Motilal Oswal Financial Services net dips 64%

Motilal Oswal Financial Services (MOFS) saw its net profit dip 64.22 per cent to Rs 15.82 crore in the fourth quarter for financial year 2008-09 due to the "weakened sentiment created by the global crises".

The income in the fourth quarter of financial year 2009, too dipped 53.16 per cent to Rs 84.02 crore as compared to the year before.

The financial services company also saw a dip in net profits of 47.49 per cent for FY09 to Rs 89.60 per cent as compared to a year before. The company said that annual results are not comparable as it received Rs 14.67 crore (net of tax) on sale of shares of Bombay Stock Exchange and non-compete fees of Rs 13 lakh (net of tax)

The income was down 35.06 per cent to Rs 434.01 crore.

Commenting on the results, Motilal Oswal, chairman and managing director, MOFS, said: “Our constant focus to rationalise costs and maintain our margins and thus returns for the businesses has delivered results. Our plans for existing as well as new business lines are well in place to capture the long term growth potential, while striking the right balance between current profitability and investing for future in current environment.

The company has declared a dividend of Rs 0.80 each share.

On a standalone basis, the company fared better with net profit rising 23.15 per cent to Rs 8.67 crore in the last quarter of the last financial year. For annual net profit was up 162 per cent to Rs 45.31 crore.

The income declined per cent 5.67 for the quarter to Rs 11.47 crore. But the annual income (FY09) rose 79 per cent to Rs 57.17 crore.

The company could post better standalone results thanks to the dividend of Rs 11.36 crore it received from the subsidiary -- Motilal Oswal Investment Advisors.