Motilal Oswal Financial Services Limited · NSE:MOTILALOFS
Motilal Oswal Financial Services — Q1 FY23 Earnings Presentation
30 slides from Motilal Oswal Financial Services's earnings presentation, Jul 28, 2022
Slide 1: Covering letter to stock exchanges
July 28, 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 – Financial
Slide 2: Earnings Presentation Q1FY23
Financial Services Earnings Presentation Q1FY23 BUSINESSES FOCUS ON ALL BIZ OFFER HUGE BUILDING SCALE SUSTAINABLE GROWTH HEADROOM FOR GROWTH
Slide 3: Group Structure
EARNINGS PRESENTATION Q1FY23 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 Asse
Slide 4: Key Highlights for Q1FY23
EARNINGS PRESENTATION Q1FY23 Key Highlights for Q1FY23 Assets under advice Revenue Operating profit Operating PAT margin ₹ 2.9 tn 15% YoY ₹ 9.6 bn 13% YoY ₹ 1.8 bn 40% YoY 20% 344 bps YoY Customers Broking ADTO Wealth- AUM MOHF- NIM 5 mn 35% YoY ₹ 1.5 tn 163% YoY ₹ 344 bn 20% YoY 7.7% 120 bps YoY Co
Slide 5: Consolidated Financials
EARNINGS PRESENTATION Q1FY23 Consolidated Financials PARTICULARS (₹ Mn) Q1FY23 Q1FY22 YOY (%) Q4FY22 QOQ (%) Capital Markets (Broking, Distribution & IB) 6,083 5,105 19% 6,866 -11% Asset and Wealth Management 2,190 2,013 9% 2,594 -16% Housing Finance 1,262 1,369 -8% 1,298 -3% Other Income 111 87 28%
Slide 6: Consolidated Financials – PAT Mix
EARNINGS PRESENTATION Q1FY23 Consolidated Financials – PAT Mix PAT (₹ Mn) Q1FY23 Q1FY22 YOY (%) Q4FY22 QOQ (%) Capital Markets (Broking, Distribution & IB) 909 785 16% 1,404 -35% Asset & Wealth 580 549 6% 802 -28% Home Finance 321 85 279% 456 -30% Intercompany adj. and others 1 -122 - -41 - Operatin
Slide 7: Consolidated Balance Sheet
EARNINGS PRESENTATION Q1FY23 Consolidated Balance Sheet ROE PARTICULARS (₹ Bn) June 30, 2022 Mar 31, 2022 Q1FY231 FY22 FY21 SOURCES OF FUNDS Capital Markets 148% 258% 92% Net Worth 56.5 56.7 Asset & Wealth Mgt. 76% 173% 157% Borrowings(1) 63.6 62.3 Housing Finance 13% 10% 5% Minority Interest 0.3 0.
Slide 8: Capital Markets
EARNINGS PRESENTATION Q1FY23 Capital Markets • MOFSL’s overall ADTO grew 24% QoQ to ₹ 1,524 bn with 3.2% 2.1 Lakh ₹ 24,000+ ₹ 172 Bn ₹ 3.8 Bn overall market share of 2.9% in Q1FY23, up 30 bps QoQ. Retail F&O market New clients acquired One of the highest Distribution AUM; Distribution Net Sales shar
Slide 9: Capital Markets
EARNINGS PRESENTATION Q1FY23 Capital Markets INSTITUTIONAL INVESTMENT EQUITIES BANKING • Focus driven differentiated research products with 250+ companies covering 21 sectors, catering to ~800 • We have a strong pipeline of signed IPO mandates which will start entering the markets ₹ 27.7 Bn IPO inst
Slide 10: Revamping Digital Ecosystem
EARNINGS PRESENTATION Q1FY23 Revamping Digital Ecosystem Digital Infrastructure Data Science • Moving to cloud based modular architecture • Set up team of 20+ employees • Rapid application development platform with • Emphasis on data driven insights and decisions new age technologies like Flutter (G
Slide 11: Options Store – Industry first exclusive product
EARNINGS PRESENTATION Q1FY23 Options Store – Industry first exclusive product Launched easy to invest and multi-leg option strategies to enable retail investors to take advantage of options trading Predict & Trade Recommending options strategies with high success probability, basis client’s predicti
Slide 12: Broking and Distribution
EARNINGS PRESENTATION Q1FY23 Broking and Distribution ADTO continue to rise in midst of volatility Gaining F&O & Stable Cash market share 1,800 1,524 1,800 YoY (Q1FY22 – Q1FY23) 6.1% Retail Cash 23 5.7% 5.7% 5.7% 163% 5.3% 1,600 Market Share % 1,600 1,400 1,400 1,200 877 1,200 31 579 F&O (₹ Bn) 3.4%
Slide 13: Broking and Distribution – Loyal and Diversified Client Base
EARNINGS PRESENTATION Q1FY23 Broking and Distribution – Loyal and Diversified Client Base Continuous improvement in client activation Emphasis on diversified sourcing model 10.0 3.1 3.5 5% 5% 5% 4% 5% Online 2.9 Active Clients 9% 11% 11% 10% 9% 9.0 3.0 8.0 (Lakhs) Franchisee 7.0 2.0 2.5 27% 29% 33%
Slide 14: Broking and Distribution – Emphasis on Revenue & Productivity
EARNINGS PRESENTATION Q1FY23 Broking and Distribution – Emphasis on Revenue & Productivity One of the Highest ARPUs in the industry Franchisee Productivity intact 30,000 *Higher share of 1.4 Franchisees 8,000 1.6 25,000 F&O Brokerage 7,000 1.3 1.3 1.4 ARPU (₹) 1.0 21,539 20,000 6,000 1.2 Revenue per
Slide 15: Broking and Distribution – Large client assets under advice
EARNINGS PRESENTATION Q1FY23 Broking and Distribution – Large client assets under advice Rising Distribution (Mass Affluent) AUM Distribution AUM Mix MF 168 172 Distribution PMS AUM (₹ Bn) 29% 29% 128 PE/RE 96 90 AIF 7% Others 13% 22% Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 SIP AUM and Live SIP Count DP
Slide 16: Asset and Wealth Management
EARNINGS PRESENTATION Q1FY23 Asset and Wealth Management • AMC AUM stood at ₹ 434 bn, with MF AUM at ₹ 274 bn and Alternates AUM at ₹ 158 bn. ₹ 434 Bn 36% ₹ 114 Bn ₹ 344 Bn ₹ 19.9 Bn AMC AUM Alternates Share in PE & RE AUM Wealth AUM Wealth Net Sales; • Added around 47k new SIPs in Q1FY23, with trac
Slide 17: Asset Management
EARNINGS PRESENTATION Q1FY23 Asset Management AMC AUM Breakup and Growth trend AMC MF AUM mix 120% ₹ Bn Direct 100% 490 16% 14% 10% 18% 16% 434 NDs 434 40 MF AUM 389 24% 80% 27 38 27% 26% 22% 22% IFA 28 142 PMS AUM 294 147 120 60% 25% 24% WM+Banks 160 19 AIF AUM 21% 21% 21% 116 40% 306 274 258 38% 4
Slide 18: Asset Management
EARNINGS PRESENTATION Q1FY23 Asset Management Calibration in AMC yields AMC MF Folios Net Revenue to 1.9 1.9 42 42 AAUM (bps) Folio Count (mn) 45 39 38 200 34 180 1.3 40 160 35 140 PAT to AAUM 1.0 0.9 30 (bps) 120 25 100 20 80 88 85 83 15 77 60 10 75 40 5 20 0 0 FY19 FY20 FY21 FY22 Q1FY23 Mar-19 Mar
Slide 19: Private Equity & Real Estate Funds
EARNINGS PRESENTATION Q1FY23 Private Equity & Real Estate Funds Successful launch of PE & RE Funds over years PE & RE Fund Level IRR 35.0% Fully IBEF IV 30.0% Exited IRR (%) IREF V ₹ 45 Bn 28.7% IREF IV ₹ 12 Bn 26.8% 25.0% IBEF III ₹ 11.5 Bn 20.0% 22.3% IREF III ₹ 23 Bn 19.2% 20.7% 18.6% IREF II ₹ 1
Slide 20: Wealth Management
EARNINGS PRESENTATION Q1FY23 Wealth Management AUM diversified across asset classes Continued traction in UHNI families addition 400 400 MF 6,000 144 150 Family 344 344 143 RM 350 350 PMS 145 5,000 37% 36% 253 300 300 140 250 250 AIF 4,000 129 135 175 38% 200 156 11% 11% 200 PE/RE 3,000 126 130 8% 9
Slide 21: Wealth Management
EARNINGS PRESENTATION Q1FY23 Wealth Management AUM Mix- Q1FY23 Focus on improving share of recurring business 120% 60% 43% 57% MF Transactional 100% 50% 12% PMS Recurring 80% 44% 40% 45% 57% 53% 40% 47% AIF 43% PE/RE 60% 30% 56% 55% 60% 40% 21% 20% Others 53% 43% 47% 20% 10% 18% 0% 6% 0% Recurring A
Slide 22: Home Finance
EARNINGS PRESENTATION Q1FY23 Home Finance • NII improved by 15% on YoY basis in Q1FY23 led by robust ₹ 35.5 Bn ₹ 1.7 Bn COF @7.5% <1% Expansion disbursement. AUM as on Jun-22 Disbursements in Incremental COF in NNPA on New Book Opened 2 new Q1FY23, registering a Q1FY23 of AUM ₹ 12 bn branches in Q1F
Slide 23: Home Finance – Portfolio Metrics
EARNINGS PRESENTATION Q1FY23 Home Finance – Portfolio Metrics Disbursement Trend Product Mix 40% New Purchase Disbursement 26% Self-Construction 1.9 2.0 (₹ Bn) 1.7 09% Resale 1.6 04% Home Improv./Ext. 0.9 02% Composite 08% CF with MORE* Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 11% Others Customer Mix AUM
Slide 24: Home Finance
EARNINGS PRESENTATION Q1FY23 Home Finance ECL Provisioning Details STATE NOS. OF MOHFL’s Geographic Reach BRANCHES PARTICULARS (₹ Mn) Q1FY23 MH Maharashtra 32 PRESENCE ACROSS Stage 1 & 2 34,444 GJ Gujarat 15 106 LOCATIONS IN 12 STATES/UTS TN Tamil Nadu 14 % portfolio in stage 1 & 2 97.84% RJ Rajasth
Slide 25: Home Finance
EARNINGS PRESENTATION Q1FY23 Home Finance Diversified Liability Mix Key Ratios 120% 3% 3% Term loan 7% Parameters Q1FY23 Q1FY22 100% 7% 7% 8% 7% 12% NCD 80% 57% 52% NHB 40% 28% 28% 60% Securitization Yield 13.7% 13.8% ECB 40% 55% 51% 20% 43% 49% 45% COF 7.9% 8.6% 0% FY19 FY20 FY21 FY22 Q1FY23 Spread
Slide 26: Fund Based Investments
EARNINGS PRESENTATION Q1FY23 Fund Based Investments • Fund based book includes sponsor commitments cum ₹ 44.4 Bn ₹ 38.4 Bn ~₹ 13.9 Bn ~18% 23% investments in equity MF, PE funds, Real estate funds, Total investments Total equity Total unrealised gain Cumulative XIRR on XIRR on PE/RE AIF and strategi
Slide 27: Fund Based investments – Largest Skin in The Game
EARNINGS PRESENTATION Q1FY23 Fund Based investments – Largest Skin in The Game Skin in the Game in AMC (₹ Bn) Strong Growth in investments over the years 434 AMC AUM 40.5 38.4 19 Sponsor AUM 31.0 17.4 13.4 16 Promoter AUM 13.1 Skin in the game in PE & RE (₹ Bn) 17.9 17.5 3.9 1.7 114 Active AUM 23.1
Slide 28: MOFSL levers for sustainable growth
EARNINGS PRESENTATION Q1FY23 MOFSL levers for sustainable growth Collaboration Scalability • Research / Advisor driven offerings • Build loyal franchisee and partners network • Emphasis on trail revenue models • Leveraging productivity of in-house advisors / RMs • Higher Variable cost components • C
Slide 29: Safe Harbour
EARNINGS PRESENTATION Q1FY23 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 forw
Slide 30: For any query, please contact
For any query, please contact : S H A L IBH ADRA S H A H CHIEF FINANCIAL OFFICER 91-22-7193 4917 / 98190 60032 shalibhadrashah@motilaloswal.com C H E TA N PA R MAR HEAD INVESTOR REL ATIONS 91-22-7190 6600 / 74003 12700 chetan.parmar@motilaloswal.com
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