Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q4 FY2021 Earnings Presentation
39 slides from Jm Financial's earnings presentation, May 5, 2021
Slide 1: Cover letter to stock exchanges
May 5, 2021 BSE Limited Nationnal Stock Exxchange of India I Limited Departmment of Corrporate Servvices Exchannge Plaza 1st Floo or, New Tradding Ring Plot No.C-1, G Bllock Rotunda Building, P J Towerss Bandraa-Kurla Com mplex Dalal Street, Fort, Bandraa (East) Mumbaai 400001 Mumbbai – 400 0551 Sec
Slide 2: Quarter and year ended March 31, 2021 – Results update
JM Financial Limited Quarter and year ended March 31, 2021 – Results update May 5, 2021
Slide 3: Safe Harbour
Safe Harbour This presentation and the following discussion may contain “forward looking statements” by JM Financial Limited (“JM Financial” or “JMFL” or the “Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of ope
Slide 4: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 3
Slide 5: Key Highlights – Consolidated Performance
Key Highlights – Consolidated Performance Rs. Revenues PBT Net Profit EPS BVPS Debt/ Equity# 841 Cr 312 Cr 177 Cr 1.90 72.92 1.29 x Q4 FY21 45.3% 35.3% Q4 FY20 841 Cr 215 Cr 131 Cr 1.55 66.41 1.47 x Revenues PBT Net Profit EPS ROA* ROE* 3,227 Cr 1,067 Cr 590 Cr 6.34 3.8% 9.2% FY21 -6.6% -2.4% 8.3 %
Slide 6: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q4FY21 Q4FY20 YoY % Q3FY21 QoQ % Gross Revenue 841 841 0.1% 891 -5.6% Finance cost 271 333 -18.7% 278 -2.6% Impairment on Financial Instruments* 40 118 -66.4% 69 -42.8% Employee cost 115 65 77.5% 118 -1.8% Depreciation 10 11 -11.2% 10 -2.3% Ot
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) FY21 FY20 YoY % Gross Revenue 3,227 3,454 -6.6% Finance cost 1,111 1,386 -19.8% Impairment on Financial Instruments* 257 234 9.9% Employee cost 441 395 11.5% Depreciation 40 41 -3.1% Other expenses 312 304 2.5% PBT 1,067 1,094 -2.4% Tax Expens
Slide 8: Impact of COVID-19 on the results
Impact of COVID-19 on the results Year ended Year ended Particulars (Rs Cr) 31.03.2021 31.03.2020 Net profit after tax and after non-controlling interest (Post COVID-19 Impact) 590 545 Add / (Less): Additional Provision for expected credit Loss 208 122 Diminution in fair valuation of investments - 5
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at March 31, 2021 As at March 31, 2020 Assets Loan book* - Steady state Financing 10,325 11,307 (Gross loan book: Mar’21 – Rs. 10,854 Cr; Mar’20 – Rs. 11,531 Cr) Loan book* – Episodic Financing 33 - Distressed asset book (Investment in SRs / Loan) 3,
Slide 10: Lending book Profile
Lending book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%)# 14.2% 14.5% 14.1% 14.3% 14.3% 11,531 11,386 10,833 10,407 10,854 2,270 1,413 369 1,654 533 10.2% 465 1,459 2,101 10.1% 9.9% 9.9% 10.0% 138 145 560 735 574 170 597 645 123 116 674 744 8,316 8,410 7.6% 7.5% 7.7% 7.3% 8,052 7,590 7,158 6.8
Slide 11: Update on wholesale mortgage segment
Update on wholesale mortgage segment 10
Slide 12: Likely disruption on account of second wave of COVID-19
Likely disruption on account of second wave of COVID-19 Momentum of improvement in the real estate sector likely to get hampered in the short term We anticipate further delays in decision making with respect to SARFAESI action and NCLT due to stay from High court to take possession. This is expe
Slide 13: NPA accounts in wholesale mortgage segment
NPA accounts in wholesale mortgage segment# Principal Principal % to total Provision Security Resolution Developer Sanction O/s in Resolution Mechanism loan book % Cover expected by in Crore Crore NPA Mumbai Developer 47.3 47.2 0.65% 29.03% 1.1 SARFAESI action Dec 21 – Mar 22 Mumbai Developer 5.0 4.
Slide 14: SMA2 accounts in wholesale mortgage segment
SMA2 accounts in wholesale mortgage segment # Principal Principal % to total Provision Security Resolution Developer Sanctioned O/s in Resolution Mechanism loan book % Cover expected by in Crore Crore SMA2 Mumbai Developer 175.0 152.2 2.11% 23.16% 1.2 DM / JDA with strong developer Dec 21 – Mar 22 M
Slide 15: Borrowing Profile
Borrowing Profile 1.5 1.3 1.2 1.2 1.1 1.0 0.9 0.8 Borrowing Breakup* 0.7 0.7 11,756 12,369 Short 10,440 10,879 10,384 11% 1% 2% 9% 6% Short Short 5% Short 2% 10% 3% 1% 17% 4% Short 3% 2% 22% 9% 6% 8% 9% 26% 14% 24% 17% 19% 18% Long Long Long Long Long 91% 90% 83% 65% 86% 78% 61% 66% 64% 68% Q4 FY20
Slide 16: Liability Profile over the last one year
Liability Profile over the last one year Amount in Rs crore, unless stated Mar-20 June-20 Sept-20 Dec-20 Mar-21 otherwise Consolidated gross borrowing* 11,756 10,440 10,879 10,384 12,369 • Reduced leverage across Gross Debt / Equity 1.47 1.17 1.20 1.11 1.29 lending segments Net Debt / Equity 1.04 0.
Slide 17: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 16
Slide 18: Businesses Performance
Our Business Our Business Segments Investment Banking, Mortgage Distressed Asset Wealth Management & Lending Credit Management Securities Business (IWS) Investment Banking & Securities Wholesale – Developer Funding Asset Reconstruction Mutual Fund Wealth Management Retail - Housing, LAP & EIL* Busin
Slide 19: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q4 FY21 Q3 FY21 QoQ % Q4 FY20 YoY % FY21 FY20 YoY IWS 445 425 4.7% 411 8.3% 1,567 1,612 -2.8% Mortgage Lending 302 326 -7.3% 316 -4.3% 1,218 1,351 -9.9% Distressed Credit 75 126 -40.5% 98 -23.6% 385 413 -7.0% Asset Management 9 8 3.7% 7 26.2% 31 63 -50.2%
Slide 20: IWS – Key Performance Matrix
IWS – Key Performance Matrix Investment Banking and Arranger Transactions Private Wealth Management AUA (Rs Cr) Investment Banking Transactions 56,757 59,052 54,015 4,327 4,165 • Sole Manager to the Buyback of Equity Shares of TCS Ltd (~Rs. 16,000 44,883 47,579 5,130 Cr) and Wipro Ltd (~Rs. 9,500 Cr
Slide 21: IWS – Key Performance Matrix (cont’d)
IWS – Key Performance Matrix (cont’d) Average Daily Turnover (Rs Cr) Institutional Equities Business 13,894 14,248 12,582 11,175 11,119 • Worldwide institutional reach - dominant global & local institutional franchise 12,963 11,504 12,885 10,282 10,206 • Institutional distribution strength - We cove
Slide 22: IWS – Key Financial Information
IWS – Key Financial Information Particulars (Rs Cr) Q4 FY21 Q3 FY21 QoQ % Q4 FY20 YoY % FY21 FY20 YoY % Segment Net worth + NCI 3,042 2,935 3.6% 2,694 12.9% 3,042 2,694 12.9% Loan Book* 3,204 3,051 5.0% 3,880 -17.4% 3,204 3,880 -17.4% Gross Revenue 445 425 4.7% 411 8.3% 1,567 1,612 -2.8% Finance cos
Slide 23: Mortgage Lending
Mortgage Lending Wholesale Loan Book* Retail • Provides an integrated financial solution to real estate • Home loans business loan book at Rs. 431 developers with major focus on real estate project financing 7,651 7,650 crore 7,526 • 65 groups – significant focus on repeat business 7,428 7,355 • Col
Slide 24: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction AUM (Rs Cr) Asset Acquisitions (Rs Cr) 296 293 271 11,489 11,441 11,429 10,915 11,060 200 120 3,012 2,982 3,244 2,923 3,193 51 51 - - 10 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21* Q3 FY21 Q4 FY21 ARC's AUM JM's share in ARC's AUM Assets
Slide 25: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction Particulars (Rs Cr) Q4 FY21 Q3 FY21 QoQ % Q4 FY20 YoY % FY21 FY20 YoY % Segment Net worth + NCI* 1,560 1,548 0.8% 1,513 3.2% 1,560 1,513 3.2% Gross Revenue 75 126 -40.5% 98 -23.6% 385 413 -7.0% Finance Cost 61 68 -11.0% 65 -7.7% 261 265 -2.0% Employee Cost (3
Slide 26: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AAUM (Rs Cr) Mutual Fund: 6,109 • Quarterly Average AUM (QAAUM) – Rs.2,389 Cr. • Rank (QAAUM) – 30 among 43 Mutual Funds. 4,182 2,824 4,049 3,700 • 12 Schemes categorized as Equity, Hybrid and Debt. 2,389 • Investor reach – 1,17,248 base, 13 branches &
Slide 27: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 26
Slide 28: Organisational Structure – March 31, 2021
Organisational Structure – March 31, 2021 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 46.68%(2) 99.45% 59.54% 100% 59.25%(3) 100% 100% 100% JM Financial Overseas JM Financial Infinite India JM Financial JM Financi
Slide 29: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) March 31, 2021 120.0 Market Capitalization (Rs Cr) 8,050.50 100.0 80.0 60.0 Price (Rs) 84.50 40.0 20.0 No. of Shares Outstanding (Cr) 95.27 - Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 52 Week High-Low (Rs) 101.60/55.50 Key Institutional
Slide 30: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 29
Slide 31: Performance of Select Subsidiaries
Performance of Select Subsidiaries In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Revenue 287 305 Revenue 142 186 Net Profit 98 49 Net Profit 25 22 Net worth 3,650 3,291 Net worth 1,829 1,707 Loan book# 7,219 7,342 Loan book# 3,081 3,679 Net Inte
Slide 32: Performance of Select Subsidiaries
Performance of Select Subsidiaries In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd FY21 FY20 FY21 FY20 Revenue 1,167 1,310 Revenue 661 841 Net Profit 359 382 Net Profit 138 160 Net worth 3,650 3,291 Net worth 1,829 1,707 Loan book# 7,219 7,342 Loan book# 3,081 3,679 Net Interest
Slide 33: Journey of JM Financial Group
Journey of JM Financial Group JM Financial Joint Venture with Morgan Stanley 1973 1986 1994 1998 2004 2005-2006 2006 -2007 2007 Incorporation of JM JM Financial Set up mutual JV with Capital Preferential issue of shares Launched Terminated Financial and Limited (JMFL)(1) fund Morgan market to Tiger
Slide 34: Corporate Governance – Strong Board of Directors
Corporate Governance – Strong Board of Directors Mr. Nimesh Kampani, Chairman Mr. Vishal Kampani, 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 • Managing Director of JM Financial Ltd., the group’s flags
Slide 35: Effective Risk Management Framework
Effective Risk Management Framework Robust risk management architecture encompassing independent identification, measurement and management of 1 risk across various businesses of the Group 2 Effective systems, processes and adequate review mechanism to actively monitor, manage and mitigate risks 3 Q
Slide 36: CSR – Integrated Rural Transformation Programme
CSR – Integrated Rural Transformation Programme MODEL VILLAGE DEVELOPMENT PROJECT – JAMUI DISTRICT, BIHAR Feb 1 – 3, 2021: First-ever three-day farmers’ knowledge building series (namely – Khet, Khalihan aur Jagrut Kisaan) conducted by JMFF in convergence with the Krishi Vigyan Kendra (KVK), Jamui
Slide 37: CSR – Integrated Rural Transformation Programme
CSR – Integrated Rural Transformation Programme INTEGRATED VILLAGE DEVELOPMENT PROJECT – PALGHAR DISTRICT, MAHARASHTRA Project run in Mokhada block in Palghar district, covering over 1,100 households across seven villages Eight farmers’ training sessions held across seven villages and attended b
Slide 38: Philanthropic Giving and Support
Philanthropic Giving and Support Through the year, JM Financial Foundation has partnered with organisations to support - Inclusive education and skills training for 258 differently abled children Scholarships for 34 girls to pursue bachelors/masters in Computer Applications in Education Bhavnaga
Slide 39: For Further Queries
For Further Queries Mr. Manish Sheth Mr. Nishit Shah Group CFO Business Strategy, Investor Relations Email: manish.sheth@jmfl.com and CFO – JM Financial Products Contact No: 022 66303461 Limited Email: nishit.shah@jmfl.com Contact No: 022 66303522 Mr. Gagan Kothari CFO – JM Financial Credit Solution