Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q4 FY2020 Earnings Presentation
34 slides from Jm Financial's earnings presentation, May 6, 2020
Slide 1: Cover letter to stock exchanges: Outcome of the Board Meeting
May 6, 2020 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza 1st 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 Security Code: 523405 S
Slide 2: Quarter and year ended March 31, 2020 – Results update
JM Financial Limited Quarter and year ended March 31, 2020 – Results update May 06, 2020
Slide 3: Safe Harbour
Safe Harbour This presentation and the following discussion may contain “forward looking statements” by JM Financial Limited (“JM Financial” or “JMFL” or the “Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of ope
Slide 4: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 3
Slide 5: Key Highlights – Consolidated Performance
Key Highlights – Consolidated Performance Rs. Adjusted Revenues PBT Net Profit Net Profit EPS ROA* ROE* (Pre COVID) 3,454 Cr 1,094 Cr 545 Cr 621 Cr 6.48 3.5% 10.2% FY20 -1.3% -14.8% -4.8% 8.6% FY19 3,499 Cr 1,283 Cr 572 Cr 572 Cr 6.82 3.4% 11.9% Adjusted Revenues PBT Net Profit Net Profit EPS BVPS D
Slide 6: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q4FY20 Q4FY19 YoY % Q3FY20 QoQ % Gross Revenue 841 792 6.1% 905 -7.2% Finance cost 333 352 -5.2% 354 -5.7% Net Loss on Fair value changes - 21 - - - Impairment of Financial Instruments* 118 (14) N/M 42 N/M Employee cost 65 103 -36.6% 119 -45.4
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) FY20 FY19 YoY % Gross Revenue 3,454 3,499 -1.3% Finance cost 1,386 1,446 -4.2% Impairment of Financial Instruments* 234 35 N/M Employee cost 395 422 -6.2% Depreciation 41 27 51.4% Other expenses 304 287 6.1% PBT 1,094 1,283 -14.8% Tax Expense
Slide 8: Impact of COVID-19 on Q4FY20 Results
Impact of COVID-19 on Q4FY20 Results Year ended Quarter ended Particulars (Rs Cr) 31.03.2020 31.03.2020 Net profit after tax and after non-controlling interest (Post COVID-19 Impact) 545 131 Add / (Less): Additional Provision for expected credit Loss 122 122 Diminution in fair valuation of investmen
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet As at March 31, As at March 31, Particulars (Rs Cr) 2020 2019 Assets Loan book* 11,307 13,999 (Gross loan book: Mar’20 – Rs. 11,531 Cr; Mar’19 – Rs. 14,107 Cr) Distressed asset book (Investment in SRs / Loan) 3,686 4,194 Cash and cash equivalents (CCE)** 3,412 1,737 Other
Slide 10: Lending book Profile
Lending book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%) 13.9% 14.0% 14.1% 14.0% 14.3% 14,107 13,926 13,810 12,662 10.3% 2,317 11,531 9.5% 9.8% 9.9% 9.9% 2,837 2,904 1,078 2,188 581 1,232 1,100 1,156 719 2,270 567 639 465 6.5% 6.6% 6.5% 6.6% 6.6% 744 10,131 9,290 9,167 8,599 8,052 Q4 FY19 Q1 F
Slide 11: Borrowing Profile
Borrowing Profile 1.9 1.9 1.8 1.7 1.7 1.7 1.5 1.5 Borrowing Breakup 1.3 13,861 13,563 13,127 1.0 2% 12,878 2% 2% 3% 2% 1% Short Short 1% 2% 11,197 Short Short 27% 23% 23% 15% 16% 14% 1% 28% 18% Short 2% 6% 1% 9% 27% 28% 27% 27% 27% Long Long Long Long Long 73% 72% 82% 84% 91% 55% 56% 63% 46% 45% Q4
Slide 12: Liability Profile over the last one year
Liability Profile over the last one year Amount in Rs crore, unless stated Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 otherwise • Reduced leverage across Consolidated gross borrowing 13,563 13,861 13,127 12,878 11,197 lending segments Gross Debt / Equity 1.94 1.92 1.78 1.71 1.47 • Diversified sources of bor
Slide 13: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 12
Slide 14: Businesses Performance
Our Business Our Business Segments Investment Banking, Mortgage Distressed Asset Wealth Management & Lending Credit Management Securities Business (IWS) Investment Banking & Securities Wholesale – Developer Funding Asset Reconstruction Mutual Fund Wealth Management Retail - Housing, LAP & EIL* Busin
Slide 15: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q4 FY20 Q3 FY20 QoQ Q4 FY19 YoY FY20 FY19 YoY IWS* 411 442 -7.0% 357 15.2% 1,612 1,602 0.6% Mortgage Lending 316 342 -7.8% 331 -4.6% 1,351 1,291 4.6% Distressed Credit 98 96 2.5% 91 8.5% 413 501 -17.4% Asset Management 7 18 -60.4% 19 -63.5% 63 94 -33.5% Ot
Slide 16: IWS – Key Performance Matrix
IWS – Key Performance Matrix Securities Business (Rs Cr) Average Daily Turnover (Rs Cr) Equity Market Share on NSE (%) 13,676 13,894 10,748 2.59 2.54 2.42 2.34 2.13 8,205 0.74 0.95 0.88 5,820 12,746 12,963 0.54 0.64 9,861 7,264 0.70 0.91 4,834 0.48 0.85 0.59 986 941 887 930 931 Q4 FY19 Q1 FY20 Q2 FY
Slide 17: IWS – Key Financial Information
IWS – Key Financial Information Particulars (Rs Cr) Q4 FY20 Q3 FY20 QoQ % Q4 FY19 YoY % FY20 FY19 YoY % Net worth + MI 2,694 2,590 4.0% 2,533 6.4% 2,694 2,533 6.4% Loan Book 3,880 4,548 -14.7% 5,627 -31.1% 3,880 5,627 -31.1% Gross Revenue 411 442 -7.0% 357 15.2% 1,612 1,602 0.6% Finance cost 130 148
Slide 18: Mortgage Lending
Mortgage Lending Wholesale Loan Book Retail • Provides an integrated financial solution to real estate developers 8,324 • Home loans business loan book at 8,455 8,302 Rs309 crore with major focus on real estate project financing 8,008 7,651 • 74 groups – significant focus on repeat business • Expand
Slide 19: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction AUM (Rs Cr) Asset Acquisitions (Rs Cr) 14,044 14,191 14,037 223 200 11,413 11,489 109 120 74 2,939 3,140 3,107 2,946 3,012 40 - - 5 5 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 ARC's AUM JM's share in ARC's AUM Assets Acqu
Slide 20: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction Particulars (Rs Cr) Q4 FY20 Q3 FY20 QoQ Q4 FY19 YoY % FY20 FY19 YoY % Net worth + MI of Company 1,513 1,502 0.7% 1,265 19.6% 1,513 1,265 19.6% Gross Revenue 98 96 2.5% 91 8.5% 413 501 -17.4% Net Loss on Fair value changes - - - 35 - - - - Impairment of financ
Slide 21: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AAUM (Rs Cr) 8,712 Mutual Fund: 7,710 6,488 • Quarterly Average AUM (QAAUM) – Rs 6,109 cr. 3,053 5,683 6,109 3,068 • Rank (QAAUM) – 25 among 43 Mutual Funds. 1,979 1,540 2,824 • 15 Schemes categorized as Equity, Hybrid and Debt. 5,659 4,642 4,509 4,143
Slide 22: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 21
Slide 23: Organisational Structure – March 2020
Organisational Structure – March 2020 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 46.68% 99.35% 59.54% 100% 59.25%(3) 100% 100% 100% JM Financial Overseas JM Financial Infinite India JM Financial JM Financial Asse
Slide 24: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) As on 31.03.2020 140.0 120.0 Market Capitalization (Rs Cr) 5,413.28 100.0 80.0 Price (Rs) 64.35 60.0 40.0 No. of Shares Outstanding (Cr) 84.12 20.0 - Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 52 Week High-Low (Rs) 126.00/59.90 % Sharehol
Slide 25: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 24
Slide 26: Performance of Select Subsidiaries – IND AS
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd Q4 FY 20 Q4 FY19 Q4 FY 20 Q4 FY19 Revenue 305 329 Revenue 186 203 Net Profit 49 124 Net Profit 22 46 Net worth 3,291 2,909 Net worth 1,707 1,560 Loan book 7,342 8,123 Loan book 3,679 5,22
Slide 27: Performance of Select Subsidiaries – IND AS
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd FY 20 FY19 FY 20 FY19 Revenue 1,310 1,279 Revenue 841 934 Net Profit 382 406 Net Profit 160 204 Net worth 3,291 2,909 Net worth 1,707 1,560 Loan book 7,342 8,123 Loan book 3,679 5,227 Net
Slide 28: Journey of JM Financial Group
Journey of JM Financial Group JM Financial Joint Venture with Morgan Stanley 1973 1986 1994 1998 2003-2004 2005-2006 2006 -2007 2007 Incorporation of JM JM Financial Set up mutual JV with Capital Preferential issue of shares Launched Separated Financial and Limited(1) fund Morgan market to Tiger Glo
Slide 29: Corporate Governance – Strong Board of Directors
Corporate Governance – Strong Board of Directors Mr. Nimesh Kampani, Chairman Mr. Vishal Kampani, Managing Director B. Com, FCA M.com, M. S. (Finance) from London Business School • Founder and Chairman of JM Financial Group, one of India’s • Managing Director of JM Financial Ltd., the group’s flags
Slide 30: Effective Risk Management Framework
Effective Risk Management Framework Robust risk management architecture encompassing independent identification, measurement and management of 1 risk across various businesses of the Group 2 Effective systems, processes and adequate review mechanism to actively monitor, manage and mitigate risks 3 Q
Slide 31: Integrated Rural Transformation Programme – Bihar
Integrated Rural Transformation Programme – Bihar JAMUI DISTRICT – SIKANDRA, CHAKAI AND JHAJHA BLOCKS LIVELIHOODS Adarsh Gram (Model Village) Development Project PRE-SCHOOL LEARNING INTEGRATED VILLAGE DEVELOPMENT Shri Vardhman Dugdhalaya (Dairy Project) Project Bachpan – Five pre- initiated as
Slide 32: Integrated Rural Transformation – Maharashtra and Jharkhand
Integrated Rural Transformation – Maharashtra and Jharkhand MAHARASHTRA – PALGHAR DISTRICT, MOKHADA BLOCK JHARKHAND – GIRIDIH DISTRICT, DUMRI & PIRTAND BLOCKS Integrated Village Development Project implemented in 7 villages of INTEGRATED VILLAGE DEVELOPMENT PROJECT FIRST REFERRAL UNIT (FRU) Mokhad
Slide 33: Philanthropic Giving and Support
Philanthropic Giving and Support JMFF has provided support – Photo Gallery • To various organisations that educate differently abled children Education • To girl students for their ongoing course in computers, in Palitana, Gujarat JMFF has provided support – • To rehabilitate the differently abled u
Slide 34: For Further Queries
For Further Queries Mr. Manish Sheth Mr. Nishit Shah Group CFO Business Strategy, Investor Relations Email: manish.sheth@jmfl.com and CFO – JM Financial Products Contact No: 022 66303461 Limited Email: nishit.shah@jmfl.com Contact No: 022 66303522 Mr. Gagan Kothari CFO – JM Financial Credit Solution