Motilal Oswal Financial Services (MOFSL) reported a 15 per cent decrease in net profit for the December quarter, with earnings falling to ₹560 crore compared to ₹661 crore in the same period last year. The decline was primarily attributed to higher expenses incurred during the quarter.
Despite the decrease in net profit, the company saw an increase in income, which rose to ₹2,002 crore from ₹1,798 crore in the previous year. However, overall expenses also surged to ₹1,262 crore, up from ₹989 crore in the same period last year.
In light of the financial results, MOFSL announced an interim dividend of ₹5 per equity share, with the record date set for February 1. Shareholders can expect to receive the dividend before February 26.
Motilal Oswal, Group MD and CEO of MOFSL, highlighted the strong performance of the company’s operating businesses, including wealth management, capital markets, asset management, and private wealth management during the quarter.
The asset and private wealth management business contributed significantly to the Q3 net profit, showing a 63 per cent year-on-year increase to ₹234 crore. Oswal emphasized that MOFSL is well-positioned to offer a wide range of services and products under the financialization theme for years to come.
Wealth Management revenue also witnessed considerable growth, increasing by 30 per cent to ₹570 crore, with a 16 per cent rise in net profit to ₹190 crore. Assets under advice saw a substantial growth of 67 per cent year-on-year, reaching ₹3.08 lakh crore by the end of December.
Additionally, Distribution AUM grew by 38 per cent to ₹31,918 crore, while distribution net flows quadrupled to ₹3,052 crore. Distribution revenue also surged by 89 per cent to ₹104 crore during the quarter.
In conclusion, MOFSL’s diverse business segments have exhibited robust growth despite the challenges posed by higher expenses, positioning the company well for continued success in the future.
