360 One Wam Q4 Results Review - Transaction Revenues Drive Earnings Beat: Motilal Oswal

Motilal Oswal Report

In Q4 FY24, 360 One Wam Ltd. total revenue grew 46% YoY to Rs 5.7 billion (25% above our estimates). The beat was on account of a surge in TBR income (109% above our estimates), which jumped 91% YoY.

Total assets under management rose 37% YoY to Rs 4.67 trillion, with strong growth in both annual rate of return and TBR assets.

Total opex jumped 62% YoY to ~Rs 3 billion, which was 26% higher than our estimates, led by higher variable employee costs. The cost-to-income ratio rose ~520 basis points YoY to 52.3% (versus our estimate. of 51.9%).

Profit after tax grew 57% YoY to Rs 2.4 billion (26% above our estimates) in Q4 FY24. For FY24, 360 ONE’s revenue/profit after tax grew 18%/23% YoY to Rs 18.5 billion/Rs 8.0 billion.

The board approved a dividend of Rs 3.5 per share.

We have increased our earning per share estimates by 6.3%/3.2% for FY25/FY26 to factor in higher transaction revenues. Also, we have built in higher costs relating to new business initiatives (mid-market segment and global platform).

We retain our 'Buy' rating with a one-year target price of Rs 950 based on 30 times March 26E earning per share.

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