Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q3 FY2025 Earnings Presentation
67 slides from Jm Financial's earnings presentation, Jan 28, 2025
Slide 1: Exchange cover letter for investor presentation
January 28, 2025 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 Security Code:
Slide 2: JM Financial Limited – Q3FY25 Results Update
JM Financial Limited – Q3FY25 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 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 Annexures Tab A Financial Performance Tab B Group Str
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 the private credit and alternatives space Wholesale Credit Business • Consolidation :
Slide 7: On Balance Sheet to Off Balance Sheet: Improving Risk Reward Metrics
On Balance Sheet to Off Balance Sheet : Improving Risk Reward Metrics Loan book [Rs. in Crore] Key Focus Areas Q3FY25 Loan Book (including SEBI MTF) : Rs. 10,040 Crore • Syndication loan book (Private Credit Syndication) SEBI MTF + Capital Markets • Bespoke Affordable Home Loans* Bespoke 1,408 , 14%
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 • UHNI, HNI, Mass Affluent, • Retail Self – Employed and • Promoters, Corporates, UHNI, Institutions, Hous
Slide 9: Consolidated Performance: Focused Businesses
Consolidated Performance: Focused Businesses Profit after tax post NCI Q1FY25E Q2FY25E Q3FY25E 9MFY25E Remarks (Rs. In Cr)* Corporate Advisory and 40 102 79 221 • Consistent leadership in ECM and M&A Capital Markets Wealth Management (incl. 28 40 33 101 • AUM**: Rs. 1,10,532 Cr Digital) Asset Manage
Slide 10: Corporate Advisory and Capital Markets
Corporate Advisory and Capital Markets Q3FY25 Highlights • Best in class relationships, strong brand, significant repeat business • Successfully closed 42 deals cumulatively raising ~Rs. 88,996 crore in • Consistent leadership position in ECM, M&A CY24. Secured #1 spot in closing highest number of Q
Slide 11: Wealth Management
Wealth Management Breakup of AUM** ~111,000 Cr (Q3FY25) • Long term goal of building recurring revenue streams Non Retail 15,838 , Wealth RMs: 20% • Strong flow of transactions 30,988 ~110 79,544 28% 72% [Added 21 63,706 80% • Rebuild of wealth team over last 3 years RMs since March 2024] Non Retail
Slide 12: Asset Management
Asset Management Mutual Fund (Rs Cr) Mutual Fund 13,871 • Strong brand recall, rebuild over last 2-3 years 12,516 9,318 4.7x 10,752 • Strong SIP flows 6,189 10,002 2,962 1,112 4,284 7,285 • Retail led AUM, focus on Equity 1,850 1,905 2,033 2,514 3,119 FY23 FY24 Q1FY25 Q2FY25 Q3FY25 • Significant inv
Slide 13: Private Credit Syndication
Private Credit Syndication Loan Book (Rs. crore) • Robust balance sheet and building capability to attract large investors to anchor large syndicated trades Wholesale Mortgage Bespoke FI Financing • Strong origination capability across all asset classes 11,458 1,884 9,330 • Distribution channels to
Slide 14: Affordable Home Loans
Affordable Home Loans AUM (Rs. crore) • Granular book focused on affordable 2,588 segment 2,256 1,522 • Strong market opportunity 530 942 • Senior hires/team in place 375 • No relationship with developer funding book FY20 FY21 FY22 FY23 FY24 3QFY25 • AA rating with stable outlook (ICRA / CRISIL) Bra
Slide 15: Treasury / Other Assets
Treasury / Other Assets Treasury and Other Assets ➢ Transactions pending RBI approvals Q3FY25 Capital Employed : Rs. 6,618 Crore 181 , 3% ‒ Acquisition of stake from INH Mauritius of Rs. 1,282 crore for increasing stake in JM Financial Credit Solutions Limited from 1,132 , 17% 47% to 90% 219 , 3% 3,
Slide 16: Section 2: Overview
Section : 2 Overview 14 A JM FINANCIAL
Slide 17: 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 18: 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 19: Integrated Investment Bank: Deep Client Relationships
Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Clients Products / Services Business Priorities Q3FY25 Highlights • Investment Banking • Successfully closed 42 deals cumulatively raising Promoters • Institutional Equities ✓ Expand the depth and breadth of the cl
Slide 20: Mortgage Lending: Wholesale and Retail Mortgage
Mortgage Lending: Wholesale and Retail Mortgage Clients Products / Services Business Priorities Q3FY25 Highlights Wholesale Mortgage Wholesale Mortgage: Wholesale Mortgage Wholesale Mortgage: • Loan Book* stood at Rs. 4,009 Cr in Q3FY25 • Project / Construction Finance • Deliver on franchise enhanci
Slide 21: Alternative and Distressed Credit
Alternative and Distressed Credit Clients Products / Services Business Priorities Q3FY25 Highlights • Acquisition of • Distressed Credit AUM as on December 2024 stood Banks distressed assets at Rs. 12,842 Cr v/s Rs. 13,701 Cr as on September ✓ Focus on Co-Investments 2024 • Resolution of acquired •
Slide 22: Platform AWS: Integrated Platform for Individual Clients
Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Clients Products / Services Business Priorities Q3FY25 Highlights Future and digital readiness; On-boarding • Launched digital broking “BlinkX” and gearing Retail Investors • Securities ✓ modern tools and enhancing customer
Slide 23: Section 3: Consolidated Financial Performance
Section : 3 Consolidated Financial Performance 21
Slide 24: 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 669 417 413 Mortgage Lending Investment Bank 1,276 1,261 1,211 1,121 530 1,094 466 265 301 286 325 275 297 383
Slide 25: Consolidated Profit & Loss Statement: Quarterly
Consolidated Profit & Loss Statement : Quarterly Particulars (Rs Cr) Q3 FY25 Q2 FY25 QoQ % Q3 FY24 YoY % Gross Revenue 1,121 1,211 -7.5% 1,261 -11.1% Finance cost 318 343 -7.3% 400 -20.6% Employee cost 221 292 -24.4% 246 -10.3% Depreciation 16 15 10.2% 14 19.7% Other expenses 163 178 -9.1% 135 20.2%
Slide 26: Consolidated Profit & Loss Statement: Nine Months
Consolidated Profit & Loss Statement : Nine Months Particulars (Rs Cr) 9M FY25 9M FY24 YoY % FY24 Gross Revenue 3,426 3,556 -3.7% 4,832 Finance cost 1,031 1,154 -10.7% 1,562 Employee cost 744 675 10.1% 795 Depreciation 47 39 22.1% 53 Other expenses 500 441 13.5% 645 Adjustment of additional provisio
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at December 31, 2024 As at March 31, 2024 Assets Loan book* - Steady state Financing 7,737 13,106 Distressed asset book (Investment in SRs / Loan) 2,307 2,947 Cash and cash equivalents (CCE)** 5,840 4,769 Other Investments (including lien-marked FDs)
Slide 28: Consolidated Balance Sheet (Cont'd)
Consolidated Balance Sheet (Cont’d) Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) Equity** Debt* D/E Net D/E 17,254 5,840 16,145 15,031 5,448 1.49 1.48 13,866 12,143 4,769 1.35 1,393 1.25 3,975 1,607 1.07 1,905 1.24 2,847 1,453 1.04 0.99 1,227 4,447 0.56 3,840 0.76 2,864 11,602 11,
Slide 29: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q3 FY25 Q2 FY25 QoQ % Q3 FY24 YoY % 9MFY25 9MFY24 YoY % FY24 Investment Bank (IB) 429 555 -22.7% 487 -11.9% 1,380 1,373 0.5% 1,978 Mortgage Lending 322 339 -5.0% 392 -18.0% 1,022 1,125 -9.2% 1,531 Alternative & Distressed Credit 86 15 483.7% 111 -22.5% 166
Slide 30: Tab A: Investment Bank
TAB :A Investment Bank 28 A JM FINANCIAL
Slide 31: Investment Bank: Loan Book
Investment Bank : 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 4,600 ✓ Capital Markets : Loan against Securities 4,254 4,241 978 348 288 ✓ Financial Institution F
Slide 32: Increasing Client Engagement and Reach
Increasing Client Engagement and Reach Private Wealth AUM (Rs Cr) Equity Debt Liquid 74,040 76,262 77,024 65,009 68,105 1,842 1,865 1,884 2,390 13,196 14,931 15,080 2,935 14,046 13,971 59,002 59,465 60,060 48,028 51,744 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Number of Relationship Managers: 54 Priv
Slide 33: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 395 605 556 487 429 395 72.3% 219 65.2% 75.9% 197 195 64.7% 80.7% 117 34.8% 27.7% 35.3% 24.1% 19.3% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Profit
Slide 34: Investment Bank: Financial Performance (cont'd)
Investment Bank : Financial Performance (cont’d) Particulars (Rs Cr) Q3 FY25 Q2 FY25 QoQ % Q3 FY24 YoY % 9M FY25 9M FY24 YoY % FY24 Segment Net worth + NCI 3,135 3,068 2.2% 2,941 6.6% 3,135 2,941 6.6% 3,092 Gross Revenue 429 555 -22.7% 487 -11.9% 1,380 1,373 0.5% 1,978 Finance cost 73 89 -17.7% 114
Slide 35: Tab B: Mortgage Lending
TAB :B Mortgage Lending 33 A JM FINANCIAL
Slide 36: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited End of Period Loan Book* (Rs Cr) Spread Analysis (%) • On the back of strong Yield % COF % NIM % 8,752 14.4% 14.3% repayments, the loan book 13.8% 14.0% 13.8% (excluding ICD to group 7,462 companies) has reduced 6,946 during the quarter by Rs. 5,873 9.3% 9.5% 9.
Slide 37: JM Financial Home Loans Limited
JM Financial Home Loans Limited Branch Network Loan AUM (Rs Cr) Disbursement (Rs Cr) 11.0 11.7 11.4 11.0 10.7 128 2,786 3,311 2,999 2,588 1,709 2,366 118 2,256 2,259 960 1,946 112 112 112 352 449 116 189 321 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Amount No. of files AT
Slide 38: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 229 222 127 176 173 82 194 188 140 183 134 121 23 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 (65) (86) Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 PAT (Pre Non C
Slide 39: Mortgage Lending: Financial Performance (cont'd)
Mortgage Lending : Financial Performance (cont’d) Particulars (Rs Cr) Q3 FY25 Q2 FY25 QoQ % Q3 FY24 YoY % 9M FY25 9M FY24 YoY % FY24 Segment Net worth + NCI 4,674 4,559 2.5% 4,546 -2.8% 4,674 4,546 2.8% 4,611 Mortgage Lending 322 339 -5.0% 392 -18.0% 1,022 1,125 -9.2% 1,531 Finance cost 133 156 -14.
Slide 40: Tab C: Platform AWS
TAB: C Platform AWS 38 A JM FINANCIAL
Slide 41: Platform AWS: Key Highlights
Platform AWS: Key Highlights Clients ~ 3.7 Lakhs Affluent, HNI and strong vintage Growth of ADTO* & Volume Mix % ‘000 Rs Cr Cash Future Option ADTO Presence in 231 Cities 100% 72 Locations – 907 (Q2FY25 – 874, Q3FY24 – 878) 61 63 59 60 80% 55 Strong advisory capabilities 48 Research and Technical Te
Slide 42: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 325 301 297 83.9% 283 79.6% 76.7% 265 73.9% 64.6% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) PBT 30.5%ROA % ROE % 92 77
Slide 43: Platform AWS: Financial Performance (cont'd)
Platform AWS : Financial Performance (cont’d) Particulars (Rs Cr) Q3 FY25 Q2 FY25 QoQ % Q3 FY24 YoY % 9M FY25 9M FY24 YoY % FY24 Segment Net worth + NCI 1,007 994 1.3% 746 34.9% 1,007 746 34.9% 949 Gross Revenue 297 325 -8.5% 265 12.4% 905 678 33.6% 978 Finance cost 90 91 -1.1% 67 34.1% 259 163 59.2
Slide 44: Tab D: Alternative & Distressed Credit
TAB : D Alternative & Distressed Credit 42
Slide 45: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of December 31, 2024 – Rs. 12,842 Cr • Effective shareholding of 76.45% held by JM Financial Ltd as of December Infrastructure Portfolio & Others Plywood/ laminates 1.4% 11.3% 31, 2024 1.6% • 39 member
Slide 46: 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 247 1,129 893 140 599 614 405 60 42 21 22 21 - - 3 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Adjusted Net To
Slide 47: Alternative and Distressed Credit: Financial Performance
Alternative and Distressed Credit : Financial Performance Particulars (Rs Cr) Q3 FY25 Q2 FY25 QoQ % Q3 FY24 YoY % 9M FY25 9M FY24 YoY % FY24 Segment Net worth + NCI 1,281 1,279 0.2% 1,694 -24.4% 1,281 1,694 -24.4% 720 Gross Revenue 86 15 483.7% 111 -22.5% 166 364 -54.5% 326 Finance Cost 52 50 3.7% 7
Slide 48: Annexure: Financial Performance
Annexure Financial Performance 46
Slide 49: 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 % 15,111 978 12,917 13.6% 13.2% 13.4% 13.7% 13.5% 1,884 348 11,933 1,477 288 2,547 1,108 9,547 143 9.0% 9.1% 9.2% 9.0% 9.0% 2,936 2,572 777 7,94
Slide 50: Performance of Select Subsidiaries: Quarterly
Performance of Select Subsidiaries : Quarterly JM Financial Credit Solutions Ltd JM Financial Products Ltd Q3FY25 Q3FY24 Q3FY25 Q3FY24 Revenue 229 330 Revenue 180 261 Net Profit 3 86 Net Profit 58 86 Net worth 4,164 4,357 Net worth 2,557 2,366 End of period Loan book# 4,584 8,752 End of period Loan
Slide 51: Performance of Select Subsidiaries: Nine Months
Performance of Select Subsidiaries : Nine Months JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) 9MFY25 9MFY24 FY24 9MFY25 9MFY24 FY24 Revenue 654 963 1,305 Revenue 627 799 1,169 Net Profit (41) 114 47 Net Profit 171 248 427 Net worth 4,164 4,357 4,213 Net worth 2,557 2,366 2,544
Slide 52: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at December 31, As at December 31, As at March 31, 2024 As at March 31, 2024 2024 2024 Investment Bank 3,135 3,092 3,130 3,086 JM Financial Products Limited 2,037 2,114 2,032 2,108 JM Financial Limited 571 565 571 565 JM
Slide 53: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q3FY25 9MFY25 Q3FY25 9MFY25 Investment Bank: 429 1,380 153 464 JM Financial Limited 192 721 57 360 JM Financial Products Limited 180 627 58 171 JM Financial Institutional Securities Limited 76 286 33 104 Overseas Entities 10 27 1
Slide 54: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q3FY25 9MFY25 Q3FY25 9MFY25 Platform AWS: 297 905 17 67 JM Financial Services Limited 279 856 24 85 JM Financial Asset Management Limited 11 30 (13) (31) JM Financial Commtrade Limited + Astute Investments + ARB Maestro 22 66 4 13
Slide 55: Annexure: Group Structure and Other Details
Annexure Group Structure and Other Details 53
Slide 56: Group Structure: December 31, 2024
Group Structure : December 31, 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 Holdi
Slide 57: 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 58: Board of Directors
Board of Directors Mr. Nimesh Kampani, Chairman Mr. Vishal Kampani, Vice Chairman and Managing Director 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
Slide 59: 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
Slide 60: Annexure: Corporate Social Responsibility
Annexure Corporate Social Responsibility 58
Slide 61: Corporate Social Responsibility
Corporate Social Responsibility Project Bachpan - Bihar 19 Bachpan centres remained operational for 67 days in Q3, with 426 children enrolled and learning. Thematic Learning: During Q3, the Bachpan centres focused on themes like “Me and My School”, (मैं और मेरा स्कूल) “Winter Season,” (सर्दी का मौसम
Slide 62: Corporate Social Responsibility
Corporate Social Responsibility JM Financial Shiksha Samarthan 2911 private school students’ second Total INR 4.21 Cr disbursed Total INR 1.13 Cr disbursed instalment of fee disbursed for the new as of private school fee as Ancillary support for 2694 academic year (2024-25) in Q3 students Beyond Fin
Slide 63: Corporate Social Responsibility
Corporate Social Responsibility JMFF Digital Saksharta - Bihar • In Q3, a total of 177 students (109 girls and 68 boys) successfully completed training and certification in five Digital Literacy courses across the three Digital Saksharta centres in Jamui district. • 76 individuals received financial
Slide 64: Corporate Social Responsibility
Corporate Social Responsibility Maitri Karuna Netralaya - Bihar • The eye hospital has performed 6,409 surgeries (till 31st December 2024) since its inception in January 2023, including Cataracts, Pterygium, Glaucoma, Aphakia, IOL Fixation, and other eye ailments. • A total of 3,953 unique OPDs and
Slide 65: Corporate Social Responsibility
Corporate Social Responsibility Model Village Development Project - Bihar • Farmers’ Training: Between October and December, the project team organised training and conference sessions on farming the LR variety of potato for higher income and using agricultural equipment such as zero tillage machine
Slide 66: Corporate Social Responsibility
Corporate Social Responsibility JMF Sports Project - Bihar • In the third quarter of FY 2024-25, the project trained 314 children (85 girls and 229 boys) in football and athletics at the four sports grounds established by JM Financial Foundation. • During this quarter, 13 players from our academy (n
Slide 67: Corporate Social Responsibility
Corporate Social Responsibility Shri Vardhman Utkrshtata Kendra – Centre of Excellence for Skill Development and Entrepreneurship - Bihar • In December 2024, the Foundation inaugurated Shri Vardhman Utkrshtta Kendra (Centre of Excellence) to empower individuals, especially women, by equipping them w