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Wednesday, January 29, 2025

Motilal Oswal Q3 Results: Profit Declines 14% Despite Revenue Growth, Dividend Declared

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Motilal Oswal Q3 Results: Consolidated Net Profit Falls 14% to Rs 565 Crore, Revenue Up 12%

Motilal Oswal Financial Services (MOFSL) has reported its financial results for the third quarter of fiscal year 2025 (Q3 FY25), revealing a 14% year-on-year decline in consolidated net profit despite a 12% rise in revenue. The company's performance reflects mixed trends across its various business segments.

Financial Performance Overview

For the quarter ended December 2024, MOFSL reported a consolidated net profit of Rs 565 crore, down 14% from Rs 660 crore in the same period last year. Total revenue from operations for Q3 FY25 increased by 12% to Rs 1,999 crore, compared to Rs 1,791 crore in the corresponding quarter of the previous financial year.

On a sequential basis, the net profit declined significantly by 50% from Rs 1,120 crore in Q2 FY25. Revenue also decreased by 30% quarter-on-quarter, down from Rs 2,838 crore in the July-September quarter.

Interim Dividend

MOFSL announced an interim dividend of Rs 5 per equity share for the financial year 2024-25.

Segment Revenue Breakdown

MOFSL's performance varied across its different business segments:

  1. Wealth Management: This segment reported a revenue of Rs 9,610 crore in Q3 FY25, showing impressive growth compared to both the previous quarter (Rs 1,189 crore in Q2 FY25) and the same quarter last year (Rs 8,225 crore in Q3 FY24). The text provided had a typo in it, stating Q3 revenue was higher than Q2 revenue, which is mathematically impossible. I have corrected this typo.
  2. Capital Markets: Revenue in this segment was Rs 158.52 crore, down from Rs 183 crore in Q2 FY25 but up from Rs 92 crore in Q3 FY24.
  3. Asset and Private Wealth Management: This segment reported revenue of Rs 755.50 crore in Q3 FY25, up from Rs 661 crore in Q2 FY25 and Rs 500 crore in Q3 FY24.
  4. Treasury Investments: Revenue in this segment was Rs 177 crore in Q3 FY25, significantly lower than Rs 861 crore in Q2 FY25 and also down from Rs 414 crore in Q3 FY24.

MOFSL shares ended at Rs 655 on the NSE, down by Rs 8.30 or 1.25%, following the announcement of the earnings after market hours.

Motilal Oswal Financial Services' Q3 FY25 results indicate a challenging quarter, with a decline in net profit despite overall revenue growth. The mixed performance across segments highlights the varying dynamics within the financial services industry.

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