Slide 1: Cover letter: Outcome of the Board Meeting
j JM FINANCIAL October 23, 2019 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza st 1 Floor, New Trading Ring PlotNo.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: Press release: consolidated revenue and net profit for Q2 FY20
PRESS RELEASE For Immediate Release JM Financial’s consolidated revenue decreased by 12.7% and consolidated net profit decreased by 20.7% for Q2 FY20. Mumbai, October 23, 2019: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the
Slide 3: Press release: half year results and management comments
Half year ended Half year ended % Increase / Particulars September 30, 2019 September 30, 2018 (Decrease) Net profit after tax, non- controlling interest and 256.88 306.08 (16.1%) share of associates Adjusted Net Profit after tax, non-controlling 278.03 340.21 (18.3%) interest and share of associate
Slide 4: Business Update: Investment banking, Wealth Management and Securities
Business Update Investment banking, Wealth Management and Securities business (IWS) The IWS segment gained traction during the quarter. Our recruitment in this segment gained momentum especially in the wealth management business. The pipeline for our investment banking transactions continues to re
Slide 5: Mortgage Lending
Mortgage Lending The total mortgage lending book (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 8,302 Cr as on September 30, 2019. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, C
Slide 6: Mortgage lending portfolio collections and concentration
Since majority of the portfolio is cashflow backed even since September 2018, we have continued to witness healthy weekly collections in our escrow accounts. This demonstrates that sales and collections are still happening at the right price point at good locations and in projects being developed
Slide 7: Distressed Credit and Asset Management
Distressed Credit We chose not to participate in any fresh acquisitions during the quarter. The complete focus of the business was on recoveries and resolutions. The recoveries during the quarter stood at Rs. 483 Cr. We have also been experiencing resolution delays in some of our key accounts furt
Slide 8: About JM Financial
About JM Financial JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both whole
Slide 9: Forward-Looking statements
Forward - Looking statements This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associat
Slide 10: Quarter ended September 30, 2019 – Results update
JM Financial Limited Quarter ended September 30, 2019 – Results update October 23, 2019
Slide 11: 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 12: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 3
Slide 13: Key Highlights – Consolidated Performance
Key Highlights – Consolidated Performance Rs. Revenues PBT Net Profit EPS BVPS Gross Debt/ Equity# 851 Cr 271 Cr 130 Cr 1.54 62.99 1.78x Q2 FY20 -12.7% -28.5% -20.7% Q2 FY19 976 Cr 380 Cr 163 Cr 1.95 58.63 2.61x Revenues PBT Net Profit EPS ROA* ROE* 1,708 Cr 574 Cr 257 Cr 3.06 3.5% 9.9% H1FY20 -6.6%
Slide 14: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q2FY20 Q2FY19 YoY % Q1FY20 QoQ % Gross Revenue 851 976 -13% 857 -1% Finance cost 349 381 -8% 350 0% Impairment of Financial Instruments* 50 23 121% 24 111% Employee cost 106 113 -6% 105 1% Depreciation 10 7 44% 10 -1% Other expenses 65 72 -10%
Slide 15: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) H1FY20 H1FY19 YoY % Gross Revenue 1,708 1,828 -7% Finance cost 699 716 -2% Impairment of Financial Instruments* 73 42 75% Employee cost 211 220 -4% Depreciation 20 13 50% Other expenses 130 141 -8% PBT 574 696 -18% Tax Expense 182 257 -29% PAT
Slide 16: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at Sept 30, 2019 As at March 31, 2019 Assets Loan book* 13,710 13,999 (Gross loan book: Sep’19 – Rs. 13,810 Cr; Mar’19 – Rs. 14,107 Cr) Distressed asset book (Investment in SRs / Loan) 4,164 4,194 Cash and cash equivalents** 2,035 1,737 Other Investm
Slide 17: Lending book Profile
Lending book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%) 17,108 14.0% 14.1% 16,442 13.3% 13.2% 2,568 13,926 3,028 13,810 9.8% 9.9% 2,451 2,837 2,472 2,904 9.0% 9.0% 350 397 1,232 1,100 6.6% 6.5% 567 639 6.1% 5.9% 11,073 11,211 9,290 9,167 Q1 FY19 Q1 FY20 Q2 FY19 Q2 FY20 Q1 FY19 Q1 FY20 Q2 FY19
Slide 18: Entity-wise Lending Book Profile
Entity-wise Lending Book Profile Rs. in crore Particulars Q1 FY19 Q1 FY20 Q2 FY19 Q2 FY20 Wholesale Mortgage JMF Credit Solutions 8,475 7,656 8,738 7,642 JMF Products 2,111 1,389 2,028 1,309 JMF Capital 100 52 100 46 Other Companies 387 193 345 170 Total 11,073 9,290 11,211 9,167 Retail Mortgage JMF
Slide 19: Borrowing Profile and Breakup
Borrowing Profile Gross Debt/Equity : ~ 1.8x Gross Debt/Equity: ~1.9x Gross Debt/Equity: ~2.6x Net Debt/Equity: ~ 1.5x Net Debt/Equity: ~1.7x Net Debt/Equity: ~2.3x September 30, 2019 June 30, 2019* September 30, 2018* 1% 2% Short 3% 2% Short 4% 0% Short Term Term Term Borrowing Breakup 18% 28% 41%
Slide 20: Liability Profile over the last one year
Liability Profile over the last one year Amount in Rs crore, unless stated Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 otherwise • Reduced leverage across Consolidated gross borrowing 17,794 15,436 13,563 13,861 13,127 lending segments Gross Debt / Equity 2.61 2.15 1.94 1.92 1.78 • Diversified sources of bor
Slide 21: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 12
Slide 22: Our Business
Our Business Our Business Segments Investment Banking, Mortgage Distressed Asset Wealth Management & Lending Credit Management Securities Business (IWS) Investment Banking and Wholesale – Developer Asset Reconstruction Mutual Fund Securities Funding Retail - Housing, LAP and Wealth Management EIL* B
Slide 23: Segment Performance
Segment Performance Ind AS Segment revenue (Rs Cr) Q2 FY20 Q1 FY20 QoQ Q2 FY19 YoY IWS* 382 368 3.9% 443 -13.6% Mortgage Lending 345 340 1.3% 321 7.4% Distressed Credit 106 133 -20.4% 180 -41.5% Asset Management 20 18 15.3% 25 -18.9% Others 14 15 -8.1% 24 -42.8% Total Segment Revenue 867 874 -0.8% 9
Slide 24: Segment Performance – Ind AS
Segment Performance – Ind AS Ind AS Segment revenue (Rs Cr) H1 FY20 H1 FY19 YoY IWS* 758 867 -12.5% Mortgage Lending 693 613 13.1% Distressed Credit 219 283 -22.7% Asset Management 38 51 -24.7% Others 31 44 -29.8% Total Segment Revenue 1,740 1,858 -6.4% Less: Inter - segmental revenue (32) (30) 7.5%
Slide 25: IWS – Key Non Financial Information
IWS – Key Non Financial Information PE and RE AUM (Rs Cr) Securities Business(Rs Cr) 928 Average Daily Turnover (Rs Cr) Total 802 845 794 794 AUM 155 155 155 155 155 9,861 7,264 647 639 639 690 773 4,779 4,793 4,834 1,266 878 986 941 887 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY1
Slide 26: IWS – Key Financial Information
IWS – Key Financial Information Particulars (Rs Cr) Q2 FY20 Q1 FY20 QoQ % Q2 FY19 YoY % H1FY20 H1FY19 YoY % FY19 Net worth + MI 2,494 2,595 -3.9% 2,646 -5.7% 2,494 2,646 -5.7% 2,533 Loan Book 5,374 5,320 1.0% 8,176 -34.3% 5,374 8,176 -34.3% 5,627 Gross Revenue 382 368 3.9% 443 -13.6% 758 867 -12.5%
Slide 27: Mortgage Lending
Mortgage Lending Wholesale Retail Loan Book (Rs Cr) • Provides an integrated financial solution to real estate • Home loans business loan book at developers with major focus on real estate project financing Rs.260 crore 8,792 8,455 8,302 • 81 groups – significant focus on repeat business 8,505 • Exp
Slide 28: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction AUM (Rs Cr) Asset Acquisitions (Rs Cr) 14,191 14,257 14,037 1,087 13,294 1,021 526 304 3,140 3,212 3,107 223 2,260 109 - - Q1 FY19 Q1 FY20 Q2 FY19 Q2 FY20 Q1 FY19 Q1 FY20 Q2 FY19 Q2 FY20 ARC's AUM JM's share in ARC's AUM Assets Acquired by ARC JM's share in a
Slide 29: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AUM (Rs Cr) 12,672 Mutual Fund: 11,364 4,233 8,712 • Quarterly Average AUM (QAAUM) – Rs 6,488 cr. 3,007 7,710 6,488 • Rank (QAAUM) – 25 among 41 Mutual Funds. 3,053 3,068 1,979 • 14 Schemes categorized as Equity, Hybrid and Debt. 8,439 8,357 5,659 4,64
Slide 30: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 21
Slide 31: Organisational Structure – September 2019
Organisational Structure – September 2019 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 47.05%(2) 99.35% 59.54% 100% 59.25% 100% 100% 100% JM Financial JM Financial Infinite India JM Financial Overseas JM Financial
Slide 32: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) As on 30.09.2019 100.0 Market Capitalization (Rs Cr) 6,648.64 80.0 60.0 Price (Rs) 79.05 40.0 20.0 No. of Shares Outstanding (Cr) 84.11 - Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 52 Week High-Low (Rs) 98.70/61.45 Key Institutional Inves
Slide 33: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 24
Slide 34: Performance of Select Subsidiaries – IND AS
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd Q2 FY 20 Q2 FY19 Q2 FY 20 Q2 FY19 Revenue 334 320 Revenue 199 246 Net Profit 110 87 Net Profit 31 47 Net worth 3,127 2,666 Net worth 1,640 1,517 Loan book 8,042 8,738 Loan book 4,931 7,82
Slide 35: Performance of Select Subsidiaries – IND AS
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd H1 FY 20 H1 FY19 H1 FY 20 H1 FY19 Revenue 674 611 Revenue 439 490 Net Profit 218 170 Net Profit 93 110 Net worth 3,127 2,666 Net worth 1,640 1,517 Loan book 8,042 8,738 Loan book 4,931 7,
Slide 36: 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 37: 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 38: 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 39: Integrated Rural Transformation Programme – Bihar
Integrated Rural Transformation Programme – Bihar JAMUI DISTRICT – SIKANDRA, CHAKAI AND JHAJHA BLOCKS LIVELIHOODS EMPOWERMENT WOMEN Shri Vardhmaan Gaudhaam (Dairy Shri Vardhmaan Mahila Griha Project) initiated as intensification of Udyog running in Sikandra existing ILDC Project in Sikandra bloc
Slide 40: Integrated Rural Transformation – Jharkhand and Maharashtra
Integrated Rural Transformation – Jharkhand and Maharashtra INTEGRATED VILLAGE DEVELOPMENT PROJECT GIRIDIH DISTRICT – DUMRI AND PIRTAND BLOCKS PALGHAR DISTRICT – MOKHADA BLOCK Integrated Village Development Project implemented in 7 villages in a radius of 30 kms. FIRST REFERRAL UNIT (FRU) First
Slide 41: Philanthropic Giving and Support
Philanthropic Giving and Support • JMFF has provided material support to students as under- Education Uniforms at a school for 610 tribal students in Pali, Maharashtra Uniforms and shoes for children attending Balwadis run by senior citizens in Powai, Mumbai Promoting • JMFF has supported a Trus
Slide 42: For Further Queries
For Further Queries Mr. Manish Sheth Mr. Nishit Shah Group CFO Business Strategy and Investor Email: manish.sheth@jmfl.com Relations & CFO – JM Financial Contact No: 022 66303461 Products Limited Email: nishit.shah@jmfl.com Contact No: 022 66303522 Mr. Gagan Kothari CFO – JM Financial Credit Solutio