Motilal Oswal Financial Services (MOTILALOFS) Q1 24/25 earnings summary

Executive summary

• Achieved highest ever quarterly profit of INR 1,021 crore in Q1FY25, a 52% YoY increase, with net worth reaching INR 9,784 crore, up 41% YoY.

• Transitioned from broking and distribution to a comprehensive wealth management model, expanding product offerings and leveraging digital platforms like the RISE super app.

• Assets under advice surpassed INR 5 lakh crore, up 91% YoY, and client base expanded to over 72 lakh, up 29%.

• ICRA upgraded credit rating outlook from AA Stable to AA Positive.

• Robust network of 2,400 internal and 8,800+ external wealth managers, covering over 98% of India's PIN codes.

Financial highlights

• Consolidated profit after tax (including OCI) was INR 1,021 crore, up 52% YoY; operating PAT at INR 431 crore, up 41% YoY.

• Consolidated operating net revenue reached INR 1,133 crore, up 32% YoY.

• Net worth as of June 30, 2024, stood at INR 9,784 crore, up 41% YoY.

• Market capitalization stood at INR 34,120 crore as of July 25, 2024.

• Total consolidated income for Q1FY25 was INR 2,31,769 lakh, up from INR 1,53,356 lakh in Q1FY24.

Outlook and guidance

• Optimistic about sustaining or improving the 10-year operating profit CAGR of 34% and leveraging India's economic expansion.

• Dividend payout to remain around 20% of operating profit, subject to business needs.

• Positive industry tailwinds from Demat and SIP account additions and financialization of savings.

• Focus on maintaining/improving IRR of 19.6%.