Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q2 FY2021 Earnings Presentation
33 slides from Jm Financial's earnings presentation, Oct 27, 2020
Slide 1: Cover letter to stock exchanges
October 27, 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: 523
Slide 2: Quarter ended September 30, 2020 – Results update
JM Financial Limited Quarter ended September 30, 2020 – Results update October 27, 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 3
Slide 5: Key Highlights – Consolidated Performance
Key Highlights – Consolidated Performance Rs. Adjusted Net Revenues PBT Net Profit Profit (Pre EPS BVPS Debt/ Equity# COVID)^ 803 Cr 240 Cr 139 Cr 167 Cr 1.53 68.97 1.20 x Q2 FY21 -5.6% -11.8% 7.3% 29.2% Q2 FY20 851 Cr 271 Cr 130 Cr 130 Cr 1.54 62.99 1.78 x Adjusted Net Revenues PBT Net Profit Profi
Slide 6: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q2FY21 Q2FY20 YoY % Q1FY21 QoQ % Gross Revenue 803 851 -5.6% 691 16.2% Finance cost 289 349 -17.3% 273 6.0% Impairment on Financial Instruments* 79 50 59.0% 69 14.8% Employee cost 117 106 10.0% 91 27.8% Depreciation 10 10 2.2% 10 -0.3% Other e
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) H1FY21 H1FY20 YoY % Gross Revenue 1,495 1,708 -12.5% Finance cost 562 699 -19.7% Impairment on Financial Instruments* 148 73 N/M Employee cost 208 211 -1.6% Depreciation 20 20 1.6% Other expenses 133 130 2.3% PBT 424 574 -26.2% Tax Expense 101
Slide 8: Impact of COVID-19 on the results
Impact of COVID-19 on the results Quarter ended Half year ended Particulars (Rs Cr) 30.09.2020 30.09.2020 Net profit after tax and after non-controlling interest (Post COVID-19 Impact) 139 233 Add / (Less): Additional Provision for expected credit Loss 57 123 Diminution in fair valuation of investme
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at Sept 30, 2020 As at March 31, 2020 Assets Loan book* - Steady state Financing 10,984 11,307 (Gross loan book: Sept’20 – Rs. 11,386 Cr; Mar’20 – Rs. 11,531 Cr) Distressed asset book (Investment in SRs / Loan) 3,999 3,686 Cash and cash equivalents (
Slide 10: Lending book Profile
Lending book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%) # 14.1% 14.1% 14.2% 14.5% 14.1% 13,810 12,662 10.2% 11,531 11,386 9.9% 9.9% 10.1% 9.9% 2,904 10,833 2,188 1,100 1,156 2,270 1,413 1,654 7.6% 7.5% 639 465 533 6.6% 6.7% 6.8% 719 744 369 736 790 9,167 8,599 8,052 8,316 8,410 Q2 FY20 Q3 FY2
Slide 11: Borrowing Profile
Borrowing Profile 1.8 1.7 1.5 1.5 1.3 1.2 1.2 1.0 Borrowing Breakup* 0.9 0.8 13,544 13,410 2% 1% Short 1% 1% Short 11,756 15% 16% 14% Short 1% 10,879 17% 2% 10,440 9% 6% 1% Short Short 5% 3% 1% 4% 26% 27% 10% 6% 17% 8% 26% 1% 1% 24% 19% Long Long Long Long 83% 91% Long 84% 90% 57% 57% 64% 83% 65% 63
Slide 12: Liability Profile over the last one year
Liability Profile over the last one year Amount in Rs crore, unless stated Sep-19 Dec-19 Mar-20 June-20 Sept-20 otherwise Consolidated gross borrowing* 13,544 13,410 11,756 10,440 10,879 • Reduced leverage across Gross Debt / Equity 1.78 1.71 1.47 1.17 1.20 lending segments Net Debt / Equity 1.51 1.
Slide 13: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 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) Q2 FY21 Q1 FY21 QoQ % Q2 FY20 YoY % H1FY21 H1FY20 YoY IWS 406 290 39.7% 382 6.1% 696 758 -8.2% Mortgage Lending 292 298 -2.2% 345 -15.3% 590 693 -14.8% Distressed Credit 85 98 -13.4% 106 -19.4% 183 219 -16.4% Asset Management 7 7 4.9% 20 -64.5% 14 38 -63.1
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 12,582 10,748 11,175 2.42 2.34 2.18 1.53 1.62 0.74 0.95 0.88 12,746 12,963 11,504 0.77 0.61 9,861 10,282 0.70 0.91 0.85 0.74 0.58 887 930 931 893 1,079 Q2 FY20 Q3 FY20
Slide 17: IWS – Key Financial Information
IWS – Key Financial Information Particulars (Rs Cr) Q2 FY21 Q1 FY21 QoQ % Q2 FY20 YoY % H1 FY21 H1 FY20 YoY % Segment Net worth + NCI 2,842 2,746 3.5% 2,494 14.0% 2,842 2,494 14.0% Loan Book* 3,861 3,405 13.4% 5,374 -28.2% 3,861 5,374 -28.2% Gross Revenue 406 290 39.7% 382 6.1% 696 758 -8.2% Finance
Slide 18: Mortgage Lending
Mortgage Lending Wholesale Loan Book* Retail • Provides an integrated financial solution to real estate • Home loans business loan book at Rs. 318 developers with major focus on real estate project financing 8,302 8,008 7,651 crore 7,428 7,526 • 70 groups – significant focus on repeat business • Col
Slide 19: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction AUM (Rs Cr) Asset Acquisitions (Rs Cr) 14,037 271 11,413 11,489 11,441 11,429 200 120 3,107 2,946 3,012 2,982 3,244 - - 5 5 - - 10 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21* ARC's AUM JM's share in ARC's AUM Assets Acquir
Slide 20: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction Particulars (Rs Cr) Q2 FY21 Q1 FY21 QoQ % Q2 FY20 YoY % H1 FY21 H1 FY20 YoY % Segment Net worth + NCI* 1,513 1,531 -1.1% 1,493 1.4% 1,513 1,493 1.4% Gross Revenue 85 98 -13.4% 106 -19.4% 183 219 -16.4% Finance Cost 67 64 3.2% 70 -4.0% 131 136 -3.6% Employee C
Slide 21: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AAUM (Rs Cr) Mutual Fund: • Quarterly Average AUM (QAAUM) – Rs 4,182 Cr. • Rank (QAAUM) – 28 among 42 Mutual Funds. 6,488 5,683 6,109 • 12 Schemes categorized as Equity, Hybrid and Debt. 1,979 4,049 4,182 1,540 2,824 • Investor reach – 1,23,207 base, 1
Slide 22: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 21
Slide 23: Organisational Structure – September 2020
Organisational Structure – September 2020 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 46.68%(2) 99.44% 59.54% 100% 59.25%(3) 100% 100% 100% JM Financial Overseas JM Financial Infinite India JM Financial JM Financi
Slide 24: Shareholding Summary
Shareholding Summary Share Price Information As on September 30, Market Information (BSE) 2020 140.0 120.0 Market Capitalization (Rs Cr) 7,341.64 100.0 80.0 Price (Rs) 77.10 60.0 40.0 No. of Shares Outstanding (Cr) 95.22 20.0 - Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 52 Week High-Low (Rs) 126.00/55.50 Ke
Slide 25: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 24
Slide 26: Performance of Select Subsidiaries
Performance of Select Subsidiaries In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Revenue 280 334 Revenue 160 199 Net Profit 79 110 Net Profit 27 31 Net worth 3,446 3,127 Net worth 1,750 1,640 Loan book# 7,208 8,042 Loan book# 3,682 4,931 Net Int
Slide 27: Performance of Select Subsidiaries
Performance of Select Subsidiaries In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd H1 FY21 H1 FY20 H1 FY21 H1 FY20 Revenue 567 674 Revenue 315 439 Net Profit 155 218 Net Profit 59 93 Net worth 3,446 3,127 Net worth 1,750 1,640 Loan book# 7,208 8,042 Loan book# 3,682 4,931 Net In
Slide 28: Journey of JM Financial Group
Journey of JM Financial Group JM Financial Joint Venture with Morgan Stanley 1973 1986 1994 1998 2004 2005-2006 2006 -2007 2007 Incorporation of JM JM Financial Set up mutual JV with Capital Preferential issue of shares Launched Terminated Financial and Limited (JMFL)(1) fund Morgan market to Tiger
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: CSR - COVID-19 responsiveness
CSR - COVID-19 responsiveness In Q2 FY 20-21, we continued our efforts to help country cope up with the ongoing COVID-19 pandemic, primarily to help improve the access to health and food. 1,000 ration kits worth nearly three weeks of food distributed to families in Darbhanga and East Champaran d
Slide 32: Our Corporate Social Responsibility
Our Corporate Social Responsibility Integrated Livestock Development Centers (ILDC) Project Model Village Development Project undertaken in 15 villages of Sikandra block, DEVELOPMENT PROJECT DEVELOPMENT – Chakai, Jhajha & Sikandra blocks, Jamui district, Bihar Jamui district, Bihar LIVESTOCK 2
Slide 33: 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