Motilal Oswal Q1 Results: Capital markets, private wealth business drive growth

Motilal Oswal Financial Services Ltd. reported results for the June quarter during market hours on Thursday, July 24, which were better on a year-on-year basis for most parameters.

Revenue for the quarter increased by 18% from last year to ₹2,737 crore from ₹2,314 crore last year. Net profit for the period increased by 32% on a year-on-year basis to ₹1,162 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter saw a jump of over 6x from last quarter to ₹719.5 crore, while margins expanded to 62.82% from 23.5% in March.

Motilal Oswal's Assets Under Management (AUM) for the AMC business increased by 64% from the year-ago quarter to ₹1.6 lakh crore.

Assets Under Management for the SIP segment also increased by 78% on a year-on-year basis to ₹26,051 crore.

Growth during the quarter was led by the capital markets space, whose net profit increased by 64% from the year-ago quarter to ₹94 crore.

Wealth management revenue declined 1% from the previous quarter to 954.5 crore, while capital markets revenue increased by 47.2% from the earlier quarter to ₹210.8 crore.

Assets and Private Wealth business increased by 8% from last year to ₹738 crore.

Shares of Motilal Oswal Financial Services are trading 0.6% lower after the earnings announcement at ₹926. The stock has risen 8% in the last one month.