Citi came out with that report during the bull run. Now we are in a different phase altogether !
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
Joined: 04/Aug/2011
Location: India
Online Status: Offline
Posts: 865
Posted: 20/Oct/2011 at 10:24pm
Conference Call
MOSL
Growth of options within the volume mix continued during this quarter
Motilal Oswal Financial Services conducted Conference call to discuss the financial performance for the quarter ended September 2011
Highlights of the Concall
Revenues for the quarter at Rs114.3 crore are up 2% as compared to Q1 FY12, but down 27% from Q2 FY11. Reported PAT for Q2 FY12 at Rs 35 crore is up 65% from Q1 FY12 and up 6% from Q2 FY11. However Adjusted PAT for Q2 FY12 at Rs 26.2 crore is up 24% from Q1 FY12, but down 18% from Q2 FY11 (adjusted for profit from sale of fixed assets and investments)
EBITDA and Adjusted PAT margins were 35% (31% in Q1 FY12) and 23% (19% in Q1 FY12), respectively
Broking and related revenues were Rs 80.7 crore this quarter, up 5% from Q1 FY12.
Total Average daily turnover (ADTO) in secondary equities was Rs 27.6 billion in Q2 FY12 (Rs 24.3 billion in Q1 FY12 and Rs 36.2 billion in Q2 FY11)
The growth of options within the volume mix continued during this quarter. Equity market share went up from 1.8% in Q1 FY12 to 1.9% in Q2 FY12. However, blended yield declined from 5.1 bps in Q1 FY12 to 4.6 bps in Q2 FY12 on account of the rising proportion of options within the overall market volumes.
As on Sept 30, 2011, total client base has increased to 732,173 while Pan-India distribution reach stood at 1,538 business locations across 563 cities
Fund based income was Rs 19.8 crore down 5% from Q1 FY12 and up 38% from Q2 FY11. It contributed 17% of total revenues. The loan book stood at Rs 300 crore as of Sept 30, 2011
Total assets under management/advice across mutual funds, PMS and private equity businesses was Rs 22.6 billion. Within this, mutual funds AUM was Rs 2.4 billion, PMS AUM was Rs 12.7 billion and PE AUA/AUM was Rs 7.5 billion
Wealth management business - Purple Client Group, managed assets of Rs 11.9 billion
Asset Management fees were Rs10 crore down 3% from Q1 FY12. This segment contributed 9% of total revenues
Investment banking fees were Rs 1.4 crore down 34% as compared to Q1 FY12
Other income was Rs 2.3 crore in Q2 FY12
Industry Facts
MOSL expects India's nominal GDP estimated to triple from current levels to reach approximately US$5 trillion by 2020
As per World Bank and IMF data India's GDP is expected to grow 8.2% in FY'12 outperforming developed markets. UK is expected to grow at 2.1% in FY'12 and USA is expected to grow 2.8%.
Total equity market volumes grows to Rs 1465 billion in Q2FY'12 from Rs 1333 billion in Q1FY'12 mainly due to growth in options segment. Total options volumes increased to Rs 1015 billion in Q2FY'12 from Rs 892 billion in Q1FY'12.
Cash volumes as a percentage of total volumes has fallen to 10% in Q2FY'12 from 16% in Q1FY'11
Within market cash volumes, the proportion of high-yield delivery volumes has been stable on a YoY basis. However within market F&O volumes, the proportion of low-yield options continues to increase.
Retail participation has seen a decline within cash volume mix, while participation from DIIs has increased QoQ
FII net flows remain muted this year with a net outflow seen in Q2 (Rs 30 billion) unlike the large inflows seen in the last two years
Net inflows from DIIs are growing this year following the outflows seen last year
Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?
Joined: 04/Aug/2011
Location: India
Online Status: Offline
Posts: 865
Posted: 18/Jan/2012 at 8:40am
Conference Call
Motilal Oswal Financial Services
Volumes fell across all segments
Motilal Oswal Financial Services conducted Conference call to discuss the financial performance for the quarter ended December 2011. Mr. Motilal Oswal –Chairman and Managing Director and Mr. Raamdeo Agarwal- Co-Founder and Joint Managing Director of the company addressed the Concall
Highlights of the Concall
Revenues for the quarter stood at Rs 110.6 crore down 3% as compared to Q2 FY12, but down 33% from Q3 FY11. Reported PAT for Q3 FY12 at Rs 26 crore is down 26% from Q2 FY12 and down 38% from Q3 FY11. However Adjusted PAT for Q3 FY12 at Rs 26.1 crore is same as Q2 FY12, but down 38% from Q3 FY11 (adjusted for profit from sale of fixed assets and investments)
EBITDA and Adjusted PAT margins were 37% (35% in Q2 FY12) and 24% (23% in Q2 FY12), respectively
Broking and related revenues were Rs 71.5 crore this quarter, down 12% from Q2 FY12 and down 41% from Q3FY'11 contributing 65% of total revenues. PAT contribution for the segment stood at Rs 18.1 crore down 33% on a q-o-q basis and 36% on a y-o-y basis.
MOSL ADTO was approx Rs 2560 crore in Q3 FY12. Equity market share declined from 1.9% in Q2 FY12 to 1.8% in Q3 FY12. However, blended yield has held firm at 4.7 bps over the same period, indicating MOSL continues to maintain its market share in the high-yield cash segment. As on Dec 31, 2011, total client base has increased to 738,156 while Pan-India distribution reach stood at 1,563 business locations across 555 cities
Fund based income was Rs 19 crore down 4% from Q2 FY12 and down 31% from Q3 FY11 contributing 17% of total group revenues. The loan book was Rs 240 crore as of Dec 31, 2011
Asset Management fees were Rs 17 crore for Q3 FY12, up 70% QoQ and 58% YoY contributing 15% of total group revenues. The sequential growth in revenues is attributable to the first close of the domestic leg of the new IBEF-II fund.
Investment banking fees was Rs 1.3 crore for Q3 FY12, down 10% from Q2 FY12. Other income was Rs 1.8 crore in Q3 FY12
Cash stood at Rs 140 crore at the end of quarter ended December 2011 while debt remains zero for the company.
The company believes commodity, as an asset class looks promising. Volumes have also shifted from equities to commodities due to non-performance of equities.
MOSL enjoys market share of 1.5% in commodity broking space.
MOSL estimates India's nominal GDP to triple from current level to reach around USD 5 trillion by 2020
MOSL sees India's equity broking market size in terms of revenue pool to grow 6 times over the next 6 years. Current size of broking revenue pool estimated at Rs 112 billion
Factors that will help achieve this growth are sustained economic, savings and discretionary income growth, increase in retail participation, increased ability of DIIs to mobilize savings, higher India allocation by global funds, Increase in fund raising by corporates, Higher issues of fairly priced IPO/FPOs and Tech-based tools for client's convenience
Total equity market volumes decreased to Rs 1406 billion in Q3FY'12 from Rs 1465 billion in Q2FY'12 due to decrease in volumes in all segments. Options volumes decreased to Rs 995 billion from Rs 1015 billion, Futures volumes to Rs 292 billion from Rs 313 billion, Intraday volumes to Rs 94 billion from Rs 100 billion and Delivery volumes to Rs 25 billion from Rs 38 billion.
Despite QoQ volume decline, the proportion of options continues to increase (from 69% to 71%), while proportion of delivery declines further (from 3% to 2%)
Within market cash volumes, the proportion of high-yield delivery volumes has declined on a YoY basis (from 28% to 21%)
FII net flows remain muted this year with a net outflows seen in the last two quarter- Rs 30 billion in Q2FY'12 and Rs 24 billion in Q3FY'12.
Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?
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