Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q2 FY2025 Earnings Presentation
66 slides from Jm Financial's earnings presentation, Nov 13, 2024
Slide 1: Intimation of Analyst/Institutional Investors' Conference
November 13, 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 400001 Mumbai – 400 051 Security Code: 52
Slide 2: Investor Presentation covering letter
October 25, 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 400001 Mumbai – 400 051 Security Code: 523
Slide 3: Q2FY25 Results Update
SOLID. STABLE. SUSTAINABLE. PS eee | | | JM Financial Limited —- Q2FY25 Results Update
Slide 4: 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 5: Table of Contents
Table of Contents Update on Strategic Decisions Group Overview Consolidated Financial Performance TabA Integrated Investment Bank Tab B Mortgage Lending Tab C Platform AWS Tab D Alternative and Distressed Credit Group Structure Financial Performance Corporate Social Responsibility and Other Details
Slide 6: Update on Strategic Decisions
Section : 1 Update on Strategic Decisions A JM FINANCIAL
Slide 7: Strategic Pivot in Wholesale; Focus on High Return on Equity Businesses
Strategic Pivot in Wholesale; Focus on High Return on Equity Businesses Wholesale 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 Credit Business Consolidation : Sig
Slide 8: On Balance Sheet to Off Balance Sheet: Improving Risk Reward Metrics
On Balance Sheet to Off Balance Sheet : Improving Risk Reward Metrics Loan book Key Focus Areas 2QFY25 Loan Book (including SEBI MTF) : Rs. 11,465 Crore ™ SEBI MTF + Capital Markets = -----~~ ™ Affordable Home Loans = Bespoke Continuing / Loan Book | \ 1 1 1 1 \ 1 \ Run Down Loan Book ™ Real Estate
Slide 9: Focused on High Return on Equity Businesses
Focused on High Return on Equity Businesses Focused Businesses Corporate Advisory and Capital Markets Wealth and Asset Management Private Credit Syndication Home Loans - | Promoters, Corporates, UHNI, Institutions and Government HNI, Mass Affluent, Funds, Institutions, Family Offices, Retail Banks,
Slide 10: Corporate Advisory and Capital Markets
Corporate Advisory and Capital Markets Q2FY25 Highlights * Strong pipeline of transactions * Select transactions: BRLM to IPO — Bajaj HFC (~Rs. 6,560 Cr), Brainbees Solutions (~Rs. 4,194 Cr), Ceigall India (~ Rs. 1,253 Cr), Baazar Style Retail (~Rs. 872 Cr); QIP — Vedanta (~ Rs. 8,500 Cr), Samvardha
Slide 11: Wealth Management
Wealth Management Breakup of AUM ~110,000 Cr (2QFY25) 16,120, . 20% Non Retail Wealth RMs: ~100 = Non Retail = Retail = Transactional Recurring ADTO (Rs Cr) SEBI Margin Financing (Rs Cr) 62,643 1,918 a 1.6x 1.6x a 1,211_ 38,962 || 2QFY24 2QFY25 2QFY24 2QFY25 * % QoQ Rs Crore 1QFY25E 2QFY25E 1HFY25E
Slide 12: Asset Management
Asset Management Mutual Fund (Rs Cr) Mutual Fund _ 12,516 ° 9,318 4.2x ee 10,002 : 7,285 2,962 1,112 4,284 . 1,905 2,033 2,514 FY23 FY24 1QFY25 2QFY25 . @Non-liquid m Liquid SIP Flow (Rs Cr) Strong brand recall, rebuild over last 2-3 years Strong SIP flows Performance in top quartile Retail led AUM,
Slide 13: Affordable Home Loans
Affordable Home Loans AUM (Rs crore) 942 375 530 — || | | FY20 FY21 FY22 FY23 FY24 2QFY25 Branches and Employees - Significant Investments Branches | 27 30 55 93 112 118 CAGR - 43% 1,313 1483 ee 870 - =. =» mo & | = |_| FY20 FY21 FY22 FY23 FY24 2QFY25 Diversified Liability Profile (%) Deeper geograp
Slide 14: Private Credit Syndication
Private Credit Syndication Loan Book m= Wholesale Mortgage m= Bespoke = FI Financing 12,556 11,458 1,927 1,884 9,330 8,378 2,547 6,385 77 1,595 7,027 4,013 2QFY24 3QFY24 4QFY24 1QFY25 2QFY25 Rs Crore*# 1QFY25E 2QFY25E 1HFY25E Net Revenue 81 65 146 PAT# (16) (162) (178) PAT (post NCI) (6) (48) (64) R
Slide 15: Treasury / Other Assets
Treasury / Other Assets Treasury and Other Assets = Liquid Mutual Fund 2QFY25 Capital Employed : Rs. 6,615 Crore 167 2% 902 14% 252 4% % 2,849 43% 374 6% 158 2% = Current Account = Equity + CCPS (Listed/Unlisted) = Gsec & Corp Bonds = Overseas Treasury (T-Bills / Others) = Loan book = Others Rs Cror
Slide 16: Group Overview
Section : 2 Group Overview . 13 A JM FINANCIAL
Slide 17: 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 for Housing ever consolidated Finance from operating PAT Set up a dedicated real estate business with a Global Fund led by Mr. Vikram Pandit National Housing Bank (NHB) Ter
Slide 18: Diversified Businesses with Multiple Growth Opportunities
Diversified Businesses with Multiple Growth Opportunities Integrated Investment Bank : Cornerstone of our Franchise Og rernative and Distressed Credit : Expertise Built in a Niche Business _ >. y + Caters to Institutional, Corporate, Government, Ultra High Networth Clients + Five decades of vintage
Slide 19: Integrated Investment Bank: Deep Client Relationships
Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Products / Services Business Priorities Q2FY25 Highlights Clients Clients Promoters Corporates Ultra High Networth Institutional Investors Government Revenue’ (Rs. Cr) Investment Banking Institutional Equities Private Weal
Slide 20: Mortgage Lending: Wholesale and Retail Mortgage
Mortgage Lending: Wholesale and Retail Mortgage Clients Products / Services Business Priorities Q2FY25 Highlights Wholesale Mortgage Wholesale Mortgage | . * Developers Project / Construction Finance Loan against Property * Promoters + Loan against Securities * Funds and Investors + Project at early
Slide 21: Alternative and Distressed Credit
Alternative and Distressed Credit Clients Products / Services Business Priorities Q2FY25 Highlights . Acquisition of + Distressed Credit AUM as on September 2024 stood Banks distressed assets at Rs. 13,701 Cr v/s Rs. 14,229 Cr as on June 2024 Y Focus on Co-Investments . . + Aggregate dues of Rs. 78,
Slide 22: Platform AWS: Integrated Platform for Individual Clients; Focus on Digital
Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Clients Products / Services Business Priorities Q2FY25 Highlights Retail Investors Mass Affluent High Networth Individuals Independent Financial | Distributors AUM (Rs. Cr) (MF+ Retail + Elite Wealth) Securities Advisory Dis
Slide 23: Consolidated Financial Performance
Section : 3 Consolidated Financial Performance . 20 A JM FINANCIAL
Slide 24: Consolidated Performance
Consolidated Performance Particulars (Rs Cr) Q2FY25 Q1FY25 QoQ% Q2FY24 YoY % H1FY25 H1FY24 YoY % FY24 Gross Revenue 1,211 1,094 10.7% 1,214 -0.2% 2,305 2,295 0.4% 4,832 Adjusted PAT 232 171 36.0% 195 19.1% 403 361 11.6% 984 Networth* 8,658 8,612 8,364 8,658 8,364 8,438 Cash and cash equivalents 5,44
Slide 25: 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 mAlternative and Distressed Credit i” 369 _ 417 m= Mortgage Lending pgnvestment Bank ! t ' M13 - 4214 1,261 . ' 530 | 14 1,094 1 1 238 265 466
Slide 26: TAB A: Investment Bank
TAB :A Investment Bank . 23 A JM FINANCIAL
Slide 27: Loan Book
Loan Book End of Period Loan AUM") Loan Book Description = Wholesale Mortgage = Retail Mortgage ™ Bespoke* = FI Financing* = Capital Market Bespoke Finance : Promoter, Structured financing 4,593 4,600 ae azet v Capital Markets : Loan against Securities 963 88 v Financial Institution Financing : Fund
Slide 28: Increasing Client Engagement and Reach
Increasing Client Engagement and Reach Private Wealth AUM (Rs Cr) m Equity m= Debt m Liquid 65,009 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Number of Relationship Managers: 51 Private Wealth AUM Transactional and Recurring (Rs Cr) PMS AUM (Rs Cr) = Recurring = Transactional 3308 2,425 74,040 76,262 :
Slide 29: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) =lnterest Income = Non Interest Income 395 605 556 495 487 395 219 63.1% 184 197 417 Q2FY24 Q3FY24 Q4FY24 QUFY25 Q2FY25 QaFY24 Q3FY24 Q4FY24 QiFY25 Q2FY25 Profit After Tax (Rs Cr) Annualized Return Ratios (%) =RO
Slide 30: TAB B: Mortgage Lending
TAB :B Mortgage Lending 27 A JM FINANCIAL
Slide 31: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited End of Period Loan Book* (Rs Cr) Spread Analysis (%) In line with the guidance provided, the loan book 9,711 (excluding ICD to group companies) has reduced during the quarter by Rs. 1,173 crore on the back of strong repayments 8,752 7,462 6,946 i 5,873 Q3FY24 Q4
Slide 32: JM Financial Home Loans Limited
JM Financial Home Loans Limited Branch Network Loan AUM (Rs Cr) Disbursement (Rs Cr) 2,256 2,259 2,366 118 112 112 112 1,946 1,714 : 7 ; i ; L Q2FY24 Q3FY24 Q4FY24 QIFY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Geography wise split of Branches : 118 Split of Portfolio by Customers (%) Q2FY24 Q3FY2
Slide 33: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 127 82 Q2FY24 —QaFY24 4 QIFY25 | os (65) 86 Q2FY24 Q3FY24. Q4FY24. QIFY25. = Q2FY25 Q2FY24 Q3FY24. Q4FY24. QIFY25 = Q2FY25 (88) PAT (Pre Non Controlling Interest)(Rs Cr) PAT (Post
Slide 34: TAB C: Platform AWS
TAB: C Platform AWS 31 A JM FINANCIAL
Slide 35: Platform AWS: Key Highlights
Platform AWS: Key Highlights Clients ~ 3.5 Lakhs Presence in 227 Cities Affluent, HNI and strong vintage Growth of ADTO* & Volume Mix % ‘000 Rs Cr sees Cash sm Future sm Option —#-ADTO . 100% 72 - Locations — 874 (Q1FY25 — 843, Q2FY24 — 814) ° 80% 60 Strong advisory capabilities 48 : Research and Te
Slide 36: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 325 301 88.8% 283 79.6% 265 76.7% 73.9% 238 7 64.6% Qary24 QsFY24 Qary24 QuFY25 Qery25 QaFY24 Q3FY24 QaFY24 QiFY25 Q2F¥25 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) PBT =ROA% — , 30:8% sROE
Slide 37: TAB D: Alternative & Distressed Credit
TAB: D A JM FINANCIAL Alternative & Distressed Credit 34
Slide 38: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of September 30, 2024 — Rs. 13,701 Cr Effective shareholding of 76.45% held by JM Financial Ltd as of September 30, 2024 39 member professional team as on September 30, 2024. The team is also involved i
Slide 39: 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 247 893 14 107 107 599 6 376 405 42 80 21 2, — — 2 FY24 Q3 FY24 Q4 FY24 Qt FY25 02 FY26 a2 FY24 3 FY24 a4 FY24 at FY25 a2 FY25 Adjusted Net To
Slide 40: Group Structure
Section 4 Group Structure . 37 A JM FINANCIAL
Slide 41: Group Structure: September 30, 2024
Group Structure : September 30, 2024 JM Financial Limited “) Investment Banking Management of Private Equity Fund Private Wealth and PMS Holding company of other operating subsidiaries 46.68%" A i ii i JM Financial Asset ini i Overseas Holdings JM Financial Asset JM Financial JM Financial Reconstruc
Slide 42: Financial Performance
Section 5 Financial Performance . 39 A JM FINANCIAL
Slide 43: Consolidated Profit & Loss Statement: Quarterly Statement
Consolidated Profit & Loss Statement : Quarterly Statement Particulars (Rs Cr) Q2 FY25 Q1 FY25 Q0Q % Q2 FY24 YoY % Gross Revenue 1,211 1,094 10.7% 1,214 -0.2% Finance cost 343 370 7.3% 388 “11.6% Employee cost 292 231 26.2% 236 23.7% Depreciation 15 16 -8.6% 13 12.8% Other expenses 178 158 12.9% 172
Slide 44: Consolidated Profit & Loss Statement: Half Yearly Statement
Consolidated Profit & Loss Statement : Half Yearly Statement Particulars (Rs Cr) H1 FY25 H1 FY24 FY24 Gross Revenue 2,305 2,295 0.4% 4,832 Finance cost 713 754 54% 1,562 Employee cost 623 430 21.8% 795 Depreciation 31 25 23.4% Ba) Other expenses 336 305 10.5% 645 Adjustment of additional provision o
Slide 45: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at September 30, 2024 As at March 31, 2024 Loan book* - Steady state Financing 9,412 13,106 Distressed asset book (Investment in SRs / Loan) 2,833 2,947 Cash and cash equivalents (CCE)** 5,448 4,769 Other Investments (including lien-marked FDs) 4,992
Slide 46: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at September 30, | as atMarch 31,2024 | AS atSebtember 30, | as at march 31, 2024 Investment Bank 3,068 3,092 3,063 3,086 JM Financial Products Limited 2,073 2,114 2,068 2,108 JM Financial Limited 506 565 506 565 JM Finan
Slide 47: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q2 FY25 Q1 FY25 Q0Q% Q2 FY24 YoY % H1FY25 H1FY24 YoY % FY24 Investment Bank (IB) 555 395 40.6% 495 12.2% 951 886 7.3% 1,978 Mortgage Lending 339 361 -6.2% 367 -7.8% 700 733 -4.5% 1,531 Alternative & Distressed Credit 15 65 -77.6% 114 -87.1% 80 254 -68.4% 3
Slide 48: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue Q2FY25 H1FY25 Q2FY25 H1FY25 JM Financial Limited 411 528 287 303 JM Financial Products Limited 228 447 53 113 JM Financial Institutional Securities Limited 146 210 56 71 Overseas Entities 8 17 1 3 Add/(Less): Intra — Segment (238) (251
Slide 49: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue Q2FY25 H1FY25 Q2FY25 H1FY25 JM Financial Services Limited 307 576 34 62 JM Financial Asset Management Limited 11 20 (9) (18) JM Financial Commtrade Limited + Astute Investments + ARB Maestro 24 44 5 9 Add/(Less): Intra — Segment (17) (
Slide 50: Investment Bank
Investment Bank Particulars (Rs Cr) Q2 FY25 Q1 FY25 Q0Q % Q2 FY24 % H1 FY25 H1 FY24 Y % FY24 Segment Net worth + NCI 3,068 3,002 2.2% 2,849 7.7% 3,068 2,849 7.7% 3,092 Gross Revenue 555 395 40.6% 495 12.2% 951 886 7.3% 1,978 Finance cost 89 97 -8.3% 117 -24.3% 186 217 -14.4% 439 Impairment on Financ
Slide 51: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q2 FY25 Q1 FY25 Q0Q% Q2 FY24 % H1 FY25 H1 FY24 YoY % FY24 Segment Net worth + NCI 4,559 4,617 -1.3% 4,381 4.1% 4,559 4,381 4.1% 4,611 Mortgage Lending 339 361 6.2% 367 -7.8% 700 733 4.5% 1,531 Finance cost 156 167 -6.7% 170 -8.5% 323 342 -5.4% 688 Impairment on F
Slide 52: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q2 FY25 Q1 FY25 Q0Q % Q2 FY24 YoY % H1 FY25 H1 FY24 YoY % FY24 Segment Net worth + NCI 1,279 1,371 -6.7% 1,678 -23.8% 1,279 1,678 -23.8% 720 Gross Revenue 15 65 -77.6% 114 -87.1% 80 254 68.4% 326 Finance Cost 50 64 -22.6% 77 -34.7% 115 152 -24.2%
Slide 53: Platform AWS
Platform AWS Particulars (Rs Cr) Q2 FY25 Q1 FY25 QoQ % Q2 FY24 YoY % H1 FY25 H1 FY24 YoY % FY24 Segment Net worth + NCI 994 968 2.8% 681 45.9% 994 681 45.9% 949 Gross Revenue 325 283 14.7% 238 36.6% 608 413 47.2% 978 Finance cost 91 77 17.9% 55 65.2% 169 95 76.9% 239 Impairment on Financial Instrume
Slide 54: Lending Book Profile
Lending Book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%)# = Wholesale Mortgage Retail Mortgage Bespoke mFlFinancing*** Capital Market 15,808 15,111 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25"* Q2 FY25** Gross, Net NPA & SMA 2* (%) mGross NPA % mNet NPA % mSMA2% Hl Provision to loan book % 8.7% Q2 FY24 Q3
Slide 55: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) omen Equity** mum Debt* —eDE oe Net DIE 16,145 5,448 4,769 3,975 1,607 2,847 1,805 1,453 1,631 1,227 3,840 D 2,522 we) 1,620 601 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 QUFY25 Q2FY25 = Non-Lend
Slide 56: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd Q2FY25 Q2FY24 JM Financial Products Ltd Q2FY25 Q2FY24 Credit Rating Revenue 218 318 Revenue 228 306| Net Profit (88) 17| Net Profit 53 98} Net worth 4,161 4,271 Net worth 2,499 2,280 End of period Loan book* 5,873 9,711 E
Slide 57: Half Yearly Performance of Select Subsidiaries
Half Yearly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) H1FY25 H1FY24 FY24 H1FY25 H1FY24 FY24 Revenue 452 633 1,305] Revenue 447 538 1,169} Net Profit (44) 27 47| Net Profit 113 162 427| Net worth 4,161 4,271 4,213} Net worth 2,499 2,280 2,5
Slide 58: Annexure: Corporate Social Responsibility and Other Details
Annexure Corporate Social Responsibility and Other Details 55 A JM FINANCIAL
Slide 59: Corporate Social Responsibility
Corporate Social Responsibility Project Bachpan - Bihar . 19 Bachpan centres remained operational for 76 days in Q2, with 429 children enrolled and learning. Thematic Learning: During Q2 (Weeks 4-8), the major themes covered at the Bachpan centres were “Mera Sharir" (My Body) and “Meri Indriyan" (My
Slide 60: Corporate Social Responsibility
Corporate Social Responsibility JM Financial Shiksha Samarthan 1790 private school students’ fee disbursed for the new Total INR 2.32 Cr fee disbursed academic year (2024-25) in Q2 as first instalment of school fee Beyond Financial Support: The Swayam initiative by JM Financial Foundation aims to em
Slide 61: Corporate Social Responsibility
Corporate Social Responsibi Maitri Karuna Netralaya - Bihar + By the end of September 2024, the eye hospital had performed 4,939 surgeries since its inception in January 2023. + A total of 3567 unique OPDs and 3215 Follow-ups were conducted in Q2. With the installation of O.C.1 in the hospital, Netr
Slide 62: Corporate Social Responsibility
Corporate Social Responsibility Model Village Development Project - Bihar + Farmers’ Training: Between July and September, the project team conducted 13 extension training sessions on SRI techniques (Paddy sowing/transplantation) in 13 intervention villages across the Khaira and Sikandra blocks of J
Slide 63: Corporate Social Responsibility
Corporate Social Responsibility JMF Sports Project - Bihar . In the second quarter of FY 2024-25, the project trained 316 children (77 girls, 239 boys) in football and athletics at the four sports grounds established by JM Financial Foundation. . Between July and September 2024, 69 trainees (2 girls
Slide 64: 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 Group Effective systems, processes and adequate review mechanism to actively monitor, manage and mitigate risks 2] Quar
Slide 65: Board of Directors
Board of Directors Mr. Nimesh Kampani, Chairman B. Com, FCA + Founder and Chairman of JM Financial Group, one of India’s leading financial services groups. a + Experience of over five decades Made pioneering contributions to the development of the Indian capital markets. Served as a member on severa
Slide 66: Board of Directors (Cont'd)
Board of Directors (Cont’d) ‘ Mr. P S Jayakumar, Independent Director CA, Post graduate in business management from XLRI Jamshedpur. + 23 years of work experience with Citibank in their India and Singapore offices with his last assignment as Country Head, Consumer Banking Group, Citibank. + Cofounde