Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q2 FY2025 Earnings Presentation
65 slides from Jm Financial's earnings presentation, Oct 25, 2024
Slide 1: Exchange filing cover letter
October 25, 2024 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: JM Financial Limited – Q2FY25 Results Update
JM Financial Limited – Q2FY25 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 Update on Strategic Decisions Section 2 Group Overview Section 3 Consolidated Financial Performance Tab A Integrated Investment Bank Tab B Mortgage Lending Tab C Platform AWS Tab D Alternative and Distressed Credit Section 4 Group Structure Section 5 Financial Performance
Slide 5: Section 1: Update on Strategic Decisions
Section : 1 Update on Strategic Decisions 3
Slide 6: Strategic Pivot in Wholesale; Focus on High Return on Equity Businesses
Strategic Pivot in Wholesale; Focus on High Return on Equity Businesses • Strategic Pivot : From on-balance sheet business model to syndicating transactions to investors and building sales and distribution teams in the private credit and alternatives space Wholesale Credit Business • Consolidation :
Slide 7: On Balance Sheet to Off Balance Sheet: Improving Risk Reward Metrics
On Balance Sheet to Off Balance Sheet : Improving Risk Reward Metrics Loan book Key Focus Areas 2QFY25 Loan Book (including SEBI MTF) : Rs. 11,465 Crore • Syndication loan book (Private Credit Syndication) SEBI MTF + Capital Markets • Bespoke Affordable Home Loans Bespoke 1,595 , 14% • Affordable Ho
Slide 8: Focused on High Return on Equity Businesses
Focused on High Return on Equity Businesses Focused Businesses Corporate Advisory and Wealth and Asset Private Credit Home Loans Capital Markets Management Syndication • Banks, NBFCs, Financial • HNI, Mass Affluent, Funds, • Retail Self – Employed and • Promoters, Corporates, UHNI, Institutions, Hou
Slide 9: Corporate Advisory and Capital Markets
Corporate Advisory and Capital Markets Q2FY25 Highlights • Best in class relationships, strong brand, significant repeat business • Strong pipeline of transactions • Consistent leadership position in ECM, M&A • Select transactions: BRLM to IPO – Bajaj HFC (~Rs. 6,560 Cr), • Team comprising of 175 bu
Slide 10: Wealth Management
Wealth Management Breakup of AUM ~110,000 Cr (2QFY25) • Long term goal of building recurring revenue streams 16,120 , Non Retail 20% ‒ Group’s scaling up of asset management business 30,983 78,799 Wealth RMs: 28% 72% ~100 62,679 80% • Strong flow of transactions Non Retail Retail Transactional Recur
Slide 11: Asset Management
Asset Management Mutual Fund (Rs Cr) Mutual Fund 12,516 • Strong brand recall, rebuild over last 2-3 years 9,318 4.2x 6,189 10,002 • Strong SIP flows 7,285 2,962 1,112 4,284 • Performance in top quartile 1,850 1,905 2,033 2,514 FY23 FY24 Non-liquid 1QFY25 Liquid 2QFY25 • Retail led AUM, Focus on Equ
Slide 12: Affordable Home Loans
Affordable Home Loans AUM (Rs crore) • Granular book focused on affordable 2,366 segment 2,256 1,522 • Strong market opportunity 530 942 • Senior hires/team in place 375 • No relationship with developer funding FY20 FY21 FY22 FY23 FY24 2QFY25 book Branches and Employees - Significant Investments • A
Slide 13: Private Credit Syndication
Private Credit Syndication Loan Book • Robust balance sheet and capability to attract large investors to anchor large syndicated trades Wholesale Mortgage Bespoke FI Financing 12,556 • Strong origination capability across all asset classes 11,458 1,927 1,884 9,330 • Distribution channels to be stren
Slide 14: Treasury / Other Assets
Treasury / Other Assets Treasury and Other Assets ➢ Transactions pending RBI approvals 2QFY25 Capital Employed : Rs. 6,615 Crore 167 2% 902 14% ‒ Acquisition of stake from INH Mauritius of Rs. 1,282 crore for increasing stake in JM Financial Credit Solutions Limited from 47% to 90% 500 8% 2,849 43%
Slide 15: Section 2: Group Overview
Section : 2 Group Overview 13 A JM FINANCIAL
Slide 16: Evolution of the Franchise Over Five Decades
Evolution of the Franchise Over Five Decades; Unmatched Depth and Breadth Launched Bondskart. Received license Reported highest for Housing ever consolidated Finance from operating PAT Set up a dedicated National Housing real estate business Bank (NHB) with a Global Fund led by Mr. Vikram Terminated
Slide 17: Diversified Businesses with Multiple Growth Opportunities
Diversified Businesses with Multiple Growth Opportunities 1 Integrated 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
Slide 18: Integrated Investment Bank: Deep Client Relationships
Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Clients Products / Services Business Priorities Q2FY25 Highlights • Investment Banking Promoters • Institutional Equities ✓ Expand the depth and breadth of the client base • Strong pipeline of transactions • Privat
Slide 19: Mortgage Lending: Wholesale and Retail Mortgage
Mortgage Lending: Wholesale and Retail Mortgage Clients Products / Services Business Priorities Q2FY25 Highlights Wholesale Mortgage Wholesale Mortgage: Wholesale Mortgage Wholesale Mortgage: • Loan Book* stood at Rs. 5,273 Cr in Q2FY25 • Project / Construction Finance • Deliver on franchise enhanci
Slide 20: Alternative and Distressed Credit
Alternative and Distressed Credit Clients Products / Services Business Priorities Q2FY25 Highlights • Acquisition of • Distressed Credit AUM as on September 2024 stood Banks distressed assets at Rs. 13,701 Cr v/s Rs. 14,229 Cr as on June 2024 ✓ Focus on Co-Investments • Aggregate dues of Rs. 78,307
Slide 21: Platform AWS: Integrated Platform for Individual Clients
Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Clients Products / Services Business Priorities Q2FY25 Highlights Future and digital readiness; On-boarding • Launched digital broking “BlinkX” and gearing Retail Investors • Securities ✓ modern tools and enhancing customer
Slide 22: Section 3: Consolidated Financial Performance
Section : 3 Consolidated Financial Performance 20
Slide 23: Consolidated Performance
Consolidated Performance Particulars (Rs Cr) Q2 FY25 Q1 FY25 QoQ % Q2 FY24 YoY % H1 FY25 H1 FY24 YoY % FY24 Gross Revenue 1,211 1,094 10.7% 1,214 -0.2% 2,305 2,295 0.4% 4,832 Adjusted PAT 232 171 36.0% 195 19.1% 403 361 11.6% 984 Networth^ 8,658 8,612 8,364 8,658 8,364 8,438 Cash and cash equivalent
Slide 24: Consolidated Performance: Diversified Business Model for Earnings Resilience
Consolidated Performance : Diversified Business Model for Earnings Resilience Total Revenue (Rs Cr) Pre-Provision Operating Profit (Rs Cr) PBT (Rs Cr) AWS Alternative and Distressed Credit 669 417 413 Mortgage Lending Investment Bank 1,276 1,214 1,261 1,211 530 1,094 466 265 301 238 325 278 275 405
Slide 25: Tab A: Investment Bank
TAB :A Investment Bank 23 A JM FINANCIAL
Slide 26: Loan Book
Loan Book End of Period Loan AUM(1) Loan Book Description Wholesale Mortgage Retail Mortgage Bespoke^ FI Financing* Capital Market ✓ Bespoke Finance : Promoter, Structured financing 4,593 4,600 ✓ Capital Markets : Loan against Securities 4,254 4,241 963 978 348 288 ✓ Financial Institution Financing
Slide 27: Increasing Client Engagement and Reach
Increasing Client Engagement and Reach Private Wealth AUM (Rs Cr) Equity Debt Liquid 74,040 76,262 65,009 68,105 1,865 60,287 1,842 2,935 2,390 13,196 14,931 3,567 14,046 13,971 13,448 59,002 59,465 43,272 48,028 51,744 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Number of Relationship Managers: 51 Priv
Slide 28: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 395 605 556 495 487 395 72.3% 219 63.1% 65.2% 75.9% 197 184 64.7% 117 36.9% 34.8% 27.7% 35.3% 24.1% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Profit
Slide 29: Tab B: Mortgage Lending
TAB :B Mortgage Lending 27 A JM FINANCIAL
Slide 30: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited End of Period Loan Book* (Rs Cr) Spread Analysis (%) • In line with the guidance Yield % COF % NIM % provided, the loan book 9,711 14.4% 14.0% 13.9% 13.8% 13.8% (excluding ICD to group 8,752 companies) has reduced during the quarter by Rs. 1,173 crore 7,462 9.3%
Slide 31: JM Financial Home Loans Limited
JM Financial Home Loans Limited Branch Network Loan AUM (Rs Cr) Disbursement (Rs Cr) 12.4 11.0 11.7 11.4 11.0 118 2,786 3,311 2,366 1,709 2,256 2,259 1,635 112 112 112 1,946 1,714 960 352 236 449 116 189 105 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Amount No. of files AT
Slide 32: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 229 222 127 176 173 197 155 82 194 140 183 121 28 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 (65) (86) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 PAT (Pre Non C
Slide 33: Tab C: Platform AWS
TAB: C Platform AWS 31 A JM FINANCIAL
Slide 34: Platform AWS: Key Highlights
Platform AWS: Key Highlights Clients ~ 3.5 Lakhs Affluent, HNI and strong vintage Growth of ADTO* & Volume Mix % ‘000 Rs Cr Cash Future Option ADTO Presence in 227 Cities 100% 72 Locations – 874 (Q1FY25 – 843, Q2FY24 – 814) 63 55 61 60 80% Strong advisory capabilities 48 Research and Technical Team
Slide 35: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 325 301 88.8% 283 79.6% 265 76.7% 73.9% 238 64.6% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) PBT ROA % 30.5% ROE % 92 7
Slide 36: Tab D: Alternative & Distressed Credit
TAB : D Alternative & Distressed Credit 34
Slide 37: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of September 30, 2024 – Rs. 13,701 Cr • Effective shareholding of 76.45% held by JM Financial Ltd as of September Infrastructure Portfolio & Others Plywood/ laminates 1.3% 10.5% 30, 2024 1.5% • 39 membe
Slide 38: Alternative & Distressed Credit: Performance Analysis
Alternative & Distressed Credit: Performance Analysis Asset Acquisitions (Rs Cr) Recoveries (Rs Cr) Assets Acquired by ARC JM Financial ARC's acquisition 247 893 599 614 107 107 376 405 60 42 21 22 - - 3 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Adjusted Net Tot
Slide 39: Section 4: Group Structure
Section 4 Group Structure 37 A JM FINANCIAL
Slide 40: Group Structure: September 30, 2024
Group Structure : September 30, 2024 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Private Wealth and PMS Holding company of other operating subsidiaries 100% 59.54% 99.75% 46.68%(2) 71.79% 100% 100% 100% 100% JM Financial JM Financial Asset JM Financial Overseas Hold
Slide 41: Section 5: Financial Performance
Section 5 Financial Performance 39
Slide 42: Consolidated Profit & Loss Statement: Quarterly Statement
Consolidated Profit & Loss Statement : Quarterly Statement Particulars (Rs Cr) Q2 FY25 Q1 FY25 QoQ % Q2 FY24 YoY % Gross Revenue 1,211 1,094 10.7% 1,214 -0.2% Finance cost 343 370 -7.3% 388 -11.6% Employee cost 292 231 26.2% 236 23.7% Depreciation 15 16 -8.6% 13 12.8% Other expenses 178 158 12.9% 17
Slide 43: Consolidated Profit & Loss Statement: Half Yearly Statement
Consolidated Profit & Loss Statement : Half Yearly Statement Particulars (Rs Cr) H1 FY25 H1 FY24 YoY % FY24 Gross Revenue 2,305 2,295 0.4% 4,832 Finance cost 713 754 -5.4% 1,562 Employee cost 523 430 21.8% 795 Depreciation 31 25 23.4% 53 Other expenses 336 305 10.5% 645 Adjustment of additional prov
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at September 30, 2024 As at March 31, 2024 Assets Loan book* - Steady state Financing 9,412 13,106 Distressed asset book (Investment in SRs / Loan) 2,833 2,947 Cash and cash equivalents (CCE)** 5,448 4,769 Other Investments (including lien-marked FDs
Slide 45: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at September 30, As at September 30, As at March 31, 2024 As at March 31, 2024 2024 2024 Investment Bank 3,068 3,092 3,063 3,086 JM Financial Products Limited 2,073 2,114 2,068 2,108 JM Financial Limited 506 565 506 565 J
Slide 46: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q2 FY25 Q1 FY25 QoQ % Q2 FY24 YoY % H1FY25 H1FY24 YoY % FY24 Investment Bank (IB) 555 395 40.6% 495 12.2% 951 886 7.3% 1,978 Mortgage Lending 339 361 -6.2% 367 -7.8% 700 733 -4.5% 1,531 Alternative & Distressed Credit 15 65 -77.6% 114 -87.1% 80 254 -68.4%
Slide 47: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q2FY25 H1FY25 Q2FY25 H1FY25 Investment Bank: 555 951 215 310 JM Financial Limited 411 528 287 303 JM Financial Products Limited 228 447 53 113 JM Financial Institutional Securities Limited 146 210 56 71 Overseas Entities 8 17 1 3
Slide 48: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q2FY25 H1FY25 Q2FY25 H1FY25 Platform AWS: 325 608 29 50 JM Financial Services Limited 307 576 34 62 JM Financial Asset Management Limited 11 20 (9) (18) JM Financial Commtrade Limited + Astute Investments + ARB Maestro 24 44 5 9 A
Slide 49: Investment Bank
Investment Bank Particulars (Rs Cr) Q2 FY25 Q1 FY25 QoQ % Q2 FY24 YoY % H1 FY25 H1 FY24 YoY % FY24 Segment Net worth + NCI 3,068 3,002 2.2% 2,849 7.7% 3,068 2,849 7.7% 3,092 Gross Revenue 555 395 40.6% 495 12.2% 951 886 7.3% 1,978 Finance cost 89 97 -8.3% 117 -24.3% 186 217 -14.4% 439 Impairment on
Slide 50: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q2 FY25 Q1 FY25 QoQ % Q2 FY24 YoY % H1 FY25 H1 FY24 YoY % FY24 Segment Net worth + NCI 4,559 4,617 -1.3% 4,381 4.1% 4,559 4,381 4.1% 4,611 Mortgage Lending 339 361 -6.2% 367 -7.8% 700 733 -4.5% 1,531 Finance cost 156 167 -6.7% 170 -8.5% 323 342 -5.4% 688 Impairme
Slide 51: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q2 FY25 Q1 FY25 QoQ % Q2 FY24 YoY % H1 FY25 H1 FY24 YoY % FY24 Segment Net worth + NCI 1,279 1,371 -6.7% 1,678 -23.8% 1,279 1,678 -23.8% 720 Gross Revenue 15 65 -77.6% 114 -87.1% 80 254 -68.4% 326 Finance Cost 50 64 -22.6% 77 -34.7% 115 152 -24.2
Slide 52: Platform AWS
Platform AWS Particulars (Rs Cr) Q2 FY25 Q1 FY25 QoQ % Q2 FY24 YoY % H1 FY25 H1 FY24 YoY % FY24 Segment Net worth + NCI 994 968 2.8% 681 45.9% 994 681 45.9% 949 Gross Revenue 325 283 14.7% 238 36.6% 608 413 47.2% 978 Finance cost 91 77 17.9% 55 65.2% 169 95 76.9% 239 Impairment on Financial Instrume
Slide 53: Lending Book Profile
Lending Book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%)# Wholesale Mortgage Retail Mortgage Bespoke FI Financing*** Capital Market Yield % COF % NIM % 15,808 15,111 963 13.6% 13.7% 978 12,917 13.3% 13.2% 13.4% 1,927 1,884 11,933 348 2,726 1,477 288 1,108 2,547 9,547 143 9.0% 9.0% 9.1% 9.2% 9.
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 16,949 17,254 16,145 15,031 5,448 1.50 1.49 1.48 13,866 4,769 1.35 1.25 3,975 1,607 1.36 1,905 1.24 2,847 1,453 1.04 0.99 1,227 1,631 3,840 0.76 2,864 11,277 11,125 1,029 2,522 11,60
Slide 55: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd Q2FY25 Q2FY24 Q2FY25 Q2FY24 Revenue 218 318 Revenue 228 306 Net Profit (88) 17 Net Profit 53 98 Net worth 4,161 4,271 Net worth 2,499 2,280 End of period Loan book# 5,873 9,711 End of period Loan
Slide 56: Half Yearly Performance of Select Subsidiaries
Half Yearly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) H1FY25 H1FY24 FY24 H1FY25 H1FY24 FY24 Revenue 452 633 1,305 Revenue 447 538 1,169 Net Profit (44) 27 47 Net Profit 113 162 427 Net worth 4,161 4,271 4,213 Net worth 2,499 2,280 2,544 En
Slide 57: Annexure: Corporate Social Responsibility and Other Details
Annexure Corporate Social Responsibility and Other Details 55
Slide 58: Corporate Social Responsibility
Corporate Social Responsibility Project Bachpan - Bihar • 19 Bachpan centres remained operational for 76 days in Q2, with 429 children enrolled and learning. Thematic Learning: During Q2 (Weeks 4-8), the major themes covered at the Bachpan centres were “Mera Sharir” (My Body) and “Meri Indriyan” (My
Slide 59: Corporate Social Responsibility
Corporate Social Responsibility JM Financial Shiksha Samarthan 1790 private school students’ Total INR 2.32 Cr fee disbursed fee disbursed for the new as first instalment of school fee academic year (2024-25) in Q2 Beyond Financial Support: The Swayam initiative by JM Financial Foundation aims to em
Slide 60: Corporate Social Responsibility
Corporate Social Responsibility Maitri Karuna Netralaya - Bihar • By the end of September 2024, the eye hospital had performed 4,939 surgeries since its inception in January 2023. • A total of 3567 unique OPDs and 3215 Follow-ups were conducted in Q2. With the installation of O.C.T in the hospital,
Slide 61: Corporate Social Responsibility
Corporate Social Responsibility Model Village Development Project - Bihar • Farmers’ Training: Between July and September, the project team conducted 13 extension training sessions on SRI techniques (Paddy sowing/transplantation) in 13 intervention villages across the Khaira and Sikandra blocks of J
Slide 62: Corporate Social Responsibility
Corporate Social Responsibility JMF Sports Project - Bihar • In the second quarter of FY 2024-25, the project trained 316 children (77 girls, 239 boys) in football and athletics at the four sports grounds established by JM Financial Foundation. • Between July and September 2024, 69 trainees (2 girls
Slide 63: 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 64: Board of Directors
Board of Directors Mr. Nimesh Kampani, Chairman Mr. Vishal Kampani, Vice Chairman and 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 leading financial • Launched the Asset Reconstruction business in 2008
Slide 65: Board of Directors (Cont'd)
Board of Directors (Cont’d) Mr. P S Jayakumar, Independent Director Mr. Navroz Udwadia, Independent Director CA, Post graduate in business management from XLRI Jamshedpur. BA in English, MA in Law, MBA from Harvard Business School • 23 years of work experience with Citibank in their India and Singap