Motilal Oswal Financial Services Limited · NSE:MOTILALOFS
Motilal Oswal Financial Services — Q2 FY2025 Earnings Presentation
54 slides from Motilal Oswal Financial Services's earnings presentation, Oct 28, 2024
Slide 1: Exchange filing cover letter for investor presentation
October 28, 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 – Fin
Slide 2: Investor Presentation Q2FY25 & H1FY25
MOTILAL Investor Presentation OSWAL Q2FY25 & H1FY25 Financial Services Limited (MOFSL)
Slide 3: Safe Harbour
Investor Presentation Q2FY25 & H1FY25 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 Q2FY25 & H1FY25 Content Q2FY25 & Highly Other Compounding MOFSL Value Machine H1FY25 Professionalized (ESG, Philanthropy, Proposition Highlights Management Hiring) 4-8 9-13 14-42 43-44 45-49 3
Slide 5: At MOFSL, we believe that companies seeking to consistently outperform need a simple, yet effective strategy
Investor Presentation Q2FY25 & H1FY25 “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 Q2FY25 & H1FY25 Power of Compounding demonstrated Recorded the highest ever half H1- yearly profit of ₹ 2,263 Cr ₹ 11,070 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 dep
Slide 7: MOFSL's Compounding Machine has been extensively validated over the last decade
Investor Presentation Q2FY25 & H1FY25 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 7,148 77 2,626 18,409 5.7 lakh Mar-14 Mar-24 Mar-14 Mar-24 Mar-14 Sep-24 Profits growth has b
Slide 8: MOFSL seek to sustain compounding machine effectiveness through its double-engine model
Investor Presentation Q2FY25 & H1FY25 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 Q2FY25 & H1FY25 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 Value Proposition
MOFSL Value Proposition Investor Presentation Q2FY25 & H1FY25 Strong manufacturing capabilities • Research led Broking Wealth Advisory • Loan Against Securities • Mutual Funds • Investment charter • PMS • Alternate assets • AIF (listed equities) • Credit solutions • Private Equity Funds • Treasury s
Slide 11: MOFSL well geared to tap growing wealth opportunity in India
Investor Presentation Q2FY25 & H1FY25 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 >30 Mn Potential 12,069 19,119 $574B Wealth UHNIs Opportunity $
Slide 12: Numbers at MOFSL
Investor Presentation Q2FY25 & H1FY25 Geographical Relationship Distribution reach Managers & Network 2,500+ business Research Team 9,400+ External locations 2,500+ RMs BIG Wealth Managers 98% Indian pin codes covered 100+ research team NUMBERS AT MOFSL Assets under Clients Advice 94,00,000+ 5.7 lak
Slide 13: Transitioning from Broking & Distribution to Wealth Management
Investor Presentation Q2FY25 & H1FY25 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 trust
Slide 14: MOFSL Group Structure
Investor Presentation Q2FY25 & H1FY25 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 13 IE = Institutional Equities, IB – In
Slide 15: Strong financial performance in Q2FY25
Investor Presentation Q2FY25 & H1FY25 Strong financial Trailing performance in Operating PAT ROE 12 months Q2FY25 ₹ 541 cr. 48% Net Operating Revenue 53% YoY growth ₹ 4,648 cr. No. of External Wealth Operating PAT Total PAT (incl. OCI) Managers ₹ 1,855 cr. ₹ 1,242 cr. 9,400+ 123% YoY growth Total PA
Slide 16: Momentum continues in Quarterly Operating PAT
Investor Presentation Q2FY25 & H1FY25 Momentum continues in Quarterly Operating PAT Segmental PAT (₹ Cr) Q2FY25 Q1FY25 Q4FY24 Q3FY24 Q2FY24 Wealth Management 225 177 211 165 132 YoY Growth % 71% 69% 53% 35% 19% Capital Market 73 57 47 39 50 YoY Growth % 45% -4% 300% 85% 57% Asset & Private Wealth Ma
Slide 17: Consolidated half yearly profits at Rs. 2,263 Cr
Investor Presentation Q2FY25 & H1FY25 Consolidated half yearly profits at Rs. Particulars (₹ Cr) Wealth Management Q2FY25 Q2FY24 YoY (%) Q1FY25 QoQ (%) H1FY25 H1FY24 YoY (%) 634 416 53% 531 19% 1,164 789 48% 2,263 Cr Capital Market 174 114 52% 134 29% 308 251 23% Asset and Private Wealth Management
Slide 18: Focus on building diversified & sustainable revenue streams
Focus on Investor Presentation Q2FY25 & H1FY25 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 2,499 91 286 55% 55% 53% 55% 501 1,790 9
Slide 19: Leveraging strong net-worth for Operating business growth
Investor Presentation Q2FY25 & H1FY25 Leveraging strong net-worth for Operating Particulars (₹ Cr) Sep-24 Mar-24 business growth SOURCES OF FUNDS Net Worth 11,070 8,732 Borrowings 15,575 13,752 Minority Interest 41 37 H1FY25 Total Liabilities 26,686 22,521 Particulars (₹ Cr) Asset & Private APPLICAT
Slide 20: Wealth Management
Investor Presentation Q2FY25 & H1FY25 Wealth Management Market share Strong blend of Clients having a DP Extensive 2,100+ internal balance of more Geographical reach - Cash: 7.9% Relationship than 1 Cr contribute 2,500+ business (up 85 bps YoY) Managers and more than 70% of locations covering F&O Pr
Slide 21: Wealth Management: AUM and PAT
Wealth Management Investor Presentation Q2FY25 & H1FY25 AUM Break-up (₹ Cr.) PAT (₹ Cr.) DP Distribution Lending Book 402 2,94,365 5,644 29,431 237 1,56,949 225 4,608 20,559 2,59,290 132 1,31,782 Sep'23 Sep'24 Q2FY24 Q2FY25 H1FY24 H1FY25 20
Slide 22: Wealth Management: Net revenue by products and channels
Wealth Management Investor Presentation Q2FY25 & H1FY25 Net Revenue Break-up by Products (₹ Cr.) Net Revenue Break-up by Channels Internal External Brokerage Distribution NII Other Operating 1,164 49% 48% 47% 49% 55 408 789 68 634 271 27 152 52% 53% 51% 51% 223 416 547 16 73 144 98 379 41 285 47% 21
Slide 23: Strength of Internal RMs and External Wealth Managers
Investor Presentation Q2FY25 & H1FY25 2,120 Internal Relationship 9,438 Managers External Wealth Managers 76 Branches Strength of Internal RMs and External Wealth Managers 1.5 mn+ Per Client Per RM -AUM ₹ 2 mn. - AUM ₹ 22 cr. Total Active Clients -Clients 133 22
Slide 24: Focus on building the distribution business disproportionately
Investor Presentation Q2FY25 & H1FY25 To strengthen 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 RISE Super App
Slide 25: Asset & Private Wealth Management
Investor Presentation Q2FY25 & H1FY25 Asset & Private Wealth Management Blend of Robust Investment AUM of ₹ 2.8 lakh Cr Focused and leading manufacturing and and Risk & Net sales of player in alternate distribution Management ₹25,000+ Cr in assets capabilities process H1FY25 24
Slide 26: Asset & Private Wealth contributes 35% of consolidated net revenue
Investor Presentation Asset & Private Q2FY25 & H1FY25 Wealth contributes Net Revenue Break-up (₹ Cr.) 35% of PAT (₹ Cr.) 1,00 0 ARR TBR 1,00 0 consolidated 900 875 900 net revenue 800 219 800 370 700 700 616 Net Sales (₹ Cr.) 600 658 600 172 490 252 500 500 25,830 213 133 400 445 400 323 358 300 88
Slide 27: Asset Management
Investor Presentation Q2FY25 & H1FY25 Asset Management Unlisted Listed Equities Quality Investment Private Equity Fee earning AUM of Team with a MF + PMS + Real Estate Funds ₹ 1,20,725 cr. successful track + AIF (CAT III) record (CAT II) 26
Slide 28: Asset Management: AUM and net sales
Asset Management Investor Presentation Q2FY25 & H1FY25 AUM Break-up (₹ Cr.) Net Sales (₹ Cr.) AMC PE/RE 1,20,725 1,20 ,000 9,956 18,326 1,10,769 1,00 ,000 80,0 00 64,918 12,554 60,0 00 9,790 55,128 40,0 00 20,0 00 260 - -1,099 Sep'23 Sep'24 Q2FY24 Q2FY25 H1FY24 H1FY25 27
Slide 29: Asset Management: Net revenue and PAT
Asset Management Investor Presentation Q2FY25 & H1FY25 Net Revenue Break-up (₹ Cr.) PAT (₹ Cr.) AMC PE/RE 448 85 310 364 221 76 249 48 143 234 163 201 123 41 122 77 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Strong fund performance translating into higher net flow which will drive the s
Slide 30: Launch of Continuous Private Equity fund
Launch of 5 th Investor Presentation Continuous Q2FY25 & H1FY25 Private Equity SIP Flows (₹ Cr.) Asset Management rise in flows fund of 1,878 One year performance market ~₹8,000 cr in Total No. of Strategies (MF + PMS + AIF) 12 H2FY25 share 769 967 1,198 No. of strategies outperformed benchmark 9 65
Slide 31: 6th Real Estate Fund raised ₹1,600 cr
6th Real Investor Presentation Estate Fund Q2FY25 & H1FY25 raised ₹ 1,600 cr and Total earning AUM - ₹ 13,675 Cr. Market value* of AUM - ₹ 17,003 Cr. final close is expected in Q3FY25 RE PE AUM in ₹ Cr. 550 950 2,300 4,500 490 1,030 1,150 1,200 32.0% 29.2% 26.8% 20.9% 20.7% Gross IRR 19.5% 18.4% 18.
Slide 32: Private Wealth Management
Investor Presentation Q2FY25 & H1FY25 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 585 RMs; 3+ years management, with a networth of management of ₹ vintage of 28% lending, in
Slide 33: Private Wealth Management: AUM and net sales
Private Wealth Management Investor Presentation Q2FY25 & H1FY25 AUM (₹ Cr.) Net Sales (₹ Cr.) 1,80 ,000 1,60 ,000 7,504 1,57,091 1,40 ,000 1,20 ,000 1,00 ,000 93,265 80,0 00 4,055 4,213 60,0 00 40,0 00 1,736 20,0 00 0 Sep'23 Sep'24 Q2FY24 Q2FY25 H1FY24 H1FY25 32
Slide 34: Private Wealth Management: Net revenue and PAT
Private Wealth Management Investor Presentation Q2FY25 & H1FY25 Net Revenue Break-up (₹ Cr.) PAT (₹ Cr.) ARR TBR 450 427 450 400 205 400 149 350 350 305 300 300 165 250 242 250 109 123 200 223 200 160 90 150 150 85 140 100 119 100 50 75 50 54 - - Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY
Slide 35: Focus on improving productivity and margins
Investor Presentation Q2FY25 & H1FY25 Strengthened PWM leadership team ➢ Mr. Akash Hariani brings in a quarter century experience complementary to our Private Wealth business. He headed the Family Office vertical of India’s largest private wealth platform Focus on Strengthening improving product cap
Slide 36: Capital Markets
Investor Presentation Q2FY25 & H1FY25 Capital Markets Institutional Equities Investment Banking Covering 280+ Strong team of Completed 22 With new Leadership companies across 24 140+ employees deals with total team and best ever sectors, valuing 70% catering to 870+ issue size of mandate pipeline, o
Slide 37: Ranked No. 2 on QIP League Table
Investor Presentation Q2FY25 & H1FY25 Ranked No. 2 on QIP League Table Net Revenue (₹ Cr.) in H1FY25 PAT (₹ Cr.) 308 Few Major Deals in H1FY25 251 PNB Five Star Finance PNB Housing Finance ₹ 5,000 cr (QIP) ₹4,500 cr (Block Deal) ₹ 2,576 cr (Block Deal) 130 174 110 Angel One IIFL Finance PNG Gadgil ₹
Slide 38: Home Finance
Investor Presentation Q2FY25 & H1FY25 Home Finance Credit rating Building retail Expanding RM Scalable operating outlook upgraded granular book with strength to drive model built on to AA Positive wide geographical disbursement Holistic Technology (from AA Stable) distribution growth Usage by all th
Slide 39: Home Finance: Disbursement and loan book
Home Finance Investor Presentation Q2FY25 & H1FY25 Disbursement (₹ Cr.) Loan Book (₹ Cr.) Sales RM Count Retail Loan Non-Retail 4,209 574 1,050 3,730 519 620 626 3,636 368 3,211 291 197 Q2FY24 Q2FY25 H1FY24 H1FY25 Sep'23 Sep'24 Sep'23 Sep'24 38
Slide 40: Home Finance: Net worth, NII and PAT
Home Finance Investor Presentation Q2FY25 & H1FY25 Net Worth (₹ Cr.) Net Interest Income (₹ Cr.) PAT* (₹ Cr.) 1,60 0 163 154 1,40 0 1,353 1,20 0 1,214 1,00 0 800 63 81 56 600 78 400 34 27 200 - Sep'23 Sep'24 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 *investment in RMs impacted the PAT
Slide 41: Home Finance - Financial Parameters
Investor Presentation Q2FY25 & H1FY25 Home Finance - Financial Parameters H1FY25 H1FY24 Parameters AUM (₹ Cr) 4,233 3,779 Yield 13.8% 14.4% COF 8.4% 8.3% Spread 5.4% 6.1% NIM 7.1% 7.7% Cost/Income 55.8% 42.9% ROA 2.5% 3.1% ROE 8.5% 10.6% CRAR 45.6% 47.4% Net Leverage 1.9x 2.0x GNPA 1.3% 2.1% NNPA 0.
Slide 42: Treasury Investments
Investor Presentation Q2FY25 & H1FY25 Treasury Investments Helps in absorbing Helps to grab new Healthy returns at shocks in an opportunities and 20.8% XIRR since Skin in the game uncertain foster the existing FY14 environment businesses 41
Slide 43: Skin in the game ₹10,500+ Cr.
Investor Presentation Q2FY25 & H1FY25 Treasury Investments (₹ Cr.) Gross Revenue (₹ Cr.) PAT incl. OCI (₹ Cr.) Skin in the game* Cost MTM 1,477 1,291 ₹10,500+ Cr. 8,113 4,659 5,158 861 2,410 701 631 567 3,454 2,748 295 203 Sep'23 Sep'24 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 *includ
Slide 44: Highly experienced and pedigreed management team
Investor Presentation Q2FY25 & H1FY25 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 45: Highly experienced and pedigreed management team (Contd.)
Investor Presentation Q2FY25 & H1FY25 Highly experienced and pedigreed management team(Contd.) VISHAL TULSYAN CEO – Private Equity SUKESH BHOWAL CEO- Housing Finance ASHISH SHANKER CEO- Private Wealth Management • Chartered Accountant • Bachelor of Technology from IIT • Management Graduate from Mumb
Slide 46: MOFSL's ESG Initiatives
Investor Presentation Q2FY25 & H1FY25 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 47: Philanthropy
Investor Presentation Q2FY25 & H1FY25 Philanthropy Institution MoU with IIT Bombay for MO Research Centre MoU with IIM Mumbai for MO Knowledge Centre Building Activities Krishikul Inauguration – Beed, Maharashtra Donation to Plaksha University – Mohali Panjab 46
Slide 48: Strategic Brand Leadership Initiatives
Investor Presentation Strategic Q2FY25 & H1FY25 Brand Leadership Initiatives Man from Motilal Oswal Campaign Motilal Oswal Malad West Metro Station New Motilal Oswal Tower in Bengaluru Positioned research and advisory as key Landmark association with Malad, a suburb that Inaugurated a cutting-edge f
Slide 49: Robust Digital Infrastructure
Investor Presentation Q2FY25 & H1FY25 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 50: Increasing investments in building MOFSL a Talent Powerhouse
Increasing Investor Presentation Q2FY25 & H1FY25 investments in An expanding employee base to support our aspirations building MOFSL a Talent ~13,000 4,800+ Gross hires in FY 25 strong employee base Powerhouse 200 + Senior hires in FY 25 ~24% Diversity levels across the group With a focus on becomin
Slide 51: Thank You
Investor Presentation Q2FY25 & H1FY25 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 shalibhadrashah@motilaloswal.com 2. Segmental Perfo
Slide 52: 'Economic takeoff': India likely to retain its position as fastest-growing major economy
‘Economic Investor Presentation takeoff’: India Q2FY25 & H1FY25 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 Q2FY25 & H1FY25 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 Ban
Slide 54: Digitization Driving Exponential Retail participation
Investor Presentation Q2FY25 & H1FY25 Digitization Demat Accounts (in Cr) Driving 0.5 18 Exponential 0.5 0.4 Monthly addition Total (RHS) 16 Retail 14 0.4 12 participation 0.3 0.3 10 8 0.2 6 0.2 0.1 4 0.1 2 0.0 0 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Strong add
Motilal Oswal Financial Services — Q2 FY2025 Earnings Presentation on 6ix