Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q3 FY2021 Earnings Presentation
47 slides from Jm Financial's earnings presentation, Jan 23, 2021
Slide 1: Exchange filing cover letter
Januaary 23, 2021 BSE L Limited Natioonal Stock Exchange E o India Lim of mited Departtment of Coorporate Serrvices Exchhange Plaza 1st Floor, New Traading Ring Plot No.C-1, N G Block B Rotundda Building g, P J Towerrs Banddra-Kurla Complex C Dalal SStreet, Fort,, Banddra (East) Mumbbai 400001 Mummb
Slide 2: Quarter ended December 31, 2020 – Results update
JM Financial Limited Quarter ended December 31, 2020 – Results update January 23, 2021
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)^ 891 Cr 331 Cr 181 Cr 214 Cr 1.96 70.88 1.11 x Q3 FY21 -1.6% 8.6% 14.7% 36.0% Q3 FY20 905 Cr 305 Cr 158 Cr 158 Cr 1.87 64.90 1.71 x Adjusted Net Revenues PBT Net Profit Profit
Slide 6: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q3FY21 Q3FY20 YoY % Q2FY21 QoQ % Gross Revenue 891 905 -1.6% 803 10.9% Finance cost 278 354 -21.3% 289 -3.7% Impairment on Financial Instruments* 69 42 62.2% 79 -12.8% Employee cost 118 119 -1.3% 117 0.8% Depreciation 10 10 -3.6% 10 -1.0% Othe
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) 9MFY21 9MFY20 YoY % Gross Revenue 2,386 2,613 -8.7% Finance cost 840 1,052 -20.2% Impairment on Financial Instruments* 217 116 87.2% Employee cost 326 330 -1.5% Depreciation 30 30 -0.2% Other expenses 219 205 6.4% PBT 754 879 -14.1% Tax Expens
Slide 8: Impact of COVID-19 on the results
Impact of COVID-19 on the results Quarter ended Nine months ended Particulars (Rs Cr) 31.12.2020 31.12.2020 Net profit after tax and after non-controlling interest (Post COVID-19 Impact) 181 413 Add / (Less): Additional Provision for expected credit Loss 62 185 Diminution in fair valuation of invest
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at Dec 31, 2020 As at March 31, 2020 Assets Loan book* - Steady state Financing 9,936 11,307 (Gross loan book: Dec’20 – Rs. 10,407 Cr; Mar’20 – Rs. 11,531 Cr) Distressed asset book (Investment in SRs / Loan) 3,681 3,686 Cash and cash equivalents (CCE
Slide 10: Lending book Profile
Lending book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%)# 12,662 14.1% 14.2% 14.5% 14.1% 14.3% 11,531 11,386 2,188 10,833 10,407 1,156 2,270 1,413 1,654 10.2% 465 369 533 1,459 9.9% 10.1% 9.9% 9.9% 175 145 560 544 170 597 138 645 123 574 674 7.6% 7.5% 7.7% 6.7% 6.8% 8,599 8,052 8,316 8,410 7,5
Slide 11: Update on wholesale mortgage segment
Update on wholesale mortgage segment 10
Slide 12: NPA accounts in wholesale mortgage segment
NPA accounts in wholesale mortgage segment# Principal Principal % to total Provision Security Resolution Developer Sanction O/s in Resolution Mechanism loan book % Cover expected by in Crore Crore NPA* Mumbai Developer 47.3 47.3 0.7% 29.0% 1.3 SARFAESI action Sep-21 – Dec 21 Mumbai Developer 5.0 4.7
Slide 13: SMA2 accounts in wholesale mortgage segment
SMA2 accounts in wholesale mortgage segment # Principal Principal % to total Provision Security Resolution Developer Sanctioned O/s in Resolution Mechanism loan book % Cover expected by in Crore Crore Mumbai Developer 175.0 145.6 2.1% 20.7% 1.3 DM / JDA with strong developer Sep-21 – Dec 21 Promoter
Slide 14: Well positioned to benefit from the improving risk environment
Well positioned to benefit from the improving risk environment Peaked NPA and SMA2 numbers - Balance portfolio witnessing strong sales and collections, which is expected to continue in coming quarters Adequate provisions on the book – no further COVID 19 related provisioning anticipated Signific
Slide 15: Borrowing Profile: Lowest Debt to Equity in the Last Decade
Borrowing Profile : Lowest Debt to Equity in the Last Decade 1.7 1.5 1.3 1.2 1.2 1.1 1.0 Borrowing Breakup* 0.9 0.8 13,410 0.7 Short 1% 2% 11,756 13% Short 10,440 10,879 10,384 16% 1% 2% 9% 6% 1% Short 3% Short 5% 3% 1% 17% 4% Short 2% 27% 10% 6% 1% 8% 9% 26% 1% 14% 1% 24% 19% 18% Long Long Long Lon
Slide 16: Liability Profile over the last one year
Liability Profile over the last one year Amount in Rs crore, unless stated Dec-19 Mar-20 June-20 Sept-20 Dec-20 otherwise Consolidated gross borrowing* 13,410 11,756 10,440 10,879 10,384 • Reduced leverage across Gross Debt / Equity 1.71 1.47 1.17 1.20 1.11 lending segments Net Debt / Equity 1.30 1.
Slide 17: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 16
Slide 18: 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 19: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q3 FY21 Q2 FY21 QoQ % Q3 FY20 YoY % 9MFY21 9MFY20 YoY IWS 425 406 4.8% 442 -3.8% 1,121 1,200 -6.6% Mortgage Lending 326 292 11.5% 342 -4.9% 916 1,035 -11.5% Distressed Credit 126 85 48.6% 96 31.7% 309 315 -1.8% Asset Management 8 7 16.0% 18 -51.9% 23 56 -5
Slide 20: IWS – Key Performance Matrix
IWS – Key Performance Matrix Investment Banking and Arranger Transactions Private Wealth Management AUA (Rs Cr) Investment Banking Transactions 54,015 56,757 • BRLM to the IPOs of UTI AMC (~Rs. 2,160 Cr), Burger King India 46,886 47,579 4,327 Limited (~Rs. 1,067 Cr), Equitas Small Finance Bank Limit
Slide 21: IWS – Key Performance Matrix (cont’d)
IWS – Key Performance Matrix (cont’d) Average Daily Turnover (Rs Cr) Institutional Equities Business 13,676 13,894 12,582 11,175 11,119 • Worldwide institutional reach - dominant global & local institutional franchise 12,746 12,963 11,504 10,282 10,206 • Institutional distribution strength - We cove
Slide 22: IWS – Key Financial Information
IWS – Key Financial Information Particulars (Rs Cr) Q3 FY21 Q2 FY21 QoQ % Q3 FY20 YoY % 9M FY21 9M FY20 YoY % Segment Net worth + NCI 2,935 2,842 3.3% 2,590 13.3% 2,935 2,590 13.3% Loan Book* 3,051 3,861 -21.0% 4,548 -32.9% 3,051 4,548 -32.9% Gross Revenue 425 406 4.8% 442 -3.8% 1,121 1,200 -6.6% Fi
Slide 23: Mortgage Lending
Mortgage Lending Wholesale Loan Book* Retail • Provides an integrated financial solution to real estate • Home loans business loan book at Rs. 363 developers with major focus on real estate project financing 8,008 7,651 crore 7,428 7,526 7,355 • 67 groups – significant focus on repeat business • Col
Slide 24: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction AUM (Rs Cr) Asset Acquisitions (Rs Cr) 271 11,413 11,489 11,441 11,429 10,915 200 120 2,946 3,012 2,982 3,244 2,923 51 51 5 5 - - 10 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21* Q3 FY21 ARC's AUM JM's share in ARC's AUM Assets Acqu
Slide 25: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction Particulars (Rs Cr) Q3 FY21 Q2 FY21 QoQ % Q3 FY20 YoY % 9M FY21 9M FY20 YoY % Segment Net worth + NCI* 1,548 1,513 2.3% 1,502 3.1% 1,548 1,502 3.1% Gross Revenue 126 85 48.6% 96 31.7% 309 315 -1.8% Finance Cost 68 67 2.2% 64 7.3% 200 200 -0.1% Employee Cost 1
Slide 26: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AAUM (Rs Cr) Mutual Fund: • Quarterly Average AUM (QAAUM) – Rs 3,700 Cr. • Rank (QAAUM) – 30 among 42 Mutual Funds. 5,683 6,109 • 12 Schemes categorized as Equity, Hybrid and Debt. 4,049 4,182 1,540 2,824 3,700 • Investor reach – 1,19,940 base, 13 bran
Slide 27: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 26
Slide 28: Organisational Structure – December 2020
Organisational Structure – December 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 Financia
Slide 29: Shareholding Summary
Shareholding Summary Share Price Information As on December 31, Market Information (BSE) 2020 140.0 120.0 Market Capitalization (Rs Cr) 8,038.18 100.0 80.0 Price (Rs) 84.40 60.0 40.0 No. of Shares Outstanding (Cr) 95.24 20.0 - Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 52 Week High-Low (Rs) 126.00/55.50 Key
Slide 30: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 29
Slide 31: Performance of Select Subsidiaries
Performance of Select Subsidiaries In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Revenue 313 331 Revenue 204 216 Net Profit 106 115 Net Profit 53 46 Net worth 3,552 3,242 Net worth 1,804 1,686 Loan book# 7,097 7,736 Loan book# 3,189 4,137 Net In
Slide 32: Performance of Select Subsidiaries
Performance of Select Subsidiaries In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd 9M FY21 9M FY20 9M FY21 9M FY20 Revenue 880 1,005 Revenue 519 655 Net Profit 261 333 Net Profit 113 139 Net worth 3,552 3,242 Net worth 1,804 1,686 Loan book# 7,097 7,736 Loan book# 3,189 4,137 Ne
Slide 33: 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 34: 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 35: 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 36: CSR – Integrated Rural Transformation Programme
CSR – Integrated Rural Transformation Programme INTEGRATED VILLAGE DEVELOPMENT Integrated Village Development Project – Mokhada block, Palghar district, Maharashtra 50 farmers supported for chili cultivation through sapling distribution, transplantation support, technical training and fertilizer
Slide 37: CSR – Integrated Rural Transformation Programme
CSR – Integrated Rural Transformation Programme STRENGTHENING HEALTHCARE Shri Vardhman Nidan Seva – Our mobile medical unit launched on December 10, 2020 at Jamui, Bihar JMFF initiated this project with the objective of providing last mile delivery of medical services at doorsteps of patients via
Slide 38: Philanthropic giving and support
Philanthropic giving and support Our partner organization , Jai Vakeel Foundation ensured the wellbeing and Photo Gallery safety of their staff and 480 students during the pandemic, providing them with: • 330 grocery kits and 53 medical kits for 160 families • Literature on awareness of COVID-19 car
Slide 39: 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
Slide 40: Summary of Consolidated results FY 21 – Q3 compared to FY 20 – Q3
PRESS RELEASE For Immediate Release JM Financial’s consolidated net profit increased by 30.0% QoQ and 14.7% YoY for Q3 FY21. Mumbai, January 23, 2021: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the third quarter and nine mo
Slide 41: Nine months ended December 31, 2020
Nine months ended Nine months ended % Increase / Particulars December 31, 2020 December 31, 2019 (Decrease) Net profit after tax, non-controlling interest 413.43 414.42 (0.24%) and share of associate Adjusted Net Profit after tax, non- controlling interest and 503.13 414.42 21.41% share of associate
Slide 42: Management commentary on results
Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said, “The economy has rebounded quite strongly from the pandemic as compared to the first two quarters of this financial year. The economy is showing strong signs of recovery, albeit some
Slide 43: Business Update: Investment banking, Wealth Management and Securities
Business Update Investment banking, Wealth Management and Securities business (IWS) The IWS segment continued the momentum during the quarter. The pipeline for our investment banking transactions continues to remain healthy. During the quarter, our completed investment banking transactions include
Slide 44: Business Update: Mortgage Lending
NCDs in the form of Basel III compliant Additional Tier I bonds of Union Bank of India, Bank of Baroda and Indian Bank. (~Rs. 2,400 Cr) NCDs in the form of Basel III compliant Tier II bonds of Union Bank of India. (~Rs. 1,000 Cr) Subordinated Debt of NBFCs like Tata Capital Financial Services
Slide 45: Business Update: Distressed Credit and Asset Management
across geographies since August 2020 onwards. The last quarter has only seen the sales numbers strengthen and we have seen significant momentum in sales and collections during this period. Most of this demand is has come in from end users and we see the momentum continuing in the near future. This q
Slide 46: Borrowing Profile and Awards & Recognitions
average AUM of our Mutual Fund schemes during the quarter ended September 30, 2020 stood at Rs. 4,182 Cr; comprising of Rs. 905 Cr in equity schemes (including hybrid schemes) and Rs. 3,277 Cr in debt schemes (including liquid scheme). In addition, we have commitments aggregating to Rs. 159 Crore un
Slide 47: About JM Financial and contacts
The Group is headquartered in Mumbai and has a presence across 518 locations spread across 166 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE. For more information, log on to www.jmfl.com or contact: Manali Pilankar Manish Sheth Corporate Communicat