Slide 1: Investor meetings intimation letter
December 30, 2021 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: 52
Slide 2: Investor presentation cover letter
October 28, 2021 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: 523
Slide 3: JM Financial Limited – Q2FY22 Results Update
JM Financial Limited – Q2FY22 Results Update
Slide 4: 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 5: 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 Alternative and Distressed Credit Tab D Platform AWS Section 3 Group Structure and Shareholding Details Section 4 Corporate Social Responsibility Annexure Financ
Slide 6: Section 1: Group Overview
Section : 1 Group Overview A JM FINANCIAL °
Slide 7: Evolution of the Franchise Over Four Decades; Unmatched Depth and Breadth
Evolution of the Franchise Over Four Decades; Unmatched Depth and Breadth Received license for Housing Set up a dedicated Finance from National real estate business Housing Bank (NHB) with a Global Fund led Terminated JV with by Mr. Vikram Pandit Morgan Stanley 2018- 2020 Capital market 2017 lending
Slide 8: 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 • Distressed Credit relates to acquisition and • Caters to Institutional, Corporate, resolution of stressed assets Gove
Slide 9: 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 10: 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 11: 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 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 strategic Pr
Slide 12: 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 Low Penetration of Demat Non Institutional B
Slide 13: Section 2: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance 10
Slide 14: Consolidated Performance
Consolidated Performance Rs. Pre- Revenues Provisioning PBT Net Profit EPS BVPS Debt/ Equity# Profit (PPOP) 969 Cr 431 Cr 317 Cr 174 Cr 1.83 76.35 1.08 x Q2 FY22 20.7% 35.3% 32.5% 25.4% Q2 FY21 803 Cr 319 Cr 240 Cr 139 Cr 1.53 68.97 1.20 x Pre- Revenues Provisioning PBT Net Profit EPS ROA* ROE* Prof
Slide 15: Impact of Covid-19 on the results
Impact of Covid-19 on the results Particulars (Rs Cr) Q2 FY22 H1 FY22 Net profit after tax and after non-controlling interest (Post Covid-19 Impact) 174 378 Add / (Less): Additional Provision for expected credit Loss 76 158 Diminution in fair valuation of security receipts - 50 Deferred tax impact o
Slide 16: Consolidated Performance: Diversified Business Model for Earnings Resilience
Consolidated Performance : Diversified Business Model for Earnings Resilience Total Revenue (Rs Cr) Pre-Provision Profit (Rs Cr) PBT (Rs Cr) AWS Alternative and Distressed Credit 469 Mortgage Lending Investment Bank 993 431 360 969 400 891 331 803 841 143 317 180 312 136 352 116 164 225 127 125 319
Slide 17: Tab A: Investment Bank
TAB :A Investment Bank A JM FINANCIAL “
Slide 18: Investment Banking: Decades of Trust from Clients
Investment Banking : Decades of Trust from Clients Transaction details for Q2 FY22 : Strong Mix of Advisory and Capital Market Transactions IPO : Clean Science & Technology IPO : Krsnaa Diagnostics Limited IPO : India Pesticides Limited IPO : Rolex Rings Limited IPO :Tatva Chintan Pharma Chem Limite
Slide 19: Institutional Research: Strong Knowledge Base
Institutional Research : Strong Knowledge Base Overview Research Coverage Across Sectors Real Estate & REITs Others • Research Coverage of 214 Companies Metals, Airlines, Cement & Industrials Textile, Exchanges Auto & Auto • Strong breadth of sector coverage Ancillaries Sp Chemicals, Oil & Gas, Tele
Slide 20: Private Equity Funds: Fund III Raise Underway
Private Equity Funds : Fund III Raise Underway Fund II Investments (AUM : Rs. 505 Cr) : ~80% Deployed Fund I All investments exited • Sector: Consumer & Retail • Sector: Packaged Foods • Sector: Co-living • A designer, manufacturer • Sector: Financial Services • Fast growing D2C natural • A fast gro
Slide 21: Franchise Enhancing Financing
Franchise Enhancing Financing Loan Book(1) (Q2FY22) Loan Book Description Financial Institutions Bespoke Finance : Loan Book available to Clients of Financing Investment Bank segment 12% Bespoke Capital Markets : Loan Book originated for Platform AWS Capital Markets 55% 16% Rs.3,781 Cr Clients
Slide 22: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 316 312 113 115 298 291 285 106 100 93 54.4% 51.8% 66.3% 57.1% 57.5% 45.6% 48.2% 42.5% 42.9% 33.7% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Profit
Slide 23: Tab B: Mortgage Lending
TAB :B Mortgage Lending A JM FINANCIAL 20
Slide 24: 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. 103
Slide 25: Wholesale Mortgages: JM Financial Credit Solutions (JMFCSL)
Wholesale Mortgages : JM Financial Credit Solutions (JMFCSL) Loan Book** (Rs Cr) Product wise split of loan book – Sept 2021 7,208 7,219 7,166 LAS 6,993 12.7% 6,595 Project at Early Stage 8.1% Project Loan 50.2% Land 10.8% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 LAP 18.1% Gross, Net NPA & SMA 2* (%) Geog
Slide 26: Wholesale Mortgages: NPA Accounts
Wholesale Mortgages : NPA Accounts# Principal Principal % to total Provision Security Resolution Developer Sanction in Resolution Mechanism O/s in Crore loan book % Cover expected by Crore NPA Mumbai Developer 47.3 47.2 0.72% 29.03% 1.1 SARFAESI action Dec 21 – Mar 22 Mumbai Developer 35.0 0.7 0.01%
Slide 27: Wholesale Mortgages: SMA2 Accounts
Wholesale Mortgages : SMA2 Accounts # Principal Principal % to total Provision Resolution expected Developer Sanctioned in Security Cover Resolution Mechanism O/s in Crore loan book % by Crore SMA2 Mumbai Developer 175.0 169.7 2.57% 77.27% 1.1 DM / JDA with strong developer Dec 21 – Mar 22 Mumbai De
Slide 28: Wholesale Mortgages: Operating and Financial Performance
Wholesale Mortgages : Operating and Financial Performance Net Total Income (Rs Cr) Spread Analysis (%) Operating Expenses and Cost to Income (Rs Cr) Yield % COF % NIM % Operating Expense Cost to Income 201 9.5% 8.6% 15.1% 15.1% 14.7% 14.7% 181 14.6% 7.8% 170 174 166 6.7% 5.5% 10.4% 10.4% 10.4% 10.3%
Slide 29: Retail Mortgages: JM Financial Home Loans
Retail Mortgages : JM Financial Home Loans Branch Network Disbursement (Rs Cr) Loan Book Average Ticket Size of Rs. 11 Lakhs 51 105 507 90 448 431 40 56 363 46 318 30 29 25 25 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Geography wise spli
Slide 30: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 209 189 143 191 166 162 130 157 153 183 177 177 103 96 71 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 PAT (Pre Non Con
Slide 31: Tab C: Alternative & Distressed Credit
TAB : C Alternative & Distressed Credit 28
Slide 32: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of Sept 30, 2021 – Rs. 10,687 Cr • 59.25%** equity stake held by JM Financial Ltd as of Sept 30, 2021 Textile & Garments • 47 member professional team as Sept 30, 2021. The team is also involved in Port
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 59 21 24 19 15 8 5 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Gross, Net NPA Leverage & SMA Analysis (Rs2*Cr) (%) Annualized Return Ratios (%
Slide 34: Tab D: Platform AWS
TAB: D Platform AWS A JM FINANCIAL o
Slide 35: 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 ~ 1.6 Lakhs Affluent, HNI and strong vintage Cash Future Option ADTO 100% 16 14 13 80% Customised products and services 12 11 12 12 60% 87% 84% 82% 80% 83% 8 40% 4 Presence in 181 Citi
Slide 36: Broking: Online and Mobile Trading Gaining Momentum
Broking : Online and Mobile Trading Gaining Momentum Online v/s Offline Mobile Trading Online Offline ADTO (Crs) Users 11,012 9,897 42% 39% 44% 45% 61% 8,840 7,256 1,292 7,041 1,123 1,003 58% 61% 56% 55% 820 695 39% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Gross, Net NPA
Slide 37: 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 59,052 60,385 63,760 56,757 3,846 59,052 60,385 54,015 4,597 56,757 4,327 4,165 54,015 5,130 31,600 30,6
Slide 38: PMS and Mutual Fund: New Hires in Place to Grow the Business
PMS and Mutual Fund : New Hires in Place to Grow the Business PMS AUM (Rs Cr) Discretionary Non-Disecretionary New hires made to strengthen the team 811 757 673 132 Consistent performance 608 135 555 118 106 Gaining traction 93 621 679 Use of technology to service customers 502 555 462 Pro
Slide 39: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 180 164 78.1% 78.0% 143 69.7% 136 66.8% 116 61.6% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) PBT PAT (post Non Controll
Slide 40: Section 3: Group Structure and Shareholding Details
Section 3 Group Structure and Shareholding Details 37
Slide 41: Group Structure: September 30, 2021
Group Structure : September 30, 2021 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
Slide 42: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) September 30, 2021 Price 120 8,849.12 Market Capitalization (Rs Cr) 110 100 Price (Rs) 92.80 90 80 No. of Shares Outstanding (Cr) 95.36 70 60 50 52 Week High-Low (Rs) 117.55/74.35 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Gross, Net NPA
Slide 43: Section 4: Corporate Social Responsibility
Section 4 Corporate Social Responsibility 40
Slide 44: Corporate Social Responsibility (1/2)
Corporate Social Responsibility (1/2) INTEGRATED VILLAGE DEVELOPMENT PROJECT, PALGHAR - MAHARASHTRA 129 of targeted 141 farmers now have an assured source of farm water, i.e. Jalkund owing to timely project intervention. These artificially created ponds have a total capacity of holding 32-35 thous
Slide 45: Corporate Social Responsibility (2/2)
Corporate Social Responsibility (2/2) JMFF DIGITAL SAKSHARTA, JAMUI – BIHAR JM Financial Foundation entered into a project partnership with NIIT Foundation for implementation of said project in Jamui district, Bihar through a hub and spoke model In Q2, one hub and three spoke areas were identifi
Slide 46: Philanthropic Giving and Support – Ongoing Activities
Philanthropic Giving and Support – Ongoing Activities The Foundation continued support to our partner organisations for ongoing activities. One Teacher schools conducted by a partner organization, to promote education in rural & tribal areas, are often held under a tree or any available spot in th
Slide 47: Annexure: Financial Performance and Other Details
Annexure Financial Performance and Other Details 44
Slide 48: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q2 FY22 Q1 FY22 QoQ % Q2 FY21 YoY % Gross Revenue 969 993 -2.3% 803 20.7% Finance cost 287 261 10.1% 289 -0.5% Net loss on derecognition of financial instruments under 3 - N/M - - amortised cost category Employee cost 145 162 -10.4% 117 24.7%
Slide 49: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) H1 FY22 H1 FY21 YoY % Gross Revenue 1,962 1,495 31.3% Finance cost 548 562 -2.3% Net loss on derecognition of financial instruments under 3 - N/M amortised cost category Employee cost 308 208 48.0% Depreciation 19 20 -6.2% Other expenses 184 1
Slide 50: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at Sept 30, 2021 As at March 31, 2021 Assets Loan book* - Steady state Financing 10,457 10,325 Loan book* – Episodic Financing - 33 Distressed asset book (Investment in SRs / Loan) 3,838 3,915 Cash and cash equivalents (CCE)** 3,957 5,351 Other Inves
Slide 51: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at Sept 30, 2021 As at March 31, 2021 As at Sept 30, 2021 As at March 31, 2021 Investment Bank 2,371 2,500 2,365 2,491 JM Financial Products Limited 1,742 1,693 1,736 1,684 JM Financial Limited 385 572 385 572 JM Financia
Slide 52: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q2 FY22 Q1 FY22 QoQ % Q2 FY21 YoY % H1 FY22 H1FY21 YoY% FY21 Investment Bank 312 316 -1.3% 298 4.5% 628 508 23.6% 1,084 Mortgage Lending 314 300 4.5% 292 7.5% 614 590 4.0% 1,218 Alternative & Distressed Credit 125 225 -44.6% 86 44.8% 350 186 88.7% 389 Plat
Slide 53: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q2FY22 H1FY22 Q2FY22 H1FY22 Investment Bank: 312 628 65 156 JM Financial Limited 185 328 116 178 JM Financial Products Limited 180 319 28 52 JM Financial Institutional Securities Limited 28 73 (1) 9 Overseas Entities 4 12 (1) (2)
Slide 54: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q2FY22 H1FY22 Q2FY22 H1FY22 Platform AWS: 180 323 34 43 JM Financial Services Limited 180 306 58 66 JM Financial Capital Limited 21 28 10 10 JM Financial Asset Management Limited 5 12 (2) (3) JM Financial Commtrade Limited / Astut
Slide 55: Investment Bank
Investment Bank Particulars (Rs Cr) Q2 FY22 Q1 FY22 QoQ % Q2 FY21 YoY % H1 FY22 H1 FY21 YoY % FY21 Segment Net worth + NCI 2,371 2,289 3.6% 2,336 1.5% 2,371 2,336 1.5% 2,500 Loan Book* 3,781 3,228 17.1% 3,682 2.7% 3,781 3,682 2.7% 3,048 Gross Revenue 312 316 -1.3% 298 4.5% 628 508 23.6% 1,084 Financ
Slide 56: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q2 FY22 Q1 FY22 QoQ % Q2 FY21 YoY % H1 FY22 H1FY21 YoY % FY21 Segment Net worth + NCI 3,732 3,841 -2.8% 3,583 4.2% 3,732 3,583 4.2% 3,788 Gross Revenue 314 300 4.5% 292 7.5% 614 590 4.0% 1,218 Finance cost 123 124 -0.5% 115 7.2% 247 232 6.2% 468 Net loss on derec
Slide 57: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q2 FY22 Q1 FY22 QoQ % Q2 FY21 YoY % H1 FY22 H1FY21 YoY % FY21 Segment Net worth + NCI 1,776 1,761 0.9% 1,625 9.3% 1,776 1,625 9.3% 1,651 Gross Revenue 125 225 -44.6% 86 44.8% 350 186 88.7% 389 Finance Cost 57 61 -7.9% 67 -15.2% 118 132 -10.2% 261
Slide 58: Platform AWS
Platform AWS Particulars (Rs Cr) Q2 FY22 Q1 FY22 QoQ % Q2 FY21 YoY % H1 FY22 H1 FY21 YoY % FY21 Segment Net worth + NCI 718 727 -1.2% 678 5.9% 718 678 5.9% 718 Gross Revenue 180 143 26.0% 116 55.1% 323 202 59.7% 502 Finance cost 22 15 51.7% 21 4.7% 37 35 4.8% 74 Impairment on Financial Instruments 1
Slide 59: Consolidated Lending Book Profile
Consolidated Lending Book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%)# Wholesale Mortgage Retail Mortgage Bespoke FI Financing*** Capital Market Yield % COF % NIM % 11,386 14.1% 14.3% 14.3% 14.1% 13.9% 10,854 11,014 11,072 678 10,407 376 851 821 429 800 451 683 348 322 1,604 9.9% 9.9% 10.0% 9.
Slide 60: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) Equity** Debt* D/E Net D/E 10,876 12,366 10,671 10,808 5,351 10,382 1.29 1.20 1.11 1.09 1.08 3,892 3,957 3,716 0.69 0.68 0.89 0.72 0.73 2,831 9,061 9,315 9,827 10,006 9,552 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q
Slide 61: Performance of Select Subsidiaries
Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd Q2FY22 Q2FY21 Q2FY22 Q2FY21 Revenue 297 280 Revenue 180 160 Net Profit 75 79 Net Profit 28 27 Net worth 3,777 3,446 Net worth 1,875 1,750 Loan book# 6,595 7,208 Loan book# 3,787 3,682 Net Interest Margin 8
Slide 62: Performance of Select Subsidiaries
Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd H1FY22 H1FY21 FY21 H1FY22 H1FY21 FY21 Revenue 580 567 1,167 Revenue 319 315 661 Net Profit 128 155 359 Net Profit 52 59 138 Net worth 3,777 3,446 3,650 Net worth 1,875 1,750 1,829 Loan book# 6,595 7,208 7,
Slide 63: 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 64: 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 services groups. • Launched the Asset Reconstruction business in 2008 and t
Slide 65: Management Team
Management Team • Launched the Asset Reconstruction business in 2008 and the Real Estate Finance business in 2009. • Joined JM Financial Group in 2009 Mr. Vishal Kampani • Expanded the International Operations and built a global profile • Prior to that worked with the global markets group of Bank of
Slide 66: For Further Queries
For Further Queries Mr. Shashwat Belapurkar Mr. Manish Sheth MD, Group Borrowings, Investor Group CFO, MD & CEO, JM Financial Home Relations, Treasury and Alternative Credit Loans Limited Email: shashwat.belapurkar@jmfl.com Email: manish.sheth@jmfl.com Contact No: 022 66303545 Contact No: 022 663034