MOTILAL OSWAL HOME FINANCE LIMITED UNLISTED SHARE
Motilal Oswal Home Finance Limited (old name “Aspire Home finance Corporation Limited”) was incorporated on 01 October 2013. The Company is registered with the National Housing Bank under section 29A of the National Housing Bank Act, 1987 with effect from 19 May 2014. The company provides home loans to individuals and families for the purchase, construction, and extension of houses. It also provides loans for repair and renovation of houses and home loans to families in the new to credit, self-employed, cash salaried category where formal income proofs and Credit Bureaus reports are not easily available, and the repayment capacity of such families are appraised based on their cash flows and Internal Score Cards. Motilal Oswal Home Finance Company Limited (MOHFL) is a professionally operated Home finance company composed of financially reliable and technically experienced promoters who are known for their professional ethics and strong leadership in their field. In the year 2018-19, the Company’s performance deteriorated due to increased bad loan books and loopholes in the system. Thereafter, there was an additional infusion of Rs.350 Crores by promoters, and the management team got changed with every functional head in place. Also, there was a name change from Aspire Home Finance Corporation Limited to Motilal Oswal Home Finance Limited. On account of these changes, there was a significant improvement in the company’s performance evidenced by the following: Reduced NPA due to sale of NPA and increased cash on hand leaving more headroom for growth.
Motilal Oswal Home Finance Company Limited is a subsidiary of Motilal Oswal Financial Services Limited (MOFSL). MOFSL is a diversified financial services company dedicated to creating wealth for all.
The company had signed an MOU with National Housing Bank (NHB) which is the Central Nodal Agency under the Pradhan Mantri Awas Yojana (PMAY) for the Credit Linked Subsidy Scheme (CLSS). It has assisted various economically weaker sections of society to claim subsidies under this scheme.
Motilal Oswal Home Finance Company Limited is operating in Nine states – Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Rajasthan, Chhattisgarh, Tamil Nadu, Telangana, and Andhra Pradesh. The company has 104 Branches across these nine states.
INCORPORATION DETAILS
CIN | U65923MH2013PLC248741 |
Registration Date | October 1, 2013 |
Category / Sub-Category of the Company | Public Company, Limited by Shares |
Address of the Registered office and contact details | Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400 025. Tel: +91 22 4718 9999 / 6272 9898 Email: hfquery@motilaloswal.com |
Name, Address & contact details of the Registrar & Transfer Agent, if any | Link Intime India Private Limited, C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai – 400083. Tel: +91 22 49186000 E-mail: rnt.helpdesk@linkintime.co.in |
BOARD OF DIRECTORS AND KEY MANAGEMENT
Mr. Motilal Oswal (Chairman & Non-Executive Director)
Mr. Arvind Hali (Managing Director & Chief Executive Officer)
Mr. Raamdeo Agarawal (Non-Executive Director)
Mr. Navin Agarwal (Non-Executive Director )
Mr. Sanjaya Kulkarni (Independent Director)
Mrs. Divya Momaya (Independent Director)
Mr. Shalibhadra Shah (Chief Financial Officer)
Principal Business Activities of the Company
Name and Description of main products/services | NIC Code of the Product/ service | % to total turnover of the company |
Housing Finance (other credit granting) - Home Loan, Loan against Property, and Construction Funding | 64920 | 100% |
MOTILAL OSWAL HOME FINANCE LIMITED Unlisted Shares Details:
Total Available Shares: | |
Face Value: | Rs. 1 Per Equity Share |
ISIN: | INE658R01011 |
Lot Size: | |
Current Unlisted Share Price: | Best in Industry Per Equity Share |
SHAREHOLDING PATTERN
(As on 31-03-2021)
S. No. | Shareholders’ Name | No. of Shares | % of total Shares |
1 | Motilal Oswal Financial Services Limited | 4,83,62,67,897 | 80.37 |
2 | Motilal Oswal Finvest Limited | 60,00,00,000 | 9.97 |
3 | Motilal Oswal Wealth Management Limited | 19,23,07,702 | 3.19 |
4 | Motilal Oswal Investment Advisors Limited | 26,03,44,836 | 4.33 |
5 | MOPE Investment Advisors Private Limited | 10 | 0 |
6 | Motilal Oswal Asset Management Company Limited | 10 | 0 |
7 | Motilal Oswal Real Estate Investment Advisors II Private Limited | 10 | 0 |
8 | Mr. Motilal Oswal | 10 | 0 |
9 | Mr. Ramdeo Agarawal | 10 | 0 |
10 | Others | 12,89,27,280 | 2.14 |
| Total | 6,01,78,47,765 | 100 |
HOME FINANCE INDUSTRY OUTLOOK
As per ICRA’s report, the total outstanding housing credit as of December 2020 stood at Rs. 22.1 lakh crores. Out of the total outstanding credit, Housing Finance Companies (HFCs) and Non-Banking Financial Corporations (NBFCs) contributed around Rs. 7.2 lakh crores. Due to Covid-19 induced lockdown, the industry witnessed a moderation in growth rate in Q1 FY 2021. However, with the gradual unlocking of the economy, disbursements started picking up from Q2 FY 2021, and the housing credit portfolio registered a growth of around 6% till December 2020. Banks continued to grow at a faster pace than HFCs, which was partly due to portfolio buyouts. The share of HFCs and NBFCs in the credit portfolio remained at 33%. Within HFCs, the affordable segment witnessed portfolio growth of around 8% till December 2020, supported by robust demand and liquidity support from NHB. The affordable housing segment is expected to grow at a faster pace than the overall industry.
After witnessing robust volumes in FY 2019 and FY 2020, securitization declined substantially in 9Month of FY 2021. The nationwide lockdown to arrest rising Covid-19 cases severely impacted the income generation capacity of a large number of borrowers. This, coupled with the moratorium policy announced by RBI increased investors’ suspicion given the possibility of irregular cash flows and hence proved detrimental to the securitization market.
The Covid-19-induced slowdown impacted the performance of HFCs. However, demand picked up during the last two-quarters of FY2021. Most of the HFCs had already reached near pre-Covid level collection efficiencies too. According, to ICRA estimates, HFCs are likely to witness a growth rate of 6-8% in FY 2021 and 8-10% in FY2022. However, with the ongoing second wave of Covid and subsequent lockdown in some of the states, the growth of the industry depends on how this pandemic pans out.
KEY FINANCIALS OF MOTILAL OSWAL HOME FINANCE LIMITED (In Rs. Crore)
Particulars | 2021 | 2020 | 2019 | 2018 |
Total Income | 545.52 | 576.44 | 648.41 | 670.75 |
Income before Interest, depreciation, and tax | 377.15 | 399.77 | 185.36 | 429.22 |
Interest | 280.24 | 332.05 | 392.43 | 398.03 |
Depreciation | 6.47 | 6.80 | 4.40 | 6.40 |
Profit before Tax | 90.45 | 60.91 | -211.55 | 24.77 |
Profit after Tax | 40.23 | 39.07 | -136.88 | 19.21 |
EPS | 0.07 | 0.07 | -0.25 | 0.04 |
Some Important Parameters of Financial Performance
Particulars | 2021 | 2020 |
Loan Book (In Rs. Crore) | 3,512 | 3,667 |
Debt to Equity | 2.8 | 3.4 |
Cost to Income | 33% | 41% |
Capital Adequacy | 50.00% | 47.58% |
Net NPA | 1.49% | 1.36% |
BALANCE SHEET OF MOTILAL OSWAL HOME FINANCE LIMITED (In Rs. Crore)
Particulars | 31st March 2021 | 31st March 2020 |
ASSETS | ||
FINANCIAL ASSETS | ||
Cash and Cash equivalents | 346.54 | 116.19 |
Receivables | 4.97 | 1.25 |
Loans | 3,459.64 | 3,627.54 |
Investments | 0.00 | 0.00 |
Other Financial assets | 16.76 | 13.11 |
TOTAL FINANCIAL ASSETS | 3,827.91 | 3,758.09 |
NON FINANCIAL ASSETS | ||
Tax assets | 57.63 | 106.08 |
Tangible assets | 7.00 | 13.05 |
Intangible assets | 2.06 | 2.89 |
Other non-financial assets | 2.99 | 7.29 |
TOTAL NON-FINANCIAL ASSETS | 69.67 | 129.30 |
TOTAL ASSETS | 3,897.58 | 3,887.39 |
EQUITY AND LIABILITIES | ||
Equity share capital | 601.78 | 601.30 |
Other Equity | 307.75 | 266.08 |
TOTAL EQUITY | 909.54 | 867.39 |
LIABILITIES | ||
FINANCIAL LIABILITIES | ||
Trade Payables | 5.56 | 0.55 |
Debt securities | 1,149.24 | 1,508.46 |
Borrowings | 1,703.21 | 1,439.79 |
Other financial liabilities | 125.61 | 65.13 |
TOTAL FINANCIAL LIABILITIES | 2,983.62 | 3,013.93 |
NON-FINANCIAL LIABILITIES | ||
Provisions | 3.04 | 2.56 |
Other non-financial liabilities | 1.39 | 3.51 |
TOTAL NON-FINANCIAL LIABILITIES | 4.43 | 6.08 |
TOTAL EQUITY AND LIABILITIES | 3,897.58 | 3,887.39 |
DIVIDEND AND RETAINED EARNINGS
Particulars | 2021 | 2020 | 2019 |
Retained Earnings (In Rs. Crore) | -9.02 | -41.61 | -74.93 |
Dividend | Nil | Nil | Nil |
PERFORMANCE OF THE COMPANY
The total income of the company decreased by 5.36% from Rs. 576.44 Crore in FY 2020 to Rs. 545.52 Crore in FY 2021. Since 2018, the Total income of the company has decreased steadily.
Profit after tax of the company increased slightly by 2.97% from Rs. 39.07 Crore in FY 2020 to Rs. 40.23 Crore in FY 2021.
Due to the Covid-induced lockdown, the company’s disbursements remained muted for the first few months of FY 2021. However, disbursements gradually picked up and the highest monthly disbursement in the last 24 months was witnessed in March 2021. During FY 2021, the company disbursed loans amounting to Rs. 273 crores, a jump of 42% Year on Year.
The loan book decreased from Rs. 3,667 crores as of 31st March 2020 to Rs. 3,512 Crores as of 31st March 2021.
The net NPA of the company increased from 1.36% as of 31st March 2020 to 1.49% as of 31st March 2021.
The promoter company (Motilal Oswal Financial Services) has infused total cumulative capital of Rs. 8.5 billion in the company.
The cost to income of the company has reduced from 41% in FY 2020 to 33% in FY 2021.
The debt to equity ratio of the company as of 31st March 2021 was 2.8.
The cost of borrowing for the company has come down by 95bps Year on Year in FY 2021 at 9.25%. The company raised Rs. 1,477 crores in FY 2021 at 7.5%.
The company has not given any dividends for the past three years.
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