Mumbai, May 24, 2024: While approving the financial results for the last quarter and financial year ended March 31, 2024, the Board of Directors has recommended a dividend of Rs. 2/- per share (face value of Re.1/-).  

The Board of Directors at its meeting today discussed the strategic direction for the various businesses in JM Financial Group (“Group’) and accordingly, the following strategic directions have been approved. 

1. The Wholesale Credit Businesses (Real Estate, Bespoke, Distressed Credit and Financial Institutions Financing) have seen a significant shift in the risk adjusted return for wholesale focused financiers. In light of the same, it is thought prudent to re-focus our expertise in the Wholesale Credit Businesses by pivoting from its on-balance sheet business model to syndicating transactions to investors and building large scale sales and distribution teams in the private credit and alternatives space.
2. The Group shall sharpen its focus to further scale its fee and commission generating high growth, high RoE businesses i.e. Investment Banking, Institutional Equities and Retail / High Networth Investors facing businesses of Asset Management, Mutual Fund, Wealth, Broking and Investment Advisory. These businesses have an adjusted profit after tax of approximately Rs. 500 crore for FY24 (FY23 : Rs. 312 crore)
3. The affordable housing focused Retail Mortgage business continues to be an integral part of the Group and has demonstrated strong performance over the last few years. We are targeting an AUM of Rs. 6,000 crore in our Retail Mortgage Business by FY2027. 
4. As the gradual pivot from on-balance sheet lending to the alternatives structure takes place over the next 3-4 years, we expect an incremental cash release of approximately Rs. 2,000 crore.

 Business Update for Q4FY24 

• Integrated Investment Bank
  • Another strong quarter across the integrated investment bank. ROE for FY24 for the segment stood at ~25% 
  • Executed several equity and fixed income transactions. Successfully completed 56 marque equity capital market transactions during financial year 2023-24 amounting to total deal value of ~Rs. 1,22,885 crore and ranked #1 for the highest number of IPOs and QIPs executed in India. The pipeline continues to be extremely robust
  • Private Wealth AUM increased by 21% YoY to Rs. 68,105 crore as of March 31, 2024 (Rs. 56,515 crore respectively as of March 31, 2023)
• Mortgage Lending
  • Wholesale mortgage lending
    • Strong repayments of Rs. 2,542 crore during the quarter leading to reduction in loan book
    • Pre-Covid loan book stood at Rs. 306 crore (2.4% of total loan book) as of March 31, 2024 (Rs. 1,571 crore as of March 31, 2023)
    • Higher provisions because of technical write-offs in few accounts during the quarter
  • Retail mortgage lending
    • Highest ever quarterly disbursement of Rs. 449 crore
    • Branches expanded to 112 as of March 31, 2024 from 93 as of March 31, 2023
    • Loan book has increased by 52% YoY to Rs. 2,104 crore as of March 31, 2024 (Rs. 1,387 crore as of March 31, 2023)
• Platform AWS (Asset management, Wealth management and Securities business)
  • Average daily turnover increased by 71% YoY to Rs. 55,383 crore as of March 31, 2024 (March 31, 2023 - Rs. 32,359 crore)
  • SEBI Margin Trade Financing book grew more than two times to Rs. 1,410 crore as of March 31, 2024 (March 31, 2023 – Rs. 636 crore) 
  • Retail and Elite Wealth AUM increased by 21% YoY and 55% YoY respectively to Rs. 28,795 crore and Rs. 1,901 crore respectively as of March 31, 2024 (Retail and Elite Wealth AUM stood at Rs. 23,828 crore and Rs. 1,228 crore respectively as of March 31, 2023)
  • Closing AUM of mutual fund business grew more than two times to Rs. 6,189 crore as of March 31, 2024 (Rs. 2,962 crore as of March 31, 2023). Closing AUM of equity schemes grew almost four times to Rs. 3,857 crore as of March 31, 2024.
  • PMS AUM increased by 61% YoY to Rs. 1,759 crores as of March 31, 2024 (Rs. 1,094 crores respectively as of March 31, 2023)
  • We will continue to invest in digital and asset management businesses
• Alternative and Distressed Credit
  • JM Financial Asset Reconstruction Company (JMFARC)’s AUM stood at Rs. 14,500 crore as of March 31, 2024 (Rs. 13,558 crore as of March 31, 2023, increase of 7% YoY)
  • During the quarter, recoveries stood at Rs. 893 crore
  • Recognized Rs. 985 crore loss on account of fair valuation of investments and loans in the distressed credit business. This was primarily related to one large account aggregating to Rs. 847 crore due to a change in resolution strategy/plan and events subsequent to the balance sheet date. 
  • In view of the above, JM Financial group shall be infusing upto Rs. 600 crore equity into JMFARC. 

Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said, 

“The global economy has been facing numerous challenges in terms of geopolitical uncertainties, tight monetary policy, restricting credit conditions, etc. Despite a muted global macroeconomic environment, during the quarter ending March 2024 the domestic economy has managed to maintain the momentum on the back of softer core inflation, government’s thrust on capex and robust domestic demand. Healthy balance sheets of financial institutions have led to a broad-based credit growth. The equity market has demonstrated healthy performances on the back of macroeconomic stability and corporate earnings momentum. 

During FY24, we have reported our highest ever annual operating revenue and fees and brokerage income. We have had a strong performance in the capital markets business. FY24 RoE for the Investment Bank segment stood at ~25%.  The equity AUM of the mutual fund business has crossed an important milestone of Rs. 5,000 crore. We have further capitalized our retail mortgage business on the back of strong growth and performance. 

We welcome the strategic decisions taken by our Board and begin FY25 with a clear and consistent business strategy. We are focused to continue the growth momentum across our businesses in the midst of an evolving market scenario.”

Summary of Consolidated results (Quarter): 

(Rs. in Cr)

* Pre-Provisioning Profit and Profit Before Tax is before considering the impact of Rs. 985 Cr on account of additional provision (including exceptional loss) considered in Security Receipts (“SRs”) on a few accounts and loans in our distressed credit business for Q4FY24. Net Profit after tax, NCI and share of associate is prior to adjusting a loss of Rs. 574 Cr.

** Pre-Provisioning Profit and Profit Before Tax is before considering the impact of Rs. 246 Cr (Post tax impact of Rs.184 Cr) on account of additional provision considered in Security Receipts (“SRs”) on a few accounts in our distressed credit business for Q4FY23. Net Profit after tax, NCI and share of associate is prior to adjusting a loss of Rs. 107 Cr.

^Non-Controlling Interests

~ indicates flattish performance

Summary of Consolidated results (Annual):

(Rs. in Cr)

* Pre-Provisioning Profit and Profit Before Tax is before considering the impact of Rs. 985 Cr on account of additional provision (including exceptional loss) considered in Security Receipts (“SRs”) on a few accounts and loans in our distressed credit business for FY24. Net Profit after tax, NCI and share of associate is prior to adjusting a loss of Rs. 574 Cr.

** Pre-Provisioning Profit and Profit Before Tax is before considering the impact of Rs. 246 Cr (Post tax impact of Rs.184 Cr) on account of additional provision considered in Security Receipts (“SRs”) on a few accounts in our distressed credit business for FY23. Net Profit after tax, NCI and share of associate is prior to adjusting a loss of Rs. 107 Cr.

Summary of Key Statistics 

(Rs. in Cr, unless otherwise stated)

^ Computed after reducing goodwill of Rs.52.4 Cr from shareholders’ funds and excludes borrowings for episodic financing

* Loan book for the lending entities and does not include episodic financing book, loan book under distressed credit business and SEBI Margin Trade Financing Book (part of the Platform AWS business)

** Q4FY24 and Q4FY23 PAT included loss (post tax and NCI) of Rs. 574 Cr (including exceptional loss) and Rs. 107 Cr from additional provision on SRs and loans of few accounts in our distressed credit business

Summary of segment-wise Loan book 

(Rs. in Cr)

Summary of Segment-wise performance (Quarter):

(Rs. in Cr)

* Q4FY24 and Q4FY23 PAT are prior to adjusting loss (post tax and NCI) of Rs. 574 Cr (including exceptional loss) and Rs. 107 Cr respectively from additional provision on SRs and loans of few accounts in our distressed credit business 

~ indicates flattish performance

Summary of Segment-wise performance (Annual):

(Rs. in Cr)

* FY24 and FY23 PAT are prior to adjusting loss (post tax and NCI) of Rs. 574 Cr (including exceptional loss) and Rs. 107 Cr respectively from additional provision on SRs and loans of few accounts in our distressed credit business 

~ indicates flattish performance

-ends-

The press release and audited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Integrated Investment Bank (IB) caters to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, private wealth management, PMS, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending (primarily catering to real estate developers) and retail mortgage lending (affordable home loans and secured MSME); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) provides an integrated investment platform to individual clients and includes elite and retail wealth management business, broking and mutual fund business. 

As of March 31, 2024, the consolidated loan book stood at ~Rs. 129.2 BN, distressed credit business AUM at ~Rs. 145.0 BN, wealth management AUM at ~Rs. 988.0 BN, mutual fund AAUM at ~Rs. 58.2 BN.

The Group is headquartered in Mumbai and has a presence across 814 locations spread across 215 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events. 

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.