Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q3 FY2019 Earnings Presentation
38 slides from Jm Financial's earnings presentation, Jan 23, 2019
Slide 1: Exchange cover letter: Investors' Presentation
j JM FINANCIAL January 23, 2019 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 Se
Slide 2: Quarter ended December 31, 2018 – Results update
j JM f INANCIAL JM Financial Limited Quarter ended December 31, 2018 – Results update January 23, 2019
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: Key implications on financial statements upon migration to Ind AS
Key implications on financial statements upon migration to Ind AS Under the ECL model, the loan loss provision is made on the basis of the loan book’s historical loss experience Expected Credit and future expected credit loss depending on the credit quality assessment. ECL adjustment has had a negat
Slide 5: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures j JM FINANCIAL 4
Slide 6: Key Highlights – Consolidated Performance – Ind AS
Key Highlights – Consolidated Performance – Ind AS Rs. Adjusted Gross Debt / Revenues PBT Net Profit EPS BVPS Net Profit* Equity# 901 Cr 342 Cr 137 Cr 142 Cr 1.64 60.01 2.15x Q3 FY19 Q3 FY18 l 11.8% 806 Cr t 328 Cr 4.3% -12.6% 157 Cr -11.7% 160 Cr 1.97 l 46.81 D 2.83x Rs. Adjusted Revenues PBT Net P
Slide 7: Consolidated Profit & Loss Statement – Ind AS (Quarter)
Consolidated Profit & Loss Statement – Ind AS Particulars (Rs Cr) Q3FY19 Q3FY18 YoY % Q2 FY19 QoQ % Gross Revenue1 901 806 11.8% 976 -7.7% Finance cost 378 297 27.4% 381 -0.8% Provisions* 7 8 -12.3% 23 -70.2% Employee cost 99 99 0.6% 113 -12.3% Depreciation 7 7 4.4% 7 0.9% Other expenses 68 68 -1.1%
Slide 8: Consolidated Profit & Loss Statement – Ind AS (Nine months)
Consolidated Profit & Loss Statement – Ind AS Particulars (Rs Cr) 9M FY19 9M FY18 YoY % Gross Revenue 1 2,729 2,306 18.3% Finance cost 1,095 836 31.0% Provisions* 49 34 41.4% Employee cost 319 297 7.5% Depreciation 20 19 3.7% Other expenses 208 192 8.5% PBT 1,038 928 11.9% Tax Expense2 378 316 19.5%
Slide 9: Reconciliation of Net Profit - IGAAP and Ind AS
Reconciliation of Net Profit - IGAAP and Ind AS Quarter ended Particulars (Rs Cr) 31.12.2018 Unaudited Net profit after tax and before minority interest (IGAAP) 233 Add / (Less): Provision for expected credit Loss (2) Inc / (Dec) in interest income / borrowing cost pursuant to application of effecti
Slide 10: Consolidated Balance Sheet – Ind AS
Consolidated Balance Sheet – Ind AS As at As at Particulars (Rs Cr) Dec 31, 2018 Dec 31, 2017 Assets Loan book (Net of Effective Interest Rate & ECL) 15,866 14,241 Distressed asset book (Investment in SRs / Loan) 4,532 2,830 Treasury fund 2,577 1,885 Arbitrage and trading book 74 564 Property, Plant
Slide 11: Reconciliation of Net worth - IGAAP and Ind AS
Reconciliation of Net worth - IGAAP and Ind AS As at 31.12.2018 Particulars (Rs Cr) Unaudited Net worth as per the erstwhile Indian GAAP (IGAAP) including minority interest 6,942 Add / (Less): Additional provision for expected credit loss (47) Increase in interest income / borrowing cost pursuant to
Slide 12: Lending book Profile – Ind AS
Lending book Profile – Ind AS Gross Loan Book (Rs Cr)# NIM Analysis (%) 13.2% 13.2% 12.8% 13.3% 17,108 I 16,136 I 3,028 I 14,359 I 3,049 9.0% I 9.3% 12,365 8.7% 8.5% 2,472 2,850 1,624 I 2,369 397 I 458 I 2,858 6.3% 5.9% I 6.0% 5.7% 2,128 253 I 202 I 11,211 I 11,005 I 7,666 8,398 I I I I Q2 FY18 Q2 F
Slide 13: Entity-wise Lending Book Profile
Entity-wise Lending Book Profile Rs. in crore Particulars Q2 FY18 Q2 FY19 Q3FY18 Q3 FY19 Wholesale Mortgage JMF Credit Solutions 5,708 8,738 6,475 8,509 JMF Products 1,952 2,028 1,894 2,225 JMF Capital 6 100 29 87 Other Companies - 345 - 184 Total 7,666 11,211 8.398 11,005 Retail Mortgage JMF Produc
Slide 14: Borrowing Profile
Borrowing Profile Consolidated Debt/Equity : ~2.2x December 31, 2018 - - - ~ I I_ _ _~ Consolidated Debt/Equity: ~2.6x September 30, 2018** Consolidated Debt/Equity: ~2.8x December 31, 2017 4% 0% Short 4% 0% Short 0% 1% Short Term Term Term Borrowing Breakup 32% 41% 41% 28% 26% 22% 25% 37% 40% Long
Slide 15: Segment-wise Commercial Paper Borrowing and Repayment Capabilities
Segment-wise Commercial Paper Borrowing and Repayment Capabilities¹ Rs. in crore Amount % of CP Particulars (as on 31st Dec, 2018) Assets backing Rs Crore borrowing IWS Capital Market Financing 827 19.1% High liquid assets Trading & Broking 165 3.8% Fixed deposits and highly liquid assets Corporate
Slide 16: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures j JM FINANCIAL 15
Slide 17: Our Business
Our Business Our Business Segments Investment Banking, Mortgage Distressed Asset Wealth Management & Lending Credit Management Securities Business (IWS) .._____I .._____ Investment Banking and Securities Wholesale – Developer Funding Asset Reconstruction I I,_____ Mutual Fund _. .._____I .._____ Wea
Slide 18: Segment Performance – Ind AS (Quarter)
Segment Performance – Ind AS Ind AS Segment revenue (Rs Cr) Q3 FY19 Q2 FY19 QoQ Q3 FY18 YoY IWS 371 443 -16.1% 441 -15.8% Mortgage Lending 343 321 7.0% 234 46.9% Distressed Credit 162 180 -10.2% 91 78.6% Asset Management 24 25 N/M 39 N/M Others 14 24 N/M 13 N/M Total Segment Revenue 914 993 -7.9% 81
Slide 19: Segment Performance – Ind AS (Nine months)
Segment Performance – Ind AS Ind AS Segment revenue (Rs Cr) 9M FY19 9M FY18 YoY IWS 1,238 1,263 -1.9% Mortgage Lending 956 691 38.3% Distressed Credit 445 271 64.6% Asset Management 75 85 N/M Others 58 34 N/M Total Segment Revenue 2,772 2,344 18.3% Less: Inter - segmental revenue (43) (38) N/M Total
Slide 20: IWS – Key Non Financial Information
IWS – Key Non Financial Information PE and RE AUM (Rs Cr) Securities Business(Rs Cr) Total AUM - - - 520 495 716 155 802 155 794 155 Average Daily Turnover (Rs Cr) 180 340 Q3 FY18 155 340 Q4 FY18 Private Equity 561 Q1 FY19 (PE) D Real 647 Q2 FY19 Estate (RE) 639 Q3 FY19 DDDDD 4,516 1,172 Q3 FY18 4,7
Slide 21: IWS – Key Financial Information
IWS – Key Financial Information Particulars (Rs Cr) – IND AS Q3 FY19 Q2 FY19 QoQ % Q3 FY18 YoY % 9M FY19 9M FY18 YoY % 2,564 2,646 -3.1% 2,249 14.0% 2,564 2,249 Net worth + MI 14.0% Loan Book 7,387 8,176 -9.7% 7,881 -6.3% 7,387 7,881 -6.3% 371 443 -16.1% 441 -15.8% 1,238 1,263 Gross Revenue -1.9% 15
Slide 22: Mortgage Lending
Mortgage Lending Wholesale I Retail [ Loan Book (Rs Cr) ] • Provides an integrated financial solution to real estate • Home loans business loan book at developers with major focus on real estate project financing Rs.132 crore 8,641 8,792 • 89 groups – significant focus on repeat business • Expanded
Slide 23: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction Business Overview Long Term Positive Drivers Long Term Credit Rating of AA- and Short Term Credit • Rollout of Corporate Insolvency Resolution Process Rating of A1+ by ICRA & CARE. Comfortable gearing of (CIRP) under Insolvency & Bankruptcy Code 2016 1.99x**
Slide 24: Distressed Credit – Asset Reconstruction (cont'd)
Distressed Credit – Asset Reconstruction (cont’d) AUM (Rs Cr) Asset Acquisitions (Rs Cr) 14,257 14,221 1,087 1,021 12,469 12,500 350 3,212 3,095 193 1,747 1,765 136 101 72 39 Q2 FY18 Q2 FY19 Q3 FY18 Q3 FY19 Q2 FY18 Q2 FY19 Q3 FY18 Q3 FY19 □ ARC's AUM □ JM's share in ARC's AUM □ Assets Acquired by AR
Slide 25: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AUM (Rs Cr) Mutual Fund: 16,633 16,365 • Quarterly Average AUM (QAAUM) – Rs 11,364 cr. 12,073 • Rank (QAAUM) – 22 among 41 Mutual Funds. 5,174 5,052 12,672 11,364 4,233 • Market Share – 0.48%. 4,118 3,007 • 15 Schemes categorized as Long Term Debt, Sho
Slide 26: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures j JM FINANCIAL 25
Slide 27: Organisational Structure
Organisational Structure JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries I 100% • JM Financial Overseas • 47.05%(2) JM Financial 99.35% --. JM Financial 59.54%--. JM Financial Asset 100% • Infinite India Investment 57.07%
Slide 28: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) As on 31.12.2018 200.0 Market Capitalization (Rs Cr) 7,857.37 150.0 Price (Rs) 93.55 100.0 No. of Shares Outstanding (Cr) 83.99 50.0 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 52 Week High-Low (Rs) 171.60-64.25 % Shareholding – December 3
Slide 29: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures j JM FINANCIAL 28
Slide 30: Performance of Select Subsidiaries – IND AS (Quarter)
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd Q3 FY19 Q3 FY18 Q3FY19 Q3 FY18 Revenue 340 234 Revenue 241 226 Net Profit 113 82 Net Profit 49 50 Net worth 2,790 1,591 Net worth 1,565 1,417 Loan book 8,509 6,475 Loan book 6,777 7,043 N
Slide 31: Performance of Select Subsidiaries – IND AS (Nine months)
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd 9M FY19 9M FY18 9M FY19 9M FY18 Revenue 950 691 Revenue 730 667 Net Profit 283 237 Net Profit 159 149 Net worth 2,790 1,591 Net worth 1,565 1,417 Loan book 8,509 6,475 Loan book 6,777 7,0
Slide 32: Journey of JM Financial Group
Journey of JM Financial Group r ______,,A-._______ r -------~------- JM Financial ~ Joint Venture with Morgan Stanley """""°' 1973 1986 1994 1998 2003-2004 2005-2006 2006 -2007 2007 Incorporation of JM JM Financial Set up mutual JV with Capital Preferential issue of shares Launched Separated Financi
Slide 33: 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 flagsh
Slide 34: 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 35: CSR – Integrated Rural Transformation Programme, Jamui District, Bihar
CSR – Integrated Rural Transformation Programme Jamui District, Bihar Education Project Bachpan – Five pre-school learning centres running across five villages of Model Village Development Project initiated in 13 villages of Dhanimatari, Dhawatanr, Korasi, Lachhuar and Sabalbigha Sikandra block. Tot
Slide 36: CSR – Integrated Rural Transformation Programme, Giridih and Palghar
CSR – Integrated Rural Transformation Programme Giridih district, Jharkhand Palghar district, Maharashtra First Referral Unit (FRU) Project in Dumri block Comprehensive Village Development Project initiated in seven villages of Mokhada block with an objective to Increasing staff: 35 member-team mana
Slide 37: JM Financial Foundation – Giving & Ongoing Activities
JM Financial Foundation – Giving & Ongoing Activities JMFF extended support to an organisation engaged in a challenging field of providing physical relief to the disabled. Such relief, provided with a spirit of pure service, goes a long way in helping them lead a life of dignity and rehabilitating t
Slide 38: For Further Queries
For Further Queries Mr. Manish Sheth Mr. Nishit Shah Group CFO Business Strategy and Investor Email: manish.sheth@jmfl.com Relations & CFO – JM Financial Contact No: 022 66303461 Products Limited Email: nishit.shah@jmfl.com Contact No: 022 66303522 Ms. Karishma Mehta Mr. Gagan Kothari Investor Relat