Mumbai, July 18, 2018: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the quarter ended June 30, 2018.
From the current quarter, the unaudited financial results have been reported under Ind AS. The key implications of migration to Ind AS on our financial statements are as follows:
As per Ind AS, considering that the views of the management have precedence over the erstwhile risks and rewards model, segments have been reported based on management’s evaluation of financial information for allocating resources and assessing performance. Accordingly, we have reclassified our key business segments as follows:
Summary of Consolidated results FY 19 – Q1 compared to FY 18 – Q1
(Rs. in Cr)
Profit before tax
Net profit after tax and before minority interest
Net profit after tax, minority interest and share of associates
The Earnings per share and Diluted Earnings per share, for the three months ended June 30, 2018 is Rs.1.70 and Rs.1.69 respectively. The consolidated net worth* as at June 30, 2018 stood at Rs.4,646 Cr and the debt equity (equity + minority Interest) ratio is 2.73 times*. The book value per share is Rs 55.34.
* Computed after reducing goodwill of Rs.73.36 Cr from shareholder’s funds
Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,
“While India’s long term economic fundamentals look attractive, global factors such as crude oil prices, tightening monetary conditions in US and anticipated further rate hikes in the US are adding pressure on the macro economy. We are witnessing a lot of opportunities in the distressed credit space and are focused on resolution of the acquired assets and on adding new ones. We continue to diversify our liabilities franchise and have successfully concluded the first ever public issue of secured Non-Convertible Debentures by JM Financial Credit Solutions Ltd. of Rs.750 Cr. Looking forward, we remain confident about our business mix and are well positioned to capitalise the opportunities ahead of us.”
During the quarter, some of our investment banking transactions were as follows:
The AUM/AUA of our wealth management business stood at Rs.42,808 Cr (excluding custody assets) as on June 30, 2018 as compared to Rs. 31,808 Cr as on March 31, 2018 and Rs. 24,203 Cr as on June 30, 2017.
During the quarter, the average daily trading volume stood at Rs. 5,586 Cr.
Our loan book in the IWS segment stood at Rs. 7,997 Cr as on June 30, 2018.
During the quarter, in IPO financing business, we funded 13 IPOs wherein the aggregate amount of funding was around Rs. 4,149 Cr.
At the end of the quarter, the combined AUM of our private equity and real estate funds stood at around Rs. 716 Cr of which our new private equity fund has announced a first close of ~Rs.225 Cr and it is in the process of raising additional capital.
The total mortgage lending book stood at Rs. 8,504 Cr as on June 30, 2018 including wholesale mortgage lending book of Rs. 8,475 Cr. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. We are at the initial stages of our retail mortgage lending and are currently focused on acquiring the right talent, employing technology and processes before we ramp up our presence in terms of products and geography.
During the quarter, Banks/NBFCs announced various NPA portfolio auctions and we continued to actively participate in the same. We closed 2 deals during the quarter, both (for 2 accounts) as part of debt aggregation. During the quarter, the Asset Reconstruction business also saw recoveries from various accounts.
Also we see a big opportunity arising out of Companies undergoing Corporate Insolvency Resolution Process in IBC-NCLT. We are actively evaluating various opportunities of our interest.
The outstanding Security Receipts (SRs) stood at Rs.13,294 Cr as on June 30, 2018 as compared to Rs.12,965 Cr as on March 31, 2018.
The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2018 stood at Rs.12,073 Cr; comprising of Rs.7,955 Cr in equity schemes (including arbitrage and balanced schemes) and Rs.4,118 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2018 stood at Rs.16,365 Cr; comprising of Rs.11,313 Cr in equity schemes and Rs.5,052 Cr in debt schemes.