InvestorQ : What was the reason for Motilal Oswal reporting a big loss in the Jun-20 quarter?
Anamika Sodhani made post

What was the reason for Motilal Oswal reporting a big loss in the Jun-20 quarter?

Answer
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2 months ago


Net losses at MOFSL for the Jun-20 quarter were largely driven by the single case of negative price settlement of crude oil derivative positions for customers. MOFSL showed a loss of Rs.66 crore on account of this price movement. On April 20, the price of WTI crude, the benchmark for MCX, entered negative territory below $0 per barrel leading to huge losses on long positions.

MOFSL has adjusted this as an exceptional item and reported a net loss of Rs.5.3 crore for the quarter. If this case was excluded, MOFSL broking business would have seen net profits of Rs.61.3 crore in the quarter. Apart from its proprietary losses, MOFSL also made provision for Rs.88.96 crore of dues from commodity broking clients following the price move.