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HDFC Securities: Motilal Oswal Financial Services Delivers In-Line Q1 Performance

HDFC Securities: Motilal Oswal Financial Services Delivers In-Line Q1 Performance

A monitor shows stocks rallying while a trader talks on a phone on the trading floor of the Motilal Oswal Financial Services Ltd. office in Mumbai, India. (Photographer: Vivek Prakash/Bloomberg)
A monitor shows stocks rallying while a trader talks on a phone on the trading floor of the Motilal Oswal Financial Services Ltd. office in Mumbai, India. (Photographer: Vivek Prakash/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

Motilal Oswal Financial Services Ltd.’s Q1 FY21 reported strong spurt in cash volumes (88.2% YoY) bolstered capital markets adjusted profit after tax (APAT) 63.5% YoY (down 5.9% versus estimates), while a steep decline of 16.2% YoY in quarterly average asset under managements meant that the asset management company’s adjusted profit after tax declined 33.3% YoY (down 8.8% versus estimates).

Management enhanced provisions to 27.8% (up 556 basis points QoQ) of gross non-performing loans due to the potential Covid-19 impact, which resulted in Motilal Oswal Home Finance Ltd.(MOHFL) reporting a 35.1% YoY lower APAT.

Significant mark to market gain (Rs 1.3 billion, up 272.3% YoY) on treasury resulted in Motilal Oswal Financial Services (ex. MOHFL) APAT growth of 98.1%.

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HDFC Securities - Motilal Oswal Financial Services 1QFY21 Result Update.pdf

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