MOTILAL OSWAL 2023-24 Annual Report Analysis

Mon, 29 Jul

MOTILAL OSWAL has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

MOTILAL OSWAL Income Statement Analysis

• Operating income during the year rose 69.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 116.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 57.5% in FY24 as against 44.9% in FY23.
• Depreciation charges increased by 41.5% and finance costs increased by 70.2% YoY, respectively.
• Other income grew by 201.5% YoY.
• Net profit for the year grew by 162.2% YoY.
• Net profit margins during the year grew from 22.3% in FY23 to 34.6% in FY24.

MOTILAL OSWAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	41,771	70,678	69.2%
Other income	Rs m	212	639	201.5%
Total Revenues	Rs m	41,983	71,316	69.9%
Gross profit	Rs m	18,753	40,648	116.8%
Depreciation	Rs m	584	826	41.5%
Interest	Rs m	5,958	10,141	70.2%
Profit before tax	Rs m	12,423	30,319	144.1%
Tax	Rs m	3,094	5,863	89.5%
Profit after tax	Rs m	9,328	24,456	162.2%
Gross profit margin	%	44.9	57.5
Effective tax rate	%	24.9	19.3
Net profit margin	%	22.3	34.6

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MOTILAL OSWAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 203 billion as compared to Rs 147 billion in FY23, thereby witnessing an increase of 37.8%.
• Long-term debt stood at Rs 24 billion as compared to Rs 18 billion during FY23, a growth of 32.3%.
• Current assets rose 39% and stood at Rs 246 billion, while fixed assets rose 35% and stood at Rs 72 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 318 billion as against Rs 229 billion during FY23, thereby witnessing a growth of 38%.

MOTILAL OSWAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	61,578	86,329	40.2
Current Liabilities	Rs m	147,279	203,012	37.8
Long-term Debt	Rs m	17,829	23,587	32.3
Total Liabilities	Rs m	229,493	317,710	38.4
Current assets	Rs m	176,338	245,944	39.5
Fixed Assets	Rs m	53,155	71,765	35.0
Total Assets	Rs m	229,493	317,710	38.4

MOTILAL OSWAL Cash Flow Statement Analysis

• MOTILAL OSWAL's cash flow from operating activities (CFO) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 33 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 27 billion from the Rs 4 billion net cash flows seen during FY23.

MOTILAL OSWAL Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-30,579	-3,496	-
Cash Flow from Investing Activities	Rs m	-2,737	-2,468	-
Cash Flow from Financing Activities	Rs m	37,704	33,058	-12.3%
Net Cash Flow	Rs m	4,388	27,094	517.5%

Current Valuations for MOTILAL OSWAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 164.1, an improvement from the EPS of Rs 63.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 593.4, stands at 12.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 1.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	282.3	474.3
TTM Earnings per share	Rs	63.0	164.1
Diluted earnings per share	Rs	15.6	41.0
Price to Cash Flow	x	9.2	1.9
TTM P/E ratio	x	9.8	12.6
Price / Book Value ratio	x	1.8	0.5
Market Cap	Rs m	111,756	46,938
Dividends per share (Unadj.)	Rs	10.0	14.0

Ratio Analysis for MOTILAL OSWAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.2x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 4.0x during FY24, from 3.1x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 28.3% during FY24, from 15.1% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 36.8% during FY24, from 23.1% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 10.9% during FY24, from 6.7% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	899	991
Interest coverage	x	3.1	4.0
Debt to equity ratio	x	0.3	0.3
Return on assets	%	6.7	10.9
Return on equity	%	15.1	28.3
Return on capital employed	%	23.1	36.8

To see how MOTILAL OSWAL has performed over the last 5 years, please visit here.

MOTILAL OSWAL Share Price Performance

Over the last one year, MOTILAL OSWAL share price has moved up from Rs 205.5 to Rs 593.4, registering a gain of Rs 387.9 or around 188.7%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for MOTILAL OSWAL and quarterly results for MOTILAL OSWAL)