Motilal Oswal shares jump 9% to 52-week high on strong Q1, restructuring announcement
Motilal Oswal Financial Services (MOFSL) jumped nearly 9% on the NSE to their 52-week high of Rs 889.95 on Friday, following the June quarter earnings announced by the company along with a proposal for internal restructuring. On Thursday, MOFSL reported strong Q1FY24 numbers with consolidated net profit multiplying nearly 17 times from the year-ago period to Rs 527 crore. Consolidated revenue from operations almost doubled to Rs 1,500 crore.
The capital market business reported a strong 63% on-year growth in net profit to Rs 155 crore. Capital markets comprise retail broking and distribution, institutional equities, and investment banking business. Revenue for this segment grew 44% on-year to Rs 879 crore.
In retail broking and distribution, retail cash average daily turnover (ADTO) market share grew by 46 basis points on year to 6.2%. Retail F&O premium market share stood at 7.2%. The retail F&O ADTO market share grew by 111 bps on year to 4.3%.
Overall, ADTO grew 171% year-on-year (YoY). The investment banking division completed 6 deals worth Rs 3,730 crore in the June quarter. Further, there is a strong pipeline of ECM mandates, which is expected to fructify in the coming quarters, the company said.
Overall, asset and wealth management revenue grew 10% on year to Rs 241 crore, with profit too, growing 10% to Rs 64 crore. The asset management business AUM across MF, PMS and AIF stood at Rs 51,520 crore, up 19% on-year and 13% sequentially. Revenue grew 5% sequentially to Rs 138 crore.Internal RestructuringThe brokerage firm also announced a demerger scheme where the company will transfer MOFSL's 'Broking and Distribution' Undertaking into Glide Tech Investment Advisory Private by way of slump sale.
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