 62.3 * Basis Reported PAT excl. OCI Minority Interest 0.3 0.3 Total Liabilities 165.9 119.3 Net Worth Deployment APPLICATION OF FUNDS Fixed assets
Slide 10: Focus on building recurring revenues
Focus on building recurring revenues…. Particulars NSE Active clients Total ARPU (₹) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Broking & Distribution 930,588 911,250 9,00,242 8,05,125 24,043 24,183 23,438 24,708 Particulars AUM/Loan Book (₹ Bn) Net Yield Net Revenue (₹ Mn) Q1FY23 Q2FY2
Slide 11: Capital Markets
Capital Markets • Retail ADTO market share grew by 113 bps YoY to 3.9% 3.9% 6.5 Lakh ₹ 24,000+ ₹ 213 Bn ₹ 12.8 Bn in FY23. Retail F&O market New clients One of the highest Distribution AUM; Distribution Net share; up 116 bps YoY acquired in FY23 ARPUs in the industry +17% YoY Sales in FY23 • Share o
Slide 12: Broking and Distribution– Gaining Market Share
Broking and Distribution– Gaining Market Share ADTO continue to rise Gaining F&O market share 3,224 YoY (Q4FY22 – Q4FY23) 6.1% Retail Cash 19 5.3% 5.7% 5.7% 5.6% 2,469 162% Market Share % 23 3.9% 1,231 F&O (₹ Bn) 3.4% 877 2.9% 2.8% Retail F&O 440 2.7% 29 3,205 Market Share % 174 Cash (₹ Bn) 235 31 2
Slide 13: Broking and Distribution – Growing and Diversified Client Base
Broking and Distribution – Growing and Diversified Client Base Continuous improvement in client base Emphasis on diversified sourcing model 35.0 4% 5% 7% Online 5% 10. 0 40. 0 Active Clients 7% 9.0 28.5 35. 0 10% 9% 10% 8% Franchisee 8.0 (Lakhs) 14% 25% 30. 0 33% Branch 7.0 6.0 19.7 25. 0 29% 36% 38
Slide 14: Broking and Distribution – Emphasis on Revenue & Productivity
Broking and Distribution – Emphasis on Revenue & Productivity One of the Highest ARPUs in the industry Franchisee Productivity intact 1.5 Brokerage 9,0 00 1.4 1.3 1.6 Franchisees 8,0 00 1.3 1.4 ARPU (₹) 7,0 00 1.0 1.2 Revenue per 21,539 6,0 00 18,754 1.0 Franchisee 17,763 17,608 17,291 5,0 00 Overal
Slide 15: Broking and Distribution – Large client assets under advice
Broking and Distribution – Large client assets under advice Rising Distribution (Mass Affluent) AUM Distribution AUM Mix MF Distribution PMS 213 AUM (₹ Bn) 27% 182 38% PE/RE 134 AIF 96 90 16% Others 8% 11% (incl. IAP) Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 *incl. Investment Advisory Portfolio (IAP) AUM
Slide 16: Launching Super App
Launching Super App 15 KEY HIGHLIGHTS FINANCIALS BUSINESSES
Slide 17: Capital Markets
Capital Markets INSTITUTIONAL INVESTMENT EQUITIES BANKING • Successfully completed marquee deals in • Focus driven differentiated research products with 250+ companies covering 21 sectors, catering to 820+ FY23- ₹ 9.6 Bn PE Fund Raise institutional clients. o Fund Raise for Simpolo Group- It was the
Slide 18: Asset and Wealth Management
Asset and Wealth Management • AMC AUM stood at ₹ 456.2 bn with MF AUM at ₹ 295.6 ₹ 456.2 Bn 35% ₹ 102.8 Bn ₹ 520 Bn ₹ 58.1 Bn bn and Alternates AUM at ₹ 158 bn. Alternates Share in PE & RE Fee Earning Wealth AUM; +51% Wealth Net Sales in AMC AUM AMC AUM AUM YoY FY23; +8% YoY • Turnaround in performa
Slide 19: Asset Management
Asset Management AMC AUM Breakup and Growth trend AMC MF AUM mix ₹ Bn Direct 490 10% 434 456 16% 14% 18% 13% NDs 40 MF AUM 24% 389 27 56 26% 23% IFA 28 142 PMS AUM 27% 22% 294 147 102 AIF AUM 25% 25% WM+Bank 160 19 21% 21% 21% 116 258 306 296 199 35% 38% 41% 39% 39% 157 Mar-19 Mar-20 Mar-21 Mar-22 M
Slide 20: Asset Management
Asset Management Stable AMC yields AMC MF Folios 88 Net Revenue to Folio Count 85 83 AAUM (bps) 1.9 1.9 50 90 45 77 76 85 (mn) 80 75 40 42 42 70 PAT to AAUM 1.3 35 39 38 65 (bps) 1.0 60 0.9 30 34 55 50 25 45 20 40 FY19 FY20 FY21 FY22 FY23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 AMC MF SIP flows MF MAAUM
Slide 21: Private Equity & Real Estate Funds
Private Equity & Real Estate Funds Successful launch of PE & RE Funds over years PE & RE Fund Level IRR Expected exit in near future IBEF IV Valued IRR (%) FY25 FY24 FY26 IREF V ₹ 45 Bn 26.8% IREF IV 25.4% Fully ₹ 12 Bn 22.7% IBEF III ₹ 11.5 Bn Exited IRR (%) Exited in IREF III ₹ 23 Bn 19.1% 18.4% 2
Slide 22: Wealth Management
Wealth Management AUM diversified across asset classes Continued traction in RM addition 182 600 600 520 MF 6,0 00 200 Family 180 PMS 500 500 53% 5,0 00 144 RM 129 160 126 123 400 344 400 AIF 4,0 00 140 120 300 253 37% 300 PE/RE 3,0 00 100 175 156 38% 11% 8% Others 80 6% 200 200 8% 2,0 00 31% 60 11%
Slide 23: Wealth Management
Wealth Management AUM Mix Focus on improving share of recurring business 120 % 70% 36% 64% MF Transactional 60% 6% 100 % 14% PMS/AIF 80% 50% 44% 43% 49% Recurring 44% PE/RE 42% 40% DP 60% 30% 40% 14% 20% Others 56% 57% 51% 20% 50% 14% 10% 0% 16% 0% Recurring AUM Transactional AUM FY21 FY22 FY23 * ex
Slide 24: Home Finance
Home Finance • AUM grew by 9% YoY to ₹ 38.4 bn as at March 31, 2023. ₹ 38.4 Bn ₹ 10.1 Bn 7.7% 7.5% 3.5% Disbursements in NIM in FY23, up 37 Incremental COF in ROA in FY23, up 97 AUM as on Mar-23 • Disbursements stood at ₹ 3.6 bn in Q4FY23. FY23, up 57% YoY bps YoY FY23 bps YoY • Improvement in colle
Slide 25: Home Finance – Portfolio Metrics
Home Finance – Portfolio Metrics Disbursement Trend Product Mix 33% New Purchase 10.1 Disbursement 24% Self-Construction (₹ Bn) 16% Construction Finance* 6.4 10% Resale 06% LAP 2.9 2.7 1.9 03% Home Impr./Ext. FY19 FY20 FY21 FY22 FY23 02% Composite 06% Others Customer Mix AUM by Ticket Size 07% Up to
Slide 26: Home Finance
Home Finance ECL Provisioning Details PARTICULARS (₹ Mn) FY23 STATE NOS. OF MOHFL’s Geographic Reach BRANCHES Stage 1 & 2 37,675 PRESENCE ACROSS MH Maharashtra 32 % portfolio in stage 1 & 2 98.93% GJ Gujarat 15 109 LOCATIONS IN 12 STATES/UTS Stage 3 409 TN Tamil Nadu 15 % portfolio in Stage 3 1.07%
Slide 27: Home Finance
Home Finance Diversified Liability Mix Key Ratios 3% 8% Term loan 7% 7% 8% 7% 5% NCD Parameters FY23 FY22 52% 16% 57% 28% NHB 40% 21% Securitization Yield 13.9% 13.9% ECB 49% 45% 55% 50% 43% COF 8.0% 8.2% FY19 FY20 FY21 FY22 FY23 Spread 5.9% 5.7% NIM 7.7% 7.3% Net Worth and Net D/E Total cumulative
Slide 28: Fund Based Investments
Fund Based Investments • Fund based book includes sponsor commitments cum ₹ 46.3 Bn ₹ 42.8 Bn ₹ 13.8 Bn 16% 19% investments in equity MF, PE funds, Real estate funds, Total equity Total unrealised Cumulative XIRR on XIRR on PE/RE Total investments investment including gain on fund-based AIF and stra
Slide 29: Fund Based Investments – Large Skin in The Game
Fund Based Investments – Large Skin in The Game Skin in the Game in AMC (₹ Bn) Strong Growth in investments over the years 456 AMC AUM 42.8 40.5 21 Sponsor AUM 13.3 Promoter 31.0 18 17.4 AUM 13.1 Skin in the game in PE & RE (₹ Bn) 17.9 17.5 3.9 1.7 29.5 133 Total Capital 23.1 Raise till date 17.9 14
Slide 30: MOFSL - ESG Initiatives
MOFSL - ESG Initiatives Launched online ESG profile platform, CRISIL has assigned “STRONG” rating to which adheres to international frameworks such as MOFSL in its Sustainability Yearbook 2022 IFC, GRI, SASB, CDP etc. ENVIRONMENTAL SOCIAL GOVERNANCE • More than 80% of servers are in • Physical & emo
Slide 31: Management Team
Management Team RAAMDEO AGRAWAL MOTILAL OSWAL NAVIN AGARWAL AJAY MENON RAJAT RAJGARHIA CHAIRMAN MD & CEO MD & CEO – ASSET CEO – RETAIL BROKING CEO – INSTITUTIONAL MANAGEMENT AND DISTRIBUTION EQUITIES A CA by qualification, Mr. A CA by qualification, Mr. Oswal Mr. Agarwal is a CA, ICWA, Mr. Menon is
Slide 32: Independent Directors
Independent Directors C. N. MURTHY DIVYA SAMEER MOMAYA PANKAJ BHANSALI CHANDRASHEKHAR KARNIK INDEPENDENT DIRECTOR (MOFSL) INDEPENDENT DIRECTOR (MOFSL) INDEPENDENT DIRECTOR (MOFSL) INDEPENDENT DIRECTOR (MOFSL) Mr. Murthy has done his B.Tech (Hons) from Mrs. Momaya has done B.com from Garware Mr. Bhan
Slide 33: 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 34: For any query, please contact
For any query, please contact : S H A L IB H A D RA S H A H CHIEF FINANCIAL OFFICER 91-22-7193 4917 / 98190 60032 shalibhadrashah@motilaloswal.com C H E TA N PA RM A R HEAD INVESTOR RELATIONS 91-22-7190 6600 / 74003 12700 chetan.parmar@motilaloswal.com
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