Mumbai, November 14, 2022:The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the second quarter and half year ended September 30, 2022.
The Board of Directors have declared an interim dividend of Re. 0.90 per share of the face value of Re.1/- each.
Summary of Consolidated results FY 23 – Q2 compared to FY 22 – Q2
(Rs. in Cr)
| Particulars | Quarter ended September 30, 2022 | Quarter ended September 30, 2021 | % Increase / (Decrease) |
|---|---|---|---|
| Total income | 877.13 | 969.49 | (9.53%) |
| Pre-Provision Operating Profit | 347.08 | 431.18 | (19.50%) |
| Profit before tax | 317.82 | 317.31 | 0.16% |
| Net profit after tax and before non-controlling interest | 237.98 | 228.30 | 4.24% |
| Net profit after tax, non-controlling interest and share of associate | 180.01 | 174.43 | 3.20% |
Summary of Key Statistics
(Rs. in Cr, unless otherwise stated)
| Particulars | Quarter ended September 30, 2022 | Quarter ended September 30, 2021 | Quarter ended June 30, 2022 |
|---|---|---|---|
| Loan book** | 14,670 | 11,072 | 12,606 |
| Gross NPA | 3.85% | 2.32% | 3.52% |
| Net NPA | 2.44% | 1.38% | 2.31% |
| SMA-2 | 1.26% | 4.50% | 2.19% |
| Total Provision to Loan book | 4.02% | 6.42% | 4.51% |
| Loan book under the Resolution Framework for Covid-19 by RBI | 0.37% | 0.87% | 0.45% |
| EPS (Rs.) | 1.89 | 1.83 | 1.78 |
| Consolidated net worth* | 7,916 | 7,281 | 7,809 |
| BVPS (Rs.)* | 82.91 | 76.35 | 81.83 |
| Gross debt /equity* | 1.21x | 1.08x | 1.10x |
| Cash and Cash equivalents | 1,388 | 3,957 | 2,878 |
* Computed after reducing goodwill of Rs.52.44 Cr from shareholders’ funds and excludes borrowings for episodic financing
** Loan book for the lending entities and does not include episodic financing book
Summary of segment-wise Loan book
(Rs. in Cr)
| Particulars | Quarter ended September 30, 2022 | Quarter ended September 30, 2021 | YoY Increase / (Decrease) | Quarter ended June 30, 2022 |
|---|---|---|---|---|
| Wholesale Mortgage | 7,321 | 6,577 | 11.31% | 6,014 |
| Bespoke | 3,821 | 2,737 | 39.61% | 3,652 |
| Retail Mortgage | 1,392 | 855 | 62.81% | 1,271 |
| FI Financing | 995 | 103 | 8.66x | 461 |
| Capital Market | 1,141 | 800 | 42.63% | 1,208 |
| Total | 14,670 | 11,072 | 32.50% | 12,606 |
Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said,
“Amid the unrelenting elevated inflation and volatile global environment, the domestic economy has demonstrated relative resilience. Equity capital markets have been volatile due to geopolitical developments and increase in rates. On the other hand, credit growth has witnessed an upward trajectory.
Last financial year we had strong earnings from IPO financing activity which has substantially reduced this financial year due to regulatory changes both at RBI and SEBI.
In line with our earlier guidance, we gained strong momentum this quarter in our lending verticals and grew the loan book to Rs.14,670 crore. The increase in loan book will reflect in the earnings in the balance part of this year and the next financial year. Our retail mortgage investments continue with the expansion of JM Financial Home Loans to 75 branches and the business is expected to grow at a faster pace.
Despite challenging equity markets, we reported strong earnings in the Investment Bank segment on the back of our strong fixed income franchise.
Our alternative and distressed credit business had reported record profitability last year on the back of strong resolutions. We are selectively adding assets and continue to prioritize focus on resolution of existing assets.
We continue our strategic investments in the Platform AWS segment through additional hires, digital marketing and building digital friendly and physical infrastructure.
Being an integrated and well capitalized financial services player, we are in a position of strength to leverage growth opportunities.”
Summary of Segment-wise performance FY 23 – Q2 compared to FY 22 – Q2
(Rs. in Cr)
| Consolidated Net Profit | Quarter ended September 30, 2022 | Quarter ended September 30, 2021 | % Increase / (Decrease) |
|---|---|---|---|
| Investment Bank | 97.62 | 65.24 | 49.63% |
| Mortgage Lending | 35.49 | 30.27 | 17.24% |
| Alternative & Distressed Credit | 9.88 | 23.65 | (58.22%) |
| Platform AWS | 7.62 | 33.74 | (77.42%) |
| Others | 29.40 | 21.53 | 36.55% |
| Total Consolidated Net Profit | 180.01 | 174.43 | 3.20% |
Business Update
During the quarter, our completed investment banking transactions include:
During the quarter, we acted as an:
During the quarter, the average daily trading volume of our institutional equities business stood at Rs. 802 Cr .
The Private Equity platform had completed the first closing of PE Fund III and now is in the process of further fund raising. JM Financial India Fund III has also finalized four investments. Further, JM Financial India Fund II has completed ten investments and is now fully invested.
The total lending book* (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs.9,450 Cr as at September 30, 2022.
Our wholesale mortgage lending focuses on metro cities, viz., MMR, Pune, Bangalore, Chennai, Hyderabad and NCR. Further details in respect of the wholesale mortgage lending are as under:
*Loan book does not include episodic financing book, if any
The residential sales across all geographies and ticket sizes have been robust. With the rapid consolidation in the sector, top developers are garnering a high market share. We anticipate new project launches by top developers. Demand trends are expected to remain strong driven by favourable demographics, increasing urbanisation, amenities and work force. This is expected to increase the demand for project finance. We are witnessing a strong pipeline of transactions and expect the lending traction to improve in a benign competitive environment.
During the quarter, we evaluated several sale of NPAs by Banks/NBFCs and closed one deal. The quarter witnessed recoveries of Rs. 123 Cr backed by recovery from restructured accounts, sale of assets, settlement and NCLT process etc. Security Receipts of Rs. 89 Cr were redeemed and the outstanding Security Receipts stood at Rs. 11,349 Cr as on September 30, 2022 as compared to Rs. 11,405 Cr as on June 30, 2022. The contribution of JM Financial Asset Reconstruction Company Limited towards the Security Receipts stood at Rs. 3,340 Cr as on September 30, 2022 as compared to Rs. 3,240 Cr as on June 30, 2022. During the quarter, we received resolution plan for one account which has been approved by the Committee of Creditors (CoC) and the same is now pending for NCLT approval.
The AUM* of our wealth businesses stood at Rs. 81,082 Cr comprising of
* Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable
The PMS team size stood at 25 as of September 30, 2022 from 12 as of September 30, 2021.
Over the last quarter, we have recruited 13 people in our mutual fund asset management business.
During the quarter, the average daily trading volume of our retail broking business stood at Rs. 26,532 Cr.
Borrowing Profile
We continued our focus on diversifying our sources and maturities for our borrowing profile. As on September 30, 2022 our long term borrowing as a proportion of total borrowing stood at approximately 80% and short term borrowing as a proportion of total borrowing stoodatapproximately 20%. Short term borrowing also includes working capital loans / borrowing for brokerage business.
-ends-
The press release and unaudited 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) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending 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) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business.
As of September 30, 2022, the consolidated loan book stood at ~Rs. 146.7BN, distressed credit business AUM at ~Rs.113.5BN, wealth management AUM at ~Rs.810.8BN, mutual fund AAUM at ~Rs.30.3BN.
The Group is headquartered in Mumbai and has a presence across 682 locations spread across 197 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:
Manish Sheth Group Chief Financial Officer Tel.: +91 22 6630 3460 Email: manish.sheth@jmfl.com Manali Pilankar Corporate Communication Tel.: +91 22 6630 3475 Email: manali.pilankar@jmfl.com | Nishit Shah and CFO – JM Financial Products Limited Gagan Kothari CFO – JM Financial Credit Solutions Limited Tel.: +91 22 6630 3360 Email: gagan.kothari@jmfl.com |
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.