MOTILALOFSNSE24 January 2024

Motilal Oswal Financial Services Limited has informed the Exchange about Investor Presentation

Motilal Oswal Financial Services Limited

January 24, 2024

To BSE Limited P. J. Towers, Dalal Street, Fort, Mumbai - 400001 Security Code: 532892

National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400051 Symbol: MOTILALOFS

Sub.: Investor(s)/Analyst(s) Presentation – Financial Performance for Q3 FY 2023-24

Dear Sir/Madam,

This is with reference to our earlier letter dated January 19, 2024 regarding Earnings Conference Call with Institutional Investor(s)/Analyst(s) for discussing Q3 FY 2023-24 Financial Performance of the Company.

this regard, please

In to Investor(s)/Analyst(s). The said Presentation will be uploaded on the Company’s website at www.motilaloswalgroup.com.

find enclosed herewith

the Presentation

to be made

Further, the Audio recording & transcript of earning con-call will be made available on the Company’s Website i.e. www.motilaloswalgroup.com.

Kindly take the same on record.

Thanking you,

Yours faithfully,

For Motilal Oswal Financial Services Limited

Kailash Purohit Company Secretary & Compliance Officer

Encl.: As above

Earnings Presentation

Q 3 F Y 2 4 & 9 M F Y 2 4

BUSINESSES BUILDING SCALE

FOCUS ON SUSTAINABLE GROWTH

ALL BIZ OFFER HUGE HEADROOM FOR GROWTH

Motilal Oswal - The Bigger Picture

GDP during Amrit Kaal to reach $30tn mark

Gross Domestic Product ($ Tn)

30.0

27.4

25.0

22.9

20.9

19.1

17.4

15.9

14.5

13.3

12.1

11.1

10.1

9.2

2.0 2.1 2.3 2.7 2.7 2.8 2.7 3.2 3.4 3.7 4.1 4.5 4.9 5.4 5.9 6.4 7.0 7.7 8.4

Source: As per internal estimate

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Well positioned for the USD 100+ tn savings opportunity

Gross Domestic Savings (USD tn)

9 9

0 9

2 8

5 7

9 6

3 6

7 5

2 8 5

4 4

0 4

6 4

3 3

0 3

8 3 2

1 0

2 0

3 0

5 0

4 0

5 0

6 0

7 0

9 0

8 0

0 1

1 1

9 0

5 2

3 2

1 2

9 1

8 1

6 1

5 1

3 1

2 1

7 9 Y F

9 9 Y F

1 0 Y F

3 0 Y F

5 0 Y F

7 0 Y F

9 0 Y F

1 1 Y F

3 1 Y F

5 1 Y F

7 1 Y F

9 1 Y F

1 2 Y F

3 2 Y F

5 2 Y F

7 2 Y F

9 2 Y F

1 3 Y F

3 3 Y F

5 3 Y F

7 3 Y F

9 3 Y F

1 4 Y F

3 4 Y F

5 4 Y F

7 4 Y F

Source: Motilal Oswal Wealth Creation Study

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Decadal strong growth, Next decade equally exciting

Demat Account grown at 20% CAGR in last 10 years (in Mn.)

Retail ADTO grown at 63% CAGR in last 10 years (₹ tn )

Monthly addition

Total (RHS)

4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

160

140

120

100

6 0

3 1 Y F

7 0

4 1 Y F

1 1

5 1 Y F

1 1

6 1 Y F

8 1

7 1 Y F

1 3

8 1 Y F

9 4

9 1 Y F

9 6

0 2 Y F

1 6

9 2

2 2 Y F

3 2 Y F

1 1

1 2 Y F

0 2 1 1

4 2 Y F M 9

SIP flows on a relentless rise, making the markets resilient – grown at 24% CAGR in last 7 years

Dec-2023 ₹ 176bn

Dec-2016 ₹ 39 bn

Mar-2020 ₹ 86 bn

6 1 - c e D

7 1 - r p A

7 1 - g u A

7 1 - c e D

8 1 - r p A

8 1 - g u A

8 1 - c e D

9 1 - r p A

9 1 - g u A

9 1 - c e D

0 2 - r p A

0 2 - g u A

0 2 - c e D

1 2 - r p A

1 2 - g u A

1 2 - c e D

2 2 - r p A

2 2 - g u A

2 2 - c e D

3 2 - r p A

3 2 - g u A

3 2 - c e D

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Financialization of Savings propelling equities

Total Indian Household assets $ 11.1 Tn (FY23)

% of Household Assets in Equities

50.7%

4.7%

4.8

4.7

4.3

3.4%

5.8%

5.9%

15.5%

14.0%

Equities Provident & Pension funds Bank deposits Property

Cash Insurance funds Gold

3.9

3.8

3.4

2.9

2.7

2.2

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

Source – Jefferies Report 2023

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

In USA, share of equity in household assets is at ~45% vs India it is just 4.7%

36-year brand

MOFSL awarded ‘Brand of the Year’ at the CNBC TV18 - India Business Leadership Awards 2018

MOFSL was featured in ‘Fortune 500 (India)’ in 2017, 2019, 2020, 2021, and 2022

MOFSL gets featured in ‘Forbes Super 50 Companies’ 2017 & 2018

MOFSL gets listed in ‘Fortune 500 India’s Largest Corporations’ in 2018

MOFSL gets inducted in the ‘HALL OF FAME’ at the CNBC 10th Financial Advisor Awards 2019

MOFSL certified as ‘Great Place to Work’ by GPTW® - INDIA continues for 6 years

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Double Engine Model – Operating Business+Active Investments Book

Engine #1

Investments are used strategically for operating businesses

Engine #2

OPERATING BUSINESSES

• Asset light businesses

• Diversified revenue streams

• Each

business

run

separate CEO

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Synergy + Liquidity + Stability

Operating profit post dividend payout invested

TREASURY INVESTMENTS

• Skin in the game

• Highly liquid

• Healthy returns

Engine #1 – Operating Business PAT

₹ Mn

791

1,191

981

3,114

3,486

2,486

3,983

4,706

8,264

FY15

FY14 All nos. are excluding carry income #FY19 PAT is lower mainly on account loss in housing finance (HFC) business of ₹ 132 cr due to one time higher provisions. Excluding HFC loss PAT is ₹ 381 cr

FY18

FY22

FY17

FY16

FY19

FY20

FY21

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

8,835

FY23

8,420

9MFY24

Total PAT (incl. OCI)

₹ Mn

Operating PAT

Treasury Investments PAT (incl. OCI)

19,994

8,420

15,523

4,706

12,595

8,264

8,822

8,835

10,817

4,331

11,574

-13

1,436 1,191 245

1,691 981 710

771 791 -20

6,623

3,486

3,137

3,600

3,114 486

2,836

2,486

350

1,235

3,983

-2,748

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

9MFY24

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Engine #2- Treasury Investment Book

₹ Bn

1.6

FY14

58.7

43.3

40.9

31.3

17.4

17.9

17.5

9.9

11.3

7.3

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

Dec-23

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Highly professionalised structure

RAAMDEO AGRAWAL CHAIRMAN

MOTILAL OSWAL MD & CEO

A CA by qualification, Mr. Agarwal started MOFSL along with Mr. Motilal Oswal in 1987. He is Chairman of MOFSL. A keen believer and practitioner of the QGLP philosophy, his wealth creation insights and decades-rich experience have played a pivotal role in the growth of MOFSL.

A CA by qualification, Mr. Oswal started MOFSL along with Co- promoter, Mr. Raamdeo Agrawal in 1987. He has served on the Boards of the BSE, Indian Merchant’s Chamber (IMC), and on various committees of the BSE, NSE, SEBI and CDSL.

NAVIN AGARWAL MD & CEO – ASSET MANAGEMENT

Mr. Agarwal is a CA, ICWA, CS and CFA by qualification. He was responsible for the Institutional Broking & Investment Banking business and has been instrumental in building a market-leading position for the Group in Institutional Broking. He has been with MOFSL since 2000.

AJAY MENON CEO – RETAIL BROKING AND DISTRIBUTION

RAJAT RAJGARHIA CEO – INSTITUTIONAL EQUITIES

ABHIJIT TARE CEO – INVESTMENT BANKING

Mr. Menon is a CA by qualification. He possesses over 24 years of experience in Capital Markets. He joined the Group in 1998. He is also a Whole time Director of MOFSL.

Mr. Rajgharhia is a CA and MBA by qualification. He joined MOFSL in 2001 as a Research Analyst, went on to Head the Research team, and currently heads the Institutional Equities business.

Mr. Tare brings with him over 26 years of rich experience in Institutional Equities and Investment Banking. He is a CA by qualification. He has worked with TAIB Securities and HRS Insight. He joined MOFSL Group in 2004.

VISHAL TULSYAN CEO – PRIVATE EQUITY

SUKESH BHOWAL CEO- HOUSING FINANCE

ASHISH SHANKER CEO- WEALTH MANAGEMENT

SHALIBHADRA SHAH CHIEF FINANCIAL OFFICER

PANKAJ PUROHIT HEAD- INFORMATION TECHNOLOGY

Mr. Tulsyan is a CA (all-India rank holder). He has more than 16 years of experience in Financial Services. He has worked with Rabobank as a Director. He joined MOFSL in 2006 and is the founder MD& CEO, of Motilal Oswal Alternates.

Sales

Mr. Sukesh has 27 years of experience & in Distribution, Retail & Mortgage Lending, Real Estate Lending etc. He has worked with DCB Bank, HDB Financial Services, Citibank is Bachelor of Technology from IIT Bombay and PGDM in Finance & Marketing from IIM Lucknow

and HSBC. He

Mr. Shanker is an alumni of Harvard Business School and has 25 years of experience. He joined MOPWM as Head- Investment Advisory in 2012 and was instrumental in building the research and advisory platform. Prior to joining MOPWM, he was associated with HSBC and SCB.

Mr. Shah is a CA by qualification. He is a Finance professional with 18 years of experience spanning the entire gamut of Finance, Accounts, Taxation & Compliance He joined MOFSL Group in 2006.

Mr. Purohit has done Bachelor in Engineering and has more than 26 years of experience. He is a seasoned IT leader who has led large IT teams in various vertical in the financial space. He joined MOFSL Group in 2004.

NIREN SRIVASTAVA CHIEF HUMAN RESOURCE OFFICER

Mr. Srivastava is a Postgraduate in HR and has completed his graduation in Political Science and Sociology. He has more than 17 years of experience. He joined MOFSL Group in 2023 and was previously associated with Aditya Birla Group.

Robust business infrastructure & network R O B U S T

Geographical Reach 2,500+ Business Location 98% of PIN codes covered

Distribution Network 9,300+ Franchisee 20,000+ IFAs

Clients ~60,00,000

Employees 10,000+

Advisors & Research Team 2,500+ Advisors 100+ Research Team

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

I N F R A S T R U C T U R E

Motilal Oswal Tower - Mumbai

Motilal Oswal Tower - Ahmedabad

Motilal Oswal Tower - Bangalore

Research & Advisory Powerhouse

Wealth Management

Alternative Asset Management

Institutional Equities

100+ Research Team & 2,500+ Advisors

Investment Banking

Retail Broking

Asset Management

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Group Structure

MOFSL Group

Capital Markets

Asset and Wealth Management

Housing Finance

Broking & Distribution

Institutional Equities

Investment Banking

Asset Management Company

Private Equity & Real Estate

Wealth Management

Motilal Oswal Financial Services Ltd. (MOFSL)

Motilal Oswal Investment Advisors Ltd. (MOIAL)

Motilal Oswal Asset Management Company Ltd. (MOAMC)

Motilal Oswal Alternate Investment Advisors Pvt. Ltd. (MOAIAPL)

Motilal Oswal Wealth Ltd. (MOWL)

Motilal Oswal Home Finance Ltd. (MOHFL)

Motilal Oswal Finvest Ltd. (MOFL)

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Strong balance sheet is important not only to survive but also to thrive

Being resilient over last 36 years and weathered multiple crisis

Covid -19 pandemic

NBFC crisis in India

Global Financial Crisis (Lehman Brothers)

Importance of net worth in Financial Services sector

Ability to absorb the shocks in a uncertain environment

- -

NSEL Housing Finance stress

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

the

Grab opportunity and to foster existing business

new

reward To shareholders

the

Indicator of efficient fund utilization

- Supporting working capital needs of Broking business - Sponsor investments in AMC, PE & RE funds

Total pay out till date - -

Dividend - ₹ 1,037 Cr Buyback - ₹ 336 Cr

18.5% XIRR on fund based investment

22% CAGR growth in Net Worth for last 10 years

Operating Business

Dividend Payout

Treasury Investments

₹ Bn

Book Value per share ₹ 85

11.7

12.6

-0.2

12.9

13.4

-0.5

14.4 0.5 15.0

-1.1

17.8

1.3 18.0

-1.5

28.9

4.5 26.6

-2.2

30.5

5.0

29.2

-3.7

30.9

2.3

33.9

-5.3

56.7

17.2

47.9

62.5

17.2

57.2

44.6

12.8

39.2

Book Value per share Rs. 557

82.7

28.8

65.7

-7.5

-8.3

-11.8

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

9MY24

18% Avg. Operating PAT ROE

8% Avg. Treasury Investments PAT ROE(1)

26% Avg. PAT ROE

4% Dividend Payout(2)

22% Net Worth CAGR

XIRR of 18.5% since inception

1. 2. Dividend Payout includes buyback and is paid out on Operating PAT FY18 figures are adjusted for INDAS transition

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Future is as exciting as past

Engine #1 Total Operating PAT

Operating PAT grew 31% CAGR in last decade

Expect to grow at 15-20% CAGR

Engine #2 Treasury Investments

Treasury Investments Book grew 45% CAGR in last decade

Maintain / improve existing IRR of 18.5%

Dividend Payout

30% of Operating PAT in last decade

Continue to distribute 25-30% of Operating PAT

Net Worth

Grew 22% CAGR in last decade

Maintain / improve the same

Operating PAT CAGR is for FY14 – FY23

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Motilal Oswal - Q3FY24 & 9MFY24 Performance

Key Highlights for Q3FY24

Assets under advice

Revenue

Operating PAT

Total PAT (incl. OCI)

Net Worth

₹ 4.4 tn

43% YoY

₹ 13.8 bn

30% YoY

₹ 3.1 bn

35% YoY

₹ 7.7 bn

222% YoY

₹ 82.7 bn

33% YoY

Lending Book1

ROA (incl. OCI)2

₹ 110.6 bn

47% YoY

9.8%

ROE2

36.8%

Clients

Employees

~6.0 mn

13% YoY

10,747

1. Average lending book 2. ROA and ROE are annualized 3. As on December 31, 2023

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Trailing 12 months

Revenue ₹ 52.8 bn

Operating PAT ₹ 10.7 bn

Total PAT (incl OCI) ₹ 21.2 bn

Market Capitalization ₹ 197.4 bn3

Consolidated P&L

PARTICULARS (₹ Mn)

Q3FY24

Q3FY23

YoY (%)

Q2FY24

QoQ (%)

9MFY24

9MFY23

YoY (%)

Capital Markets (Broking, Distribution & IB)

Asset and Wealth Management

Housing Finance

Total Revenues

Total Revenues after Intercompany adj. Operating Expense

Employee Expense

Interest Expense

Other Expense

Total Expense

PBT

10,285

2,872

1,464

7,565

2,518

1,357

14,620

11,440

13,771

10,607

2,782

2,992

2,495

1,344

9,613

4,158

2,214

2,555

1,562

1,181

7,512

3,095

3,113

2,299

Operating PAT Treasury Investments PAT (1) PAT Treasury Investments PAT through OCI (OCI)1 PAT (incl. OCI) PBT Margin on Net Revenue 1.Treasury Investments PAT & OCI comprises of MTM gains on our Treasury Investment Book

7,741

2,405

6,599

2,263

3,486

1,142

49%

45%

142

-35

192%

222%

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

36%

14%

28%

30%

26%

17%

60%

14%

28%

34%

35%

10,191

2,542

1,435

14,168

13,539

2,797

3,054

2,276

1,571

9,699

3,840

2,884

2,427

5,312

244

5,555

45%

13%

-1%

-2%

10%

-14%

-1%

24%

39%

29,323

20,892

7,853

4,335

7,062

3,934

41,511

31,887

39,277

29,819

7,752

9,167

6,828

4,290

6,577

7,208

3,797

3,543

28,037

21,125

11,240

8,437

8,742

17,179

2,831

20,011

46%

8,694

6,470

1,199

7,669

7,712

45%

40%

11%

10%

30%

32%

18%

27%

80%

21%

33%

29%

30%

124%

159%

Consolidated Balance Sheet

Particulars (₹ Bn)

Dec 31, 2023 Mar 31, 2023

Net Worth Deployment

SOURCES OF FUNDS

Net Worth

Borrowings

Minority Interest

Total Liabilities

APPLICATION OF FUNDS

Fixed assets (net block)

Investments

Loans and Advances

Net Current Assets(1)

Total Assets

82.7

126.0

0.4

209.0

5.7

63.9

101.4

38.0

209.0

62.5

103.1

0.3

165.9

4.7

47.9

72.2

41.2

165.9

15%

70%

Treasury Investments

MOHF

Corporate Offices

Working Capital & Others

1. Net Current Asset includes cash and cash equivalents and bank balance of ~₹ 30.2 bn in Dec-23. Out of which unencumbered cash & cash equivalents is ~₹ 18.2 bn

Treasury investments have earned XIRR (since inception) of 18.5%

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Capital Markets

8.1% Retail F&O premium market share; +60bps QoQ

7.5% Retail cash market share; +42 bps QoQ

₹ 35,000+ One of the highest ARPUs in the industry

₹ 263 Bn Distribution AUM; +25% YoY

₹ 7.7 Bn Distribution Net Sales in Q3FY24

PARTICULARS (₹ Mn)

Q3FY24 Q3FY23

YoY (%) Q2FY24 QoQ (%) 9MFY24

9MFY23

YoY (%)

Revenues • Brokerage

• Distribution

• Interest

• IB • Other Operating

Income

Total Expense • Employee Expense

• Commission Expense

• Interest Expense

• Other Expense

PBT PAT PBT Margin on Net Revenue*

10,285 5,361

563

3,536

193

632

7,565 4,366

503

2,105

543

7,592

5,683

1,869

2,585

2,048

1,091

2,692 2,016

1,613

2,003

1,119

948

1,882 1,397

48%

42%

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

36% 23%

12%

68%

306%

16%

34%

16%

29%

83%

15%

43% 44%

10,191 5,823

463

3,146

210

548

7,804

2,045

2,684

1,806

1,269

2,387 1,796

42%

1% -8%

22%

12%

-8%

15%

-3%

-9%

-4%

13%

-14%

13% 12%

29,323 15,705

20,892 12,650

1,475

9,299

899

1,945

1,321

5,127

261

1,534

22,142

15,907

6,051

7,297

5,342

3,451

7,182 5,393

4,676

5,870

2,507

2,854

4,984 3,702

43%

40%

40% 24%

12%

81%

245%

27%

39%

29%

24%

113%

21%

44% 46%

• MOFSL amongst top 3 brokers in terms of Gross Brokerage. Focus to further improve our market share in a fast growing market

• Strong surge in cash volumes leading to growth in

retail brokerage

• ADTO grew by 95% YoY/8% QoQ to ₹ 5,683 bn.

• Retail Cash ADTO market share grew by 164 bps

YoY / 42 bps QoQ to 7.5%.

• F&O Premium market share for Dec 2023 was 8.7%

• Number of Franchisees increased from 8,033 as on

Mar 23 to 9,397 as on Dec 23

• Acquired 4.4 lakh new clients in 9MFY24.

• Completed 6 IB deals with total issue size of ₹ 52

bn during Q3FY24

• MOFSL Institutional Equities has been ranked 1 for

Best Execution and Corporate Access by Asiamoney Poll 2023

* Net Revenue = Revenue less Commission and Interest Expenses

Super App to offer bouquet of financial services

Invest

Trade

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Best in class customer experience

Common Portfolio including portfolio analysis

Get easy Portfolio view with Asset and Product wise Dashboard

Global Search One search menu for all trading & investment products

Customizable Watchlist

Get watchlists for Indian Stocks, US Stocks & even Mutual Funds

Superstar investors

Get insights from ace investors portfolios

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Futuristic customer experience

Personalization Personalized landing page based on customer needs & past requirements

Quick & easy order placements

Buy/Sell Stocks, US Stocks and Mutual funds in few clicks

Powerful Indicators Easy decision making with the help of technical indicators, moving average, SWOT analysis and Fundamentals

Broking and Distribution – Emphasis on Revenue & Productivity

Robust DP AUM growth (₹ Bn)

Rising Distribution AUM (₹ Bn)

ADTO continue to rise

263

213

182

8 6 4

4 8 1 1

8 5 9 1

8 3 9 1

4 5 9 2

134

Mar-20 Mar-21 Mar-22 Mar-23

Dec-23

Mar-20 Mar-21 Mar-22 Mar-23

Dec-23

234 18 216 FY20

439 28 411

877 31

846

FY21 F&O (₹ Bn)

FY22

One of the Highest ARPUs*

Gaining Market Share

Steady Client base

7.5%

7.2%

7.1%

8.1%

7.5%

6.9%

6.5%

3 6 7

7 1

9 7 2

8 2

6 2 2

8 1

7 5 4

0 3

3 2 3

9 1

3 7 3

3 3

1 2 2

0 2

7 5 9

5 3

6.2%

5.8%

5.1%

10. 0

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

28.5

19.7

12.0

14.5

3.2

3.8

5.6

9.0

8.1

8.2

45. 0

40. 0

35. 0

30. 0

25. 0

20. 0

15. 0

10. 0

5.0

0.0

Q4 FY23

Q1 FY24

Q2 FY24

Q3 FY24

Q3FY23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-23

Brokerage ARPU (₹)

Overall ARPU (₹)

F&O Premium Market Share %

Retail Cash Market Share %

Active Clients (Lakhs)

Total Clients (Lakhs)

*Revenue includes Gross Brokerage, Distribution and Interest Income for TTM

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

5,683 37

2,920 23

2,469 23

5,647

2,447

2,897

FY23 Q3FY23 Q3FY24

Cash (₹ Bn)

40.3

35.0

Inst. Equities – Solid track record of Research & Corporate Access award

 Focus driven differentiated research products covering:

 250+ companies  21 sectors  catering to 840+ institutional clients

 50+ research & corporate access team

 Institutional team wins big in Asiamoney poll 2023.

Overall  Best Execution  Best Corporate

Access

Team Ranking  Thematic Strategy  Banks  Small/Mid Caps  Transportation & Logistics

Overall  Best Domestic Brokerage for Sales  Best Brokerage Transformation

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Investment Banking – Strong deals across fund raising services

Q3FY24

IPO ₹ 10.1 Bn

IPO ₹ 6.4 Bn

Block Deal ₹ 1.5 Bn

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

IPO ₹ 19 Bn

QIP ₹ 7.5 Bn

IPO ₹ 6.1 Bn

Buyback ₹ 10.2 Bn

H1FY24

QIP ₹ 10.0 Bn

Buyback ₹ 0.6 Bn

Block Deal ₹ 8.4 Bn

IPO ₹ 4.9 Bn

QIP ₹ 7.5 Bn

Block Deal ₹ 3.1 Bn

IPO ₹ 12.0Bn

Senior Management hiring expect to improve share in IB league table

Asset and Wealth Management

₹ 649 Bn AMC AUM; +40% YoY

34% Alternates share in AMC

₹ 94 Bn PE & RE Fee Earning AUM

₹ 896 Bn Wealth AUM; +117% YoY

₹ 30 Bn Wealth Net Sales in Q3FY24; +152% YoY

PARTICULARS (₹ Mn)

Q3FY24 Q3FY23

YoY (%) Q2FY24 QoQ (%) 9MFY24 9MFY23 YoY (%)

Total Revenues

2,872

2,518

• AMC

• PE & RE

• Wealth

1,721

1,412

452

699

525

581

Total Expense

1,815

1,592

• Employee Expense

• Commission Expense

• Other Expense

PBT

PAT

818

644

353

1,057

789

719

563

310

926

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

14%

22%

-14%

20%

14%

2,542

13%

7,853

7,062

11%

1,501

470

571

15%

-4%

22%

4,599

4,243

1,342

1,248

1,912

1,571

1,629

11%

5,006

4,450

742

565

322

913

10%

14%

16%

2,288

1,877

1,768

1,704

949

868

2,847

2,612

22%

13%

22%

672

17%

682

2,128

1,924

11%

• AMC AUM stood at ₹ 649 bn, up 40% YoY/17% QoQ with MF AUM at ₹ 429 bn and Alternates AUM at ₹ 220 bn.

• ₹ 12.4 bn flows in Small Cap MF NFO, highest in the Small

Cap MF category till date

• Market share gain in Gross Sales ,Net Sales & SIP due to top quartile performance across schemes like Midcap, LMC & BAF

• In Alternate assets, 19 out of 19 schemes have

outperformed the benchmark in past 1 year period

• Added ~261k new SIPs in Q3FY24, up 293% YoY/24% QoQ and SIP flows of ₹ 769 cr in Q3FY24, up 112% YoY/19% QoQ

• Added net 51 Wealth RMs in last 9 months resulting into

higher employee expense.

• Investments in RM has brought down operating margin to 30% compared to historical trend of 35% - 40%. Expect to recoup margins in coming years

• Partial investment exits in private equity funds through IPO in Happy Forgings Limited and Updater Service Limited at IRR of 32.5% and 15.5% respectively in Q3FY24

Turnaround in AMC fund performance yielding the result now

Performance for past one year

Total No. of Funds (MF + PMS + AIF)

No. of funds outperformed benchmark

Mutual Fund

Alternates (PMS + AIF)

Outperforming Funds (%)

89%

Performance as on Dec 31, 2023

Q3FY23

Q3FY24

SIP Market Share

0.9%

MF Gross Sales Market Share

0.7%

MF Net Sales Market Share

(0.8)%

MF Redemption Market Share

1.4%

1.6%

1.9%

3.1%

1.3%

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Asset Management – Robust flows and folio additions

Strong growth in AMC AUM (₹ Bn)

Robust growth in AMC Gross Sales (₹ Bn)

649

553

514

457

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Q4FY23

Q1FY24

Q2FY24

Q3FY24

AMC MF SIP flows

AMC MF Folios Continue to Rise (in Mn)

1.2%

0.9%

1.6%

1.4%

3.63

5.07

5.32

6.47

7.69

9.0 0

8.0 0

7.0 0

6.0 0

5.0 0

4.0 0

3.0 0

2.0 0

1.0 0

0.0 0

Dec 23 flow 2.81 Bn

SIP Flow (₹ Bn)

Market Share

1.8 %

1.6 %

1.4 %

1.2 %

1.0 %

0.8 %

0.6 %

0.4 %

0.2 %

0.0 %

2.5

1.9

1.0

1.3

Q3FY23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Mar-20

Mar-21

Mar-22

Mar-23

Dec-23

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Marketing Campaign yielding robust flows

High Quality, High Growth

₹ Mn Marketing Expense Net Revenue %

FY23

9MFY24

3,594

3,061

2.5%

2.8%

Small Cap NFO

Large Cap NFO

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

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Strong performance across Private Equity & Real Estate Funds

Successful launch of PE & RE Funds over years

Robust performance across funds

Expected exit in near future

FY25

FY26

Fully Exited in FY22

IBEF I ₹ 5.5 Bn

IREF II ₹ 4.9 Bn

IBEF II ₹ 9.5 Bn

IBEF III ₹ 23 Bn

IREF III ₹ 10.3 Bn

IREF V ₹ 12 Bn

IREF IV ₹ 11.5 Bn

IBEF IV ₹ 45 Bn

26.8%

22.9%

13.9%

Valued IRR (%)

18.7%

18.1%

20.5%

18.1%

Exited IRR (%)

FY07

FY12

FY14

FY17

FY18

FY19

FY21

FY22

IBEF I

IBEF II

IBEF III

IREF II

IREF III

IREF IV

IREF V

Investments spread across sectors

30.9%

25.1%

24.4%

13.5%

6.0%

50.0

45.0

40.0

35.0

30.0

25.0

20.0

15.0

10.0

5.0

*Valuations are done on half yearly basis

PE & RE Investments

AUM (₹ Bn)

9.5

23.0

45.0

4.9

10.3

11.5

12.0

No. of investments

Consumer

Financial Services

Niche Manufacturing

Pharma

Service

IBEF III IBEF II *Deployed ₹26.6 Bn till 15th Jan, 24

IBEF IV*

IREF II

IREF III

IREF IV

IREF V

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Carry income from seven funds to be realized in coming years

Illustration of Expected Carry Income for Private Equity

Fund Raised ₹ 100

IRR- 20%

Cumulative Returns after 8 years ₹ 330

Carry 20%

Carry Income ₹ 66

Illustration of Expected Carry Income for Real Estate

Fund Raised ₹ 100

IRR- 16%

Cumulative Returns after 4 years ₹ 80

Carry 15%

Carry Income ₹ 12

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Wealth Management – Strengthening RM base for sustainable growth

Strong growth in WM AUM (₹ Bn)

RM Productivity

896

520

344

156

FY20

253

FY21

FY22

FY23

9MFY24

Investment in RMs impacted margin

44%

Added 89 RMs

37%

30%

FY22

FY23

9MFY24

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

7.8

1.2

FY20

13.5

12.2

11.0

10.3

2.1

FY21

2.4

FY22

2.9

3.8

FY23

9MFY24

AUM per RM (₹ Bn)

Revenue per RM (₹ Mn)

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

Productivity is impacted due to net hiring of 51 RM during 9MFY24 Continued traction in RM addition

7,0 00

6,0 00

5,0 00

4,0 00

3,0 00

2,0 00

1,0 00

233

182

144

126

129

123

3,719

4,186

5,004

4,665

5,358

6,302

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Dec-23

30% of RMs have vintage of more than 3 years

Family

250

200

150

100

Focus on building recurring revenue…

Particulars

Asset Management

Wealth Management*

Private Equity

Total Asset and Wealth Management

Closing AUM/Loan Book (₹ Bn)

Net Yield/NIM

Net Revenue (₹ Mn)

Q3FY24

Q2FY24

Q3FY23

Q3FY24

Q2FY24

Q3FY23

Q3FY24

Q2FY24

Q3FY23

649

529

553

468

466

384

0.73%

0.74%

1,152

1,005

0.52%

0.48%

0.51%

1.62%

1.67%

2.06%

644

388

553

411

911

524

466

1,272

1,118

945

0.73%

0.71%

0.80%

2,184

1,968

1,901

Distribution Assets

Margin & Debtors Funding Book

Housing Finance

263

250

194

0.56%

0.38%

0.55%

357

5.88%

5.75%

6.04%

1,086

8.50%

8.31%

8.24%

801

227

982

780

281

588

754

*Wealth Management figures are excluding custody assets

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Strong ARR across Capital market & Asset and Wealth Management

Particulars (₹ Mn)

Q3FY24

Q3FY23

YoY%

Q2FY24

QoQ %

Annual Recurring Revenue (ARR)

Asset Management Fees

Wealth & Distribution

Net Interest Income

Other operating income

Transaction Bearing Revenue (TBR)

Brokerage

Wealth & Distribution

Other operating income

3,745

1,508

454

1,488

294

3,365

2,563

579

223

3,108

1,324

534

990

260

2,776

2,259

288

229

ARR as % of Net Revenue*

53%

ARR Assets (₹ Bn.)

Retention

1,065

1.41%

850

1.46%

20%

14%

-15%

50%

13%

21%

13%

101%

-2%

25%

3,490

1,393

456

1,339

292

3,285

2,792

322

171

52%

995

1.40%

-2%

11%

-8%

80%

30%

*Excludes Revenue from IE, IB & HFC businesses

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Home Finance

₹ 37.8 Bn

AUM as on Dec-23

~2.5 Bn Disbursements in Q3FY24; up 25% QoQ

7.7% NIM in 9MFY24

₹ 12.5 Bn Net worth as on Dec-23

3.3% ROA in 9MFY24

PARTICULARS (₹ Mn)

Q3FY24 Q3FY23 YoY (%) Q2FY24 QoQ (%) 9MFY24 9MFY23 YoY (%)

Interest Income

1,397

1,308

Interest Expense

Net Interest Income (NII) Total Income

Operating Cost

- Employee Cost

- Other Cost

Operating Profit

Provisioning

PBT

PAT

596

801

868

379

305

489

477

363

554

754

803

295

223

507

469

363

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

28%

37%

-4%

-69%

1,382

601

780

834

369

267

102

464

435

328

-1%

14%

-28%

-59%

10%

11%

4,159

3,804

1,820

1,598

2,339

2,207

2,514

2,336

1,085

828

257

882

655

227

1,430

1,454

135

125

1,294

1,329

978

1,018

14%

23%

26%

13%

-2%

-3%

-4%

• Retail disbursement grew by 50% YoY/25% QoQ to ₹

1.78 bn

• Net gearing stood at 2.0x, CRAR remained robust at

47.5%

• Incremental COF for 9MFY24 was 8.3%

• Hired net 232 Sales RM during Q3FY24 and 373

Sales RM in last 12 months. This impacted the cost to income ratio

• Focus on improving productivity through improvement in TAT and Approval ratio

• New leadership across senior management

• Building blocks are in place, expect strong QoQ

ramp up in disbursements and AUM growth in the coming years

Home Finance - Experienced Leaders

Chief Executive Officer

Sukesh Bhowal has a rich experience of 27 years in Business Management, Sales & Distribution, Retail, Mortgage & Real Estate Lending and Retail Banking. He was associated with DCB Bank, where he headed the Mortgages, Micro-Mortgages, Construction Finance & Gold Loans and was responsible for starting and scaling up these businesses. He was also associated with HDB Financial Services, Citibank and HSBC. Sukesh has strong academic credentials of Bachelor of Technology from IIT Bombay and PGDM in Finance & Marketing from IIM Lucknow.

Chief Operating Officer

Shobhit Doru has a rich experience of 25 years in Sales, Product, Strategy and Analytics in Mortgage, SME Lending and LAP product. Previously, he was associated with Bajaj Finserv, where he was Head- Risk of the SME Business vertical. In his previous stints, he was also associated with Bajaj Housing Finance, Standard Chartered Bank and IDBI Bank. Shobhit has done an Accelerated Management Program at the Indian School of Business.

Chief Business Officer

Rajesh Maiya has a rich experience of 25 years in Sales & Distribution, Channel Management and Customer Service. Prior to joining MOHFL, he was associated with Aavas Financiers, where he was National Sales Manager and was responsible for developing and managing Home loan and LAP business. He was also associated with ICICI Bank in his previous stint. Rajesh has done PGDM from Mangalore University.

Chief Financial Officer

Mr. Bhavin Shah has a rich experience of over 12 years into NBFC domain with expertise in Treasury, Asset- Liability management, Financial reporting and analysis, Budgeting, Business planning and Strategy. Prior to joining MOHFL, he was Deputy Vice President at IIFL Finance Group, where he was responsible for overseeing the Treasury Front Office for the group. Bhavin is a Chartered Accountant & post graduate of Mumbai University.

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Home Finance – Focus on strengthening sales and improve productivity

Growing Disbursements (₹ Mn)

3,607

2,022

2,471

1,974

933

Q3FY23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Strengthening RM Sales Force

856

715

753

624

540

498

428

415

439

Improving sales productivity

•

Sales and lead management is now through digital mode with geo- tagging and geo-fencing capabilities

100% end to end paperless approval process, with 85% e-sign of loan documents

Focus on hiring senior sales leadership team

Revamped sales distribution framework through dedicated team for small distributors, large distributors and direct sales

Reoriented entire training framework with dedicated senior team.

Apr-23 May-23 Jun-23

Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Home Finance – Diversified products, geographies and liabilities

Product Mix

Wide Geographic Reach

PRESENCE ACROSS 111 LOCATIONS IN 12 STATES/UTS

136 Branch Sales Manager servicing the above locations

32%

24%

13%

08%

03%

02%

07%

New Purchase

Self-Construction

Construction Finance*

Resale

LAP

Home Impr./Ext.

Composite

Others

AUM by Ticket Size

Diversified Liability Mix

Dec-23 – 1.03 Mn

07%

34%

31%

14%

09%

Up to 0.5 Mn

0.5 – 1.0 Mn

1.0 – 1.5 Mn

1.5 – 2.0 Mn

2.0 – 2.5 Mn

51%

7% 8%

40%

49%

45%

3% 7% 7%

28%

55%

8% 5% 16%

21%

50%

11% 4% 17% 8%

60%

Term loan

NCD

NHB

Securitization

ECB

Note: *Construction Finance with Motilal Oswal Real Estate (MORE); lending to CAT A builders

05%

Above 2.5 Mn

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

FY20

FY21

FY22

FY23

9MFY24

Home Finance – Stable asset quality

ECL Provisioning Details PARTICULARS (₹ Mn) Stage 1 & 2 % portfolio in stage 1 & 2 Stage 3 % portfolio in Stage 3 ECL Provision % Stage 1 & 2 Total Assets ECL Provision ECL Provision % Stage 3 Provision Coverage Ratio Total Provision Coverage Ratio

GNPA and NNPA for Total Book

1.9%

1.1%

2.1%

1.3%

Q1FY24

Q2FY24

Q3FY24

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Dec 2023 36,748 97.88% 796 2.12% 1.34% 37,544 811 2.16% 40.2% 102%

GNPA

NNPA

Robust Collection Efficiency 103%

100%

98%

99%

101.3%

CE incl. prepayments was 129% in Dec-23

Q3YF23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Collection efficiency (CE) = Total EMI Collected/ 1 EMI Due. CE is excl. prepayments.

GNPA for New Book

1.0%

0.8%

0.9%

0.4%

0.1%

2.5

8.2

14.2

14.0

16.8

18.0

Mar-20 Mar-21 Mar-22 Mar-23

Jun-23

Sep-23 Dec-23

1.2 %

1.0 %

0.8 %

0.6 %

0.4 %

0.2 %

0.0 %

Loan book in ₹ Bn

GNPA

New book (disbursements starting Apr 18) constitute 52% of total book

Home Finance – Key Ratios

Parameters

Q3FY24

Q3FY23

Q2FY24

9MFY24

9MFY23

Yield

COF

Spread

NIM

Cost/Income

ROA

ROE

CRAR

Net Leverage

14.2%

8.3%

5.9%

7.7%

43.7%

3.6%

12.0%

47.5%

2.0x

13.8%

7.9%

5.9%

7.7%

36.8%

3.8%

13.5%

46.3%

2.2x

14.2%

8.3%

6.0%

7.7%

44.3%

3.3%

11.2%

51.6%

2.0x

14.3%

8.3%

6.0%

7.7%

43.1%

3.3%

11.2%

47.5%

2.0x

13.9%

7.9%

6.0%

7.8%

37.8%

3.7%

13.0%

46.3%

2.2x

*All ratios are annualized

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Treasury Investments

₹ 58.7 Bn Total equity investment including alternate funds

18.5%

Cumulative XIRR on total investments

19.9%

XIRR on PE/RE investments

PARTICULARS (₹ Mn)

Q3FY24

Q3FY23

Q2FY24

9MFY24

9MFY23

Revenues

-MF/Alternates

-PE/RE

-Unlisted Shares/Others

Expenses

PAT

OCI

TCI

4,138

3,289

697

152

213

3,486

1,129

4,615

221

2,952

10,446

1,863

117

226

-35

142

107

1,766

949

237

232

8,327

1,659

461

665

1,673

410

-221

563

2,427

8,742

1,199

241

2,842

2,668

11,585

1,237

Note: Unlisted investments’ (incl. PE/RE funds) are fair valued and recognized on half yearly basis

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

• Treasury Investment includes sponsor commitments

cum investments in equity MF, PE funds, Real estate

funds, AIF and strategic equity investments.

• Total equity investment including alternate funds

was at ₹ 58.7 bn as of Dec-23, MTM of these gains

are included in earnings under Ind-AS reporting.

• Cumulative XIRR on total investments is 18.5%,

whereas XIRR on PE/RE investments stood at 19.9%.

• These investments have helped “seed” our new

businesses, which are scalable, high-RoE

opportunities. They also serve as highly liquid

“resources” available for future investments in

business, if required.

Treasury Investments – Skin in The Game

Skin in the Game in AMC (₹ Bn)

Strong Growth in investments over the years

649

AMC AUM

Sponsor AUM

Promoter AUM

136

Total Capital Raise till date

Sponsor Commitment in PE & RE

Promoter Commitment in PE & RE

58.7

43.3

26.9

15.7

27.6

31.8

40.9

17.8

23.1

31.3

13.4

17.9

17.5 1.7

15.8

Mar-20

Mar-21

Mar-22

Mar-23

Dec-23

Investment at cost (₹ Bn)

Gain (₹ Bn)

Skin in the game in PE & RE (₹ Bn)

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

MOFSL - ESG Initiatives

CRISIL has assigned “STRONG” rating to MOFSL in its Sustainability Yearbook 2022

Launched online ESG profile platform, which adheres to international frameworks such as IFC, GRI, SASB, CDP etc.

ENVIRONMENTAL

SOCIAL

GOVERNANCE

• More than 80% of servers are in

• Physical & emotional wellbeing

virtual environment which reduces electricity cost & carbon foot print

• Main office building is equipped with rainwater harvesting system and recycled waste water is reused as flush water and in watering plants

• Planted and maintaining trees in &

around the office premises.

• Food wastage awareness drive in

head office

• We ensure that we fund to projects which is on non agriculture land & non forest land and having all environmental clearance.

• MOHF follows International Finance Corporation (IFC) Performance Standard

assistance program

• Employee engagement programs-

sports events & festival celebrations

• Set standard practices is followed

across all branches to ensure safety of employees

• Dedicated Talent Development Program for developing High Potentials, fast-tracking for Hi-Pos

• Company has formed committee W-

I-N-G-S (Women Initiative to Nurture, Grow & Succeed) to ensure substantial women representation in mid-senior level of the organization

• Offers home loan at concessional

rate to women borrowers.

• Diverse Board Composition • 50% Independent Director in Holding Company and at least 50% in material subsidiary

• Average Board experience >30 years • Remuneration policy recommended

by Nomination & Remuneration Committee

• Corporate Governance • Code of Conduct Policy • Risk Management Policy • Data privacy policy • Business Responsibility Reporting • Policy for prohibition of Insider

Trading

• Prevention of sexual harassment at workplace policy & awareness

KEY HIGHLIGHTS

FINANCIALS

BUSINESSES

Safe Harbour

This earning presentation may contain certain words or phrases that are forward - looking statements. These forward-looking statements are tentative, based

on current analysis and anticipation of the management of MOFSL. Actual results may vary from the forward-looking statements contained in this

presentations due to various risks and uncertainties involved. These risks and uncertainties include volatility in the securities market, economic and political

conditions, new regulations, government policies and volatility in interest rates that may impact the businesses of MOFSL. MOFSL has got all market data and

information from sources believed to be reliable or from its internal analysis estimates, although its accuracy can not be guaranteed. MOFSL undertakes no

obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

DISCLAIM ER This report is for information purposes only & does not construe to be any investment, legal or taxation advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any action taken by you on the basis of the information contained herein is your responsibility alone and MOFSL and its subsidiaries or its employees or directors, associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in checking the correctness and authenticity of information contained herein, but do not represent that it is accurate or complete. MOFSL or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this publication. The recipient of this report should rely on their own investigations. MOFSL and/or its subsidiaries and/or directors, employees or associates may have interests or positions, financial or otherwise in the securities mentioned in this report.

For any query, please contact :

S H A L IB H A D RA S H A H CHIEF FINANCIAL OFFICER 91-22-7193 4917 / 98190 60032 shalibhadrashah@motilaloswal.com

C H E TA N PA RM A R HEAD INVESTOR RELATIONS 91-22-7190 6600 / 74003 12700 chetan.parmar@motilaloswal.com

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