Motilal Oswal net profit jumps nearly twofold to Rs 360 crore in FY17

MUMBAI: Motilal Oswal Financial Services on Thursday reported a nearly two-fold (113 per cent) jump in net profit at Rs 360 crore for the year ended March 2017.

Company reported consolidated revenues of Rs 1,818 crores, a jump of 66% over previous year while reporting 113% rise in its net profit. For the quarter ended March 2017, company reported 69% jump in revenue to Rs 537 crore and 91% growth in net profit at Rs 90 crore.

Housing finance business of the company grew 160% while asset management and capital market business grew 68% and 40% respectively over the previous year. The revenue mix is seeing healthy diversification, as 56% of the revenue came from linear sources like asset management and wealth business and housing finance vs. 44% last year. While the share of Capital Markets reduced in the mix, it continues to grow in absolute terms.

“Our strategy to diversify our business model towards linear sources of earnings is showing definite results, with over half of the revenue and profit pie now coming from these new businesses” said Motilal Oswal, CMD. “The opportunity size in all our business segments is still huge, and our businesses are well placed to benefit from these opportunities.”

Both asset management and housing finance saw rapid growth in assets, and improved in profitability despite significant investments in areas like manpower, network and marketing.