Motilal Oswal – Q1FY09 Difficult Quarter

Motilal Oswal reported 25% Q-o-Q decline in Q1FY09 in revenues to INR 1.4 bn (15% Y-o-Y growth), primarily led by 27% fall in brokerage and related income. Increase in margin funding book to INR 3.4 bn and revenue booking from 7 investment banking deals provided some support to the topline.

Motilal Oswal witnessed ~6% sequential decline in average daily trading volumes to INR 29 bn, as against industry wide decline of 15%. However, blended commission yields seem to have came off significantly due to change in proportion of cash and derivative volumes.

The company reported a PAT for Q1FY09 at Rs 262 mn.