Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q1 FY24 Earnings Presentation
52 slides from Jm Financial's earnings presentation, Aug 3, 2023
Slide 1: Investor Presentation cover letter to exchanges
August 3, 2023 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 – Q1FY24 Results Update
JM Financial Limited – Q1FY24 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 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 and Shareholding Details Section 4 Financial Performance Annexure Corporate Social
Slide 5: Section 1: Group Overview
Section : 1 Group Overview A JM FINANCIAL | EC °
Slide 6: Evolution of the Franchise Over Five Decades; Unmatched Depth and Breadth
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 3 Alternative and Distressed Credit : Expertise Built in a Niche Business • Distressed Credit relates to acquisition and • Caters to Institutional, Corporate, resolution of stressed
Slide 8: Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Clients
Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Clients Products / Services Business Priorities Q1FY24 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 Q1FY24 Highlights Wholesale Mortgage Wholesale Mortgage: Wholesale Mortgage Wholesale Mortgage: • Project / Construction Finance • Loan Book stood at Rs. 9,293 Cr in Q1FY24 • Growth of loan book • Develo
Slide 10: Alternative and Distressed Credit
Alternative and Distressed Credit Clients Products / Services Business Priorities Q1FY24 Highlights • Acquisition of • Highest-ever AUM Banks distressed assets • Strong recoveries ✓ Co-Investment model with strategic partners/ financial investors including distressed funds • Strong acquisition over
Slide 11: Platform AWS: Integrated Platform for Individual Clients; Focus on Digital
Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Products / Services / Clients Business Priorities Q1FY24 Highlights Geography Future and digital readiness; On-boarding • Launched digital broking “BlinkX” and gearing Retail Investors • Securities ✓ modern tools and enhanci
Slide 12: Section 2: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance 10
Slide 13: Consolidated Performance
Consolidated Performance Rs. Revenues Pre-Provision Net Profit ROA* / ROE* End of period PBT EPS BVPS Operating Profit Loan book # 1,081 Cr 377 Cr 230 Cr 166 Cr 2.4% / 8.1% 1.7 86.40 15,891 Cr Q1 FY24 34.2% 29.2% -11.1% -2.4% 26.1% Q1 FY23 806 Cr 291 Cr 259 Cr 170 Cr 3.2% / 8.8% 1.8 81.83 12,606 Cr
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 377 364 318 322 Mortgage Lending Investment Bank 1,081 347 946 292 300 877 871 175 291 259 806 145 230 147 151
Slide 15: TAB A: Investment Bank
TAB :A Investment Bank A JM FINANCIAL | EC
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 4,497 4,908 4,512 4,612 ✓ Capital Markets : Loan against Securities 895 1,160 951 783 1,029
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 61,660 61,660 57,679 57,681 56,515 58,163 57,679 57,681 58,163 4,643 56,515 4,349 4,209 4,191 3,456 22,595 15,984 14,586 13,294 15,339
Slide 18: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 391 133 135 368 131 324 315 118 269 105 56.5% 59.3% 52.7% 51.1% 49.7% 47.3% 48.9% 43.5% 50.3% 40.7% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Profit
Slide 19: TAB B: Mortgage Lending
TAB :B Mortgage Lending A JM FINANCIAL | EC v
Slide 20: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited • Additional slippages (NPA + End of Period Loan Book* (Rs Cr) Spread Analysis (%) SMA-2) are from the Pre Yield % COF % NIM % 9,501 Covid-19 / DCCO restructured 9,299 9,293 13.4% 13.4% 13.1% 13.3% 13.2% book during the quarter leading 8,415 to an increase in pr
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 362 93 93 1,450 1,387 78 1,181 75 205 175 1,035 145 148 64 919 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1F
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) 150 214 161 160 119 120 194 194 178 152 175 79 148 145 20 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 PAT (Pre Non Con
Slide 23: TAB C: Platform AWS
TAB: C Platform AWS A JM FINANCIAL | EC 2
Slide 24: Platform AWS: Key Highlights
Platform AWS: Key Highlights Clients ~ 2.15+ Lakhs Affluent, HNI and strong vintage Growth of ADTO* & Volume Mix % ‘000 Rs Cr Cash Future Option ADTO Presence in 213 Cities 33 100% 36 Locations – 768 (Q4FY23 – 744, Q1FY23 -659) 32 32 80% 27 29 28 Strong advisory capabilities 24 60% 20 93% 93% 94% 20
Slide 25: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 175 151 118.1% 147 145 114 89.4% 92.6% 83.4% 82.9% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23* Q1FY24 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) PBT PAT (post Non Contro
Slide 26: TAB D: Alternative & Distressed Credit
TAB : D Alternative & Distressed Credit 24
Slide 27: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of June 30, 2023 – Rs. 15,109 Cr • Effective shareholding of 58.28% held by JM Financial Ltd as of June 30 Infrastructure Plywood/ laminates 1.3% 2023 1.6% Portfolio & Others • 50 member professional te
Slide 28: Alternative & Distressed Credit: Performance Analysis
Alternative & Distressed Credit: Performance Analysis Asset Acquisitions (Rs Cr) Recoveries (Rs Cr) Cumulative Assets Acquired by ARC JM Financial ARC's acquisition acquisition of Rs. 1,181 2,736 4,832 Cr over last 2Q 2,096 480 342 539 555 454 98 143 143 124 87 122 123 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY2
Slide 29: Section 3: Group Structure and Shareholding Details
Section 3 Group Structure and Shareholding Details 27
Slide 30: Group Structure: June 30, 2023
Group Structure : June 30, 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 Holdings
Slide 31: Section 4: Financial Performance
Section 4 Financial Performance 29
Slide 32: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q1 FY24 Q4 FY23 QoQ % Q1 FY23 YoY % FY23 Gross Revenue 1,081 871 24.1% 806 34.2% 3,343 Finance cost 366 347 5.6% 261 40.3% 1,179 Net loss on fair value changes - 157 - - - - Net loss on derecognition of financial instruments under - - - # - -
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at June 30, 2023 As at March 31, 2023 Assets Loan book* - Steady state Financing 16,281 15,723 Loan book* – Episodic Financing 462 - Distressed asset book (Investment in SRs / Loan) 4,192 4,488 Cash and cash equivalents (CCE)** 1,452 2,207 Other Inve
Slide 34: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at June 30, 2023 As at March 31, 2023 As at June 30, 2023 As at March 31, 2023 Investment Bank 2,775 2,687 2,769 2,681 JM Financial Products Limited 2,014 1,949 2,008 1,943 JM Financial Limited 394 379 394 379 JM Financia
Slide 35: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q1 FY24 Q4 FY23 QoQ % Q1 FY23 YoY % FY23 Investment Bank 391 269 45.3% 324 20.7% 1,299 Mortgage Lending 365 368 -0.8% 300 21.9% 1,319 Alternative & Distressed Credit 140 86 62.3% 65 116.8% 137 Platform AWS 175 151 16.1% 114 53.2% 561 Others 47 29 62.3% 36
Slide 36: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q1FY24 FY23 Q1FY24 FY23 Investment Bank: 391 1,299 106 371 JM Financial Limited 118 457 29 184 JM Financial Products Limited 233 858 64 318 JM Financial Institutional Securities Limited 41 132 9 13 Overseas Entities 5 16 # (2) Add
Slide 37: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q1FY24 FY23 Q1FY24 FY23 Platform AWS: 175 561 9 25 JM Financial Services Limited 159 506 12 28 JM Financial Capital Limited^ - 35 - 26 JM Financial Asset Management Limited 8 19 (6) (31) JM Financial Commtrade Limited + Astute Inv
Slide 38: Investment Bank
Investment Bank Particulars (Rs Cr) Q1 FY24 Q4 FY23 QoQ % Q1 FY23 YoY % FY23 Segment Net worth + NCI 2,775 2,730 1.6% 2,494 11.3% 2,730 Gross Revenue 391 269 45.3% 324 20.7% 1,299 Finance cost 100 94 6.5% 85 18.0% 368 Net loss on fair value changes - (23) - - - - Impairment on Financial Instruments
Slide 39: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q1 FY24 Q4 FY23 QoQ % Q1 FY23 YoY % FY23 Segment Net worth + NCI 4,365 4,349 0.4% 4,028 8.4% 4,349 Gross Revenue 365 368 -0.8% 300 21.9% 1,319 Finance cost 171 163 5.4% 124 37.5% 557 Net loss on fair value changes - (9) - - - - Impairment on Financial Instruments
Slide 40: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q1 FY24 Q4 FY23 QoQ % Q1 FY23 YoY % FY23 Segment Net worth + NCI 1,853 1,812 2.2% 1,858 -0.2% 1,812 Gross Revenue 140 86 62.3% 65 116.8% 137 Finance Cost 75 72 3.9% 55 36.7% 247 Net loss on fair value changes - 206 - - - - Employee Cost 6 5 14.5%
Slide 41: Platform AWS
Platform AWS Particulars (Rs Cr) Q1 FY24 Q4 FY23 QoQ % Q1 FY23 YoY % FY23 Segment Net worth + NCI 693 685 1.0% 714 -3.0% 685 Gross Revenue 175 151 16.1% 114 53.2% 561 Finance cost 40 36 12.4% 17 N/M 104 Net loss on fair value changes - (3) - - - - Impairment on Financial Instruments (5) (1) N/M (3)
Slide 42: Consolidated Lending Book Profile
Consolidated Lending Book Profile End of Period Gross Loan Book (Rs Cr)# NIM Analysis (%)# Wholesale Mortgage Retail Mortgage Bespoke FI Financing*** Capital Market Wtd. Avg Tenure Yield % COF % NIM % 15,653 15,891 (Months) 14,670 15,234 12.9% 12.7% 12.8% 13.1% 12.9% 904 1,062 1,160 12,606 1,141 1,0
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) Equity** Debt* D/E Net D/E 14,702 15,875 16,359 11,747 13,063 1.47 1.45 1.34 2,878 1.21 1.10 1.34 2,207 1.25 2,109 0.83 1.08 1.15 1,388 1,452 10,656 10,972 11,153 10,781 10,938 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY
Slide 44: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) Q1FY24 Q1FY23 FY23 Q1FY24 Q1FY23 FY23 Revenue 314 272 1,173 Revenue 233 195 858 Net Profit 10 58 335 Net Profit 64 76 318 Net worth 4,267 4,000 4,257 Net worth 2,253 2,028 2,188 End of pe
Slide 45: Annexure: Corporate Social Responsibility and Other Details
Annexure Corporate Social Responsibility and Other Details 43
Slide 46: CSR intervention – Education
CSR intervention – Education PROJECT BACHPAN – BIHAR DIGITAL SAKSHARTA - BIHAR JMFF SHIKSHA SAMARTHAN DIGITAL SAKSHARTA - • Six new Bachpan centers added to our MAHARASHTRA fold increasing the total number of operational enters to 18 – 11 in Sikandra and 7 in Khaira blocks of Jamui, Bihar covering a
Slide 47: CSR interventions – Healthcare and Sports Development
CSR interventions – Healthcare and Sports Development MAITRI KARUNA NETRALAYA - BIHAR SHRI VARDHMAN NIDAAN SEVA - BIHAR JMF SPORTS PROJECT – BIHAR • 7,626 OPDs conducted across 30 villages in Q1 of FY 23-24, with maximum complaints of Orthopedic, Respiratory, Dermatological and Gastro-intestinal ail
Slide 48: CSR interventions – Agriculture and Allied Activities
CSR interventions – Agriculture and Allied Activities INTEGRATED LIVESTOCK DEVELOPMENT MODEL VILLAGE DEVELOPMENT INTEGRATED VILLAGE DEVELOPMENT PROGRAMME - MAHARSHTRA CENTRES – BIHAR PROJECT - BIHAR • Kharif preparations for season with seed inputs for farmers across 14 villages in • As a part of wa
Slide 49: 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 50: 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 51: 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 52: For Further Queries
For Further Queries Mr. Nishit Shah Mr. Manish Sheth Business Strategy, Investor Relations and Group CFO, MD & CEO, JM Financial Home CFO – JM Financial Products Limited Loans Limited Email: nishit.shah@jmfl.com Email: manish.sheth@jmfl.com Contact No: 022 66303522 Contact No: 022 66303460 Mr. Gagan