Key Financial Highlights for Q3 FY2025
- Revenue Performance:
- Total Revenue: ₹1,998.63 crore, reflecting a 12% increase year-on-year from ₹1,783.55 crore in Q3 FY2024.
- Wealth Management Revenue: Reported revenue of ₹9,610 crore, significantly up from ₹8,225 crore in Q3 FY2024.
- Profit After Tax (PAT):
- Net Profit: ₹565 crore, which represents a 14% decline year-on-year compared to ₹657 crore in Q3 FY2024.
- The net profit fell by 50% sequentially from ₹1,120 crore reported in the previous quarter (Q2 FY2025).
- Earnings Per Share (EPS):
- EPS for the quarter was ₹9.43, down from ₹11.12 in the same quarter last year.
- Profit Margin:
- The profit margin decreased to 33%, down from 43% in Q3 FY2024, primarily due to increased expenses.
- Interim Dividend:
- The company declared an interim dividend of ₹5 per equity share for the financial year 2024-25.
Segment Analysis
- Wealth Management Growth: This segment has shown strong performance with a growth rate of 17%, indicating resilience and an expanding client base.
- Market Conditions Impact: The overall capital markets environment has been challenging, affecting trading volumes and profitability across the industry.
Share Performance
- Following the earnings announcement, Motilal Oswal’s shares experienced a decline of approximately 7.5% over the past week.
Regulatory Issues
- The company faced a fine of ₹7 lakh imposed by SEBI for regulatory violations, which may have contributed to negative investor sentiment.
Future Outlook
- Analysts forecast revenue growth of around 20% per annum over the next three years, outperforming the broader capital markets industry growth forecast of 13%.
- Despite recent challenges, the company’s focus on wealth management and diversified service offerings positions it well for future growth.
Conclusion
Motilal Oswal Financial Services reported mixed results for Q3 FY2025, with revenue growth but a significant decline in net profit and profit margins. The strong performance in wealth management is a positive sign amid broader market challenges. The interim dividend reflects confidence in future cash flows despite regulatory hurdles and recent share price volatility. Investors should monitor upcoming quarters for recovery signs and continued strategic execution in wealth management and other segments.
