MOTILALOFS — earnings call
The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.
Prepared remarks
Moderator · Conference Operator
Good afternoon, ladies and gentlemen.
I am Sejal, the moderator for this conference.
Thank you.
The next question is from the line of Sanjaya Satapathy from Ampersand Capital.
Please go ahead.
Mr. Sanjaya Satapathy - Participant
The first question that you have used the word transformation in your communication quite a lot.
Can you just clarify that, what really major changes that you're planning to do? Mr. Navin Agarwal – Group Managing Director: Yes.
So basically, we have been talking about the cross-sell ratio in the past.
But given our experience in our own Private Wealth business, we have cross-sold a variety of products depending on the financial goals of the customers.
The idea is to now have a dedicated team work on that client base to provide more holistic solutions that the group has already been offering across the Private Wealth business now to the Broking and Distribution clients also.
Understood.
But is there any digital plan there, Where the company is still to catch up a lot? Mr. Navin Agarwal – Group Managing Director: RISE super app that we spoke about is that digital proposition encompassing all our offerings to these clients because of the sheer number of the clients in this business are much higher.
And apart from that, if you're referring to benchmarking to the pure discount brokers on the digital side, I can let Ajay take that benchmarking or comparison of our app versus some of those.
Moderator · Conference Operator
Thank you.
The next question is from the line of Ishan Batra from Complete Circle Wealth Management.
Please go ahead. Mr. Ishan Batra – Participant: Congratulations sir on a beautiful quarter.
I have some questions regarding AI, in the past answer you mentioned how you're going to be using AI.
So my first question is whether it's going to be developed in-house or you're outsourcing the development of the program?
And then my next question is with is reference to algorithmic and high- frequency trading? whether do you have a plan to allow it to investors for the same or whether you have a further plan of action with this size of trading?
Thank you.
The next question is from the line of Aditya from SOWIL Limited.
Please go ahead. Mr. Aditya – Participant: So my question is on the F&O lot sizes.
And you did mention that the increases taxes for the F&O segment will not have a material effect.
But what about the total transation charges, do you think you can depart on those charges which is on the brokerage front?
Thank you.
The next question is from the line of Akshata from Financial Express.
Please go ahead. Mrs. Akshata – Participant: Actually, you clarified this.
Sir, I wanted to ask about the STT.
So how much impact would you see on an annualized basis, what is the number that you mentioned?
Thank you very much.
That was the last question.
I would now like to hand the conference over to Mr. Shalibhadra Shah for closing comments. Mr. Shalibhadra Shah – CFO: On behalf of Motilal Oswal Financial Services, I would like to thank every participant for attending the Q1 FY 25 con call.
In case of any further queries, please do get in touch with our Investor Relations desk.
Thank you, and have a good day
Thank you very much.
On behalf of Motilal Oswal Financial Services, that concludes this conference.
Thank you for joining us.
Ladies and gentlemen, you may now disconnect your lines.
Questions and answers
Moderator · Conference Operator
Thank you very much.
We will now begin the question-and-answer session.
The first question is from the line of Mahek from Emkay Global. Mr. Mahek – Participant: I have a couple of questions.
First one is around the wealth management business.
So distribution income has seen a sequential dip, can you explain that?
Secondly, the net interest income at Rs.
185 crores is largely flat on a QoQ basis.
So is it something like the lending yields have dropped in or something like that?
And third is just a clarification that the capital markets business now consists of IB and IE business.
That's all, these are my 3 questions.
Mr. Shalibhadra Shah - CFO
So answering the first question on the distribution revenues.
Sequentially, in Q4 os previous year, distribution business included insurance income of almost about Rs.
30 crores, which is higher than the normal other quarter run rate.
So to that extent, you will see the fall on a sequential basis on a QoQ basis.
However, YoY basis, insurance distribution revenues have also grown. Second is as far as the NII is concerned, sequentially, we had kept the lending exposures lower because of the large event of the election results.
Further lending book growth started from the month of June 2024 only.
These resulted in largely flattish NII on sequential basis. As far as the third question is concerned on the Capital Market segment, that includes our now institution equities and investment banking business. Mr. Mahek – Participant: Yes.
So I just wanted to confirm that like any kind of commentary on the yields in the distribution business?
Like are they flat or are they consistent?
Distribution yields are flat on a YoY and QoQ basis.
Moderator · Conference Operator
Thank you.
The next question is from the line of Pravin Desai, who is an individual investor.
Please go ahead. Mr. Pravin Desai – Participant: Congratulation for the good results.
As we have asked in the last meeting for the bonus, you gave a very good bonus to all the shareholders and make them happy.
So we are very happy with the company and the Board and our hearty congratulation to Raamdeoji, Motilalji and the committee member.
We wish the company will progress in such way as it is progressing since inception. Mr. Shalibhadra Shah – CFO: Thank You.
Thank you.
The next question is from the line of Uday Pai from Investec.
Please go ahead. Mr. Uday Pai – Participant: So I had a couple of questions.
Firstly, can you help us with the 1+ DPD number in the housing finance business?
Secondly, on the brokerage side, what is the regulation that you impact on the derivatives segment?
And how do you foresee the impact of it on our business?
And lastly, what is the net new money in the private wealth management business for this quarter? Mr. Shalibhadra Shah – CFO: So the first answer is for 1+ DPD Housing Finance business is 5.7%.
I'll answer the third one as well.
Net Flows in the Private Wealth Management business is Rs.
5,175 crores.