MOFSL's broking business sees net losses due to negative crude settlement

Company has made provision of Rs 88.96 crore on client receivables

Motilal Oswal Financial Services (MOFSL) saw net losses in its broking business in the June quarter owing to negative price settlement of crude oil derivative positions for customers. The firm’s investor presentation showed a loss of Rs 66 crore on account of this price movement. Brent crude prices entered the negative territory (below $0 per barrel) in April.

After adjusting this as an exceptional item, the business reported a net loss of Rs 5.3 crore. If not for this price anomaly and related settlements, the business would have seen net profits of Rs 61.3 crore in the quarter. MOFSL has also