Mumbai, Oct 24 (PTI) Brokerage Motilal Oswal Financial Services on Thursday reported a sharp jump in net profit at Rs 142.3 crore in September quarter as against Rs 4.5 crore in the year-ago period.
The company''s managing director Motilal Oswal attributed the rise in the bottomline to a sharp reduction in provisions for loan write-offs in the home finance arm during the quarter.
The company also benefitted Rs 16 crore on the taxation front through a write-back, as against an expenditure of Rs 24 crore in the year-ago period.
Overall revenues from operations surged to Rs 618 crore from the year-ago period''s Rs 569 crore, but were stable as compared to the preceding June quarter.
Oswal said it will focus more on the high-profit asset management and wealth management businesses, which contributed over a third of the bottomline.
Despite the shift in the models to discount broking in the industry, Oswal said the company plans to continue with the full-service offering that contributes a third of its profits.
In the home finance business, it had to make a provision of Rs 35 crore for a dud asset sale to asset reconstruction company, which got sold at a discount, he said.
Having done with the required write-offs, it now plans to increase lending activities by focusing on the affordable segments in cities beyond the financial capital, he said.
As against lending of Rs 85 crore in the first half of the fiscal, it plans to disburse Rs 200 crore in the second half, he said, adding that the leverage ratios for the group are very low of 1.4 times the capital base as against 5-7 times for other financiers.
It has raised commitments of Rs 1,100 crore for an alternate investment fund focused on structured debt transactions, and will be raising up to Rs 200 crore for the same over the next few months, he said.
None of the businesses requires a capital infusion at present, he said.
The company scrip closed 0.17 per cent down at Rs 615.50 apiece on the BSE, as against correction of 0.10 per cent on the benchmark. PTI AA AP AP
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI