Motilal Oswal Financial Services Limited · NSE:MOTILALOFS
Motilal Oswal Financial Services — Q1 FY2025 Earnings Presentation
47 slides from Motilal Oswal Financial Services's earnings presentation, Jul 25, 2024
Slide 1: Cover letter to stock exchanges
July 25, 2024 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 – Financ
Slide 2: Investor Presentation Q1FY25
Investor MOTILAL presentation OSWAL Q1FY25 Financial Services Limited
Slide 3: Contents
Investor Presentation Q1FY25 Contents Compounding MOFSL Value Q1FY25 Machine Proposition Highlights 2
Slide 4: At MOFSL, we believe that companies seeking to consistently outperform need a simple, yet effective strategy
Investor Presentation Q1FY25 “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 growth b
Slide 5: Power of Compounding demonstrated
Investor Presentation Q1FY25 Power of Compounding demonstrated Recorded the highest ever Q1- quarterly profit of ₹ 1,021 Cr ₹ 9,784 Cr over FY25 37 Recorded the highest ever yearly profit of ₹ 2,626 Cr 2024 ₹ 8,732 Cr Years Entered into Affordable Housing Finance Business and started deploying free
Slide 6: MOFSL's Compounding Machine has been extensively validated over the last decade
Investor Presentation Q1FY25 MOFSL’s Compounding Assets under Advice (AUA) Machine has Total Revenue in ₹ Cr Total PAT (incl OCI) in ₹ Cr in ₹ Cr been extensively validated over the last decade 465 7,148 77 2,626 18,409 3.8 lakh Mar-14 Mar-24 Mar-14 Mar-24 Mar-14 Mar-24 Profits growth has been highe
Slide 7: How does MOFSL seek to sustain compounding machine effectiveness through its double-engine model?
Investor Presentation Q1FY25 Engine #1 Operating businesses Operating • Asset-light How does MOFSL business • Diversified revenue seek to sustain • Each business managed by a separate CEO compounding machine effectiveness through its Double Engine Model + Engine #2 Treasury investments ‘double-engin
Slide 8: MOFSL: Primed for disproportionate growth
Investor Presentation Q1FY25 MOFSL: Engine #1 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 Even if MOFSL’s % Book posted 44% CAGR To maintain / improve the Treasur
Slide 9: Products Advisory
Investor Presentation Q1FY25 Strong manufacturing capabilities • Broking • Loan Against Securities • Mutual Funds • PMS Wealth • AIF (listed equities) Advisory • Private Equity Funds • Investment charter • Real Estate Funds Products • Home Loans Advisory • Alternate assets • Credit solutions Third-p
Slide 10: MOFSL well geared to tap the growing wealth opportunity in India
Investor Presentation Q1FY25 MOFSL well geared to tap the growing wealth 2022 2027E 2027E opportunity in Nos. of Nos. of Potential India Asset value threshold (USD) Individuals Individuals Wealth > 1 bn 171 195 $195 Bn Billionaires >30 Mn Potential Wealth UHNIs 12,069 19,119 $574B Opportunity $2.5 T
Slide 11: The Big Numbers at MOFSL
Investor Presentation Q1FY25 Geographical reach Relationship Distribution Managers & Network 2,500+ business Research Team 8,800+ External locations 2,500+ RMs Wealth Managers 98% Indian pin 100+ research THE BIG codes covered team NUMBERS AT MOFSL Assets under Clients Advice 72,00,000+ 5 lakh+ Cr 1
Slide 12: MOFSL Group Structure
Investor Presentation Q1FY25 MOFSL Group Wealth Structure Treasury Management Investments Capital Home Market Finance Asset & Private Wealth Management 11
Slide 13: Our financial performance in Q1FY25
Investor Presentation Q1FY25 Our financial performance Operating PAT ROE Trailing in Q1FY25 ₹ 431 cr. 44% 12 months 41% YoY growth Revenue ₹ 4,214 cr. No. of External Wealth Total PAT (incl. OCI) Managers Operating PAT ₹ 1,021 cr. 8,800+ ₹ 1,666 cr. 52% YoY growth Total PAT (including OCI) Assets un
Slide 14: Strong Quarterly Operating PAT trend
Investor Presentation Q1FY25 Strong Quarterly Operating PAT trend Segmental PAT (₹ Cr) Q1FY25 Q4FY24 Q3FY24 Q2FY24 Q1FY24 Wealth Management 177 211 165 133 105 YoY Growth % 69% 51% 35% 20% 13% Capital Market 57 47 39 49 60 YoY Growth % -4% 290% 85% 54% 243% Asset & Private Wealth Management 157 210
Slide 15: Consolidated quarterly profits crossed Rs. 1,000 Cr
Investor Presentation Q1FY25 Consolidated quarterly profits crossed Rs. 1,000 Cr Particulars (₹ Cr) Q1FY25 Q1FY24 YoY (%) Q4FY24 QoQ (%) Wealth Management 530 373 42% 557 -5% Capital Market 134 136 -2% 97 38% Asset and Private Wealth Management1 385 292 32% 481 -20% Housing Finance 91 81 12% 87 4% T
Slide 16: Focus on building diversified, sustainable & predictable revenues
Focus on Investor Presentation Q1FY25 building diversified, sustainable & predictable Consolidated Net Revenue Mix revenues Brokerage NII Annual Recurring Revenue (ARR) Management Fees & Advisory Distribution Transaction Based Revenue (TBR) Other Operating 7% 3% 10% 10% 51% 55% 19% 20% 33% 31% 49% 4
Slide 17: Leveraging strong net worth for the operating business
Leveraging Investor Presentation Q1FY25 strong net worth for the operating Particulars (₹ Cr) June-24 Mar-24 business SOURCES OF FUNDS Net Worth 9,784 8,732 Borrowings 15,942 13,752 Minority Interest 39 37 Q1FY25 Total Liabilities 25,765 22,521 Particulars (₹ Cr) Asset & Private APPLICATION OF FUNDS
Slide 18: Robust Digital Infrastructure
Investor Presentation Q1FY25 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 developmen
Slide 19: Transitioning from Broking & Distribution to Wealth Management
Investor Presentation Q1FY25 Needs Need for personalized Transitioning Addressing customer needs beyond and holistic investment Need to cover diverse asset classes from Broking & transactions advice Distribution to Wealth Management Outcomes Addressing the Graduation from Emergence as trusted sophis
Slide 20: Wealth Management
Investor Presentation Q1FY25 Wealth Management Market share Strong blend of Extensive Clients having a DP Cash: 8.0% 2,000+ internal Geographical reach - balance of more Relationship 2,500+ business (up 186 bps YoY) than 1 Cr contribute Managers and locations covering F&O Premium 75% of the overall
Slide 21: Wealth Management
Wealth Management Investor Presentation Q1FY25 AUM Break-up (₹ Cr.) Net Revenue Break-up by Products (₹ Cr.) Net Revenue Break-up by Channels PAT (₹ Cr.) DP Distribution Lending Book Brokerage Distribution Internal External NII Other Operating 265,113 6,183 530 26,171 44% 51% 28 177 185 374 51 129,0
Slide 22: Strength of Internal RMs and External Wealth Managers
Investor Presentation Q1FY25 2,059 Internal Relationship 8,818 Managers External Wealth Managers 76 Branches Strength of Internal RMs and External Wealth Managers 1.3 mn+ Per Client Per RM Total Active Clients -AUM ₹ 2 mn. -AUM ₹ 24 cr. -Clients 126 21
Slide 23: Focus on building the distribution business disproportionately
Investor Presentation Q1FY25 Strengthen the distribution business vertical Teams aligned towards wealth solution-oriented services Focus on building the distribution business Pioneering the move to Advisory with transparent and aligned interests disproportionately with clients Launch of RISE Super A
Slide 24: Asset & Private Wealth Management
Investor Presentation Q1FY25 Asset & Private Wealth Management Blend of Robust Investment AUM of ₹ 2.4 lakh Cr Focused and leading manufacturing and and Risk & Net sales of player in alternate distribution Management ₹10,787 Cr in assets capabilities process Q1FY25 23
Slide 25: Asset & Private Wealth contributes 34% of consolidated net revenue
Investor Presentation Asset & Private Q1FY25 Wealth contributes Net Revenue Break-up (₹ Cr.) 34% of PAT (₹ Cr.) ARR TBR consolidated net revenue 450 450 400 386 400 119 350 350 157 294 300 300 Net Sales (₹ Cr.) 115 121 250 267 250 10,787 200 200 150 178 150 100 100 50 50 1,426 - - Q1FY24 Q1FY25 Q1FY
Slide 26: Asset Management
Investor Presentation Q1FY25 Asset Management Listed Equities Unlisted Quality Investment Fee earning AUM of Team with a MF + PMS Private Equity ₹ 98,220 cr. successful track + AIF (CAT III) + Real Estate Funds record 25
Slide 27: Asset Management
Asset Management Investor Presentation Q1FY25 AUM Break-up (₹ Cr.) Net Revenue Break-up (₹ Cr.) PAT (₹ Cr.) Net Sales (₹ Cr.) AMC PE/RE AMC PE/RE 120 ,000 5,612 100 ,000 98,220 10,640 200 80,0 00 87,580 36 148 97 61,262 164 60,0 00 36 9,943 51,319 112 66 40,0 00 20,0 00 -1,359 - Q1FY24 Q1FY25 Q1FY24
Slide 28: Launch of 5th Private Equity fund; strong fund performance driving flows
Launch of 5th Investor Presentation Q1FY25 StrongEquity Private fund SIP Flows (₹ Cr.) Asset Management fund of performance 1,200 One year performance ~₹8,000flows driving cr in 970 Total No. of Strategies (MF + PMS + AIF) 11 H2FY25 530 650 770 No. of strategies outperformed benchmark 10 Mutual Fund
Slide 29: 6th Real Estate Fund raised ₹1,500 cr
6th Real Investor Presentation Estate Fund Q1FY25 raised ₹ 1,500 cr and final close is expected in Q2FY25 PE RE AUM in ₹ Cr. 550 950 2,300 4,500 490 1,030 1,150 1,200 26.8% 25.8% 21.0% 20.5% 17.6% 18.0% 18.0% 17.0% IBEF I IBEF II IBEF III IBEF IV IREF II IREF III IREF IV IREF V Exit IRR (%) Valued I
Slide 30: Private Wealth Management
Investor Presentation Q1FY25 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 576 RMs; 3+ years management, with a networth of management of ₹ vintage of 26% lending, investment
Slide 31: Private Wealth Management
Private Wealth Management Investor Presentation Q1FY25 AUM (₹ Cr.) Net Revenue Break-up (₹ Cr.) PAT (₹ Cr.) Net Sales (₹ Cr.) 160 ,000 ARR TBR 120 % 200 140 ,000 5,175 146 180 120 ,000 138,900 186 100 % 55% 45% 160 100 ,000 140 80% 120 60 83,924 80,0 00 60% 100 2,785 55 60,0 00 55% 80 40% 45% 60 40,
Slide 32: Strategic RM hiring and focus on improving productivity and margins
Investor Presentation Q1FY25 Strengthening product capabilities, Expanding targeting UHNI and presence in Tier 2 locations Strategic RM Family Offices hiring and focus on improving productivity and margins 13,000+ Per Family Per RM -AUM ₹ 241 cr. Families -AUM ₹ 10 cr -Families 23 31
Slide 33: Capital Markets
Investor Presentation Q1FY25 Capital Markets Covering 300+ Completed 7 IB New Leadership Strong team of 50+ companies across 24 deals with total team is in place employees catering sectors, valuing 68% of issue size of and will improve to 850+ institutional Indian market cap ₹5,369 cr. during the sh
Slide 34: Ranked No. 1 on QIP League Table in Q1FY25
Investor Presentation Q1FY25 Ranked No. 1 on QIP Net Revenue (₹ Cr.) League Table PAT (₹ Cr.) in Q1FY25 136 134 Few Major Deals in Q1FY25 60 57 Angel One Sterlite Technologies ₹ 1,500 cr ₹ 1,000 cr MAS Financial Services Patel Engineering ₹ 500 cr ₹ 400 cr Q1FY24 Q1FY25 Q1FY24 Q1FY25 Hinduja - Inves
Slide 35: Home Finance
Investor Presentation Q1FY25 Home Finance Credit rating Building retail Leveraging outlook upgraded granular book with Experienced technology for to AA Positive wide geographical management team underwriting (from AA Stable) distribution process by ICRA 34
Slide 36: Home Finance
Home Finance Investor Presentation Q1FY25 Net Worth (₹ Cr.) Net Interest Income (₹ Cr.) PAT (₹ Cr.) 1,40 0 1,321 1,20 0 1,179 1,00 0 82 800 76 29 600 28 400 200 - Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 35
Slide 37: Home Finance
Home Finance Investor Presentation Q1FY25 Disbursement (₹ Cr.) Loan Book (₹ Cr.) Sales RM Count Retail Loan Non-Retail 4,098 951 3,749 602 564 3,496 252 3,185 439 93 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 36
Slide 38: Financial Parameters
Investor Presentation Q1FY25 Financial Parameters Parameters Q1FY25 Q1FY24 AUM (₹ Cr) 4,112 3,779 Yield 14.0% 14.5% COF 8.4% 8.3% Spread 5.6% 6.1% NIM 7.3% 7.6% Cost/Income 53.5% 41.4% ROA 2.6% 3.0% ROE 9.0% 10.1% CRAR 46.5% 49.5% Net Leverage 2.0x 2.1x GNPA 1.2% 1.9% NNPA 0.6% 1.1% 37
Slide 39: Treasury Investments
Investor Presentation Q1FY25 Treasury Investments Helps in absorbing Helps to grab a new Healthy returns at the shocks in an opportunity and 19.6% XIRR since Skin in the game uncertain foster the existing inception environment business 38
Slide 40: Skin in the game ~₹9,500 Cr.
Investor Presentation Q1FY25 Treasury Investments (₹ Cr.) Net Revenue (₹ Cr.) PAT (₹ Cr.) Skin in the game* Cost MTM 7,021 ~₹9,500 Cr. 3,755 616 590 4,778 2,088 365 336 3,266 2,690 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 *include sponsor and promoters’ investments 39
Slide 41: Highly professionalized management
Investor Presentation Q1FY25 Highly professionalized management RAAMDEO AGRAWAL Chairman Motilal Oswal MD & CEO NAVIN AGARWAL Group MD - MOFSL • Chartered Accountant • Chartered Accountant • CA, ICWA, CS, and CFA • Four decades of rich experience in • Four decades of rich experience in • Three decad
Slide 42: Highly professionalized Management (Contd.)
Investor Presentation Q1FY25 Highly professionalized Management VISHAL TULSYAN SUKESH BHOWAL ASHISH SHANKER (Contd.) CEO – Private Equity CEO- Housing Finance CEO- Private Wealth Management • Chartered Accountant • Bachelor of Technology from IIT • Management Graduate from Mumbai and PGDM in Finance
Slide 43: MOFSL's ESG Initiatives
Investor Presentation Q1FY25 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 building
Slide 44: Thank You
Investor Presentation Q1FY25 Thank You For more details refer data book published on our For any query, please contact : website. Click here to access. SHALIBHADRA SHAH Data Book Contents CHIEF FINANCIAL OFFICER 1. Consolidated Performance 91-22-7193 4917 / 98190 60032 shalibhadrashah@motilaloswal.c
Slide 45: 'Economic takeoff': India likely to retain its position as the world's fastest-growing major economy
Investor Presentation Q1FY25 ‘Economic takeoff’: India’s GDP is expected to grow from $ 3.7 tn to an estimated $30 tn by 2047 India likely to retain its position 30.0 as the world’s 25.0 27.4 fastest- growing 20.9 22.9 major economy 15.9 17.4 19.1 14.5 13.3 12.1 11.1 10.1 9.2 8.4 7.0 7.7 5.9 6.4 4.9
Slide 46: Financialization of Savings Propelling equities
Investor Presentation Q1FY25 Financialization Total Indian Household assets $ 11.1 Tn (FY23) % of Household Assets in Equities of Savings Propelling 4.8 equities 4.7 4.7% 50.7% 4.3 3.9 3.4% 3.8 5.8% 5.9% 3.4 15.5% 14.0% 2.9 Equities Cash 2.7 2.7 Provident & Pension funds Insurance funds Bank deposit
Slide 47: Digitization Driving Exponential Retail participation
Investor Presentation Q1FY25 Digitization Demat Accounts (in Cr) Driving 0.5 18 Exponential 0.5 0.4 Monthly addition Total (RHS) 16 14 Retail 0.4 0.3 12 10 participation 0.3 0.2 8 0.2 6 0.1 4 0.1 2 0.0 0 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 SIP flows on a rele
Motilal Oswal Financial Services — Q1 FY2025 Earnings Presentation on 6ix