Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q4 FY22 Earnings Presentation
59 slides from Jm Financial's earnings presentation, May 24, 2022
Slide 1: Cover letter to stock exchanges: Investor Presentation
May 24, 2022 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: 523405
Slide 2: JM Financial Limited – Q4FY22 Results Update
JM Financial Limited – Q4FY22 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 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 and Shareholding Details Section 4 Corporate Social Responsibility Annexure Financ
Slide 5: Section 1: Group Overview
Section : 1 Group Overview A JM FINANCIAL °
Slide 6: Evolution of the Franchise Over Four Decades; Unmatched Depth and Breadth
Evolution of the Franchise Over Four 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 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 Networth Cl
Slide 8: Investment Bank: Deep Client Relationships; Delivering One Firm to Clients
1 Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Depth and breadth of markets increasing significantly; digital companies expected to add Key Business Priorities Strategic M&A trends likely to continue Expand the depth and breadth of the client base IPO Listings Equ
Slide 9: Mortgage Lending: Wholesale and Retail Business
2 Mortgage Lending : Wholesale and Retail Business Benign competition in wholesale business Key Business Priorities Strong momentum in residential real estate market Grow wholesale loans upon Low Penetration Underserved Affordable Market (2) easing of travel conditions (Mortgage/GDP)(1) 66.3%
Slide 10: Alternative and Distressed Credit: Strong Expertise in a Niche Market
3 Alternative and Distressed Credit : Strong Expertise in a Niche Market Ferocity of the second and third wave of COVID-19 has dented economic activity Key Business Priorities Significant interest from strategic and financial investors in acquiring distressed assets Co-Investment model with st
Slide 11: Platform AWS: Integrated Platform for Individual Clients; Focus on Digital
4 Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Financialization of savings to continue; digitization to make it simpler and faster Key Business Priorities Income levels expected to increase Future and digital readiness Rising Penetration of Non Institutional Brok
Slide 12: Section 2: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance 10
Slide 13: Consolidated Performance
Consolidated Performance Rs. Pre-Provision Revenues Operating Net Profit EPS Gross Net PBT BVPS Profit (PPOP) Debt / Equity # Debt / Equity# 839 Cr 372 Cr 322 Cr 179 Cr 1.9 80.01 1.22x 0.87x Q4 FY22 5.7% 2.9% 1.2% Q4 FY21 841 Cr 352 Cr 312 Cr 177 Cr 1.9 72.92 1.29x 0.73x Pre-Provision End of period
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 469 Mortgage Lending Investment Bank 993 431 424 360 969 964 349 841 143 839 372 317 322 180 187 312 352 164 22
Slide 15: TAB A: Investment Bank
TAB :A Investment Bank A JM FINANCIAL 8
Slide 16: Investment Banking: Decades of Trust from Clients
Investment Banking : Decades of Trust from Clients Transaction details for Q4 FY22 : Strong Mix of Advisory and Capital Market Transactions Fairness Opinion to the Board of Financial Advisor in connection with Financial advisor to Escorts Limited Financial Advisor to Honasa Directors of Equitas Hold
Slide 17: Institutional Research: Strong Knowledge Base
Institutional Research : Strong Knowledge Base Overview Research Coverage Across Sectors Specialty Chemicals Others • Research Coverage of 226 Companies Cement & Industrials Real Estate & REITs, Multiplexes Metals, Airlines, Textile, Exchanges • Strong breadth of sector coverage IT Services, Interne
Slide 18: Private Equity Funds
Private Equity Funds Fund III Investments (Initial Closing in Dec’21) (Targeted Corpus: Fund I All investments exited (Fund corpus: Rs. 952 cr) Rs 1,000 Cr with green shoe of Rs 500 Cr) • Sector: Consumer & Retail • Sector: Health-tech • A designer, manufacturer • Sector: Financial Services • Sector
Slide 19: 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 : Loan Book available to clients of 4,591 Investment Bank segment 3,781 3,663 644 Capital Markets : Loan Book originated for Plat
Slide 20: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 361 134 131 316 312 285 284 113 115 58.9% 57.1% 93 57.5% 66.3% 55.6% 42.5% 42.9% 41.1% 44.4% 33.7% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Profit
Slide 21: TAB B: Mortgage Lending
TAB :B Mortgage Lending A JM FINANCIAL %
Slide 22: Mortgage Lending
Mortgage Lending Dedicated real estate subsidiary (JM Financial Credit Solutions) formed in 2014 and backed by Global Fund led by Mr. Vikram Pandit (Ex CEO of Citibank) JM Financial Limited holds 46.7% stake Wholesale # groups with relationship – 100+ Average ticket size per group – ~Rs. 117
Slide 23: Wholesale Mortgages: JM Financial Credit Solutions (JMFCSL)
Wholesale Mortgages : JM Financial Credit Solutions (JMFCSL) End of Period Loan Book* (Rs Cr) Spread Analysis (%) 7,362 Yield % COF % NIM % 7,219 7,166 15.1% 14.7% 14.7% 6,741 13.9% 6,595 13.0% 9.9% 9.8% 9.4% 9.2% 9.3% 8.8% 7.0% 8.1% 8.3% 7.8% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22
Slide 24: Retail Mortgages: JM Financial Home Loans
Retail Mortgages : JM Financial Home Loans Branch Network Disbursement (Rs Cr) End of Period Loan Book (Rs Cr) Average Ticket Size of Rs. 11 Lakhs 55 223 51 819 50 153 636 40 105 507 90 431 448 30 29 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4
Slide 25: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 191 183 166 162 177 177 153 147 130 139 166 112 96 97 71 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 PAT (Pre Non Cont
Slide 26: TAB C: Platform AWS
TAB: C Platform AWS A JM FINANCIAL a4
Slide 27: Broking: Advisory Led, Leveraging Technology and Expanding Market
Broking : Advisory Led, Leveraging Technology and Expanding Market Growth of ADTO** & Volume Mix % ‘000 Rs Cr Clients ~ 1.72 Lakhs Affluent, HNI and strong vintage Cash Future Option ADTO 100% 24 20 80% 20 18 Customised products and services 16 60% 82% 80% 83% 86% 14 12 13 88% 12 40% 8 20% 4 11% 12%
Slide 28: Broking: Online and Mobile Trading Gaining Momentum
Broking : Online and Mobile Trading Gaining Momentum Online v/s Offline Mobile Trading Online Offline ADTO (Cr) Users 12,763 11,737 11,012 9,897 37% 31% 8,840 39% 44% 45% 1,603 1,755 63% 69% 1,292 61% 56% 55% 1,123 1,003 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Gross, Ne
Slide 29: Wealth Channels: Increasing Scale, Client Engagement and Reach
Wealth Channels : Increasing Scale, Client Engagement and Reach Private Wealth AUM (Rs Cr) Private Wealth AUM Transactional and Recurring (Rs Cr) Equity Debt Liquid Recurring Transactional 63,760 64,683 64,683 59,052 60,385 61,211 63,760 61,211 3,846 3,931 59,052 60,385 4,165 4,597 3,070 31,600 32,7
Slide 30: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 180 187 164 78.0% 153 70.5% 143 69.7% 61.6% 56.0% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) PBT PAT (post Non Controll
Slide 31: TAB D: Alternative & Distressed Credit
TAB : D Alternative & Distressed Credit 29
Slide 32: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of March 31, 2022 – Rs. 10,936 Cr • 59.25%** equity stake held by JM Financial Ltd as of March 31, 2022 Infrastructure Portfolio & Others 17.7% Real Estate • 42 member professional team as March 31, 202
Slide 33: Alternative & Distressed Credit: Financial Performance
Alternative & Distressed Credit: Financial Performance Net Total Income (Rs Cr) PAT Post Non Controlling Interest (Rs Cr) 164 65 68 24 30 30 10 8 9 15 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Gross, Net NPA Leverage & SMA Analysis (Rs2*Cr) (%) Annualized Return Ratios (%
Slide 34: Section 3: Group Structure and Shareholding Details
Section 3 Group Structure and Shareholding Details 32
Slide 35: Group Structure: March 31, 2022
Group Structure : March 31, 2022 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 46.68%(2) 99.65% 59.54% 100% 59.25% 100% 100% 100% JM Financial Infinite India JM Financial Asset Overseas Holdings JM Financial JM Fina
Slide 36: Shareholding Summary
Shareholding Summary Share Price Information Market Information * March 31, 2022 Price 120 6,454.19 Market Capitalization (Rs Cr) 110 100 Price (Rs) 67.65 90 80 No. of Shares Outstanding (Cr) 95.41 70 60 50 52 Week High-Low (Rs) 117.55/60.20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 % Gross, Net NPA Shareh
Slide 37: Section 4: Corporate Social Responsibility
Section 4 Corporate Social Responsibility 35
Slide 38: Corporate Social Responsibility (1/2)
Corporate Social Responsibility (1/2) JMFF DIGITAL SAKSHARTA (MAHARASHTRA) JM FINANCIAL SCHOLARS JM Financial Foundation (JMFF) launched JMFF Digital Saksharta The JM Financial group of Companies supported in Palghar district, Maharashtra on March 23, 2022 the scholarships for 58 students in Ash
Slide 39: Corporate Social Responsibility (2/2)
Corporate Social Responsibility (2/2) MODEL VILLAGE DEVELOPMENT PROJECT (BIHAR) Through the year, we have trained 2,534 (cumulative) farmer trainees in topics such as zero tillage farming, SRI technique for paddy cultivation, seed selection, high value crops, and so on The project also promoted
Slide 40: Annexure: Financial Performance and Other Details
Annexure Financial Performance and Other Details 38
Slide 41: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q4 FY22 Q3 FY22 QoQ % Q4 FY21 YoY % Gross Revenue 839 964 -13.0% 841 -0.2% Finance cost 250 283 -11.8% 271 -7.8% Employee cost 97 143 -31.7% 115 -15.6% Depreciation 10 9 3.8% 10 -0.7% Other expenses 110 105 5.0% 93 18.5% Pre Provisioning profi
Slide 42: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) FY22 FY21 YoY % Gross Revenue 3,763 3,227 16.6% Finance cost 1,082 1,111 -2.6% Employee cost 548 441 24.3% Depreciation 38 40 -5.0% Other expenses 400 312 28.2% Pre Provisioning profit (PPOP) 1,696 1,324 28.2% Impairment on Financial Instrumen
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at March 31, 2022 As at March 31, 2021 Assets Loan book* - Steady state Financing 12,771 10,325 Loan book* - Episodic Financing 1,374 33 Distressed asset book (Investment in SRs / Loan) 3,825 3,915 Cash and cash equivalents (CCE)** 3,637 5,351 Other
Slide 44: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021 Investment Bank 2,499 2,500 2,492 2,491 JM Financial Products Limited 1,734 1,693 1,728 1,684 JM Financial Limited 495 572 495 572 JM Financ
Slide 45: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q4 FY22 Q3 FY22 QoQ % Q4 FY21 YoY % FY22 FY21 YoY% Investment Bank 284 361 -21.2% 285 -0.3% 1,273 1,084 17.4% Mortgage Lending 298 282 5.8% 302 -1.3% 1,191 1,218 -2.2% Alternative & Distressed Credit 86 86 0.6% 76 13.1% 522 389 34.3% Platform AWS 153 187 -
Slide 46: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q4FY22 FY22 Q4FY22 FY22 Investment Bank: 284 1,273 97 352 JM Financial Limited 80 544 39 274 JM Financial Products Limited 164 678 41 129 JM Financial Institutional Securities Limited 39 155 19 33 Overseas Entities 6 21 (1) (4) Ad
Slide 47: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q4FY22 FY22 Q4FY22 FY22 Platform AWS: 153 662 14 96 JM Financial Services Limited 137 600 22 122 JM Financial Capital Limited 8 54 (4) 12 JM Financial Asset Management Limited 4 21 (8) (14) JM Financial Commtrade Limited + Astute
Slide 48: Investment Bank
Investment Bank Particulars (Rs Cr) Q4 FY22 Q3 FY22 QoQ % Q4 FY21 YoY % FY22 FY21 YoY % Segment Net worth + NCI 2,499 2,397 4.2% 2,500 - 2,499 2,500 - End of period Loan Book* 4,591 3,663 25.3% 3,048 50.6% 4,591 3,048 50.6% Gross Revenue 284 361 -21.2% 285 -0.3% 1,273 1,084 17.4% Finance cost 75 90
Slide 49: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q4 FY22 Q3 FY22 QoQ % Q4 FY21 YoY % FY22 FY21 YoY % Segment Net worth + NCI 3,970 3,894 2.0% 3,788 4.8% 3,970 3,788 4.8% Gross Revenue 298 282 5.8% 302 -1.3% 1,191 1,218 -2.2% Finance cost 121 115 5.0% 119 2.2% 483 468 3.4% Impairment on Financial Instruments 36
Slide 50: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q4 FY22 Q3 FY22 QoQ % Q4 FY21 YoY % FY22 FY21 YoY % Segment Net worth + NCI 1,855 1,839 0.9% 1,651 12.3% 1,855 1,651 12.3% Gross Revenue 86 86 0.6% 76 13.1% 522 389 34.3% Finance Cost 56 55 1.1% 61 -8.1% 229 261 -12.0% Employee Cost (5) 5 N/M (2)
Slide 51: Platform AWS
Platform AWS Particulars (Rs Cr) Q4 FY22 Q3 FY22 QoQ % Q4 FY21 YoY % FY22 FY21 YoY % Segment Net worth + NCI 767 757 1.4% 718 6.8% 767 718 6.8% Gross Revenue 153 187 -18.5% 164 -7.0% 662 502 32.0% Finance cost 14 23 -39.1% 20 -28.9% 74 74 -0.5% Impairment on Financial Instruments 8 2 N/M 4 93.9% 17
Slide 52: Consolidated Lending Book Profile
Consolidated Lending Book Profile End of Period Gross Loan Book (Rs Cr)# NIM Analysis (%)# Wholesale Mortgage Retail Mortgage Bespoke FI Financing*** Capital Market Wtd. Avg Tenure Yield % COF % NIM % 13,017 (Months) 14.3% 14.1% 13.9% 11,014 11,072 11,240 834 440 13.3% 10,854 12.7% 851 821 800 940 1
Slide 53: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) Equity** Debt* D/E Net D/E 5,351 12,366 12,783 10,808 10,789 10,671 1.29 1.22 1.09 1.08 1.05 3,957 3,892 3,854 0.87 3,637 0.68 0.73 0.69 0.68 9,552 9,827 10,269 10,453 10,006 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22
Slide 54: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd Q4FY22 Q4FY21 Q4FY22 Q4FY21 Revenue 294 287 Revenue 164 142 Net Profit 87 98 Net Profit 41 25 Net worth 3,942 3,650 Net worth 1,952 1,829 End of period Loan book# 7,787 7,219 End of period Loan b
Slide 55: Yearly Performance of Select Subsidiaries
Yearly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd FY22 FY21 FY22 FY21 Revenue 1,136 1,167 Revenue 678 661 Net Profit 289 359 Net Profit 129 138 Net worth 3,942 3,650 Net worth 1,952 1,829 End of period Loan book# 7,787 7,219 End of period Loan book
Slide 56: 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 57: 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 58: Board of Directors (Cont’d)
Board of Directors (Cont’d) Ms. Jagi Mangat Panda, Independent Director Ms. Roshini Bakshi, Independent Director* B.Sc (Biology & Chemistry), Management Development Programme, Indian Institute MBA of Management, Ahmedabad • Presently the Managing Director, Private Equity at Everstone Capital Asia Pt
Slide 59: For Further Queries
For Further Queries Mr. Nishit Shah Mr. Manish Sheth Business Strategy, Investor Relations and Group CFO, MD & CEO, JM Financial Home CFO – JM Financial Products Limited Loans Limited Email: nishit.shah@jmfl.com Email: manish.sheth@jmfl.com Contact No: 022 66303522 Contact No: 022 66303461 Mr. Gagan