Mumbai, February 10, 2023:The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the third quarter and nine months ended December 31, 2022.
Summary of Consolidated results FY 23 – Q3 compared to FY 22 – Q3
(Rs. in Cr)
| Particulars | Quarter ended December 31, 2022 | Quarter ended December 30, 2021 | % Increase / (Decrease) |
|---|---|---|---|
| Total income | 946.13 | 964.48 | (1.90%) |
| Pre-Provision Operating Profit | 363.98 | 424.17 | (14.19%) |
| Profit before tax | 321.64 | 348.74 | (7.77%) |
| Net profit after tax and before non-controlling interest | 240.27 | 260.91 | (7.91%) |
| Net profit after tax, non-controlling interest and share of associate* | 190.16 | 216.80 | (12.29%) |
*Q3FY22 PAT includes Rs. 56.81Cr from IPO financing activity, which is negligible for Q3FY23
Summary of Key Statistics
(Rs. in Cr, unless otherwise stated)
| Particulars | Quarter ended December 31, 2022 | Quarter ended December 31, 2021 | Quarter ended September 30, 2022 |
|---|---|---|---|
| Loan book** | 15,234 | 11,240 | 14,670 |
| Gross NPA | 3.60% | 4.39% | 3.85% |
| Net NPA | 2.23% | 2.76% | 2.44% |
| SMA-2 | 1.07% | 2.50% | 1.26% |
| Total Provision to Loan book | 4.11% | 6.96% | 4.02% |
| Loan book under the Resolution Framework for Covid-19 by RBI | 0.35% | 0.91% | 0.37% |
| EPS (Rs.) | 1.99 | 2.27 | 1.89 |
| Consolidated net worth* | 8,025 | 7,499 | 7,916 |
| BVPS (Rs.)* | 84.05 | 78.60 | 82.91 |
| Gross debt /equity* | 1.34x | 1.05x | 1.21x |
| Cash and Cash equivalents | 2,109 | 3,854 | 1,388 |
* 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 December 31, 2022 | Quarter ended December 31, 2021 | YoY Increase / (Decrease) | Quarter ended September 30, 2022 |
|---|---|---|---|---|
| Wholesale Mortgage | 7,938 | 6,688 | 18.69% | 7,321 |
| Bespoke | 3,811 | 2,512 | 51.69% | 3,821 |
| Retail Mortgage | 1,572 | 992 | 58.48% | 1,392 |
| FI Financing | 1,009 | 108 | 8.35x | 995 |
| Capital Market | 904 | 940 | (3.85%) | 1,141 |
| Total | 15,234 | 11,240 | 35.53% | 14,670 |
Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said,
“The global economic environment is experiencing uncertainties due to geopolitics, monetary policy tightening and inflation. The NBFC and banking sector have demonstrated resilience on the back of healthy capitalization and good credit offtake.
We reported robust earnings basis given that last financial year had witnessed strong performance in the IPO issuance and IPO financing related businesses compared to this financial year.
The Investment bank segment demonstrated strong performance despite volatile equity market conditions on the back of our strong integrated franchise. The pipeline of investment banking transactions remains robust. The loan book for the mortgage lending (retail and wholesale) segment has demonstrated strong growth. We are on track to achieve the loan book guidance provided for the retail and wholesale mortgage lending businesses. During the quarter the distressed credit business acquired retail assets and continues to focus on acquisition and resolution of distressed assets. Investments in physical and digital infrastructure continue in the platform AWS business.
Considering global macro conditions, high interest rates, inflation and geopolitical conditions, the equity markets are expected to remain volatile in the first half of this calendar year”.
Summary of Segment-wise performance FY 23 – Q3 compared to FY 22 – Q3
(Rs. in Cr)
| Consolidated Net Profit | Quarter ended December 31, 2022 | Quarter ended December 31, 2021 | % Increase / (Decrease) |
|---|---|---|---|
| Investment Bank | 101.68 | 98.86 | 2.85% |
| Mortgage Lending | 42.12 | 30.80 | 36.75% |
| Alternative & Distressed Credit | 5.98 | 8.80 | (32.05%) |
| Platform AWS | 9.31 | 39.65 | (76.52%) |
| Others | 31.07 | 38.69 | (19.70%) |
| Total Consolidated Net Profit | 190.16 | 216.80 | (12.29%) |
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. 938 Cr .
The Private Equity platform had completed the first closing of PE Fund III and now is in the process of completing its second closing whilst continuing 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.10,480 Cr as at December 31, 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.
The quarter witnessed higher recovery of Rs. 480 Cr compared to previous quarter backed by strong recovery from sale of assets, restructured accounts, settlement and NCLT process etc. Security Receipts of Rs. 433 Cr were redeemed and the outstanding Security Receipts stood at Rs. 11,039 Cr as on December 31, 2022 as compared to Rs. 11,349 Cr as on September 30, 2022. The contribution of JM Financial Asset Reconstruction Company Limited towards the Security Receipts stood at Rs. 3,362 Cr as on December 31, 2022 as compared to Rs. 3,340 Cr as on September 30, 2022. During the quarter, we closed two deals of which one was retail loan portfolio acquisition. We continue to focus on acquisition of incremental new accounts/portfolios for our business growth along with recovery and resolutions of existing assets.
The AUM* of our wealth businesses stood at Rs. 82,242 Cr comprising of
* Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable
The PMS team size stood at 23 as of December 31, 2022 from 16 as of December 31, 2021.
Over the last quarter, we have recruited 12 people in our mutual fund asset management business.
During the quarter, the average daily trading volume of our retail broking business stood at Rs. 28,518 Cr.
Borrowing Profile
We continued our focus on diversifying our sources and maturities for our borrowing profile. As on December 31, 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.
Awards & Recognitions
-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 December 31, 2022, the consolidated loan book stood at ~Rs. 152.3BN, distressed credit business AUM at ~Rs.110.4BN, wealth management AUM at ~Rs.822.4BN, mutual fund AAUM at ~Rs.32.6BN.
The Group is headquartered in Mumbai and has a presence across 710 locations spread across 199 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.