Motilal Oswal Home Loans announced its FY24 results

04 October 2024

Financial Developments:

In FY24, the financial performance of the company saw mixed results. Profit After Tax (PAT) declined by 3% (y-o-y) to ₹133 Cr, down from ₹136 Cr in FY23, mainly due to higher employee expenses resulting from increased hiring, despite strong revenue growth. However, total income rose to ₹589 Cr, a 10.7% increase from ₹531 Cr in the previous year, driven by improved loan book performance, higher disbursements, and better utilization of infrastructure. The company’s total disbursements surpassed ₹1,000 Cr for the second consecutive year, reaching ₹1,018 Cr. The loan book expanded by 6% (y-o-y) to ₹4,048 Cr, with a continued focus on affordable housing, supporting over 47,500 families. Additionally, the company maintained strong financial health with a Net Interest Margin (NIM) of 7.6% and a spread of 5.9%, reflecting effective cost control and competitive borrowing rates.

Operational Development:

MOHFL made significant operational strides in FY24, including geographical expansion, digitalization, and employee growth. The company extended its presence to 110 branches across 12 states and union territories in India, contributing to increased disbursements in new regions. Investments in digitalization played a key role in enhancing operational efficiency, with separate mobile apps developed for sales, credit, and collections, which reduced processing time and improved employee productivity. Additionally, the workforce, particularly in sales and collections, was significantly expanded, further supporting the company's growth in disbursements.