Motilal Oswal Financial Services Limited · NSE:MOTILALOFS
Motilal Oswal Financial Services — Q3 FY2023 Earnings Presentation
32 slides from Motilal Oswal Financial Services's earnings presentation, Jan 24, 2023
Slide 1: Exchange intimation letter for investor presentation
January 24, 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 – Fina
Slide 2: Earnings Presentation Q3FY23 & 9MFY23
Financial Services Earnings Presentation Q3FY23 & 9MFY23 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 Q3FY23
Key Highlights for Q3FY23 Assets under advice Revenue Operating profit Total PAT Net Worth ₹ 3.2 tn 4% YoY ₹ 32.0 bn 1 8% YoY ₹ 6.2 bn 1 12% YoY ₹ 2.3 bn 6% YoY ₹ 62.3 bn 16% YoY ₹ 11.5 bn 2% YoY ₹ 2.2 bn 7% YoY Lending Book ROA 2 (incl. OCI) ROE 2 Clients Employees ₹ 69.8 bn 27% YoY 5.3% 19.4% 5.3
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 42 bps QoQ / 136 bps YoY to 3.8% ; ADTO grew 32% QoQ/205% YoY. • Incremental demat account market share improved by 50 bps QoQ to 2.8% • NSE Active Client ranking
Slide 6: Resilience Trend across Key Parameters
Resilience Trend across Key Parameters Robust Net Worth Book Value Per Share Net Worth Book Value (₹ Bn) 422 Per Share (₹) 62.3 384 56.7 302 44.6 30.5 30.9 210 208 Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 Revenue Operating PAT Revenue Operating 41.7 (₹ Bn) 9.1 PAT (₹ Bn)
Slide 7: Consolidated Operating Profit
Consolidated Operating Profit PARTICULARS (₹ Mn) Q3FY23 Q2FY23 QoQ (%) Q3FY22 YoY (%) 9MFY23 9MFY22 YoY (%) Capital Markets (Broking, Distribution & IB) 7,486 7,152 5% 7,253 3% 20,686 18,430 12% Asset and Wealth Management(1) 2,499 2,335 7% 2,590 -4% 7,024 6,829 3% Housing Finance 1,357 1,315 3% 1,2
Slide 8: Consolidated Profit After Tax
Consolidated Profit After Tax Particulars (₹ Mn) Q3FY23 Q2FY23 QoQ (%) Q3FY22 YoY (%) 9MFY23 9MFY22 YoY (%) Capital Markets (Broking, Distribution & IB) 1,355 1,323 2% 1,480 -8% 3,587 3,484 3% Asset & Wealth 669 667 0% 853 -22% 1,916 2,058 -7% Home Finance 363 334 9% 188 93% 1,018 473 115% Intercomp
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet PARTICULARS (₹ Bn) Dec 31, 2022 Mar 31, 2022 ROE* SOURCES OF FUNDS 9MFY231 FY22 FY21 Net Worth 62.3 56.7 19% 30% 38% (1) Borrowings 91.4 62.3 * Basis Reported PAT excl. OCI Minority Interest 0.3 0.3 1. Annualized Total Liabilities 154.0 119.3 Net Worth Deployment APPLICATI
Slide 10: Focus on building recurring revenues
Focus on building recurring revenues…. Particulars NSE Active clients ARPU (₹) Q1FY23 Q2FY23 Q3FY23 Q1FY23 Q2FY23 Q3FY23 9MFY23 Broking & Distribution 930,588 911,250 9,00,242 24,043 24,183 23,438 23,876 Particulars AUM/Loan Book (₹ Bn) Net Yield Net Revenue (₹ Mn) Q1FY23 Q2FY23 Q3FY23 Q1FY23 Q2FY23
Slide 11: Capital Markets
Capital Markets • Retail F&O ADTO market share grew by 54 bps QoQ to 4.4% 5.1 Lakh ~₹ 24,000 ₹ 193.7 Bn ₹ 7.8 Bn 4.4% in Q3FY23. Retail F&O market New clients One of the highest Distribution AUM; Distribution Net share; up 54 bps QoQ acquired in 9MFY23 ARPUs in the industry +17% YoY Sales in 9MFY23
Slide 12: Digital initiatives driving business growth
Digital initiatives driving business growth Option store API Integration Research 360 Launched Pro mode of • 500+ API Integrations with algo Option store for advance and proprietary traders traders with features to • One of the key driver to growth create customise strategies in in business volume Q
Slide 13: Broking and Distribution – Gaining Market Share
Broking and Distribution– Gaining Market Share ADTO continue to rise Gaining F&O & Stable Cash market share 2,920 YoY (Q3FY22 6.1% 5.8% 5.8% Retail Cash – Q3FY23) 5.3% 5.7% 5.7% 5.7% 23 205% Market Share % 4.4% 3.9% 956 F&O (₹ Bn) 3.4% 3.2% 2.9% 2.8% 2.7% Retail F&O 877 440 Market Share % 2,897 Cash
Slide 14: 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 5% 4% 5% Online 33.6 7% 10. 0 40. 0 Active Clients 7% 9.0 11% 10% 9% 10% Franchisee 28.5 35. 0 8.0 (Lakhs) 14% 25% 30. 0 7.0 29% 33% 36% Branch 6.0 19.7 25. 0 2
Slide 15: 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 17,608 17,291 17,114 16,900 5,0 00
Slide 16: 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 AUM (₹ Bn) 31% 29% 194 PE/RE 168 AIF 128 96 90 8% Others 20% 12% Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 SIP AUM and Live SIP Count DP AUM Growth Trend 60. 0 1,65,1
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 820+ 9MFY23- institutional clients. o IPO of DreamFolks- Overall subscription ₹ 5.6 Bn IPO of ~56x • Inst
Slide 18: Asset and Wealth Management
Asset and Wealth Management • AMC AUM stood at ₹ 464.8 bn with MF AUM at ₹ 295.3 ₹ 464.8 Bn 36% ₹ 95.4 Bn ₹ 413 Bn ₹ 45.6 Bn bn and Alternates AUM at ₹ 167 bn. Alternates Share in PE & RE Fee Earning Wealth AUM; +21% Wealth Net Sales in AMC AUM AMC AUM AUM YoY 9MFY23 • Turnaround in performance acro
Slide 19: Asset Management
Asset Management AMC AUM Breakup and Growth trend AMC MF AUM mix ₹ Bn Direct 490 465 16% 14% 10% 18% 13% NDs 434 40 MF AUM 389 27 53 24% 23% 142 PMS AUM 27% 26% 22% IFA 28 294 114 147 25% WM+Bank 160 19 AIF AUM 21% 21% 25% 21% 116 258 306 295 199 35% 38% 41% 39% 39% 157 Mar-19 Mar-20 Mar-21 Mar-22 D
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 77 77 85 (mn) 45 80 75 1.3 40 42 42 70 PAT to AAUM 35 39 38 65 (bps) 1.0 30 35 60 0.9 55 50 25 45 20 40 FY19 FY20 FY21 FY22 9MFY23 Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 AMC MF SIP flows MF MAAU
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 29.8% Fully IREF IV ₹ 12 Bn 26.8% IBEF III ₹ 11.5 Bn Exited IRR (%) Exited in IREF III ₹ 23 Bn 20.5% 20.0% FY22 IR
Slide 22: Wealth Management
Wealth Management AUM diversified across asset classes Continued traction in RM addition 413 166 450 450 MF 6,0 00 180 Family 144 400 400 344 43% PMS 129 160 350 350 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% 7% 200 3,0 00 80 31% 8% Others 150 28%
Slide 23: Wealth Management
Wealth Management AUM Mix- 9MFY23 Focus on improving share of recurring business 120 % 70% 35% 65% MF Transactional 60% 6% 100 % 12% PMS/AIF 80% 50% 53% 40% 47% 48% 44% Recurring PE/RE 47% 49% 40% DP 60% 30% Others 60% 56% 53% 52% 40% 13% 20% 47% 20% 47% 13% 10% 0% 14% 0% Recurring AUM Transactional
Slide 24: Home Finance
Home Finance • Higher disbursements and decline in bounce rate aided ₹ 36.9 Bn ₹ 6.4 Bn 7.8% 7.7% 3.7% in 115% YoY growth in profitability in 9MFY23. Disbursements in NIM in 9MFY23, up Incremental COF in ROA in 9MFY23, up AUM as on Dec-22 9MFY23, up 47% YoY 66 bps YoY Q3FY23 200 bps YoY • In 9MFY22,
Slide 25: Home Finance – Portfolio Metrics
Home Finance – Portfolio Metrics Disbursement Trend Product Mix 36% New Purchase 2.8 Disbursement 25% Self-Construction (₹ Bn) 13% Construction Finance* 1.9 2.0 2.0 1.7 10% Resale 05% LAP 03% Home Impr./Ext. Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 02% Composite 07% Others Customer Mix AUM by Ticket Size
Slide 26: Home Finance
Home Finance ECL Provisioning Details PARTICULARS (₹ Mn) 9MFY23 STATE NOS. OF MOHFL’s Geographic Reach BRANCHES Stage 1 & 2 35,865 PRESENCE ACROSS MH Maharashtra 32 % portfolio in stage 1 & 2 98.03% GJ Gujarat 15 108 LOCATIONS IN 12 STATES/UTS Stage 3 721 TN Tamil Nadu 15 % portfolio in Stage 3 1.97
Slide 27: Home Finance
Home Finance Diversified Liability Mix Key Ratios 3% 5% Term loan 7% 7% 5% 8% 7% 17% NCD Parameters 9MFY23 9MFY22 57% 52% 28% NHB 40% 24% Securitization Yield 13.8% 13.9% ECB 49% 45% 55% 49% 43% COF 7.9% 8.3% FY19 FY20 FY21 FY22 9MFY23 Spread 5.9% 5.6% NIM 7.8% 7.1% Net Worth and Net D/E Total cumul
Slide 28: Fund Based Investments
Fund Based Investments • Fund based book includes sponsor commitments cum ₹ 47.2 Bn ₹ 43.2 Bn ₹ 15.2 Bn 17% 21% 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 465 AMC AUM 43.2 21 Sponsor 40.5 AUM Promoter 14.8 19 31.0 AUM 17.4 13.1 Skin in the game in PE & RE (₹ Bn) 17.9 17.5 3.9 1.7 28.4 119 Active AUM 23.1 15.8 17.9 14.0 13 Sponsor
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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