Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q3 FY2024 Earnings Presentation
54 slides from Jm Financial's earnings presentation, Feb 12, 2024
Slide 1: Investor Presentation cover letter to exchanges
j JM Fl'NANCIAL February 12, 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 – 400 001 Mumbai – 400 05
Slide 2: JM Financial Limited – Q3FY24 Results Update
A Legacy of Excellence built with Integrity A Future of Pur1 pose led by Innovation e JM Financial Limited – Q3FY24 Results Update ' JM FINANCIAL ES
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 Section 4 Financial Performance Annexure Corporate Social Responsibility and Other
Slide 5: Section: Group Overview
Section : 1 Group Overview ' JM FINANCIAL I ES 3
Slide 6: Evolution of the Franchise Over Five Decades
Evolution of the Franchise Over Five 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 Integrated Investment Bank : Cornerstone of our Franchise • Caters to Institutional, Corporate, • 3 Alternative and Distressed Credit : Expertise Built in a Niche Business • Distressed Credit relates to acquisition and resolution of stres
Slide 8: Integrated Investment Bank: Deep Client Relationships
Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Clients Products / Services Business Priorities Q3FY24 Highlights • Investment Banking • Strategy to integrate the investment bank is Promoters • Institutional Equities ✓ Expand the depth and breadth of the client
Slide 9: Mortgage Lending: Wholesale and Retail Mortgage
Mortgage Lending: Wholesale and Retail Mortgage Clients Products / Services/ Business Priorities Q3FY24 Highlights Wholesale Mortgage Wholesale Mortgage: Wholesale Mortgage: Wholesale Mortgage • Project / Construction Finance • Growth of loan book • Loan Book stood at Rs. 8,752 Cr in Q3FY24 • Develo
Slide 10: Alternative and Distressed Credit
Alternative and Distressed Credit Clients Products / Services Business Priorities Q3FY24 Highlights • Acquisition of • Distressed Credit AUM as on Dec 2023 stood at Rs. Banks distressed assets 15,059 Cr (up 36% YoY) ✓ Co-Investment model with strategic partners/ financial investors including distres
Slide 11: Platform AWS: Integrated Platform for Individual Clients
Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Products / Services / Clients Business Priorities Q3FY24 Highlights Geography Retail Investors • Securities • Advisory ✓ Future and digital readiness; On-boarding modern tools and enhancing customer experience ( • Launched d
Slide 12: Section: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance ' JM FINANCIAL I ES 10
Slide 13: Consolidated Performance
Consolidated Performance Rs. Revenues Pre-Provision Net Profit ROA* End of period PBT ROE* EPS Operating Profit Loan book # 1,261 Cr 466 Cr 417 Cr 278 Cr 4.1% 13.1% 2.9 15,111 Cr Q3 FY24 Q3 FY23 t 33.3% t 28.0% t 29.7% t 46.0% t t t 946 Cr 364 Cr 322 Cr 190 Cr 3.6% 9.5% 2.0 15,234 Cr Pre-Provision R
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 466 417 ■ Mortgage Lending ■ Investment Bank 1,261 1,214 405 1,081 364 377 265 322 946 238 292 871 175 300
Slide 15: TAB A: Investment Bank
TAB : A Investment Bank ' JM FINANCIAL I ES 13
Slide 16: 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 : Promoter, Structured financing 5,148 4,512 4,612 4,593 4,600 ✓ Capital Markets : Loan against Securities 1,160 783 1,02
Slide 17: Increasing Client Engagement and Reach
Increasing Client Engagement and Reach Private Wealth AUM (Rs Cr)* Private Wealth AUM Transactional and Recurring (Rs Cr)* ■ Equity ■ Debt ■ Liquid ■ Recurring ■ Transactional 65,009 65,009 57,681 58,163 60,287 60,287 56,515 2,935 57,681 56,515 58,163 4,209 4,191 3,456 3,567 14,046 14,586 13,294 13,
Slide 18: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) ■ Interest Income ■ Non Interest Income 495 487 197 184 391 368 63.1% 65.2% 269 133 135 55.3% 58.5% 47.9% 105 44.7% 41.5% 36.9% 34.8% 52.1% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Pr
Slide 19: TAB B: Mortgage Lending
TAB : B Mortgage Lending ' JM FINANCIAL I ES 17
Slide 20: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited • • Strong repayments of Rs. 1,428 crore during the quarter Pre-Covid loan book stood at 9,299 End of Period Loan Book* (Rs Cr) 9,501 9,293 9,711 8,752 13.1% - ■ Yield % 13.3% ■ - Spread Analysis (%) COF % 13.2% ■ - . 13.9% ■ NIM % 14.4% Rs. 541 crore as of Dece
Slide 21: 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. 11 Lakhs 112 362 352 105 1,759 93 93 236 205 1,450 1,504 1,387 78 148 1,181 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24
Slide 22: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 222 176 150 214 127 197 161 160 120 194 194 155 152 28 20 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 PAT (Pre Non Con
Slide 23: TAB C: Platform AWS
TAB : C Platform AWS ' JM FINANCIAL I ES 21
Slide 24: Platform AWS: Key Highlights
Platform AWS: Key Highlights Clients ~ 2.70+ Lakhs - - - - Affluent, HNI and strong vintage Growth of ADTO* & Volume Mix % ‘000 Rs Cr Cash Future Option ADTO Presence in 232 Cities 100% 48 Locations – 878 (Q2FY24 – 814, Q3FY23 - 710) 43 80% 39 33 36 Strong advisory capabilities 32 Research and Techn
Slide 25: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 265 238 118.1% 92.6% 88.8% 82.9% 175 73.9% 146 151 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23* Q1FY24 Q2FY24 Q3FY24 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) ■ PBT ■ PAT (post Non Co
Slide 26: TAB D: Alternative & Distressed Credit
TAB : D Alternative & Distressed Credit ' JM FINANCIAL I ES 24
Slide 27: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of December 31, 2023 – Rs. 15,059 Cr • Effective shareholding of 58.28% held by JM Financial Ltd as of December Infrastructure Portfolio & Others Plywood/ laminates 1.3% 10.5% 31, 2023 1.6% • 45 member
Slide 28: Alternative & Distressed Credit: Performance Analysis
Alternative & Distressed Credit: Performance Analysis Asset Acquisitions (Rs Cr) Recoveries (Rs Cr) Cumulative Cumulative ■ Assets Acquired by ARC ■ JM Financial ARC's acquisition acquisition of Rs. 1,181 recoveries of Rs. 2,736 4,939 Cr over last 4 2,333 Cr over last 4 2,096 Quarters Quarters 480 3
Slide 29: Section: Group Structure
Section 3 Group Structure ' JM FINANCIAL I ES 27
Slide 30: Group Structure: December 31, 2023
Group Structure : December 31, 2023 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Private Wealth and PMS Holding company of other operating subsidiaries 100% 59.54% 99.71% 46.68%(2) 53.62% 100% 100% 100% 100% JM Financial JM Financial Asset JM Financial Overseas Holdi
Slide 31: Section: Financial Performance
Section 4 Financial Performance ' JM FINANCIAL I ES 29
Slide 32: Consolidated Profit & Loss Statement: Quarterly
Consolidated Profit & Loss Statement : Quarterly Statement Particulars (Rs Cr) Q3 FY24 Q2 FY24 QoQ % Q3 FY23 YoY % Gross Revenue 1,261 1,214 3.9% 946 33.3% Finance cost 400 388 3.1% 301 32.8% Employee cost 246 236 4.2% 159 54.4% Depreciation 14 13 3.9% 10 30.8% Other expenses 135 172 -21.3% 111 21.9
Slide 33: Consolidated Profit & Loss Statement: Nine Months Ended Dec 2023
Consolidated Profit & Loss Statement : Nine Months Ended Dec 2023 Particulars (Rs Cr) 9M FY24 9M FY23 YoY % FY23 Gross Revenue 3,556 2,629 35.3% 3,343 Finance cost 1,154 832 38.7% 1,179 Employee cost 675 448 50.8% 622 Depreciation 39 30 29.2% 42 Other expenses 441 316 39.2% 452 Adjustment of additio
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at December 31, 2023 As at March 31, 2023 Assets Loan book* - Steady state Financing 15,417 15,723 Distressed asset book (Investment in SRs / Loan) 4,001 4,488 Cash and cash equivalents (CCE)** 2,847 2,207 Other Investments (including lien-marked FDs
Slide 35: 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, 2023 As at March 31, 2023 2023 2023 Investment Bank 2,941 2,730 2,934 2,724 JM Financial Products Limited 2,061 1,949 2,054 1,943 JM Financial Limited 491 422 491 422 JM
Slide 36: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q3 FY24 Q2 FY24 QoQ % Q3 FY23 YoY % 9MFY24 9MFY23 YoY % FY23 Investment Bank 487 495 -1.5% 368 32.4% 1,373 1,007 36.4% 1,299 Mortgage Lending 392 367 6.8% 335 17.2% 1,125 942 19.5% 1,319 Alternative & Distressed Credit 111 114 -2.7% 91 22.1% 364 257 41.7%
Slide 37: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q3FY24 9MFY24 Q3FY24 9MFY24 Investment Bank: 487 1,373 159 407 JM Financial Limited 189 538 67 215 JM Financial Products Limited 261 799 86 248 JM Financial Institutional Securities Limited 42 136 6 28 Overseas Entities 5 15 # # A
Slide 38: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q3FY24 9MFY24 Q3FY24 9MFY24 Platform AWS: 265 678 26 44 JM Financial Services Limited^ 250 634 28 53 JM Financial Asset Management Limited 7 21 (6) (21) JM Financial Commtrade Limited + Astute Investments + ARB Maestro 22 62 6 16
Slide 39: Investment Bank
Investment Bank Particulars (Rs Cr) Q3 FY24 Q2 FY24 QoQ % Q3 FY23 YoY % 9MFY24 9MFY23 YoY % FY23 Segment Net worth + NCI 2,941 2,849 3.2% 2,682 9.7% 2,941 2,682 9.7% 2,730 Gross Revenue 487 495 -1.5% 368 32.4% 1,373 1,007 36.4% 1,299 Finance cost 114 117 -3.0% 100 13.6% 331 275 20.5% 368 Impairment
Slide 40: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q3 FY24 Q2 FY24 QoQ % Q3 FY23 YoY % 9MFY24 9MFY23 YoY % FY23 Segment Net worth + NCI 4,546 4,381 3.8% 4,241 7.2% 4,546 4,241 7.2% 4,349 Gross Revenue 392 367 6.8% 335 17.2% 1,125 942 19.5% 1,319 Finance cost 170 170 - 141 21.1% 512 395 29.7% 557 Impairment on Fin
Slide 41: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q3 FY24 Q2 FY24 QoQ % Q3 FY23 YoY % 9MFY24 9MFY23 YoY % FY23 Segment Net worth + NCI 1,694 1,678 1.0% 1,860 -8.9% 1,694 1,860 -8.9% 1,812 Gross Revenue 111 114 -2.7% 91 22.1% 364 257 41.7% 137 Finance Cost 77 77 -0.3% 62 23.3% 229 175 30.7% 247 E
Slide 42: Platform AWS
Platform AWS Particulars (Rs Cr) Q3 FY24 Q2 FY24 QoQ % Q3 FY23 YoY % 9MFY24 9MFY23 YoY % FY23 Segment Net worth + NCI 746 681 9.6% 680 9.8% 746 680 9.8% 685 Gross Revenue 265 238 11.3% 146 81.8% 678 407 66.6% 561 Finance cost 67 55 21.8% 29 134.2% 163 69 137.2% 104 Impairment on Financial Instrument
Slide 43: Consolidated Lending Book Profile
Consolidated Lending Book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%)# ■ Wholesale Mortgage ■ Retail Mortgage ■ Bespoke ■ FI Financing*** ■ Capital Market 15,234 904 1,009 15,653 1,062 1,592 15,891 1,160 1,653 15,808 963 1,927 15,111 978 1,884 - Wtd. Avg Tenure (Months) 12.8% - 13.1% Yield % -
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) 14,702 - Equity** 15,875 1.45 - Debt* 16,359 1.47 D/E 16,949 1.50 - Net D/E 17,254 1.49 2,847 1.34 2,109 2,207 - 1.25 1.34 1.36 1.24 1,452 1,631 1,227 1.15 1,270 1,568 800 1,030 1,620 10,938 11,277 11,602 937
Slide 45: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) I Q3FY24 Q3FY23 I Q3FY24 Q3FY23 Revenue 330 297 Revenue 261 266 Net Profit 86 86 Net Profit 86 95 Net worth 4,357 4,168 Net worth 2,366 2,125 End of period Loan book# 8,752 9,299 End of p
Slide 46: Nine Month Performance of Select Subsidiaries
Nine Month Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) I 9MFY24 9MFY23 FY23 I 9MFY24 9MFY23 FY23 Revenue 963 851 1,173 Revenue 799 690 858 Net Profit 114 235 335 Net Profit 248 255 318 Net worth 4,357 4,168 4,257 Net worth 2,366 2,125 2,188
Slide 47: Annexure Corporate Social Responsibility and Other Details
Annexure Corporate Social Responsibility and Other Details ' JM FINANCIAL I ES 45
Slide 48: Corporate Social Responsibility
Corporate Social Responsibility MODEL VILLAGE DEVELOPMENT PROJECT - BIHAR • Nutrition Garden kits (10 gms each) comprising six types of vegetables were provided to 309 farmers in Khaira and Sikandra blocks of Jamui. These kits, used to cultivate Nutrition Gardens, yielded over 48,000 kg vegetables s
Slide 49: Corporate Social Responsibility
Corporate Social Responsibility DIGITAL SAKSHARTA – BIHAR DIGITAL SAKSHARTA - MAHARASHTRA PROJECT BACHPAN - BIHAR • A total of 208 students (78 • A total of 103 students (34 girls, 130 boys) were certified girls, 69 boys) were certified • A four day teacher training across three of our Digital in ou
Slide 50: Corporate Social Responsibility
Corporate Social Responsibility MAITRI KARUNA NETRALAYA – BIHAR • Within 10 months of opening its Operation Theatre, our Netralaya surpassed the 2,000th cataract surgery patient in December 2023. • A total of 4,452 unique and 3,896 follow up OPDs were conducted during Q3 • 1,285 surgeries performed
Slide 51: Corporate Social Responsibility
Corporate Social Responsibility EMPLOYEE VOLUNTEERING PROGRAM • JM Financial launched CompassionCrew@50 – an employee volunteering program on the completion of 50 years of the JM Financial Group • Group-wide program providing an opportunity to all employees to contribute 50 hours each, to • JM Finan
Slide 52: 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 53: 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 54: 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