Mumbai, February 12, 2024: 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, 2023.
Business Update for Q3FY24
Summary of Consolidated results:
(Rs. in Cr)
Particulars | Quarter ended December 31, 2023 | Quarter ended December 31, 2022 | YoY % Increase / (Decrease) | Quarter ended September 30, 2023 | QoQ % Increase / (Decrease) |
|---|---|---|---|---|---|
Total income | 1,261 | 946 | 33% | 1,214 | 4% |
Pre-Provision Operating Profit | 466 | 364 | 28% | 405 | 15% |
Profit before tax | 417 | 322 | 30% | 278 | 50% |
Net profit after tax and before NCI* | 322 | 240 | 34% | 206 | 57% |
| Net profit after tax, NCI and share of associate | 278 | 190 | 46% | 195 | 42% |
*Non-Controlling Interests
Summary of Key Statistics
(Rs. in Cr, unless otherwise stated)
Particulars | Quarter ended December 31, 2023 | Quarter ended September 30, 2023 | Quarter ended December 31, 2022 |
|---|---|---|---|
Loan book* | 15,111 | 15,808 | 15,234 |
Gross NPA | 4.5% | 4.8% | 3.6% |
Net NPA | 2.2% | 2.3% | 2.2% |
SMA-2 | 2.0% | 0.5% | 1.1% |
Net NPA + SMA 2 | 4.2% | 2.8% | 3.3% |
Total Provision to Loan book | 3.3% | 3.6% | 4.1% |
EPS (Rs.) | 2.9 | 2.0 | 2.0 |
Consolidated net worth^ | 8,643 | 8,364 | 8,025 |
BVPS (Rs.)^ | 90.5 | 87.6 | 84.1 |
Debt /equity^ | 1.5x | 1.5x | 1.3x |
Cash and Cash equivalents | 2,847 | 1,631 | 2,109 |
^ 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)
Summary of segment-wise Loan book
(Rs. in Cr)
Particulars | Quarter ended December 31, 2023 | Quarter ended December 31, 2022 | YoY Increase / (Decrease) | Quarter ended September 30, 2023 | QoQ Increase / (Decrease) |
|---|---|---|---|---|---|
Wholesale Mortgage | 7,027 | 7,938 | (11%) | 7,904 | (11%) |
Bespoke | 2,547 | 3,811 | (33%) | 2,726 | (7%) |
Retail Mortgage | 2,675 | 1,572 | 70% | 2,288 | 17% |
FI Financing | 1,884 | 1,009 | 87% | 1,927 | (2%) |
Capital Market | 978 | 904 | 8% | 963 | 2% |
Total | 15,111 | 15,234 | ~ | 15,808 | (4%) |
~ indicates flattish performance
Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said, “The Indian economy has been showing resilience driven by strong fundamentals. Banks and NBFCs are broadening credit expansion and penetration, thanks to healthy balance sheets, capital adequacy and improved asset quality. Equity markets are demonstrating heightened activity levels with a strong IPO rally.
We are happy to report our highest ever quarterly revenues and operating profit after tax. Our Integrated Investment Bank segment saw continued momentum. In CY2023, JM Financial ranked #1 for the highest number of IPOs executed.
The retail mortgage lending segment has demonstrated strong growth and has expanded to 112 branches. Our investments will continue in the retail mortgage business as we continue to diversify our loan book. We witnessed strong repayments in our wholesale mortgage lending segment.
On the alternative and distressed credit business, we continue to face delays in some of our large resolutions. Due to the delay, we further expect lower than expected realization in these assets over the next few quarters.
We continue to invest in the physical and digital infrastructure in the Platform AWS businesses. Closing AUM of our mutual fund business crossed Rs. 5,000 crore in the month of January 2024 with equity AUM of Rs. 2,928 crore. We have witnessed strong growth in trading volumes for the broking business and strong traction in the SEBI MTF book.
Looking ahead, although the global economy is expecting muted growth, the Indian economy is likely to maintain its growth momentum on the back of upward corporate profitability and consumer confidence. We maintain a bullish outlook for our integrated Investment Bank, retail mortgage and platform AWS businesses and are aligning our strategic approach and resources to capitalize on the conducive market environment.”
Summary of Segment-wise performance:
(Rs. in Cr)
Consolidated Net Profit | Quarter ended December 31, 2023 | Quarter ended December 31, 2022 | % Increase / (Decrease) | Quarter ended September 30, 2023 | % Increase / (Decrease) |
|---|---|---|---|---|---|
Investment Bank | 159 | 100 | 59% | 142 | 12% |
Mortgage Lending | 49 | 42 | 16% | 6 | 8x |
Alternative & Distressed Credit | 15 | 6 | 154% | 10 | 60% |
Platform AWS | 26 | 11 | 145% | 9 | 3x |
| Others | 29 | 31 | ~ | 28 | ~ |
| Total Consolidated Net Profit | 278 | 190 | 46% | 195 | 42% |
~ indicates flattish performance
-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) 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 December 31, 2023, the consolidated loan book stood at ~Rs. 151.1 BN, distressed credit business AUM at ~Rs. 150.6 BN, wealth management AUM at ~Rs. 945.2 BN, mutual fund AAUM at ~Rs. 45.8 BN.
The Group is headquartered in Mumbai and has a presence across 878 locations spread across 232 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:
Nishit Shah Group Chief Financial Officer Tel : +91 22 6630 3522
| Manali Pilankar Corporate Communication Tel.: +91 22 6630 3475 Email: manali.pilankar@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.