Motilal Oswal Financial Services Limited · NSE:MOTILALOFS
Motilal Oswal Financial Services — Q3 FY2025 Earnings Presentation
55 slides from Motilal Oswal Financial Services's earnings presentation, Jan 28, 2025
Slide 1: Exchange filing cover letter for Q3 FY25 investor presentation
January 28, 2025 To 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 – Fin
Slide 2: Investor Presentation Q3FY25 & 9MFY25
MOTILAL Investor Presentation OSWAL Q3FY25 & 9MFY25 Financial Services Limited (MOFSL)
Slide 3: Safe Harbour
Investor Presentation Q3FY25 & 9MFY25 This earning presentation may contain certain words or phrases that are forward - looking statements. Safe These forward-looking statements are tentative, based on current analysis and anticipation of the Harbour management of MOFSL. Actual results may vary from
Slide 4: Content
Investor Presentation Q3FY25 & 9MFY25 Content Q3FY25 & Highly Other Compounding MOFSL Value Machine 9MFY25 Professionalized (ESG, Philanthropy, Proposition Highlights Management Hiring) 4-8 9-11 12-41 42-43 44-48 3
Slide 5: At MOFSL, we believe that companies seeking to consistently outperform need compounding
Investor Presentation Q3FY25 & 9MFY25 “Compounding has been described as the At MOFSL, eighth Wonder of the World. At MOFSL, we have designed the company around this we believe that concept. We have structured our business in a manner that would not only capitalize companies on the national economic
Slide 6: Power of Compounding demonstrated
Investor Presentation Q3FY25 & 9MFY25 Power of Compounding Net Worth Trend demonstrated Recorded the highest ever nine months profit of ₹ 2,718 Cr 9M- Total client base crossed 10 mn. ₹ 11,569 Cr over FY25 37 Years Recorded the highest ever yearly profit of ₹ 2,626 Cr Crossed 1 mn customers in Wealt
Slide 7: MOFSL's Compounding Machine has been extensively validated over the last decade
Investor Presentation Q3FY25 & 9MFY25 MOFSL’s Compounding Machine has Total Revenue in ₹ Cr Total PAT (incl OCI) in ₹ Cr Assets under Advice (AUA) in ₹ Cr been extensively validated over the last decade 465 7,153 77 2,626 18,409 6 lakh Mar-14 Mar-24 Mar-14 Mar-24 Mar-14 Dec-24 Profit growth has been
Slide 8: MOFSL seeks to sustain compounding machine effectiveness through double-engine model
Investor Presentation Q3FY25 & 9MFY25 Engine #1 Operating businesses Operating • Asset-light MOFSL seek to business • Diversified revenue sustain • Each business managed by a separate CEO compounding machine effectiveness through its Double Engine Model + Engine #2 Treasury investments ‘double-engin
Slide 9: MOFSL: Primed for disproportionate growth
Investor Presentation Q3FY25 & 9MFY25 MOFSL: Engine #1 Robust Past Promising Future Primed for Operating businesses disproportionate growth Operating PAT Operating PAT clocked 34% CAGR in last decade Optimistic about the future growth Engine #2 Treasury investments Treasury investments Book posted 4
Slide 10: MOFSL's Strong Value Proposition to Clients
MOFSL’s Strong Value Proposition to Clients Investor Presentation Q3FY25 & 9MFY25 Strong manufacturing capabilities • Research led Broking Wealth Advisory • Loan Against Securities • Mutual Funds • Investment charter • PMS • Alternate assets • AIF (listed equities) • Credit solutions • Private Equit
Slide 11: BIG Numbers at MOFSL
Investor Presentation Q3FY25 & 9MFY25 Geographical reach Relationship Distribution Managers & Network 2,500+ business Research Team 9,300+ External locations 2,500+ RMs BIG Wealth Managers Serving clients in 98% of pin 100+ research team NUMBERS codes AT MOFSL Clients Assets under AMC folios – 6.8+
Slide 12: MOFSL Group Structure
Investor Presentation Q3FY25 & 9MFY25 MOFSL Group Wealth Structure Treasury Management* Investments Capital Home Market Finance (IE + IB) Asset & Private Wealth Management** *includes retail broking & distribution business ** includes AMC, PE/RE & PWM business 11 IE = Institutional Equities, IB – In
Slide 13: Strong financial performance in Q3FY25
Investor Presentation Q3FY25 & 9MFY25 Strong financial Declared ₹ 5/- dividend per equity share performance in Trailing Q3FY25 Operating PAT ROE* 12 months Net Operating ₹ 525 cr. 36% Revenue 38% YoY growth *9MFY25 annualised ₹ 5,058 cr. Treasury Investments Operating PAT NSE Active Clients ₹ 1,999
Slide 14: Momentum continues in Quarterly Operating PAT
Investor Presentation Q3FY25 & 9MFY25 Momentum continues in Segmental PAT (₹ Cr) Q3FY25 Q2FY25 Q1FY25 Q4FY24 Q3FY24 Quarterly Wealth Management 190 225 177 211 164 Operating PAT YoY Growth % 16% 71% 69% 53% 35% Capital Market 61 73 57 47 40 YoY Growth % 50% 45% -4% 300% 85% Asset & Private Wealth Ma
Slide 15: Highest Consolidated nine months profits at Rs. 2,718 Cr
Highest Investor Presentation Q3FY25 & 9MFY25 Consolidated nine months Particulars (₹ Cr) Q3FY25 Q3FY24 YoY (%) Q2FY25 QoQ (%) 9MFY25 9MFY24 YoY (%) profits at Net Revenue Wealth Management Rs. 2,718 Cr Capital Market 570 151 439 89 30% 70% 637 174 -10% -13% 1,740 459 1,231 338 41% 36% Asset and Pri
Slide 16: Focus on building diversified & sustainable revenue streams
Focus on Investor Presentation Q3FY25 & 9MFY25 building diversified & sustainable revenue Consolidated Net Revenue Mix streams Brokerage NII Annual Recurring Revenue (ARR) Management Fees & Advisory Distribution Transaction Based Revenue (TBR) Other Operating 3,850 156 536 57% 56% 54% 55% 2,735 129
Slide 17: Leveraging strong net-worth for Operating business growth
Investor Presentation Q3FY25 & 9MFY25 Leveraging strong net-worth for Operating Particulars (₹ Cr) Dec-24 Mar-24 business growth SOURCES OF FUNDS Net Worth 11,569 8,732 Borrowings 14,066 13,762 Minority Interest 46 37 9MFY25 Total Liabilities 25,681 22,531 Particulars (₹ Cr) Asset & Private APPLICAT
Slide 18: Wealth Management
Investor Presentation Q3FY25 & 9MFY25 Wealth Management No 1 full service Strong blend of Extensive broking house by Geographical reach - Market share 2,000+ internal gross brokerage Relationship 2,500+ business Cash : 7.4% revenue & highest Managers and locations covering F&O Premium broking ARPU i
Slide 19: Wealth Management
Wealth Management Investor Presentation Q3FY25 & 9MFY25 2,033 Internal Relationship 9,318 Managers External Wealth Managers 77 Strength of Branches Internal RMs and External Wealth Managers 1.6 mn+ Per Client Per RM -AUM ~₹ 2 mn. - AUM ₹ 27 cr. Total Active Clients -Clients 143 18
Slide 20: Wealth Management – Resilient Performance
Wealth Management – Resilient Performance Investor Presentation Q3FY25 & 9MFY25 AUM Break-up (₹ Cr.) PAT (₹ Cr.) DP Distribution Lending Book 3,08,329 592 5,313 31,918 402 1,84,216 4,766 23,192 2,71,098 190 164 1,56,258 Q3FY24 Q3FY25 9MFY24 9MFY25 Dec'23 Dec'24 19
Slide 21: Wealth Management – Growing recurring revenue share
Wealth Management – Growing recurring revenue share Investor Presentation Q3FY25 & 9MFY25 Net Revenue Break-up by Products (₹ Cr.) Net Revenue Break-up by Channels* Brokerage Distribution NII Other Operating Internal External 1,740 95 51% 42% 48% 47% 621 1,231 56% 94 424 58% 52% 256 53% 52% 49% 570
Slide 22: Wealth Management: Focus on building the distribution business
Wealth Management Investor Presentation Q3FY25 & 9MFY25 Strengthened distribution business vertical with growing RM base. Teams aligned towards wealth solution-oriented products & services Focus on building the distribution business Pioneering the move to Advisory with transparent and interests alig
Slide 23: Asset & Private Wealth Management
Investor Presentation Q3FY25 & 9MFY25 Asset & Private Wealth Management Blend of Robust Investment AUM of ₹ 2.9 lakh Cr Focused and leading manufacturing and and Risk & Net sales of player in alternate distribution Management ₹24,000+ Cr in assets capabilities process Q3FY25 22
Slide 24: Asset & Private Wealth contributes 37% of consolidated net revenue
Investor Presentation Asset & Private Q3FY25 & 9MFY25 Wealth contributes Net Revenue Break-up (₹ Cr.) 37% of PAT (₹ Cr.) ARR TBR consolidated 1,60 0 1,426 1,60 0 net revenue 1,40 0 1,40 0 396 1,20 0 1,20 0 604 Net Sales (₹ Cr.) 1,00 0 965 1,00 0 1,032 269 800 800 397 50,608 600 551 698 600 177 400 3
Slide 25: Asset Management
Investor Presentation Q3FY25 & 9MFY25 Asset Management Unlisted Listed Equities Quality Investment Private Equity Fee earning AUM of Team with a MF + PMS + Real Estate Funds ₹ 1.4 Lakh cr. successful track + AIF (CAT III) record (CAT II) 24
Slide 26: Asset Management – Strong net flows driving AUM growth
Asset Management – Strong net flows driving AUM growth… Investor Presentation Q3FY25 & 9MFY25 AUM Break-up (₹ Cr.) Net Sales (₹ Cr.) AMC PE/RE 1,41,042 10,560 37,781 1,30,482 74,242 9,384 19,099 64,858 2,006 907 Dec'23 Dec'24 Q3FY24 Q3FY25 9MFY24 9MFY25 25
Slide 27: Asset Management – gives visibility of higher PAT growth
Asset Management – …gives visibility of higher PAT growth Investor Presentation Q3FY25 & 9MFY25 Net Revenue Break-up (₹ Cr.) PAT (₹ Cr.) AMC PE/RE 721 136 585 358 487 115 372 227 274 52 177 222 137 39 138 83 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY24 9MFY25 26
Slide 28: Asset Management – Continuous rise in flows and market share
Asset Management Launch of 5 th Investor Presentation Continuous Q3FY25 & 9MFY25 Private Equity SIP Flows (₹ Cr.) Asset Management rise in flows fund of 2,922 One year performance market ~₹8,000 cr in Total No. of Strategies (MF + PMS + AIF) 13 H2FY25 share 1,878 1,198 No. of strategies outperformed
Slide 29: Asset Management – Granular AUM with growing penetration
Asset Management Launch of 5th Granular Investor Presentation Q3FY25 & 9MFY25 Private AUM Equity with fund of growing ~₹8,000 cr in penetration H2FY25 Individual MF AUM (₹ Cr.) MF Unique Customers (Mn.) Individual AUM % of Total Unique Folios Penetration 83,547 90,0 00 86% 13% 8.0 14% 80,0 00 85% 85
Slide 30: Private Equity & Real Estate
Private Equity & Real Estate 6th Real Investor Presentation Estate Fund Q3FY25 & 9MFY25 raised ₹ 1,750 cr and Total earning AUM - ₹ 13,771 Cr. Market value* of AUM - ₹ 16,915 Cr. final close is expected in Q4FY25 PE RE Fund Size in ₹ Cr. 550 950 2,300 4,500 490 1,030 1,150 1,200 1,600 27.7% 26.8% 26
Slide 31: Private Wealth Management
Investor Presentation Q3FY25 & 9MFY25 Private Wealth Management Integrated platform with solutions Focus on catering to Growing clients High quality team of offering across asset the UHNI clients assets under 600 RMs; 3+ years management, with a networth of management of ₹ vintage of 29% lending, in
Slide 32: Private Wealth Management – Strong momentum
Private Wealth Management – Strong momentum Investor Presentation Q3FY25 & 9MFY25 AUM (₹ Cr.) Net Sales (₹ Cr.) 1,60 ,000 1,49,271 1,40 ,000 12,827 1,20 ,000 1,11,563 1,00 ,000 80,0 00 7,795 60,0 00 5,323 40,0 00 3,582 20,0 00 0 Dec'23 Dec'24 Q3FY24 Q3FY25 9MFY24 9MFY25 31
Slide 33: Private Wealth Management – ARR contributes ~50%
Private Wealth Management – ARR contributes ~50% Investor Presentation Q3FY25 & 9MFY25 Net Revenue Break-up (₹ Cr.) PAT (₹ Cr.) ARR TBR 800 800 705 700 700 366 600 600 246 500 478 500 258 400 400 170 300 278 341 300 160 200 173 200 97 220 93 61 100 100 118 80 - - Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q
Slide 34: Private Wealth Management
Private Wealth Management Investor Presentation Q3FY25 & 9MFY25 Strengthening product capabilities, Expanding targeting UHNI and presence in Tier 2 locations Focus on Family Offices improving productivity and margins 15,000+ Per Family Per RM -AUM ₹ 249 cr. Families -AUM ₹ 10 cr -Families 25 33
Slide 35: Capital Markets
Investor Presentation Q3FY25 & 9MFY25 Capital Markets Institutional Equities Investment Banking Covering ~300 Strong team of Completed 35 With new Leadership companies across 24 140+ employees deals with total team and best ever sectors, valuing 70% catering to 880+ issue size of mandate pipeline, o
Slide 36: Capital Markets Ranked No. 1 on QIP League Table
Capital Markets Investor Presentation Q3FY25 & 9MFY25 Ranked No. 1 on QIP League Table Net Revenue (₹ Cr.) in 9MFY25 PAT (₹ Cr.) Major Deals in 9MFY25 459 Varun Beverages PNB Five Star Finance ₹ 7,500 cr (QIP) ₹ 5,000 cr (QIP) ₹4,500 cr (Block Deal) 191 338 149 Bank of Maharashtra Acme Solar PNB Hou
Slide 37: Home Finance
Investor Presentation Q3FY25 & 9MFY25 Home Finance Credit rating: Building retail Expanding RM Scalable operating granular book with strength to drive model built on AA Positive wide geographical disbursement Holistic Technology (by all three distribution growth Usage leading rating agencies 36
Slide 38: Home Finance – Strong disbursement trend continues
Home Finance – Strong disbursement trend continues Investor Presentation Q3FY25 & 9MFY25 Disbursement (₹ Cr.) Loan Book (₹ Cr.) Sales RM Count Retail Loan Non-Retail 4,321 517 1,246 3,754 1,014 476 856 527 3,803 3,278 394 236 Q3FY24 Q3FY25 9MFY24 9MFY25 Dec'23 Dec'24 Dec-23 Dec'24 37
Slide 39: Home Finance – Profitability to grow on higher RM productivity
Home Finance – Profitability to grow on higher RM productivity Investor Presentation Q3FY25 & 9MFY25 Net Worth (₹ Cr.) Net Interest Income (₹ Cr.) PAT* (₹ Cr.) 1,60 0 252 234 1,40 0 1,393 1,20 0 1,253 1,00 0 100 800 93 600 88 400 80 200 37 37 - Dec'23 Dec'24 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25
Slide 40: Home Finance - Financial Parameters
Investor Presentation Q3FY25 & 9MFY25 Home Finance - Financial Parameters Q3FY25 Q3FY24 Q2FY25 9MFY25 9MFY24 Parameters AUM (₹ Cr) 4,343 3,781 4,233 4,343 3,781 Yield 13.6% 14.2% 13.6% 13.7% 14.3% COF 8.3% 8.3% 8.4% 8.4% 8.3% Spread 5.3% 5.9% 5.2% 5.4% 6.0% NIM 7.6% 7.7% 7.0% 7.3% 7.7% Cost/Income 5
Slide 41: Treasury Investments
Investor Presentation Q3FY25 & 9MFY25 Treasury Investments Helps in absorbing Helps to grab new Healthy returns at shocks in an opportunities and Skin in the game 20% XIRR since FY14 uncertain foster the existing environment businesses 40
Slide 42: Skin in the game ₹11,000+ Cr.
Investor Presentation Q3FY25 & 9MFY25 Treasury Investments (₹ Cr.) Gross Revenue (₹ Cr.) PAT incl. OCI (₹ Cr.) Skin in the game Cost MTM 1,654 ₹11,000+ Cr. 8,464 1,221 4,604 961 5,892 1,045 2,905 Investment in MOFSL 394 manufactured 3,860 products 2,987 414 -69 • Sponsor : ₹ 7,400+ 177 • Promoters :
Slide 43: Highly experienced and pedigreed management team
Investor Presentation Q3FY25 & 9MFY25 Highly experienced and pedigreed management RAAMDEO AGRAWAL MOTILAL OSWAL NAVIN AGARWAL team Chairman • Chartered Accountant MD & CEO • Chartered Accountant Group MD - MOFSL • CA, ICWA, CS, and CFA • Four decades of rich experience in • Four decades of rich expe
Slide 44: Highly experienced and pedigreed management team (Contd.)
Investor Presentation Q3FY25 & 9MFY25 Highly experienced and pedigreed management SUKESH BHOWAL ASHISH SHANKER SHALIBHADRA SHAH team(Contd.) CEO- Housing Finance • Bachelor of Technology from IIT CEO- Private Wealth Management • Management Graduate from Chief Financial Officer • Chartered Accountant
Slide 45: MOFSL's ESG Initiatives
Investor Presentation Q3FY25 & 9MFY25 MOFSL’s ESG • More than 80% of servers are in virtual office premises. Initiatives environment, which reduces electricity costs & carbon foot print • Food wastage awareness drive in the head office • We ensure that we fund projects that are on non- • Main office
Slide 46: Philanthropy
Investor Presentation Q3FY25 & 9MFY25 Philanthropy Institution Building Activities Maharshi Vaishnav joined as a CEO, Motilal Oswal Foundation MoU with IIT Bombay for MO Research Centre MoU with IIM Mumbai for MO Knowledge Centre 108 kids from 14 States from poor family were adopted to provide free
Slide 47: Strategic Brand Leadership Initiatives
Investor Presentation Strategic Q3FY25 & 9MFY25 Brand Leadership Initiatives Man from Motilal Oswal Motilal Oswal Malad West New Motilal Oswal Tower in Bengaluru Campaign Metro Station Inaugurated a cutting-edge facility in Positioned research and advisory as Landmark association with Malad, a subur
Slide 48: Robust Digital Infrastructure
Investor Presentation Q3FY25 & 9MFY25 Robust Digital Data Science Infrastructure • AI enabled smart search on mobile apps Digital Infrastructure • Hyper personalization of all digital campaigns • Moving to cloud based modular architecture • Alpha Generator - AI powered research • Rapid application d
Slide 49: Increasing investments in building MOFSL a Talent Powerhouse
Increasing Investor Presentation Q3FY25 & 9MFY25 investments in An expanding employee base to support our aspirations building MOFSL a Talent ~13,650 (27% up YoY) 5,600+ Gross hires in FY 25 strong employee base Powerhouse 280 + Senior hires in FY 25 ~23% Diversity levels across the group With a foc
Slide 50: Annexures
Investor Presentation Q3FY25 & 9MFY25 Annexures Strong industry tailwinds 1. Wealth Management opportunities in India 2. Economic take-off: India likely to retain its position as the world’s fastest- growing major economy 3. Financialization of Savings Propelling equities 4. Digitization Driving Exp
Slide 51: MOFSL well geared to tap growing wealth opportunity in India
Investor Presentation Q3FY25 & 9MFY25 MOFSL well geared to tap growing wealth 2022 2027E 2027E opportunity in Nos. of Nos. of Potential India Asset value threshold (USD) Individuals Individuals Wealth > 1 bn 161 195 $195 Bn Billionaires Potential >30 Mn Wealth UHNIs 12,069 19,119 $574Bn Opportunity
Slide 52: 'Economic takeoff': India likely to retain its position as fastest-growing major economy
‘Economic Investor Presentation takeoff’: India Q3FY25 & 9MFY25 likely to retain Gross Domestic Product (USD Bn.) its position as 30.0 the world’s 25.0 27.4 fastest- growing 22.9 India’s GDP is expected to grow from $ 20.9 3.7 tn to an estimated $30 tn by 2047 19.1 major economy 17.4 15.9 14.5 13.3
Slide 53: Financialization of Savings Propelling equities
Investor Presentation Q3FY25 & 9MFY25 Financialization Total Indian Household assets $ 12.9 Tn (FY24) % of Household Assets in Equities of Savings Propelling equities 6.9 6.9% 6.4 50.7% 5.6 5.3 3.0% 5.6% 3.9 3.8 5.6% 3.4 15.0% 13.1% 2.9 2.8 2.7 2.2 2.2 Equities Cash Provident & Pension funds Insuran
Slide 54: Digitization Driving Exponential Retail participation
Investor Presentation Q3FY25 & 9MFY25 Digitization Demat Accounts (in Cr) Driving Exponential 0.5 Monthly addition Total (RHS) 20 Retail 0.4 15 participation 0.3 0.2 10 5 0.1 0.0 0 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Strong addition of Demat accounts SIP flow
Slide 55: Thank You
Investor Presentation Q3FY25 & 9MFY25 Thank You For any query, please contact : SHALIBHADRA SHAH For more details refer data book published on our website (here). CHIEF FINANCIAL OFFICER Data Book Contents shalibhadrashah@motilaloswal.com 1.Consolidated Performance 2.Segmental Performance MANISH KAY
Motilal Oswal Financial Services — Q3 FY2025 Earnings Presentation on 6ix