Motilal Oswal Financial declines after Q4 net loss

Motilal Oswal Financial Services fell 3.25% to Rs 494.20 after reporting consolidated net loss of Rs 253.75 crore in Q4 March 2020 as against net profit of Rs 146.08 crore in Q4 March 2019.

The net loss was due to mark to market loss of Rs 356 crore during the quarter due to fair valuation of investments. EBITDA fell 4% to Rs 277.40 crore YoY during the quarter. Total income fell 6.62% to Rs 613.96 crore in Q4 March 2020 as against Rs 657.52 crore in Q4 March 2019. The Q4 results was declared after market hours yesterday, 11 May 2020.

During the quarter, asset management business (AMC) reported 6% decline in revenue to 131.60 crore. Private equity business revenue fell 2% to Rs 31.30 crore. Wealth management business revenue fell 1% to Rs 25.50 crore. Investment banking business revenue fell 94% to Rs 9 crore. Housing finance business revenue fell 13% to Rs 139.80 crore. However, broking business revenue jumped 20% to Rs 338.10 crore.

Commenting on the Q4 performance, Motilal Oswal, the managing director (MD) and chief executive officer (CEO) of Motilal Oswal Financial Services, has said that, "Our strategy to diversify our business model towards linear sources of earnings continues to show results. Our Asset Management business is likely to gain from strong product performance and its niche positioning. Our House finance business is set for new new beginning as all legacy issues are behind with incremental focus on profitable growth. Our traditional broking business continues to be cash cow and getting benefited from industry consolidation on the back of its knowledge driven physical offerings. Each of our 7 businesses offers headroom for growth. Prestigious awards like "Hall of Fame", Best Local Brokerage of the year, " Best boutique Wealth Manager" and several others have made all associated with the group immensely proud."

Motilal Oswal Financial Services is a financial services company focused on wealth creation for its customers, such as institutional, corporate, high net worth individual (HNI) and retail. The company's segments include broking & other related activities; fund-based activities; asset management & advisory, investment banking and housing finance.

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