Motilal Oswal Financial Services Limited · NSE:MOTILALOFS
Motilal Oswal Financial Services — Q2 FY23 Earnings Presentation
32 slides from Motilal Oswal Financial Services's earnings presentation, Oct 21, 2022
Slide 1: Exchange filing cover letter for investor presentation
October 21, 2022 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 – Financi
Slide 2: Earnings Presentation Q2FY23 & H1FY23
Financial Services Earnings Presentation Q2FY23 & H1FY23 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 Q2FY23
Key Highlights for Q2FY23 Assets under advice Revenue Operating profit Total PAT 1 Net Worth ₹ 3.2 tn 11% YoY ₹ 11.0 bn 13% YoY ₹ 2.2 bn 16% YoY ₹ 5.1 bn 11% YoY ₹ 59.7 bn 16% YoY Lending Book ROA 2 (incl. OCI) ROE 2 Clients Employees ₹ 65.5 bn 18% YoY 12.1% 39.6% 5.2 mn 26% YoY 10,518 22% YoY 1. Ex
Slide 5: Business Updates Q2FY23
Business Updates Q2FY23 • PAT grew by 46% QoQ to ₹ 1.32 bn • ADTO grew 45% QoQ/198% YoY. Overall market share (ex-prop) was up 50 bps QoQ / 110 bps YoY to 3.4% • Funding Book grew 44% QoQ/39% YoY to ₹ 29.2 bn Capital Markets • Distribution AUM grew 8% QoQ/17% YoY to ₹ 186.0 bn • Added net ~1,300 emp
Slide 6: Resilience Trend across Key Parameters
Resilience Trend across Key Parameters Robust Net Worth Book Value Per Share Net Worth Book Value (₹ Bn) 384 401 Per Share (₹) 56.7 59.7 302 44.6 30.5 30.9 210 208 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Revenue Operating PAT Revenue Operating 41.7 (₹ Bn) 9.1 PAT (₹ Bn)
Slide 7: Consolidated Operating Profit
Consolidated Operating Profit PARTICULARS (₹ Mn) Q2FY23 Q1FY23 QOQ (%) Q2FY22 YOY (%) H1FY23 H1FY22 YOY (%) Capital Markets (Broking, Distribution & IB) 7,192 6,083 18% 6,071 18% 13,275 11,177 19% Asset and Wealth Management 2,335 2,190 7% 2,225 5% 4,525 4,238 7% Housing Finance 1,315 1,262 4% 1,328
Slide 8: Consolidated Profit After Tax
Consolidated Profit After Tax Particulars (₹ Mn) Q2FY23 Q1FY23 QOQ (%) Q2FY22 YOY (%) H1FY23 H1FY22 YOY (%) Capital Markets (Broking, Distribution & IB) 1,323 909 46% 1,219 9% 2,232 2,003 11% Asset & Wealth 667 580 15% 656 2% 1,246 1,205 3% Home Finance 334 321 4% 201 67% 656 285 130% Intercompany a
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet PARTICULARS (₹ Bn) Sep 30, 2022 Mar 31, 2022 ROE* SOURCES OF FUNDS Q2FY231 H1FY231 FY22 FY21 Net Worth 59.7 56.7 40% 21% 30% 38% (1) Borrowings 78.7 62.3 * Basis Reported PAT excl. OCI Minority Interest 0.3 0.3 1. Annualized Total Liabilities 138.7 119.3 Net Worth Deployme
Slide 10: Segmental Summary
Segmental Summary Particulars NSE Active clients ARPU (₹) Q1FY23 Q2FY23 Q1FY23 Q2FY23 H1FY23 Broking & Distribution 930,588 911,250 24,043 24,183 24,113 Particulars AUM/Loan Book (₹ Bn) Net Yield Net Revenue (₹ Mn) Q1FY23 Q2FY23 Q1FY23 Q2FY23 H1FY23 Q1FY23 Q2FY23 H1FY23 Asset Management 434.2 467.0
Slide 11: Capital Markets
Capital Markets • MOFSL’s overall ADTO grew 45% QoQ to ₹ 2,212 bn 3.9% 3.5 Lakh ₹ 24,000+ ₹ 186.0 Bn ₹ 7.1 Bn with overall market share of 3.4% in Q2FY23, up 50 Retail F&O market New clients One of the highest Distribution AUM; Distribution Net bps QoQ. share; up 63 bps QoQ acquired in H1FY23 ARPUs
Slide 12: Broking and Distribution – Gaining Market Share
Broking and Distribution– Gaining Market Share ADTO continue to rise in midst of volatility Gaining F&O & Stable Cash market share 2,212 YoY (Q2FY22 – Q2FY23) 6.1% 5.8% Retail Cash 25 5.3% 5.7% 5.7% 5.7% 198% Market Share % F&O (₹ Bn) 3.9% 877 3.4% 3.2% Retail F&O 743 2.9% 2.8% 2.7% Market Share % 4
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 3.2 5% 5% 4% Online 5% 7% 10. 0 3.5 2.9 Active Clients 10% 9% 9.0 3.0 11% 11% 14% Franchisee 8.0 (Lakhs) 2.0 2.5 31% 29% 33% 25% Branch 7.0 6.0 29% 1.5 2.0 Tota
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 8,0 00 1.4 1.6 Franchisees 1.3 1.3 ARPU (₹) 7,0 00 1.4 6,0 00 1.0 1.2 Revenue per 21,539 18,754 Franchisee 5,0 00 1.0 17,608 17,291 17,114 16,929 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 186 Distribution PMS 168 AUM (₹ Bn) 29% 29% PE/RE 128 AIF 96 90 7% Others 13% 22% Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 SIP AUM and Live SIP Count DP AUM Growth Trend 50. 0 1,65,1
Slide 16: Research 360 Launched
Research 360 Launched - One-stop solution to get 360 degree knowledge and research End to end Market Research across all market segments Access to MOSL Research Knowledge on every market news and update Award winning research reports from MOFSL research team All of this is now available to all inves
Slide 17: Capital Markets
Capital Markets INSTITUTIONAL INVESTMENT EQUITIES BANKING • Focus driven differentiated research products with • Successfully completed 3 deals in 250+ companies covering 21 sectors, catering to 810+ Q2FY23- institutional clients. o IPO of DreamFolks- Overall subscription ₹ 5.6 Bn • Organised 18th A
Slide 18: Asset and Wealth Management
Asset and Wealth Management ₹ 467 Bn 37% ₹ 85.2 Bn ₹ 384 Bn ₹ 33.6 Bn • AMC AUM stood at ₹ 467.0 bn, up 8% QoQ with MF AUM at ₹ 291.4 bn and Alternates AUM at ₹ 173.2 bn. Alternates Share in PE & RE Fee Earning Wealth AUM; +22% Wealth Net Sales in AMC AUM AMC AUM AUM YoY H1FY23; +10% YoY • Strong tu
Slide 19: Asset Management
Asset Management AMC AUM Breakup and Growth trend AMC MF AUM mix ₹ Bn Direct 490 467 16% 14% 10% 18% 14% NDs 434 40 MF AUM 389 27 48 24% 22% 142 PMS AUM 27% 26% 22% IFA 28 294 126 147 25% WM+Bank 160 19 AIF AUM 21% 21% 25% 21% 116 258 306 291 199 35% 38% 41% 39% 38% 157 Mar-19 Mar-20 Mar-21 Mar-22 S
Slide 20: Asset Management
Asset Management Stable AMC yields AMC MF Folios Net Revenue 1.9 1.9 Folio Count 42 42 to AAUM (bps) 45 39 38 200 (mn) 40 35 180 1.3 160 35 0.9 1.0 PAT to AAUM 140 30 25 88 85 78 120 100 (bps) 20 80 15 83 60 10 77 40 5 20 0 0 FY19 FY20 FY21 FY22 H1FY23 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 AMC MF SIP f
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 IBEF IV Valued IRR (%) IREF V ₹ 45 Bn 31.8% IREF IV ₹ 12 Bn 26.8% IBEF III ₹ 11.5 Bn Exited IRR (%) IREF III ₹ 23 Bn 20.5% 20.0% IREF II ₹ 10.3 Bn 18.2% 19.2% 18.6% IBEF II ₹ 4.9 Bn IBEF I ₹ 9.5 B
Slide 22: Wealth Management
Wealth Management AUM diversified across asset classes Continued traction in RM addition 450 450 MF 155 Family 384 6,0 00 180 144 400 400 344 PMS 129 160 350 39% 350 5,0 00 126 123 140 RM 300 253 37% 300 AIF 4,0 00 120 250 250 175 38% 10% PE/RE 100 200 156 11% 9% 200 3,0 00 80 31% 8% Others 150 28%
Slide 23: Wealth Management
Wealth Management AUM Mix- H1FY23 Focus on improving share of recurring business 120 % 70% 36% 64% MF Transactional 60% 100 % 6% 11% PMS/AIF Recurring 50% 80% PE/RE 57% 53% 40% 47% 48% 47% 51% 40% DP 60% 30% Others 60% 53% 52% 40% 12% 20% 43% 47% 20% 48% 14% 10% 0% 13% 0% Recurring AUM Transactional
Slide 24: Home Finance
Home Finance • NII improved by 11% on YoY basis in H1FY23 led by ₹ 36.6 Bn ₹ 2.8 Bn 3.6% 6.6% ICRA AA robust disbursement of ₹ 4.4 bn. Disbursements in ROA in Q2FY23, up Incremental COF in Rating Upgrade by AUM as on Sep-22 Q2FY23, up 65% QoQ 140 bps YoY Q2FY23 ICRA • NIM expanded by 88 bps YoY to 7
Slide 25: Home Finance – Portfolio Metrics
Home Finance – Portfolio Metrics Disbursement Trend Product Mix 37% New Purchase 2.8 Disbursement 26% Self-Construction (₹ Bn) 10% Resale 1.9 2.0 1.6 1.7 03% Home Improv./Ext. 02% Composite 11% CF with MORE* Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 11% Others Customer Mix AUM by Ticket Size 07% Up to 0.5
Slide 26: Home Finance
Home Finance ECL Provisioning Details STATE NOS. OF MOHFL’s Geographic Reach PARTICULARS (₹ Mn) H1FY23 BRANCHES Stage 1 & 2 35,807 MH Maharashtra 32 PRESENCE ACROSS % portfolio in stage 1 & 2 98.52% GJ Gujarat 15 108 LOCATIONS IN 12 STATES/UTS TN Tamil Nadu 15 Stage 3 538 RJ Rajasthan 11 % portfolio
Slide 27: Home Finance
Home Finance Diversified Liability Mix Key Ratios 3% 6% Term loan 7% 7% 6% 8% 7% 13% NCD Parameters H1FY23 H1FY22 57% 52% 28% NHB 40% 27% Securitization Yield 13.8% 13.9% ECB 49% 45% 55% 49% 43% COF 7.9% 8.4% FY19 FY20 FY21 FY22 H1FY23 Spread 6.0% 5.5% Net Worth and Net D/E NIM 7.8% 6.9% Total cumul
Slide 28: Fund Based Investments
Fund Based Investments • Fund based book includes sponsor commitments cum ₹ 47.2 Bn ₹ 42.9 Bn ₹ 15.2 Bn 19% 27% 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 – Largest Skin in The Game
Fund Based Investments – Largest Skin in The Game Skin in the Game in AMC (₹ Bn) Strong Growth in investments over the years 467 AMC AUM 42.9 40.5 22 Sponsor AUM 14.7 31.0 19 Promoter 17.4 AUM 13.1 17.9 17.5 Skin in the game in PE & RE (₹ Bn) 1.7 3.9 28.2 23.1 115 Active AUM 17.9 14.0 15.8 13 Sponso
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: 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 32: 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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