Motilal Oswal Home Finance (MOHL), a subsidiary of Motilal Oswal Financial Services (MOFSL), reported strong financial performance for Q3 FY25. Motilal Oswal Home Finance Q3 results showcase robust loan disbursements, enhanced asset quality, and stable profits, reinforcing its position in the housing finance market.
MOHL Q3 FY25 – Financial Performance
- Net Interest Income (NII): INR 88 crore (10% YoY growth) from INR 80 crore in Q3 FY24.
- Profit After Tax (PAT): INR 37 crore (Stable compared to Q3 FY24).
- Loan Book: INR 4,321 crore (15% YoY growth) from INR 3,754 crore in December 2023.
- Disbursements: INR 394 crore (67% YoY rise) from INR 236 crore in Q3 FY24.
- Net Worth: INR 1,393 crore, up from INR 1,253 crore in December 2023.
- Gross NPA: 1.4%, reduced from 2.1% in Q3 FY24.
- Net NPA: 0.8%, down from 1.3% in the previous year.
These figures highlight MOHL’s steady expansion while maintaining financial stability.
Loan Disbursement Growth in Q3 FY25
A key highlight of the Motilal Oswal Home Finance Q3 results is the 67% YoY increase in loan disbursements, reaching INR 394 crore. This growth stems from MOHL’s strategic focus on:
- Expanding its affordable housing finance portfolio.
- Strengthening its distribution network across key markets.
- Enhancing customer outreach to underserved homebuyers.
With a total loan book of INR 4,321 crore, marking a 15% YoY growth, the company continues to cater effectively to rising housing demand.
Asset Quality Improvement
MOHL has made significant progress in asset quality management during Q3 FY25. The company’s Gross Non-Performing Asset (GNPA) ratio declined to 1.4%, down from 2.1% in Q3 FY24, reflecting improved credit discipline. Similarly, the Net Non-Performing Asset (NNPA) ratio reduced to 0.8% from 1.3% in the previous year.
Key Drivers of Asset Quality Improvement:
- Strengthened collection efficiency and risk controls.
- Diversification into low-risk customer segments.
- Enhanced focus on affordable housing borrowers.
Profitability and Revenue Trends
MOHL’s Net Interest Income (NII) grew 10% YoY, reaching INR 88 crore, reflecting sustained revenue generation. However, the company’s cost-to-income ratio increased to 57.6% from 43.7%, driven by:
- Expansion-related costs.
- Increased workforce investments.
Despite higher expenses, PAT remained stable at INR 37 crore, underscoring financial resilience.
MOHL Q3 FY25 vs. Q3 FY24: Key Metrics
| Metric | Q3 FY25 | Q3 FY24 | YoY Growth |
|---|---|---|---|
| Net Interest Income (INR Cr) | 88 | 80 | 10% |
| Profit After Tax (INR Cr) | 37 | 37 | Stable |
| Loan Book (INR Cr) | 4,321 | 3,754 | 15% |
| Disbursements (INR Cr) | 394 | 236 | 67% |
| Net Worth (INR Cr) | 1,393 | 1,253 | 11% |
| GNPA (%) | 1.4% | 2.1% | Improved |
| NNPA (%) | 0.8% | 1.3% | Improved |
These results confirm MOHL’s strong financial foundation in the housing finance sector.
Strategic Growth Focus Areas
- Expanding Distribution Channels: MOHL is actively increasing its footprint in Tier-2 and Tier-3 cities, tapping into high-growth potential markets.
- Leveraging Technology for Lending Efficiency: Investments in AI-driven risk assessment and digital lending platforms aim to streamline credit approvals and enhance customer experience.
- Scaling Affordable Housing Finance: MOHL continues to align with government-backed housing schemes, focusing on first-time homebuyers.
- Enhancing Profitability through Cost Optimization: Operational automation and cost-control measures will drive future earnings stability.
Read Also: Motilal Oswal Home Finance Q2 FY25 Results
Conclusion
The Motilal Oswal Home Finance Q3 results reinforce strong financial performance, supported by higher disbursements, improved asset quality, and stable profits. The company’s focus on:
- Digital transformation
- Market expansion
- Disciplined credit management
positions it for long-term growth in the evolving Indian housing finance landscape. MOHL remains a key player in the affordable housing sector, poised for continued success in the upcoming quarters.
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