Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q3 FY2022 Earnings Presentation
61 slides from Jm Financial's earnings presentation, Feb 7, 2022
Slide 1: Investor Presentation cover letter to exchanges
jJM FINANCIAL February 7, 2022 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza 1 st Floor, New Trading Ring Plot No.C-1, G Block Rotunda Building, P J Towers Bandra-Kurla Complex Dalal Street, Fort, Bandra (East) Mumbai 400001 Mumbai - 400 051 Sec
Slide 2: JM Financial Limited – Q3FY22 Results Update
JM Financial Limited – Q3FY22 Results Update
Slide 3: Disclaimer/ Safe Harbor
Disclaimer/ Safe Harbor This presentation and the following discussion may contain certain words or phrases that are “forward looking statements” by JM Financial Limited (together with its subsidiaries and associates), referred to as (“JM Financial” or “JMFL” or “the Company”) that are not historica
Slide 4: Table of Contents
Table of Contents Section 1 Group Overview Section 2 Consolidated Financial Performance Tab A Investment Bank Tab B Mortgage Lending Tab C Alternative and Distressed Credit Tab D Platform AWS Section 3 Group Structure and Shareholding Details Section 4 Corporate Social Responsibility Annexure Financ
Slide 5: Section 1: Group Overview
Section : 1 Group Overview A JM FINANCIAL °
Slide 6: Evolution of the Franchise Over Four Decades; Unmatched Depth and Breadth
Evolution of the Franchise Over Four Decades; Unmatched Depth and Breadth Launched Bondskart. Received license Reported highest ever for Housing quarterly net profit first in Set up a dedicated Finance from Q1FY22 and again in real estate business National Housing Q3FY22 with a Global Fund Bank (NHB
Slide 7: Diversified Businesses with Multiple Growth Opportunities
Diversified Businesses with Multiple Growth Opportunities 1 Investment Bank : Cornerstone of our Franchise 3 Alternative and Distressed Credit : Expertise Built in a Niche Business • Caters to Institutional, Corporate, • Distressed Credit relates to acquisition and Government, Ultra High Networth Cl
Slide 8: Investment Bank: Deep Client Relationships; Delivering One Firm to Clients
1 Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Depth and breadth of markets increasing significantly; digital companies expected to add Key Business Priorities Strategic M&A trends likely to continue Expand the depth and breadth of the client base IPO Listings Equ
Slide 9: Mortgage Lending: Wholesale and Retail Business
2 Mortgage Lending : Wholesale and Retail Business Benign competition in wholesale business Key Business Priorities Strong momentum in residential real estate market Grow wholesale loans upon Low Penetration Underserved Affordable Market (2) easing of travel conditions (Mortgage/GDP)(1) 66.3%
Slide 10: Alternative and Distressed Credit: Strong Expertise in a Niche Market
3 Alternative and Distressed Credit : Strong Expertise in a Niche Market Ferocity of the second wave of COVID-19 has dented economic activity Key Business Priorities Significant interest from strategic and financial investors in acquiring distressed assets Co-Investment model with strategic Pr
Slide 11: Platform AWS: Integrated Platform for Individual Clients; Focus on Digital
4 Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Financialization of savings to continue; digitization to make it simpler and faster Key Business Priorities Income levels expected to increase Future and digital readiness Rising Penetration of Non Institutional Brok
Slide 12: Section 2: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance 10
Slide 13: Consolidated Performance
Consolidated Performance Rs. Pre- Revenues Provisioning Net Profit EPS Gross Net PBT BVPS Profit (PPOP) Debt / Equity # Debt / Equity# 964 Cr 424 Cr 349 Cr 217 Cr 2.27 78.60 1.05x 0.68x Q3 FY22 8.2% 6.1% 5.4% 19.9% Q3 FY21 891 Cr 400 Cr 331 Cr 181 Cr 1.96 70.88 1.11x 0.72x Pre- Revenues Provisioning
Slide 14: Consolidated Performance: Diversified Business Model for Earnings Resilience
Consolidated Performance : Diversified Business Model for Earnings Resilience Total Revenue (Rs Cr) Pre-Provision Profit (Rs Cr) PBT (Rs Cr) AWS Alternative and Distressed Credit 469 Mortgage Lending Investment Bank 993 431 424 360 969 964 349 891 400 331 841 143 317 180 187 312 136 352 164 225 127
Slide 15: TAB A: Investment Bank
TAB :A Investment Bank A JM FINANCIAL 8
Slide 16: Investment Banking: Decades of Trust from Clients
Investment Banking : Decades of Trust from Clients Transaction details for Q3 FY22 : Strong Mix of Advisory and Capital Market Transactions IPO : FSN E-Commerce Ventures Ltd IPO : Aditya Birla Sun Life AMC Ltd IPO : Sapphire Foods India Ltd IPO : CMS Info Systems Ltd IPO : C.E Info Systems Ltd (~Rs.
Slide 17: Institutional Research: Strong Knowledge Base
Institutional Research : Strong Knowledge Base Overview Research Coverage Across Sectors Real Estate & REITs Others • Research Coverage of 224 Companies Cement & Industrials Specialty Chemicals Metals, Airlines, Textile, Exchanges • Strong breadth of sector coverage Consumer Staples, Auto & Auto Ret
Slide 18: Private Equity Funds
Private Equity Funds Fund III (AUM : Rs. 164 Cr) – First Close Done Fund I All investments exited • Sector: Consumer & Retail • A designer, manufacturer • Sector: Financial Services Fund II Investments (AUM : Rs. 505 Cr) : ~85% Deployed and retailer of luxury • A housing finance company garments • S
Slide 19: Franchise Enhancing Financing
Franchise Enhancing Financing Loan Book(1) Loan Book Description Wholesale Mortgage Bespoke FI Financing* Capital Market Bespoke Finance : Loan Book available to Clients of 3,781 3,663 Investment Bank segment 3,228 618 2,903 3,048 744 656 451 464 Capital Markets : Loan Book originated for Platfo
Slide 20: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 361 134 316 312 291 285 115 113 58.9% 100 57.1% 93 51.8% 57.5% 66.3% 48.2% 42.5% 42.9% 41.1% 33.7% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Profit
Slide 21: TAB B: Mortgage Lending
TAB :B Mortgage Lending A JM FINANCIAL %
Slide 22: Mortgage Lending
Mortgage Lending Dedicated real estate subsidiary (JM Financial Credit Solutions) formed in 2014 and backed by Global Fund led by Mr. Vikram Pandit (Ex CEO of Citibank) JM Financial Limited holds 46.7% stake Wholesale # groups with relationship – 100+ Average ticket size per group – ~Rs. 109
Slide 23: Wholesale Mortgages: JM Financial Credit Solutions (JMFCSL)
Wholesale Mortgages : JM Financial Credit Solutions (JMFCSL) Loan Book** (Rs Cr) Product wise split of loan book – Dec 2021 7,219 7,166 LAS 6,993 11.3% 6,741 6,595 Project at Early Stage 8.7% Project Loan 49.2% Land 12.5% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 LAP 18.3% Gross, Net NPA & SMA 2* (%) Geogr
Slide 24: Wholesale Mortgages: Operating and Financial Performance
Wholesale Mortgages : Operating and Financial Performance Net Total Income (Rs Cr) Spread Analysis (%) Operating Expenses and Cost to Income (Rs Cr) Yield % COF % NIM % Operating Expense Cost to Income 201 15.1% 15.1% 10.4% 14.7% 14.7% 174 181 13.9% 166 9.5% 8.6% 157 6.7% 5.5% 10.0% 9.9% 9.8% 16 15
Slide 25: Retail Mortgages: JM Financial Home Loans
Retail Mortgages : JM Financial Home Loans Branch Network Disbursement (Rs Cr) Loan Book Average Ticket Size of Rs. 11 Lakhs 51 50 153 636 40 105 507 90 431 448 363 30 56 25 29 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Geography wise spl
Slide 26: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 209 189 143 191 166 162 130 183 153 177 139 166 96 97 71 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 PAT (Pre Non Cont
Slide 27: TAB C: Alternative & Distressed Credit
TAB : C Alternative & Distressed Credit 25
Slide 28: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of December 31, 2021 – Rs. 10,710 Cr • 59.25%** equity stake held by JM Financial Ltd as of Dec 31, 2021 Portfolio & Others 18.9% Textile & Garments • 45 member professional team as Dec 31, 2021. The te
Slide 29: Alternative & Distressed Credit: Financial Performance
Alternative & Distressed Credit: Financial Performance Net Total Income (Rs Cr) PAT Post Non Controlling Interest (Rs Cr) 164 65 68 59 21 24 30 8 9 15 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Gross, Net NPA Leverage & SMA Analysis (Rs2*Cr) (%) Annualized Return Ratios (%
Slide 30: TAB D: Platform AWS
TAB: D Platform AWS A JM FINANCIAL 8
Slide 31: Broking: Advisory Led, Leveraging Technology and Expanding Market
Broking : Advisory Led, Leveraging Technology and Expanding Market Growth of ADTO & Volume Mix % ‘000 Rs Cr Clients ~ 1.65 Lakhs Affluent, HNI and strong vintage Cash Future Option ADTO 100% 20 18 80% 16 Customised products and services 14 60% 12 80% 13 12 84% 82% 83% 86% 11 40% 8 Presence in 186 Ci
Slide 32: Broking: Online and Mobile Trading Gaining Momentum
Broking : Online and Mobile Trading Gaining Momentum Online v/s Offline Mobile Trading Online Offline ADTO (Crs) Users 11,737 11,012 39% 37% 9,897 42% 44% 45% 8,840 7,256 1,603 1,292 58% 61% 56% 55% 63% 1,003 1,123 820 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Gross, Net
Slide 33: Wealth Channels: Increasing Scale, Client Engagement and Reach
Wealth Channels : Increasing Scale, Client Engagement and Reach Private Wealth AUM (Rs Cr) Private Wealth AUM Transactional and Recurring (Rs Cr) Equity Debt Liquid Recurring Transactional 63,760 64,683 59,052 60,385 63,760 64,683 56,757 3,846 3,931 59,052 60,385 4,165 4,597 56,757 4,327 31,600 32,7
Slide 34: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 180 187 164 78.0% 136 143 66.8% 69.7% 61.6% 56.0% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) PBT PAT (post Non Controll
Slide 35: Section 3: Group Structure and Shareholding Details
Section 3 Group Structure and Shareholding Details 33
Slide 36: Group Structure: December 31, 2021
Group Structure : December 31, 2021 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 46.68%(2) 99.65% 59.54% 100% 59.25% 100% 100% 100% JM Financial Infinite India JM Financial Asset Overseas Holdings JM Financial JM F
Slide 37: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) December 31, 2021 Price 120 7,083.78 Market Capitalization (Rs Cr) 110 100 Price (Rs) 74.25 90 80 No. of Shares Outstanding (Cr) 95.40 70 60 50 52 Week High-Low (Rs) 117.55/68.35 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Gross, Net NPA %
Slide 38: Section 4: Corporate Social Responsibility
Section 4 Corporate Social Responsibility 36
Slide 39: Corporate Social Responsibility (1/2)
Corporate Social Responsibility (1/2) JMFF DIGITAL SAKSHARTA (BIHAR) JM Financial Foundation (JMFF) launched JMFF Digital Saksharta in Jamui district, Bihar on Dec 23, 2021 Implemented through a hub and spokes model with the hub center imparting Digital Literacy and Soft Skills to older youth an
Slide 40: Corporate Social Responsibility (2/2)
Corporate Social Responsibility (2/2) MODEL VILLAGE DEVELOPMENT PROJECT (BIHAR) In the Rabi season of the year, over 12,000 saplings of vegetables such as brinjal, chili, cabbage and cauliflower were provided as farm inputs to 58 farmers. 140kg seeds of high yielding variety of mustard were give
Slide 41: Annexure: Financial Performance and Other Details
Annexure Financial Performance and Other Details 39
Slide 42: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q3 FY22 Q2 FY22 QoQ % Q3 FY21 YoY % Gross Revenue 964 969 -0.5% 891 8.2% Finance cost 283 287 -1.4% 278 1.9% Net loss on derecognition of financial instruments under - 2 - - - amortised cost category Employee cost 143 145 -1.8% 118 21.4% Depre
Slide 43: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) 9M FY22 9M FY21 YoY % FY21 Gross Revenue 2,926 2,386 22.7% 3,227 Finance cost 832 840 -1.0% 1,111 Net loss on derecognition of financial instruments under 2 - - - amortised cost category Employee cost 450 325 38.4% 441 Depreciation 28 30 -6.3%
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at Dec 31, 2021 As at March 31, 2021 Assets Loan book* - Steady state Financing 10,547 10,325 Loan book* – Episodic Financing 32 33 Distressed asset book (Investment in SRs / Loan) 3,998 3,915 Cash and cash equivalents (CCE)** 3,854 5,351 Other Inves
Slide 45: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at Dec 31, 2021 As at March 31, 2021 As at Dec 31, 2021 As at March 31, 2021 Investment Bank 2,397 2,500 2,391 2,491 JM Financial Products Limited 1,691 1,693 1,685 1,684 JM Financial Limited 458 572 458 572 JM Financial
Slide 46: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q3 FY22 Q2 FY22 QoQ % Q3 FY21 YoY % 9M FY22 9M FY21 YoY% FY21 Investment Bank 361 312 15.8% 291 24.0% 988 799 23.7% 1,084 Mortgage Lending 282 314 -10.2% 326 -13.5% 896 916 -2.2% 1,218 Alternative & Distressed Credit 86 125 -31.4% 127 -32.5% 436 313 39.4%
Slide 47: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q3FY22 9MFY22 Q3FY22 9MFY22 Investment Bank: 361 988 99 255 JM Financial Limited 137 464 57 235 JM Financial Products Limited 195 514 36 87 JM Financial Institutional Securities Limited 42 115 5 14 Overseas Entities 4 16 (1) (3) A
Slide 48: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q3FY22 9MFY22 Q3FY22 9MFY22 Platform AWS: 187 510 40 82 JM Financial Services Limited 157 463 34 100 JM Financial Capital Limited 18 46 6 16 JM Financial Asset Management Limited 5 17 (3) (7) JM Financial Commtrade Limited / Astut
Slide 49: Investment Bank
Investment Bank Particulars (Rs Cr) Q3 FY22 Q2 FY22 QoQ % Q3 FY21 YoY % 9M FY22 9M FY21 YoY % FY21 Segment Net worth + NCI 2,397 2,371 1.1% 2,413 -0.6% 2,397 2,413 -0.6% 2,500 Loan Book* 3,663 3,781 -3.1% 2,903 26.2% 3,663 2,903 26.2% 3,048 Gross Revenue 361 312 15.8% 291 24.0% 988 799 23.7% 1,084 F
Slide 50: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q3 FY22 Q2 FY22 QoQ % Q3 FY21 YoY % 9M FY22 9M FY21 YoY % FY21 Segment Net worth + NCI 3,894 3,732 4.3% 3,690 5.5% 3,894 3,690 5.5% 3,788 Gross Revenue 282 314 -10.2% 326 -13.5% 896 916 -2.2% 1,218 Finance cost 115 123 -6.1% 117 -1.0% 362 349 3.8% 468 Net loss on
Slide 51: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q3 FY22 Q2 FY22 QoQ % Q3 FY21 YoY % 9M FY22 9M FY21 YoY % FY21 Segment Net worth + NCI 1,839 1,776 3.5% 1,639 12.2% 1,839 1,639 12.2% 1,651 Gross Revenue 86 125 -31.4% 127 -32.5% 436 313 39.4% 389 Finance Cost 55 57 -2.3% 68 -19.0% 174 200 -13.2%
Slide 52: Platform AWS
Platform AWS Particulars (Rs Cr) Q3 FY22 Q2 FY22 QoQ % Q3 FY21 YoY % 9M FY22 9M FY21 YoY % FY21 Segment Net worth + NCI 757 718 5.4% 698 8.5% 757 698 8.5% 718 Gross Revenue 187 180 4.0% 136 38.0% 510 338 51.0% 502 Finance cost 23 22 5.6% 20 19.1% 60 54 9.9% 74 Impairment on Financial Instruments 2 1
Slide 53: Consolidated Lending Book Profile
Consolidated Lending Book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%)# Wholesale Mortgage Retail Mortgage Bespoke FI Financing*** Capital Market Yield % COF % NIM % 11,240 14.3% 14.3% 14.1% 13.9% 10,854 11,014 11,072 13.3% 10,407 851 821 800 451 940 683 322 429 464 348 9.7% 9.7% 1,423 2,092 1,
Slide 54: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) Equity** Debt* D/E Net D/E 10,382 12,366 10,671 10,808 10,789 5,351 1.29 1.11 1.09 1.08 1.05 3,892 3,957 3,854 3,716 0.68 0.68 0.72 0.73 0.69 9,315 9,552 10,006 10,269 9,827 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22
Slide 55: Performance of Select Subsidiaries
Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd Q3FY22 Q3FY21 Q3FY22 Q3FY21 Revenue 265 313 Revenue 195 204 Net Profit 74 106 Net Profit 36 53 Net worth 3,851 3,552 Net worth 1,911 1,804 Loan book# 6,741 7,097 Loan book# 3,775 3,189 Net Interest Margin
Slide 56: Performance of Select Subsidiaries
Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd 9MFY22 9MFY21 FY21 9MFY22 9MFY21 FY21 Revenue 845 880 1,167 Revenue 514 519 661 Net Profit 202 261 359 Net Profit 87 113 138 Net worth 3,851 3,552 3,650 Net worth 1,911 1,804 1,829 Loan book# 6,741 7,097 7
Slide 57: Effective Risk Management Framework
Effective Risk Management Framework Robust risk management architecture encompassing independent identification, measurement and management of risk across various businesses of the 1 Group 2 Effective systems, processes and adequate review mechanism to actively monitor, manage and mitigate risks 3 Q
Slide 58: Board of Directors
Board of Directors Mr. Nimesh Kampani, Chairman Mr. Vishal Kampani, Vice Chairman* B. Com, FCA M.com, M. S. (Finance) from London Business School • Founder and Chairman of JM Financial Group, one of India’s leading financial • Launched the Asset Reconstruction business in 2008 and the Real Estate se
Slide 59: Board of Directors (Cont’d)
Board of Directors (Cont’d) Ms. Jagi Mangat Panda, Independent Director Ms. Roshini Bakshi, Independent Director* B.Sc (Biology & Chemistry), Management Development Programme, Indian Institute MBA of Management, Ahmedabad • Presently the Managing Director, Private Equity at Everstone Capital Asia Pt
Slide 60: Management Team
Management Team Mr. Vishal Kampani, MD – JM Financial Products & MD & Vice Chairman – JM Financial Mr. Shashwat Belapurkar, MD, Group Borrowings, IR, Treasury & Alternative Credit Credit Solutions • Joined JM Financial Group in 2009 • Launched the Asset Reconstruction business in 2008 and Real Estat
Slide 61: For Further Queries
For Further Queries Mr. Shashwat Belapurkar Mr. Manish Sheth MD, Group Borrowings, Investor Group CFO, MD & CEO, JM Financial Home Relations, Treasury and Alternative Credit Loans Limited Email: shashwat.belapurkar@jmfl.com Email: manish.sheth@jmfl.com Contact No: 022 66303545 Contact No: 022 663034