Visit http://indiaer.blogspot.com/ for complete details Motilal Oswal reports a topline of `1,576 million and PAT of `331million for Q2 FY11; Adjusted PAT* up 10% QoQ and down 7% YoY
Mumbai, Oct 20, 2010: Motilal Oswal Financial Services (MOFSL), a leading financial services company,announced its results for quarter ended September 30, 2010 post approval by the Board of Directors at a meetingheld in Mumbai on Oct 20, 2010.
Performance Highlights
`Million | Q2 FY11 | Comparison (Q1 FY11) | Comparison (Q2 FY10) |
Total Revenues | 1,576 | ↑ 4% | ↓ 8% |
EBIDTA | 554 | ↓ 10% | ↓ 27% |
PAT (before E& EOI^) | 331 | ↓ 12% | ↓ 30% |
Adjusted PAT* | 381 | ↑ 10% | ↓ 7% |
EPS- `(FV Re 1) | 2.3 |
^ E & EOI = Exceptional items & Extraordinary items
* Refer note below
Performance for the Quarter ended September 30, 2010
· Revenues for the quarter at `1,576 million, up 4% compared to Q1 FY11 and down 8% compared to Q2 FY10
· Adjusted PAT for Q2 FY11 at `381 million is up 10% compared to Q1 FY11 and down 7% compared to Q2 FY10
· To facilitate better comparison of operational performance for Q2 FY11, the following items needs to be considered:
`Million | Q2 FY11 | Q1 FY11 | Q2 FY10 | |
PAT (before E& EOI) – Reported | 331 | 375 | 472 | |
Add : | Expenses incurred on launch of M-50 | 30 | ||
Add : | Unrealised gain ignored in arbitrage (net impact) | 33 | 4 | 30 |
Less: | Profit on sale of investments/Fixed assets and change in accounting policy for arbitrage | 13 | 34 | 91 |
Adjusted PAT | 381 | 345 | 411 | |
Reported PAT for Q2 FY11 at `331 million, down 12% compared to Q1 FY11 and down 30% compared to Q2 FY10.
· Strong balance sheet with net-worth of `10,191 million and net cash of `2,366 million as on Sep 30, 2010.
Speaking on the performance of the company, Mr. Motilal Oswal, CMD said.
“Indian markets are in euphoric times. This is evident in the strong performance of benchmark indices, above average valuations, unprecedented FII flows, large IPO subscriptions and increased traded volumes. The crucial 20,000 Sensex level was broken during the quarter which would serve as a booster for investor confidence especially in the retail segment which has shown muted participation in this rally.
The strong traction in the business performance for established businesses as well as strong differentiated foothold gained in our new business ventures gives us the conviction on being able to capture a meaningful share in these opportunities.
Further as part of our larger responsibility to society, the Group has created Motilal Oswal Foundation to focus on CSR initiatives and a proportion of profits will be allocated for this endeavour.”
Segmentresults
· Broking and related revenues were `1,130 million, up 2% compared to Q1 FY11 and down 10% compared to Q2 FY10
· Investment banking fees were `166 million, up 29% compared to Q1 FY11 and up 9% compared to Q2 FY10
· Asset Management fees were `105 million, up 37% compared to Q1 FY11 and up 63% compared to Q2 FY10
· Fund based income was `144 million, flat compared to Q1 FY11 and down 12% compared to Q2 FY10. Adjusted for unrealized arbitrage gain (pre-tax) of ~`50 million, fund based income at `193 million for Q2 FY11 would have been up 30% compared to Q2 FY11 and down 7% compared to Q2 FY10.
· Other income was `32 million, down 41% compared to Q1 FY11 and down 60% compared to Q2 FY10. This includes profit on sale of investments `16 million.
Business highlights for Q2 FY 2011
· Retail Broking and Distribution business increased its customer base to 666,633 in Sep 2010 and distribution expanded to 1,504 outlets across 591 cities.
· Institutional Equities hosted the 6th Annual Motilal Oswal – Global Investor Conference in Mumbai where 110 leading Indian companies interacted with over 500 investors from all over the world, translating into 3,200+ company-investor meetings.
· Investment Banking business won the “Asia Pacific Cross-Border Deal of the Year” at the Asia-Pacific M&A Atlas Awards organized by Global M&A Network for facilitating the acquisition of Equipav (Brazil) by Shree Renuka Sugars (India) and Mr. Ashutosh Maheshvari, CEO of the Investment Banking business bagged the “India M&A Investment Banker award”.
· Total Assets under management for the Group were ~`23 billion, which includes assets under portfolio management, mutual fund and also assets under advice in private equity business.
· The maiden fund launched by Mutual Fund business - M50 ETF has seen active investor interest and is the 3rd most traded Equity ETF listed in India. In its first quarter since inception, with an AUM of ~` 3.1 billion, it is ranked 2nd in terms of Equity AUM amongst ETFs listed in India.
· India Business Excellence Fund advised by the Private Equity business acquired 20% stake in Mrs Bector's Food Specialties, a leading value-added food products player in the country.
· India Realty Excellence Fund managed by the Private Equity business invested around `450 million in Godrej Buildwell, a special purpose vehicle (SPV) floated by Godrej Properties.
· Wealth Management business - “Purple Client Group” managed assets of ~`10 billion.
· The Group bagged the prestigious 2010 Qimpro award for the DMAIC project in customer account opening amongst over 23 nominations across leading companies in service sector.
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