Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q2 FY24 Earnings Presentation
53 slides from Jm Financial's earnings presentation, Nov 3, 2023
Slide 1: Exchange filing cover letter for Investor Presentation
j JM Fl'NANCIAL November 3, 2023 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 – 400 001 Mumbai – 400 051
Slide 2: JM Financial Limited – Q2FY24 Results Update
A Legacy of Excellence built with Integrity A Future of Pur1 pose led by Innovation e JM Financial Limited – Q2FY24 Results Update ' JM FINANCIAL ES
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 Group Overview Section 2 Consolidated Financial Performance Tab A Investment Bank Tab B Mortgage Lending Tab C Platform AWS Tab D Alternative and Distressed Credit Section 3 Group Structure Section 4 Financial Performance Annexure Corporate Social Responsibility and Other
Slide 5: Section: Group Overview
Section : 1 Group Overview ' JM FINANCIAL I ES 3
Slide 6: Evolution of the Franchise Over Five Decades
Evolution of the Franchise Over Five Decades; Unmatched Depth and Breadth Launched Bondskart. Received license Reported highest ever for Housing consolidated operating Set up a dedicated Finance from PAT real estate business National Housing with a Global Fund Bank (NHB) Terminated JV with led by Mr
Slide 7: Diversified Businesses with Multiple Growth Opportunities
Diversified Businesses with Multiple Growth Opportunities • 1 Integrated Investment Bank : Cornerstone of our Franchise • Caters to Institutional, Corporate, • 3 Alternative and Distressed Credit : Expertise Built in a Niche Business • Distressed Credit relates to acquisition and resolution of stres
Slide 8: Integrated Investment Bank: Deep Client Relationships
Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Clients Products / Services Business Priorities Q2FY24 Highlights • Investment Banking • Strategy to integrate the investment bank is Promoters • Institutional Equities ✓ Expand the depth and breadth of the client
Slide 9: Mortgage Lending: Wholesale and Retail Mortgage
Mortgage Lending: Wholesale and Retail Mortgage Clients Products / Services/ Business Priorities Q2FY24 Highlights Wholesale Mortgage Wholesale Mortgage: Wholesale Mortgage: Wholesale Mortgage • Project / Construction Finance • Growth of loan book • Loan Book stood at Rs. 9,711 Cr in Q2FY24 • Develo
Slide 10: Alternative and Distressed Credit
Alternative and Distressed Credit Clients Products / Services Business Priorities Q2FY24 Highlights • Acquisition of • Highest-ever AUM Banks distressed assets • Strong recoveries ✓ Co-Investment model with strategic partners/ financial investors including distressed funds • Strong acquisition over
Slide 11: Platform AWS: Integrated Platform for Individual Clients
Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Products / Services / Clients Business Priorities Q2FY24 Highlights Geography Retail Investors • Securities • Advisory ✓ Future and digital readiness; On-boarding modern tools and enhancing customer experience ( • Launched d
Slide 12: Section: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance ' JM FINANCIAL I ES 10
Slide 13: Consolidated Performance
Consolidated Performance Rs. Revenues Pre-Provision Net Profit ROA* End of period PBT ROE* EPS Operating Profit Loan book # 1,214 Cr 405 Cr 278 Cr 195 Cr 2.7% 9.4% 2.0 15,808 Cr Q2 FY24 Q2 FY23 t 38.4% t 16.6% ' -12.6% t 8.3% t t t 7.8% 877 Cr 347 Cr 318 Cr 180 Cr 3.8% 9.2% 1.9 14,670 Cr Pre-Provisi
Slide 14: 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 ■ ■ Mortgage Lending Investment Bank ■ 405 318 322 1,214 377 1,081 364 300 278 347 292 238 946 877 871 175 23
Slide 15: Tab A: Investment Bank
TAB : A Investment Bank ' JM FINANCIAL I ES 13
Slide 16: Franchise Enhancing Financing
Franchise Enhancing Financing End of Period Loan Book(1) Loan Book Description ■ Wholesale Mortgage ■ Retail Mortgage ■ Bespoke ■ FI Financing* ■ Capital Market ✓ Bespoke Finance : Promoter, Structured financing 5,148 4,908 4,512 4,612 4,593 ✓ Capital Markets : Loan against Securities 895 1,160 783
Slide 17: Increasing Client Engagement and Reach
Increasing Client Engagement and Reach Private Wealth AUM (Rs Cr)* Private Wealth AUM Transactional and Recurring (Rs Cr)* ■ Equity ■ Debt ■ Liquid ■ Recurring ■ Transactional 57,679 57,681 58,163 60,287 60,287 56,515 57,679 57,681 56,515 58,163 4,349 4,209 3,456 3,567 4,191 13,294 13,448 15,984 14,
Slide 18: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) ■ Interest Income ■ Non Interest Income 495 184 391 368 315 63.1% 133 135 269 55.3% 58.5% 118 49.8% 47.9% 105 50.2% 44.7% 41.5% 36.9% 52.1% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Pr
Slide 19: Tab B: Mortgage Lending
TAB : B Mortgage Lending ' JM FINANCIAL I ES 17
Slide 20: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited • In line with our earlier guidance, we have made additional provisions of Rs. 126 crore during the quarter. 8,415 End of Period Loan Book* (Rs Cr) 9,299 9,501 9,293 9,711 13.4% - ■ Yield % 13.1% ■ - Spread Analysis (%) COF % 13.3% ■ - -- 13.2% ■ NIM % 13.9% 9.0
Slide 21: JM Financial Home Loans Limited
JM Financial Home Loans Limited Branch Network Disbursement (Rs Cr) End of Period Loan Book (Rs Cr) Average Ticket Size of Rs. 11 Lakhs 105 362 1,504 93 93 1,450 1,387 236 205 1,181 78 175 75 148 1,035 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24
Slide 22: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 150 214 161 160 197 119 120 194 194 155 178 152 148 28 20 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 PAT (Pre Non Con
Slide 23: Tab C: Platform AWS
TAB : C Platform AWS ' JM FINANCIAL I ES 21
Slide 24: Platform AWS: Key Highlights
Platform AWS: Key Highlights Clients ~ 2.5+ Lakhs ‘000 Rs Cr - - - - Affluent, HNI and strong vintage Growth of ADTO* & Volume Mix % Cash Future Option ADTO Presence in 222 Cities 100% 44 Locations – 814 (Q1FY24 – 768, Q2FY23 - 682) 39 40 80% 33 36 Strong advisory capabilities 32 32 27 29 28 Researc
Slide 25: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 238 118.1% 92.6% 88.8% 175 83.4% 82.9% 147 145 151 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23* Q1FY24 Q2FY24 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) ■ PBT ■ PAT (post Non Co
Slide 26: Tab D: Alternative & Distressed Credit
TAB : D Alternative & Distressed Credit ' JM FINANCIAL I ES 24
Slide 27: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of September 30, 2023 – Rs. 15,114 Cr • Effective shareholding of 58.28% held by JM Financial Ltd as of September Infrastructure Portfolio & Others Plywood/ laminates 1.3% 10.5% 30 2023 1.6% • 49 member
Slide 28: Alternative & Distressed Credit: Performance Analysis
Alternative & Distressed Credit: Performance Analysis Asset Acquisitions (Rs Cr) Recoveries (Rs Cr) Cumulative ■ Assets Acquired by ARC ■ JM Financial ARC's acquisition acquisition of Rs. 1,181 2,736 4,939 Cr over last 3Q 2,096 480 371 376 555 454 143 143 124 87 107 107 123 Q2 FY23 Q3 FY23 Q4 FY23 Q
Slide 29: Section: Group Structure
Section 3 Group Structure ' JM FINANCIAL I ES 27
Slide 30: Group Structure: September 30, 2023
Group Structure : September 30, 2023 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Private Wealth and PMS Holding company of other operating subsidiaries 100% 59.54% 99.71% 46.68%(2) 53.62% 100% 100% 100% 100% JM Financial JM Financial Asset JM Financial Overseas Hold
Slide 31: Section: Financial Performance
Section 4 Financial Performance ' JM FINANCIAL I ES 29
Slide 32: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q2 FY24 Q1 FY24 QoQ % Q2 FY23 YoY % Gross Revenue 1,214 1,081 12.3% 877 38.4% Finance cost 388 366 6.1% 270 43.9% Employee cost 236 193 22.0% 141 67.5% Depreciation 13 12 9.4% 10 30.7% Other expenses 172 133 29.0% 109 57.4% Pre Provisioning pr
Slide 33: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) H1 FY24 H1 FY23 YoY % FY23 Gross Revenue 2,295 1,683 36.4% 3,343 Finance cost 754 531 42.1% 1,179 Employee cost 430 288 48.8% 622 Depreciation 25 20 28.3% 42 Other expenses 305 205 48.6% 452 Adjustment of additional provision on Security Recei
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at September 30, 2023 As at March 31, 2023 Assets Loan book* - Steady state Financing 16,130 15,723 Distressed asset book (Investment in SRs / Loan) 4,060 4,488 Cash and cash equivalents (CCE)** 1,631 2,207 Other Investments (including lien-marked FD
Slide 35: 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, 2023 As at March 31, 2023 2023 2023 Investment Bank 2,849 2,730 2,843 2,724 JM Financial Products Limited 2,042 1,949 2,036 1,943 JM Financial Limited 424 422 424 422 J
Slide 36: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q2 FY24 Q1 FY24 QoQ % Q2 FY23 YoY % H1FY24 H1FY23 YoY % FY23 Investment Bank 495 391 26.6% 315 57.1% 886 639 38.7% 1,299 Mortgage Lending 367 365 0.6% 307 19.7% 733 607 20.8% 1,319 Alternative & Distressed Credit 114 140 -19.0% 102 11.5% 254 167 52.4% 137
Slide 37: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q2FY24 H1FY24 Q2FY24 H1FY24 Investment Bank: 495 886 142 248 JM Financial Limited 231 349 119 148 JM Financial Products Limited 306 538 98 162 JM Financial Institutional Securities Limited 54 95 13 22 Overseas Entities 4 9 (1) (1)
Slide 38: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q2FY24 H1FY24 Q2FY24 H1FY24 Platform AWS: 238 413 9 18 JM Financial Services Limited^ 224 384 13 25 JM Financial Asset Management Limited 6 14 (9) (15) JM Financial Commtrade Limited + Astute Investments + ARB Maestro 21 40 4 10 A
Slide 39: Investment Bank
Investment Bank Particulars (Rs Cr) Q2 FY24 Q1 FY24 QoQ % Q2 FY23 YoY % H1FY24 H1FY23 YoY % FY23 Segment Net worth + NCI 2,849 2,775 2.7% 2,595 9.8% 2,849 2,595 9.8% 2,730 Gross Revenue 495 391 26.6% 315 57.1% 886 639 38.7% 1,299 Finance cost 117 100 17.5% 90 30.7% 217 174 24.6% 368 Impairment on Fi
Slide 40: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q2 FY24 Q1 FY24 QoQ % Q2 FY23 YoY % H1FY24 H1FY23 YoY % FY23 Segment Net worth + NCI 4,381 4,365 0.4% 4,129 6.1% 4,381 4,129 6.1% 4,349 Gross Revenue 367 365 0.6% 307 19.7% 733 607 20.8% 1,319 Finance cost 170 171 -0.5% 129 31.7% 342 254 34.6% 557 Net loss on der
Slide 41: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q2 FY24 Q1 FY24 QoQ % Q2 FY23 YoY % H1FY24 H1FY23 YoY % FY23 Segment Net worth + NCI 1,678 1,853 -9.5% 1,855 -9.6% 1,678 1,855 -9.6% 1,812 Gross Revenue 114 140 -19.0% 102 11.5% 254 167 52.4% 137 Finance Cost 77 75 2.7% 58 33.1% 152 113 34.8% 247
Slide 42: Platform AWS
Platform AWS Particulars (Rs Cr) Q2 FY24 Q1 FY24 QoQ % Q2 FY23 YoY % H1FY24 H1FY23 YoY % FY23 Segment Net worth + NCI 681 693 -1.6% 672 1.4% 681 672 1.4% 685 Gross Revenue 238 175 35.6% 147 62.1% 413 261 58.2% 561 Finance cost 55 40 37.8% 23 139.0% 95 40 139.4% 104 Impairment on Financial Instrument
Slide 43: Consolidated Lending Book Profile
Consolidated Lending Book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%)# ■ Wholesale Mortgage ■ Retail Mortgage ■ Bespoke ■ FI Financing*** ■ Capital Market 14,670 1,141 995 15,234 904 1,009 15,653 1,062 1,592 15,891 1,160 1,653 15,808 963 1,927 - Wtd. Avg Tenure (Months) 12.7% - 12.8% Yield % -
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) 13,063 - Equity** 14,702 - Debt* 15,875 1.45 ....... D/E 16,359 1.47 - Net D/E 16,949 1.50 2,207 1.34 2,109 1.21 1.34 1.36 1,631 1.15 1.25 1,388 1,452 1.08 10,781 11,153 11,276 10,938 10,972 Q2FY23 Q3FY23 Q4FY
Slide 45: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd I Q2FY24 Q2FY23 I Q2FY24 Q2FY23 Revenue 318 281 Revenue 306 229 Net Profit 17 91 Net Profit 98 84 Net worth 4,271 4,082 Net worth 2,280 2,107 End of period Loan book# 9,711 8,415 End of period Lo
Slide 46: Half Yearly Performance of Select Subsidiaries
Half Yearly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) I H1FY24 H1FY23 FY23 I H1FY24 H1FY23 FY23 Revenue 633 554 1,173 Revenue 538 424 858 Net Profit 27 149 335 Net Profit 162 160 318 Net worth 4,271 4,082 4,257 Net worth 2,280 2,107 2,188
Slide 47: Annexure: Corporate Social Responsibility and Other Details
Annexure Corporate Social Responsibility and Other Details ' JM FINANCIAL I ES 45
Slide 48: CSR intervention – Education
CSR intervention – Education DIGITAL SAKSHARTA - BIHAR JMFF SHIKSHA SAMARTHAN PROJECT BACHPAN - BIHAR DIGITAL SAKSHARTA - MAHARSHTRA • A new mini – hub center set up and inaugurated at the government-run Middle School at • 18 Bachpan centers operational across Sikandra Deepakarhar village of Khaira
Slide 49: CSR interventions – Healthcare and Sports Development
CSR interventions – Healthcare and Sports Development MAITRI KARUNA SHRI VARDHMAN WATER CONSERVATION NETRALAYA - BIHAR JMF SPORTS PROJECT – BIHAR NIDAAN SEVA - BIHAR PROJECT - BIHAR • 3,587 new and 1,633 follow up OPDs* conducted • A total of 7,879 clinic OPD consultations conducted • 541 surgeries
Slide 50: CSR interventions – Agriculture and Allied Activities
CSR interventions – Agriculture and Allied Activities MODEL VILLAGE INTEGRATED LIVESTOCK INTEGRATED VILLAGE DEVELOPMENT PROJECT - DEVELOPMENT PROJECT - BIHAR DEVELOPMENT CENTRES – BIHAR MAHARSHTRA • For the Kharif season beginning in June, 260 farmers planted 2,600 kgs of paddy seeds of Daftari vari
Slide 51: 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 52: Board of Directors
Board of Directors Mr. Nimesh Kampani, Chairman Mr. Vishal Kampani, Vice Chairman 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 and the Real Estate se
Slide 53: 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