Motilal Oswal Financial Services Limited · NSE:MOTILALOFS
Motilal Oswal Financial Services — Q3 FY2024 Earnings Presentation
49 slides from Motilal Oswal Financial Services's earnings presentation, Jan 24, 2024
Slide 1: Exchange filing cover letter for investor presentation
January 24, 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: Earnings Presentation Q3FY24 & 9MFY24
Earnings Presentation Q3FY24 & 9MFY24 BUSINESSES FOCUS ON SUSTAINABLE ALL BIZ OFFER HUGE BUILDING SCALE GROWTH HEADROOM FOR GROWTH
Slide 3: Motilal Oswal - The Bigger Picture
Motilal Oswal - The Bigger Picture 2
Slide 4: GDP during Amrit Kaal to reach $30tn mark
GDP during Amrit Kaal to reach $30tn mark Gross Domestic Product ($ Tn) 30.0 27.4 25.0 22.9 20.9 19.1 17.4 15.9 14.5 13.3 12.1 11.1 10.1 9.2 8.4 6.4 7.0 7.7 5.9 4.9 5.4 3.4 3.7 4.1 4.5 2.0 2.1 2.3 2.7 2.7 2.8 2.7 3.2 3 Source: As per internal estimate KEY HIGHLIGHTS FINANCIALS BUSINESSES
Slide 5: Well positioned for the USD 100+ tn savings opportunity
4 FY97 0.1 0.1 FY99 0.1 0.1 KEY HIGHLIGHTS FY01 0.1 0.1 FY03 0.1 0.2 FINANCIALS FY05 0.2 0.3 FY07 0.3 BUSINESSES 0.5 FY09 0.4 Source: Motilal Oswal Wealth Creation Study 0.5 FY11 0.6 0.6 Gross Domestic Savings (USD tn) FY13 0.6 0.6 FY15 0.7 0.7 FY17 0.7 0.9 FY19 0.9 0.8 FY21 0.8 0.9 FY23 1.0 1.1 FY2
Slide 6: Decadal strong growth, Next decade equally exciting
Decadal strong growth, Next decade equally exciting Demat Account grown at 20% CAGR in last 10 years (in Mn.) Retail ADTO grown at 63% CAGR in last 10 years (₹ tn ) 112.0 4.5 Monthly addition 160 4.0 Total (RHS) 140 3.5 61.1 120 3.0 100 2.5 29.7 80 2.0 11.7 60 1.5 6.9 4.9 3.1 1.8 1.1 1.1 0.7 0.6 1.0
Slide 7: Financialization of Savings propelling equities
Financialization of Savings propelling equities Total Indian Household assets $ 11.1 Tn (FY23) % of Household Assets in Equities 4.7% 4.8 4.7 50.7% 4.3 3.4% 3.9 3.8 5.8% 5.9% 3.4 15.5% 14.0% 2.9 2.7 2.7 Equities Cash Provident & Pension funds Insurance funds 2.2 2.2 Bank deposits Gold Property FY13
Slide 8: 36-year brand
36-year brand MOFSL awarded ‘Brand of the Year’ at the CNBC TV18 - India Business Leadership Awards 2018 MOFSL was featured in ‘Fortune 500 (India)’ in 2017, 2019, 2020, 2021, and 2022 MOFSL gets featured in ‘Forbes Super 50 Companies’ 2017 & 2018 MOFSL gets listed in ‘Fortune 500 India’s Largest Co
Slide 9: Double Engine Model – Operating Business+Active Investments Book
Double Engine Model – Operating Business+Active Investments Book Investments are used strategically Engine #1 Engine #2 for operating businesses OPERATING BUSINESSES TREASURY INVESTMENTS • Asset light businesses Synergy • Skin in the game + • Diversified revenue streams • Highly liquid Liquidity • E
Slide 10: Engine #1 – Operating Business PAT
Engine #1 – Operating Business PAT ₹ Mn 791 1,191 981 3,114 3,486 2,486 3,983 4,706 8,264 8,835 8,420 # FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24 All nos. are excluding carry income 9 #FY19 PAT is lower mainly on account loss in housing finance (HFC) business of ₹ 132 cr due to one ti
Slide 11: Total PAT (incl. OCI)
Total PAT (incl. OCI) ₹ Mn Operating PAT Treasury Investments PAT (incl. OCI) 19,994 15,523 8,420 4,706 12,595 8,822 8,264 6,623 3,600 3,486 1,235 8,835 2,836 1,436 1,691 771 1,191 3,114 2,486 3,983 981 486 3,137 10,817 4,331 11,574 791 245 710 350 -13 -20 -2,748 FY14 FY15 FY16 FY17 FY18 FY19 FY20 F
Slide 12: Engine #2- Treasury Investment Book
Engine #2- Treasury Investment Book ₹ Bn 58.7 43.3 40.9 31.3 17.4 17.9 17.5 11.3 9.9 7.3 1.6 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Dec-23 11 KEY HIGHLIGHTS FINANCIALS BUSINESSES
Slide 13: Highly professionalised structure
Highly professionalised structure RAAMDEO AGRAWAL MOTILAL OSWAL NAVIN AGARWAL AJAY MENON RAJAT RAJGARHIA ABHIJIT TARE CHAIRMAN MD & CEO MD & CEO – ASSET CEO – RETAIL BROKING CEO – INSTITUTIONAL CEO – INVESTMENT MANAGEMENT AND DISTRIBUTION EQUITIES BANKING A CA by qualification, Mr. A CA by qualifica
Slide 14: Robust business infrastructure & network
Robust business infrastructure & network R O B U Distribution Network Geographical Reach S 9,300+ Franchisee 2,500+ Business Location T 20,000+ IFAs 98% of PIN codes covered Motilal Oswal Tower - Mumbai I N F R Clients A ~60,00,000 S Motilal Oswal Tower - Ahmedabad T R U C Employees Advisors & Resea
Slide 15: Research & Advisory Powerhouse
Research & Advisory Powerhouse Institutional Equities Wealth Retail Management Broking 100+ Research Team & 2,500+ Advisors Alternative Asset Asset Management Management Investment Banking 14 KEY HIGHLIGHTS FINANCIALS BUSINESSES
Slide 16: 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 17: Strong balance sheet is important not only to survive but also to thrive
Strong balance sheet is important not only to survive but also to thrive Covid -19 pandemic Being resilient over last NBFC crisis in India 36 years and weathered multiple crisis Global Financial Crisis (Lehman Brothers) Importance of net worth in Financial Services sector Ability to absorb the Grab
Slide 18: 22% CAGR growth in Net Worth for last 10 years
22% CAGR growth in Net Worth for last 10 years Operating Business Dividend Payout Treasury Investments Book Value per share ₹ Bn 82.7 Rs. 557 62.5 56.7 28.8 44.6 17.2 30.9 17.2 30.5 28.9 12.8 Book Value 17.8 5.0 2.3 65.7 12.9 14.4 4.5 57.2 per share 11.7 1.3 39.2 47.9 0.5 26.6 29.2 33.9 ₹ 85 12.6 13
Slide 19: Future is as exciting as past
Future is as exciting as past Engine #1 Operating PAT grew 31% Total Operating PAT Expect to grow at 15-20% CAGR CAGR in last decade Treasury Investments Engine #2 Book grew 45% CAGR in Maintain / improve existing IRR of 18.5% Treasury Investments last decade 30% of Operating PAT in Continue to dist
Slide 20: Motilal Oswal - Q3FY24 & 9MFY24 Performance
Motilal Oswal - Q3FY24 & 9MFY24 Performance 19
Slide 21: Key Highlights for Q3FY24
Key Highlights for Q3FY24 Assets under advice Revenue Operating PAT Total PAT (incl. OCI) Net Worth ₹ 4.4 tn 43% YoY ₹ 13.8 bn 30% YoY ₹ 3.1 bn 35% YoY ₹ 7.7 bn 222% YoY ₹ 82.7 bn 33% YoY Lending Book 1 ROA (incl. OCI) 2 ROE 2 Clients Employees ₹ 110.6 bn 47% YoY 9.8% 36.8% ~6.0 mn 13% YoY 10,747 Tr
Slide 22: Consolidated P&L
Consolidated P&L PARTICULARS (₹ Mn) Q3FY24 Q3FY23 YoY (%) Q2FY24 QoQ (%) 9MFY24 9MFY23 YoY (%) Capital Markets (Broking, Distribution & IB) 10,285 7,565 36% 10,191 1% 29,323 20,892 40% Asset and Wealth Management 2,872 2,518 14% 2,542 13% 7,853 7,062 11% Housing Finance 1,464 1,357 8% 1,435 2% 4,335
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (₹ Bn) Dec 31, 2023 Mar 31, 2023 Net Worth Deployment SOURCES OF FUNDS Net Worth 82.7 62.5 9% Borrowings 126.0 103.1 5% Minority Interest 0.4 0.3 15% Total Liabilities 209.0 165.9 70% APPLICATION OF FUNDS Fixed assets (net block) 5.7 4.7 Treasury Investments In
Slide 24: Capital Markets
Capital Markets • MOFSL amongst top 3 brokers in terms of Gross 8.1% 7.5% ₹ 35,000+ ₹ 263 Bn ₹ 7.7 Bn Brokerage. Focus to further improve our market Retail cash market One of the highest Distribution AUM; Distribution Net share in a fast growing market Retail F&O premium market share; +60bps QoQ sha
Slide 25: Super App to offer bouquet of financial services
Super App to offer bouquet of financial services Invest Trade 24 KEY HIGHLIGHTS FINANCIALS BUSINESSES
Slide 26: Best in class customer experience
Best in class customer experience Common Portfolio including portfolio analysis Get easy Portfolio view with Asset and Product wise Dashboard Personalization Global Search Personalized landing page One search menu for all based on customer needs & trading & investment past requirements products Cust
Slide 27: Broking and Distribution – Emphasis on Revenue & Productivity
Broking and Distribution – Emphasis on Revenue & Productivity Robust DP AUM growth (₹ Bn) Rising Distribution AUM (₹ Bn) ADTO continue to rise 5,683 37 263 213 2,920 23 182 2,469 23 5,647 134 877 1,184 1,958 1,938 2,954 90 439 31 2,447 2,897 468 234 18 28 411 846 216 Mar-20 Mar-21 Mar-22 Mar-23 Dec-
Slide 28: Inst. Equities – Solid track record of Research & Corporate Access award
Inst. Equities – Solid track record of Research & Corporate Access award Focus driven differentiated research products covering: 250+ companies 21 sectors catering to 840+ institutional clients 50+ research & corporate access team Institutional team wins big in Asiamoney poll 2023. Overa
Slide 29: Investment Banking – Strong deals across fund raising services
Investment Banking – Strong deals across fund raising services Q3FY24 H1FY24 IPO QIP Block Deal IPO IPO ₹ 6.1 Bn ₹ 10.0 Bn ₹ 8.4 Bn ₹ 10.1 Bn ₹ 19 Bn QIP Buyback Buyback IPO IPO ₹ 7.5 Bn ₹ 10.2 Bn ₹ 0.6 Bn ₹ 4.9 Bn ₹ 6.4 Bn QIP Block Deal IPO Block Deal ₹ 12.0Bn ₹ 7.5 Bn ₹ 3.1 Bn ₹ 1.5 Bn Senior Man
Slide 30: Asset and Wealth Management
Asset and Wealth Management • AMC AUM stood at ₹ 649 bn, up 40% YoY/17% QoQ with MF AUM at ₹ 429 bn and Alternates AUM at ₹ 220 bn. ₹ 649 Bn 34% ₹ 94 Bn ₹ 896 Bn ₹ 30 Bn Alternates share in PE & RE Fee Earning Wealth AUM; Wealth Net Sales in • ₹ 12.4 bn flows in Small Cap MF NFO, highest in the Smal
Slide 31: Turnaround in AMC fund performance yielding the result now
Turnaround in AMC fund performance yielding the result now Performance for past one year Q3FY23 Q3FY24 Total No. of Funds (MF + PMS + AIF) 27 SIP Market Share 0.9% 1.6% No. of funds outperformed benchmark 24 MF Gross Sales Market Share 0.7% 1.9% Mutual Fund 5 MF Net Sales Market Share (0.8)% 3.1% Al
Slide 32: Asset Management – Robust flows and folio additions
Asset Management – Robust flows and folio additions Strong growth in AMC AUM (₹ Bn) Robust growth in AMC Gross Sales (₹ Bn) 649 49 40 553 514 21 22 457 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 AMC MF SIP flows AMC MF Folios Continue to Rise (in Mn) Dec 23 flow 2.5 9.0 0 1.6% 1.8 % 2.8
Slide 33: Marketing Campaign yielding robust flows
Marketing Campaign yielding robust flows High Quality, High Growth ₹ Mn Marketing Expense Net Revenue % FY23 89 3,594 2.5% 9MFY24 85 3,061 2.8% Small Cap NFO Large Cap NFO Click on images 32 to see Ad KEY HIGHLIGHTS FINANCIALS BUSINESSES
Slide 34: Strong performance across Private Equity & Real Estate Funds
Strong performance across Private Equity & Real Estate Funds Successful launch of PE & RE Funds over years Robust performance across funds Expected exit in near future PE RE IBEF IV Valued IRR (%) FY25 FY25 FY26 IREF V ₹ 45 Bn 26.8% Fully IREF IV ₹ 12 Bn 22.9% IBEF III ₹ 11.5 Bn 20.5% Exited IRR (%)
Slide 35: Carry income from seven funds to be realized in coming years
Carry income from seven funds to be realized in coming years Illustration of Expected Carry Income for Private Equity Fund Raised IRR- 20% Carry 20% Cumulative Returns Carry Income ₹ 100 after 8 years ₹ 330 ₹ 66 Illustration of Expected Carry Income for Real Estate Fund Raised IRR- 16% Cumulative Re
Slide 36: Wealth Management – Strengthening RM base for sustainable growth
Wealth Management – Strengthening RM base for sustainable growth Strong growth in WM AUM (₹ Bn) RM Productivity 13.5 4.5 16.0 4.0 12.2 14.0 AUM per 896 3.5 10.3 11.0 12.0 RM (₹ Bn) 3.0 2.5 7.8 10.0 8.0 2.0 6.0 Revenue per 520 1.5 RM (₹ Mn) 4.0 1.0 1.2 2.1 2.4 2.9 3.8 2.0 0.5 344 - - 156 253 FY20 FY2
Slide 37: Focus on building recurring revenue…
Focus on building recurring revenue… Closing AUM/Loan Book (₹ Bn) Net Yield/NIM Net Revenue (₹ Mn) Particulars Q3FY24 Q2FY24 Q3FY23 Q3FY24 Q2FY24 Q3FY23 Q3FY24 Q2FY24 Q3FY23 Asset Management 649 553 466 0.73% 0.73% 0.74% 1,152 1,005 911 Wealth Management* 529 468 384 0.52% 0.48% 0.51% 644 553 524 Pr
Slide 38: Strong ARR across Capital market & Asset and Wealth Management
Strong ARR across Capital market & Asset and Wealth Management Particulars (₹ Mn) Q3FY24 Q3FY23 YoY% Q2FY24 QoQ % Annual Recurring Revenue (ARR) 3,745 3,108 20% 3,490 7% Asset Management Fees 1,508 1,324 14% 1,393 8% Wealth & Distribution 454 534 -15% 456 -2% Net Interest Income 1,488 990 50% 1,339
Slide 39: Home Finance
Home Finance • Retail disbursement grew by 50% YoY/25% QoQ to ₹ ₹ 37.8 Bn ~2.5 Bn 7.7% ₹ 12.5 Bn 3.3% 1.78 bn Disbursements in NIM in 9MFY24 Net worth as on ROA in 9MFY24 AUM as on Dec-23 Q3FY24; up 25% QoQ Dec-23 • Net gearing stood at 2.0x, CRAR remained robust at 47.5% PARTICULARS (₹ Mn) Q3FY24 Q
Slide 40: Home Finance - Experienced Leaders
Home Finance - Experienced Leaders Sukesh Bhowal has a rich experience of 27 years in Business Management, Sales & Distribution, Retail, Mortgage Chief & Real Estate Lending and Retail Banking. He was associated with DCB Bank, where he headed the Mortgages, Executive Micro-Mortgages, Construction Fi
Slide 41: Home Finance – Focus on strengthening sales and improve productivity
Home Finance – Focus on strengthening sales and improve productivity Growing Disbursements (₹ Mn) 3,607 Improving sales productivity 2,471 • Sales and lead management is now through digital mode with geo- 2,022 1,974 tagging and geo-fencing capabilities 933 • 100% end to end paperless approval proce
Slide 42: Home Finance – Diversified products, geographies and liabilities
Home Finance – Diversified products, geographies and liabilities Product Mix Wide Geographic Reach 32% New Purchase PRESENCE ACROSS 24% Self-Construction 111 LOCATIONS IN 12 STATES/UTS HR 13% Construction Finance* DL RJ UP 13% Resale GJ MP 08% LAP 136 Branch Sales CG 03% Home Impr./Ext. Manager serv
Slide 43: Home Finance – Stable asset quality
Home Finance – Stable asset quality ECL Provisioning Details Robust Collection Efficiency PARTICULARS (₹ Mn) Dec 2023 100% 103% 101.3% 98% 99% CE incl. Stage 1 & 2 36,748 prepayments was 129% in % portfolio in stage 1 & 2 97.88% Dec-23 Stage 3 796 % portfolio in Stage 3 2.12% ECL Provision % Stage 1
Slide 44: Home Finance – Key Ratios
Home Finance – Key Ratios Parameters Q3FY24 Q3FY23 Q2FY24 9MFY24 9MFY23 Yield 14.2% 13.8% 14.2% 14.3% 13.9% COF 8.3% 7.9% 8.3% 8.3% 7.9% Spread 5.9% 5.9% 6.0% 6.0% 6.0% NIM 7.7% 7.7% 7.7% 7.7% 7.8% Cost/Income 43.7% 36.8% 44.3% 43.1% 37.8% ROA 3.6% 3.8% 3.3% 3.3% 3.7% ROE 12.0% 13.5% 11.2% 11.2% 13.
Slide 45: Treasury Investments
Treasury Investments • Treasury Investment includes sponsor commitments ₹ 58.7 Bn 18.5% 19.9% cum investments in equity MF, PE funds, Real estate Total equity investment Cumulative XIRR on XIRR on PE/RE including alternate funds total investments investments funds, AIF and strategic equity investmen
Slide 46: Treasury Investments – Skin in The Game
Treasury Investments – Skin in The Game Skin in the Game in AMC (₹ Bn) Strong Growth in investments over the years 58.7 649 AMC AUM 27 Sponsor AUM 22 Promoter 43.3 26.9 AUM 40.9 15.7 31.3 Skin in the game in PE & RE (₹ Bn) 17.8 13.4 136 Total Capital Raise till date 31.8 17.5 27.6 1.7 23.1 13 Sponso
Slide 47: 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 48: 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 49: 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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