Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q1 FY25 Earnings Presentation
58 slides from Jm Financial's earnings presentation, Aug 6, 2024
Slide 1: Cover letter to stock exchanges: Investor Presentation
August 6, 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: 52340
Slide 2: JM Financial Limited – Q1FY25 Results Update
JM Financial Limited – Q1FY25 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 Wholesale the private credit and alternatives space Credit Business • Consolidation :
Slide 7: Wholesale Credit: Strategic Pivot and Consolidation
Wholesale Credit : Strategic Pivot and Consolidation • Transaction : JM Financial Limited (“JMFL”) to acquire upto 48.96% Current Structure (Tranche 1 - 42.99%) stake from minority shareholders of JM Financial Credit Solutions (“JMFCSL”) and JMFL to sell stake of upto 71.8% in JM Financial JMFL Othe
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: Estimated Movement of Leverage over the next 2 years
Estimated Movement of Leverage over the next 2 years JM Financial Asset Reconstruction Particulars (Rs Cr) JM Financial Products JM Financial Credit Solutions Company As at As at As at As at As at As at As at As at June As at June June 30, March 31, March 31, June 30, June 30, March 31, June 30, 30,
Slide 10: Section 2: Group Overview
Section : 2 Group Overview A JM FINANCIAL
Slide 11: 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 12: 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 13: Integrated Investment Bank: Deep Client Relationships
Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Clients Products / Services Business Priorities Q1FY25 Highlights • Investment Banking • Strategy to integrate the investment bank is Promoters • Institutional Equities ✓ Expand the depth and breadth of the client
Slide 14: Mortgage Lending: Wholesale and Retail Mortgage
Mortgage Lending: Wholesale and Retail Mortgage Clients Products / Services Business Priorities Q1FY25 Highlights Wholesale Mortgage Wholesale Mortgage: Wholesale Mortgage • Project / Construction Finance Wholesale Mortgage: • Loan Book* stood at Rs. 6,446 Cr in Q1FY25 • Deliver on franchise enhanci
Slide 15: Alternative and Distressed Credit
Alternative and Distressed Credit Clients Products / Services Business Priorities Q1FY25 Highlights • Acquisition of • Distressed Credit AUM as on June 2024 stood at Banks distressed assets Rs. 14,229 Cr v/s Rs. 14,500 Cr as on March 2024 ✓ Focus on Co-Investments • Aggregate dues of Rs. 78,271 Cr –
Slide 16: Platform AWS: Integrated Platform for Individual Clients
Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Clients Products / Services Business Priorities Q1FY25 Highlights Future and digital readiness; On-boarding • Launched digital broking “BlinkX” and gearing Retail Investors • Securities ✓ modern tools and enhancing customer
Slide 17: Section 3: Consolidated Financial Performance
Section : 3 Consolidated Financial Performance 15
Slide 18: Consolidated Performance
Consolidated Performance Rs. Revenues Pre-Provision Net Profit ROA* End of period PBT ROE* EPS BVPS Operating Profit Loan book # 1,094 Cr 318 Cr 245 Cr 171 Cr 2.5% 8.0% 1.8 90.11 11,933 Cr Q1 FY25 -15.6% 6.4% 2.9% -24.9% Q1 FY24 1,081 Cr 377 Cr 230 Cr 166 Cr 2.4% 8.1% 1.7 86.40 15,891 Cr #Pre-Provis
Slide 19: 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) 669 AWS Alternative and Distressed Credit 417 413 Mortgage Lending Investment Bank 1,276 1,214 1,261 530 1,081 1,094 466 265 301 238 278 275 175 405
Slide 20: Tab A: Investment Bank
TAB :A Investment Bank 18 A JM FINANCIAL
Slide 21: Loan Book
Loan Book 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 4,593 4,600 ✓ Capital Markets : Loan against Securities 1,160 4,254 4,241 963 978 348 288 ✓ Financial Institutio
Slide 22: Increasing Client Engagement and Reach
Increasing Client Engagement and Reach Private Wealth AUM (Rs Cr)* Equity Debt Liquid 74,040 65,009 68,105 1,842 58,163 60,287 2,390 13,196 2,935 3,456 3,567 14,046 13,971 13,294 13,448 51,744 59,002 41,413 43,272 48,028 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Number of Relationship Managers: 44 Pri
Slide 23: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 395 605 495 487 391 395 72.3% 63.1% 65.2% 197 184 58.5% 64.7% 135 117 41.5% 36.9% 34.8% 27.7% 35.3% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Profit
Slide 24: Tab B: Mortgage Lending
TAB :B Mortgage Lending 22 A JM FINANCIAL
Slide 25: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited End of Period Loan Book* (Rs Cr) Spread Analysis (%) • Strong repayments of Rs. Yield % COF % NIM % 1,109 crore during the quarter 9,711 13.9% 14.4% 13.8% 13.8% leading to reduction in loan 9,293 13.2% 8,752 book 9.5% 9.6% • Pre-Covid loan book stood at 7,462 9.
Slide 26: 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. 10 Lakhs 112 112 112 449 2,104 105 2,022 352 93 1,759 1,450 1,504 236 148 116 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY
Slide 27: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 229 222 176 127 173 194 197 82 194 155 152 20 28 140 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 (86) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 PAT (Pre Non Con
Slide 28: Tab C: Platform AWS
TAB: C Platform AWS 26 A JM FINANCIAL
Slide 29: Platform AWS: Key Highlights
Platform AWS: Key Highlights Clients ~ 3.3 Lakhs Affluent, HNI and strong vintage Growth of ADTO* & Volume Mix % ‘000 Rs Cr Cash Future Option ADTO Presence in 219 Cities 100% 72 Locations – 843 (Q4FY24 – 814, Q1FY24 – 768) 61 60 80% 55 Strong advisory capabilities 43 48 Research and Technical Team
Slide 30: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 301 92.6% 88.8% 283 265 79.6% 73.9% 238 64.6% 175 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) 92 30.5% PBT PAT (post Non
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 June 30, 2024 – Rs. 14,229 Cr • Effective shareholding of 76.45% held by JM Financial Ltd as of June 30, Infrastructure Portfolio & Others Plywood/ laminates 1.3% 10.7% 2024 1.5% • 41 member professi
Slide 33: 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 1,181 2,096 893 599 376 405 454 247 107 107 - - 42 21 60 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Adjusted
Slide 34: Section 4: Group Structure
Section 4 Group Structure 32 A JM FINANCIAL
Slide 35: Group Structure: June 30, 2024
Group Structure : June 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 Holdings
Slide 36: Section 5: Financial Performance
Section 5 Financial Performance 34
Slide 37: Consolidated Profit & Loss Statement: Quarterly Statement
Consolidated Profit & Loss Statement : Quarterly Statement Particulars (Rs Cr) Q1 FY25 Q4 FY24 QoQ % Q1 FY24 YoY % FY24 Gross Revenue 1,094 1,276 -14.3% 1,081 1.2% 4,832 Finance cost 370 407 -9.1% 366 1.2% 1,562 Employee cost 231 120 92.7% 193 19.6% 795 Depreciation 16 14 14.7% 12 35.0% 53 Other exp
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at June 30, 2024 As at March 31, 2024 Assets Loan book* - Steady state Financing 12,089 13,106 Distressed asset book (Investment in SRs / Loan) 2,998 2,947 Cash and cash equivalents (CCE)** 3,975 4,769 Other Investments (including lien-marked FDs) 4,
Slide 39: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at June 30, 2024 As at March 31, 2024 As at June 30, 2024 As at March 31, 2024 Investment Bank 3,002 3,092 2,996 3,086 JM Financial Products Limited 2,177 2,114 2,171 2,108 JM Financial Limited 395 565 395 565 JM Financia
Slide 40: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q1 FY25 Q4 FY24 QoQ % Q1 FY24 YoY % FY24 Investment Bank (IB) 395 605 -34.7% 391 1.1% 1,978 Mortgage Lending 361 405 -10.9% 365 -1.2% 1,531 Alternative & Distressed Credit 66 (38) N/M 140 -53.3% 326 Platform AWS 283 300 -5.8% 175 61.5% 978 Others 43 50 -13
Slide 41: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q1FY25 FY24 Q1FY25 FY24 Investment Bank: 395 1,978 95 706 JM Financial Limited 117 702 16 309 JM Financial Products Limited 219 1,169 60 427 JM Financial Institutional Securities Limited 64 202 15 43 Overseas Entities 9 29 2 8 Add
Slide 42: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q1FY25 FY24 Q1FY25 FY24 Platform AWS: 283 978 21 90 JM Financial Services Limited 270 920 27 102 JM Financial Asset Management Limited 9 29 (9) (29) JM Financial Commtrade Limited + Astute Investments + ARB Maestro 20 81 4 20 Add/
Slide 43: Investment Bank
Investment Bank Particulars (Rs Cr) Q1 FY25 Q4 FY24 QoQ % Q1 FY24 YoY % FY24 Segment Net worth + NCI 3,002 3,092 -2.9% 2,775 8.2% 3,092 Gross Revenue 395 605 -34.7% 391 1.1% 1,978 Finance cost 97 107 -9.8% 100 -2.9% 439 Impairment on Financial Instruments 12 (4) N/M 11 12.4% (2) Employee cost 109 35
Slide 44: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q1 FY25 Q4 FY24 QoQ % Q1 FY24 YoY % FY24 Segment Net worth + NCI 4,617 4,611 0.1% 4,365 5.8% 4,611 Gross Revenue 361 405 -10.9% 365 -1.2% 1,531 Finance cost 167 176 -5.1% 171 -2.3% 688 Impairment on Financial Instruments 58 259 -77.7% 133 -56.3% 569 Employee cost
Slide 45: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q1 FY25 Q4 FY24 QoQ % Q1 FY24 YoY % FY24 Segment Net worth + NCI 1,371 720 90.4% 1,853 -26.0% 720 Gross Revenue (net of fair value loss) 66 (38) N/M 140 -53.3% 326 Finance Cost 65 73 -11.7% 75 -13.4% 302 Employee Cost 5 4 34.0% 6 -17.6% 22 Deprec
Slide 46: Platform AWS
Platform AWS Particulars (Rs Cr) Q1 FY25 Q4 FY24 QoQ % Q1 FY24 YoY % FY24 Segment Net worth + NCI 968 949 2.0% 693 39.7% 949 Gross Revenue 283 300 -5.8% 175 61.5% 978 Finance cost 77 77 1.1% 40 93.0% 239 Impairment on Financial Instruments 2 (2) N/M (5) N/M (2) Employee cost 77 53 45.6% 63 21.6% 266
Slide 47: 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 % 15,891 15,808 15,111 1,160 963 13.6% 978 12,917 12.9% 13.3% 13.2% 13.4% 1,653 1,927 11,933 1,884 348 1,477 288 3,079 2,726 2,547 1,108 9.0% 9.
Slide 48: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) Equity** Debt* D/E Net D/E 16,359 17,254 4,769 16,949 16,145 1.50 1.49 15,031 1.47 1.48 3,975 1.35 1,905 1.34 1.36 2,847 1,453 1.24 1.04 0.99 1,631 1,227 1,452 2,864 2,522 801 1,029 11,153 10,932 11,125 1,620
Slide 49: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) Q1FY25 Q1FY24 FY24 Q1FY25 Q1FY24 FY24 Revenue 271 314 1,305 Revenue 219 233 1,169 Net Profit 45 10 47 Net Profit 60 64 427 Net worth 4,257 4,267 4,213 Net worth 2,604 2,253 2,544 End of p
Slide 50: Annexure: Corporate Social Responsibility and Other Details
Annexure Corporate Social Responsibility and Other Details 48
Slide 51: Corporate Social Responsibility
Corporate Social Responsibility Project Bachpan - Bihar • 18 Bachpan centres remained operational for 62 days in Q1, with 434 children enrolled and learning. On May 1, 2024, the 19th Bachpan Centre was inaugurated at Taratanr village in Khaira block, with an enrolment of 19 children, therefore bring
Slide 52: Corporate Social Responsibility
Corporate Social Responsibility JM Financial Shiksha Samarthan INR 0.57 Cr disbursed towards 935 private school students’ Total INR 1.14 Cr fee disbursed ancillary support to 2710 fee disbursed for the new as first instalment of school fee government school students for academic year (2024-25) in Q1
Slide 53: Corporate Social Responsibility
Corporate Social Responsibility Maitri Karuna Netralaya - Bihar • Since its inception in January 2023, the eye hospital has performed 4,153 surgeries by the end of June 2024. • A total of 3538 unique OPDs and 3908 Follow-ups were conducted in Q1. • 900 surgeries were performed in Q1 along with 684 l
Slide 54: Corporate Social Responsibility
Corporate Social Responsibility Model Village Development Project - Bihar • Farmers’ Training: Between April and June, the project team conducted 25 meetings cum training sessions in an equal number of intervention villages across the Khaira and Sikandra blocks of Jamui district, Bihar. These meetin
Slide 55: Corporate Social Responsibility
Corporate Social Responsibility JMF Sports Project - Bihar • In the first quarter of FY 2024-25, the project trained 326 children (84 girls, 242 boys) in football and athletics at the four sports grounds established by JM Financial Foundation. • Between April and June 2024, 31 trainees (10 girls, 21
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 Fi
Slide 58: 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