MOHFL is primarily engaged into business of providing loans for purchase or construction of residential houses. It also provides consumer loans (top-up loans) and loan against properties. MOHFL major focus has been to provide home loans to individuals and families for purchase, construction and extension of house. MOHFL 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, 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. MOHFL had signed a 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).

Performance Review

In FY22 MOHL reported highest ever PAT at INR 95 crore with a growth of 136% YoY, also strong growth on ROA & ROE at 2.6% & 10% respectively. US International Development Finance Corporation (DFC) world’s largest development finance institution has committed $50 Mil long term loan to the firm via ECB (External Commercial Borrowing) route to be availed in 5 tranches of $10 Mil each. Total loan disbursements in FY 22 grew by 136% YoY to INR 643 crore. Cost of borrowing come down by 105 bps YoY in FY22 at 8.2%.

MOHFL earned the gross income of INR 526.20 Crore as against INR 545.52 Crore in the previous year. The total expenditure during the year was INR 407.89 Crore as against INR 455.07 Crore in the previous year. The Net Profit after tax was Rs. 94.89 Crore as against Net Profit after tax of Rs. 40.23 Crore in the previous year.

All values are in INR Crore

DESCRIPTION Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
Gross Sales 521.70 539.19 573.00 641.47 646.34 492.92
PBT 118.31 90.45 60.92 -211.56 48.57 125.67
PAT 94.89 40.23 39.08 -136.88 31.49 82.09
Cash Flow from Operations 175.43 319.70 -15.55 -155.86 -630.60 -1865.57
Cash Flow from Investing 5.75 -18.53 43.77 -49.44 286.53 -41.88
Cash Flow from Finance -244.53 -95.00 5.24 200.41 267.01 2049.94
Debt to Equity 2.60 3.14 3.40 4.35 4.91 6.00
Current Ratio 1.89 2.42 49.81 21.70 0.30 1.11
EPS 0.16 0.07 0.06 -0.23 0.06 0.17

Face value is of INR 1/- each.

Schedule a meeting with the Private Equity Experts to understand more about Unlisted Shares & Stock Investments

Schedule Now

Presence in India

Industry Overview

2022 was a phenomenal year for the real estate sector, particularly the residential segment. There was a robust housing demand, primarily from the end-users, across the top 7 cities as well as the tier 2 and tier 3 cities of India. As per ICRA’s report, the total outstanding housing finance credit for NBFC-HFC as on Dec 2021 stood at Rs. 11.9 lakh crores.
Increasing level of economic activity coupled with healthy demand in the industry are expected to result in a steady growth of disbursements going forward. Within HFCs, the affordable housing segment is expected to grow at a faster pace than the overall industry supported by robust demand and liquidity support.
ICRA’s estimated, the HFC portfolio is expected to grow by 8-10% in FY2022 and 9-11% in FY2023. The industry had an outstanding restructured book of 2.3% of the AUM as on September 30, 2021 as compared to 1.1% as on March 31, 2021 and the same was expected to have been improved to 2.0% as on December 31, 2021.

India residential market overview

CRISIL upgraded MOHFL’s rating to AA- (positive outlook) from earlier AA- (stable outlook) and then further upgraded it to AA (stable outlook). India Ratings assigned AA (stable outlook) to long term borrowings of MOHFL and ICRA upgraded rating from A+ (stable outlook) to AA- (stable outlook).

Shareholding Pattern

Motilal Oswal Financial Services Limited holds majority of stake i.e. 80.24% followed by Motilal Oswal Finvest Limited i.e. 9.96%

Key Personnel

Motilal Oswal – Chairman & Non-Executive Director

Shalibhadra Shah – Chief Financial Officer

For any queries, reach out to: unlisted@rurashfin.com or Call: +91 224157 1111