360 One Wam Q1 Results Review - Strong AUM Growth; Higher Opex Dents Margins: Motilal Oswal
Higher operating cost led to sharp increase in cost to income ratio.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
360 One Wam Ltd.’s total revenues for the quarter grew 8% YoY to Rs 4 billion. This is in line with our estimates.
Total opex grew 25% YoY and came in at ~Rs 2 billion, 12% higher than our estimates. Increased employee cost and ‘other expenses’ led to higher opex for the quarter.
Employee costs increased 22% YoY. The total employee stock ownership plan cost estimated ~Rs 1- 1.15 billion will be amortised over a period of seven to eight years. The cost/income ratio increased sharply by ~700 basis points YoY to 51.6% (our estimate: 46%).
360 One Wam's profit before tax for the quarter came in line with our estimates at ~Rs 2.3 billion (as ‘other income’ came in higher than expectations). However, profit after tax grew 18% YoY to Rs 1.9 billion. Reduction in overall taxes led to a profit after tax beat of ~6%.
Total assets under management is up 22% YoY to Rs 3.83 tonne, with continued focus on scaling up annual recurring revenue assets. ARR AUM was up 33% YoY at Rs 1.9 trillion.
The board has approved an interim dividend of Rs 4.
We broadly maintained our estimates for FY24/FY25. We retain our 'Buy' rating with a one-year target price of Rs 620 (based on 25 times March-25E earnings per share).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.