Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Investor Presentation (May 2020)
23 slides from Jm Financial's investor presentation, May 6, 2020
Slide 1: Exchange cover letter: Corporate Presentation
May 6, 2020 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 S
Slide 2: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited March 2020
Slide 3: Safe Harbour
Safe Harbour This presentation have been prepared solely for information purposes and do not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoev
Slide 4: Business Overview
1 Business Overview 3
Slide 5: Overview
Overview JM Financial Group overview Strong Financial Profile (As of FY 20) • Presence of over four decades Revenue 46.68%(1) Rs. 3,454 Cr • Established financial services player with presence in fund JM Financial Credit based activities, investment banking and securities PAT Solutions Limited busin
Slide 6: Impact of COVID-19
Impact of COVID-19 • The Company has provided moratorium as per the RBI guidelines. However company has not sought moratorium from any of its lenders. • Management overlays have been applied to determine PD and LGDs based on the current available information including potential macro-economic impact
Slide 7: Key Products
Key Products Construction / Project finance This includes offering loans to developers for construction of residential or Construction / 44.2% Project finance commercial projects. Loans against property Loan against This includes loans against the residential or commercial properties with property 2
Slide 8: Key Lending Philosophy
Key Lending Philosophy To be senior secured lender at all times together with focus on risk adjusted profitable growth Avoid entering into consortium arrangements In most cases, we conduct micro market surveys and lend largely to residential projects We ensure that both developers and residential pr
Slide 9: Key Strengths
Key Strengths 1 Strong background of shareholders along with the brand name and parentage of the 6 JM Financial group 2 Experienced Strong financial and Management Team operating performance JM Financial Credit Solutions 5 Limited 3 Diversified funding sources Wide customer base, and strong credit p
Slide 10: Strong financial and operating performance
Strong financial and operating performance Gross Loan Book (1) Net Total Income (1) Rs. Cr Rs Cr 9,000 8,123 7,339 7,342 900 761 700 700 5,658 550 6,000 476 500 345 4,074 300 3,000 100 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Gross loan book calculated without impact of EIR, Interest accrue
Slide 11: Strong financial and operating performance (cont’d)
Strong financial and operating performance (cont’d) Yields and Margins(1,2) Asset Quality (1) Yields, Cost of Borrowing, Net Interest Margin (NIM)(%) Gross NPA (%) and SMA2 (%) 20% 16.6% 15.7% 14.7% 14.8% 14.2% 15% 3.3% 10.4% 9.8% 10.1% 2.1% 9.2% 9.5% 10% 2.1% 1.8% 9.9% 1.0% 1.1% 8.8% 8.0% 7.9% 7.3%
Slide 12: Wide customer base, strong customer relationships and geographic diversification
Wide customer base, strong customer relationships and geographic diversification Geography wise split of loan book – March 2020 74 borrower groups* Ahmedabad Kolkata 4.4% Others Hyderabad 5.7% 1.9% 2.4% Predominant focus on financing residential development Pune 8.9% Mumbai 39.0% Advances towards re
Slide 13: Concentration Analysis – Top 10 Accounts Group-wise
Concentration Analysis – Top 10 Accounts Group-wise As on Mar 31, 2020 Sr No Group Location % of total (Rs. Cr) 1 Adani Group* Ahmedabad 325 4.4% 2 Kalpataru Group Mumbai 300 4.1% 3 Divyasree Group Bangalore 282 3.8% 4 Spenta Group Mumbai 254 3.5% 5 RMZ Group Bangalore 253 3.4% 6 Pashmina Group Mumb
Slide 14: Loan book details
Loan book details Book Size GNPA SMA2 Average Cover Locations GNPA % SMA2 % (Rs Cr.) (Rs Cr.) (Rs Cr.) (In times) Mumbai / Ahmedabad 3,330 53 0.73% 112 1.53% 2.23 Bangalore 1,078 - - - - 3.35 Chennai 903 100 1.36% 42 0.57% 2.25 NCR 785 - - - - 2.74 Pune 652 - - - - 2.31 Kolkata 419 - - - - 2.46 Hyde
Slide 15: Overview of Stressed Assets
Overview of Stressed Assets NPA stood at 2.09% and SMA2 2.10% of loan book Micro market Dynamics Resolution strategy Chennai • Healthy security cover to minimize loss • Investment climate affected since 2016 and no major given default. Security primarily employment opportunities created. includes re
Slide 16: Diversified funding sources and strong credit profile
Diversified funding sources and strong credit profile - Adequately capitalized to fund growth 3.3 3.4 3.0 2.9 2.5 2.9 2.6 2.0 1.8 1.9 Borrowing Breakup 1.5 2,969 4,138 5,661 5,605 1.2 1.0 1.6% 1.0% 2.4% 0.0% 4,853 2.6% 5.1% 0.0% 13.9% Short 9.4% Short 17.6% 19.0% Short 0.0% Short Short 0.0% 13% 23%
Slide 17: Structural Liquidity (ALM 2) - March 2020
Structural Liquidity (ALM 2) - March 2020 1 to 14 14 days to 1-2 2-3 3-6 6 months 3-5 Over 5 (Rs. in Crore) 1-3 years Total days 1 month months months months - 1 year years years OUTFLOWS 1. Networth - - - - - - - - 3,291 3,291 2. Borrowings 79 21 45 433 274 716 1,241 1,229 667 4,705 3. Current Liab
Slide 18: Board of Directors
Board of Directors • Nominee Director representing JM Financial Limited in the Company since October 28, 2015. She has been • Nominee Director representing INH Mauritius 1 in the associated with the JM Financial Group since 1981 Company since January 6, 2015. He serves as a Director working in vario
Slide 19: Annexure – Financial Information
2 Annexure – Financial Information 18
Slide 20: Profit and Loss Statement – Ind AS
Profit and Loss Statement – Ind AS Half year ended Year ended Particulars (Rs. Crore) H2 FY20 H2 FY19 FY20 FY19 Interest income 614.11 652.15 1,264.11 1,258.01 Fees and commission income 1.22 3.01 1.37 5.11 Net gain on fair value changes 20.22 11.23 41.76 13.90 Net gain on derecognition of financial
Slide 21: Balance Sheet – Ind AS
Balance Sheet – Ind AS As at As at Particulars (Rs Crore) March 31, 2020 March 31, 2019 ASSETS Financial Assets Cash and cash equivalents (CCE) 28.39 178.33 Bank Balance other than CCE - 4.50 Trade receivables 0.30 - Loans 7,175.97 8,016.04 Investments 907.14 295.29 Other Financial assets 1.09 4.06
Slide 22: Balance Sheet – Ind AS (cont’d)
Balance Sheet – Ind AS (cont’d) As at As at Particulars (Rs Crore) March 31, 2020 March 31, 2019 LIABILITIES AND EQUITY LIABILITIES Financial Liabilities Trade Payables 9.88 11.23 Debt Securities 3,045.40 3,248.56 Borrowings (Other than Debt Securities) 1,807.59 2,356.43 Other financial liabilities
Slide 23: For Further Queries
For Further Queries Mr. Shashwat Belapurkar Chief Executive Officer Email: shashwat.belapurkar@jmfl.com Contact No: 022 66303545 Mr. Gagan Kothari Chief Financial Officer Email: gagan.kothari@jmfl.com Contact No: 022 66303360 22