Motilal Oswal Financial Services Limited (MOFSL), a leading financial services company, has announced its Q3FY25 results, showcasing robust growth across key business verticals, including capital markets, housing finance, and treasury investments.
Capital markets: Revenue and profit growth
MOFSL’s capital markets segment, which includes institutional equities and investment banking, delivered strong performance in Q3FY25:
- Revenue for the quarter stood at Rs. 151 crore, marking a 70% year-on-year (YoY) growth.
- Profit After Tax (PAT) rose by 51% YoY to Rs. 61 crore.
- The segment is supported by a team of over 140 research and corporate access professionals, covering approximately 300 companies and 24 sectors, catering to more than 880 institutional clients.
The investment banking arm completed 35 deals, including block transactions, with a cumulative issue size exceeding Rs. 46,000 crore in 9MFY25. Notably, MOFSL achieved the top rank on the QIP league table during this period. Fee-based revenue in Q3FY25 surged by an impressive 154% YoY to Rs. 60 crore.
Housing finance: Consistent upward trajectory
The housing finance business also reported strong growth, driven by higher disbursements and robust asset quality:
- Assets Under Management (AUM) grew to Rs. 4,343 crore as of December 2024, up 15% YoY.
- Disbursements in 9MFY25 stood at Rs. 1,014 crore, up 93% YoY, while Q3FY25 disbursements increased by 67% YoY to Rs. 394 crore.
- Yield on advances for 9MFY25 was 13.7%, with a cost of funds at 8.4%, leading to spreads of 5.4%.
In Q3FY25, the segment reported a Net Interest Income of Rs. 88 crore, reflecting a 10% YoY growth. Profit After Tax for the quarter was Rs. 37 crore. The number of Sales Relationship Managers (RMs) increased by 46% YoY to 1,246.
Asset quality remained stable, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) at 1.4% and 0.8%, respectively, as of December 2024. The business maintained a robust capital position with a Net Gearing of 1.9x and CRAR of 44.3%, while delivering a Return on Assets (ROA) of 2.7% and Return on Equity (ROE) of 9.3% in 9MFY25.
Treasury investments: Strong returns
MOFSL’s treasury investments, which include sponsor commitments to its AMC, private equity, and real estate funds, along with strategic equity investments, witnessed impressive growth:
- Total equity investments, including alternate funds, grew to Rs. 8,464 crore as of December 31, 2024, reflecting a 44% YoY increase.
- The treasury book delivered a healthy XIRR of 20% since inception, with reinvestments driving a 45% CAGR growth in the investments book.
