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Motilal Oswal Annual Report 2023 Summary

Updated: Oct 1, 2023

  • Motilal Oswal Financial Services Limited (MOFSL), a diversified financial services company, dealing in various business segments, including Retail Broking, Institutional Broking, Investment Banking, Asset Management, Wealth Management, Alternates Asset, Housing Finance, and Loan Against Securities.

  • The company achieved significant milestones, with record operating revenue of ₹4,319 crore and operating PAT of ₹879 crore in FY2023. Consolidated ROE stood at 18%.

  • We on boarded Prateek Agrawal, an industry veteran, to lead business and investment strategy in FY2023

  • During FY2023, we launched 7 passive funds- 3 index funds, 3 ETFs and 1 FoF . We launched 4 AIFs, added around 2.6 lakh SIPs in FY2023.

  • Inflows from SIP remained subdued during the year at ₹ 1,550 crore on account of RBI restriction on international investing.

· Broking & Distribution

o Broking recorded the highest ever ADTO, annual revenue and profit in FY2023.

o One of the highest ARPUs in the industry.

o Acquired 6.5 lakh new clients in FY2023; total client base at ~35 lakh which grew at 23% YoY.

o DP AUM stood at ₹ 1,93,800 crore as of March 2023.

o Our financial product distribution AUM witnessed a growth of 17% YoY to ₹ 21,300 crore as of March 2023.

o Net 1,100+ franchisees added in FY2023, taking total franchisee count to 8,033.

o Significant investment has been made in talent (+300 in FY2023), taking total headcount to ~6,200.

o Research and advisory continues to be the core of our broking business.

o Launched “Options Store” and “Research 360” digital platforms

· Institutional Equities

o Ranked #1 in Corporate Access and SalesPerson awards category at Asia Money Brokers Poll 2022.

o Focus driven differentiated research products with 250+ companies covering 20+ sectors.

o Continued to acquire new empanelment and maintained it with ~820 institutions.

o The 18th edition of our annual flagship conference- AGIC was attended by 160+ corporates and witnessed over 80% CXO level participation.

o Organized Ideation Conference, MOBIZ Conference, Fintech Day etc.

· Investment Banking

o Completed IPOs of Tamilnadu Mercantile Bank, DreamFolks and Radiant Cash Management Services.

o Successfully completed private equity fund raiser for Simpolo Group.

o Continue to have a rich pipeline, and are constantly engaging on a wide cross-section of mandated transactions across capital markets and advisory.

· Asset Management

o AMC AUM stood at ₹ 45,620 crore as of March 2023.

o MF AUM stood at ₹ 29,560 crore, while Alternate AUM stood at ₹ 15,830 crore as of March 2023.

o Our share of Alternative assets, comprising PMS & AIF, is one of the highest among AMC’s at 35%.

o Launched 7 passive funds in FY2023.

o Onboarded Prateek Agrawal to lead business and investment strategy.

o Revamped Investment process with focus on consistent returns against achieving highest returns.

o Turnaround in performance across active MF schemes.

· Private Equity

o PE and RE Fee Earning AUM stood at ₹ 10,280 crore across three growth capital funds and four real estate funds.

o Growth capital funds have been successful in gaining investors’ confidence with stellar returns over the years.

o IBEF I has exited from all investments and delivered a portfolio XIRR of ~27%.

o IBEF IV raised ₹ 4,500 crore within a year of launch. The fund has deployed ~₹ 1,600 crore across 6 investments.

o Expected to exit from all investments in IREF II during FY2024.

· Wealth Management

o Wealth AUM was at an all-time high in FY2023 at ₹ 52,000 crore, up 51% YoY.

o Recorded highest ever net sales at ₹ 5,800 crore, up 8% YoY.

o Added gross 63 Wealth RMs in FY2023, taking total count to 182.

o Bolstered wealth team with senior management hiring to strengthen Ultra HNI offerings and advisory capabilities.

o 38% of RMs have more than 3 years of vintage

· Housing Finance

o Disbursements in FY2023 grew by 57% YoY to ₹ 1,007 crore. Business is geared up for stronger growth in disbursements.

o Loan Book was up by 10% YoY to ₹ 3,772 crore.

o ICRA upgraded rating to AA from AA-.

o Cost of borrowing for us has come down by 24 bps YoY in FY2023 at 8.0%. We raised ₹ 1,052 crore in FY2023 at 7.5%.

o New Book, which has originated post April 2018, contributed around 48% of loan book with GNPA of <1%.

o Joined hands with U.S. Development Finance Corporation, world’s largest development finance institution, inmFY2022 and has received a commitment of USD 50 mn. Drawdown of USD 30 mn done till March 2023.

o GNPA and NNPA was 1.1% and 0.5% respectively.

o Collection efficiency stood at 100.1% (Total EMI collected/1 EMI Due) in FY2023.

o There was strong support from parent (Motilal Oswal Financial Services), total cumulative capital infusion at ₹ 850 crore, resulting in lower net leverage (Debt/Equity ratio) of 2.2x.

o Strong capital adequacy ratio of 51%.



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