Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — FY2019 Earnings Presentation
35 slides from Jm Financial's earnings presentation, May 2, 2019
Slide 1: Regulation 30 cover letter to BSE and NSE
j JM FINANCIAL May 2, 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 Security
Slide 2: Quarter and Year ended March 31, 2019 – Results update
j JM FINANCIAL JM Financial Limited Quarter and Year ended March 31, 2019 – Results update May 2, 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 4
Slide 6: Key Highlights – Consolidated Performance – Ind AS
Key Highlights – Consolidated Performance – Ind AS Rs. Gross Debt / Revenues PBT Net Profit EPS BVPS Equity# 953 Cr 245 Cr 129 Cr 1.53 60.47 1.94x Q4 FY19 7.1% 3.2% -22.4% Q4 FY18 890 Cr 237 Cr 166 Cr 2.06 53.73 2.54x Rs. Revenues PBT Net Profit EPS ROA ROE 3,579 Cr 1,283 Cr 572 Cr 6.82 3.4% 11.9% F
Slide 7: Consolidated Profit & Loss Statement – Ind AS (Q4)
Consolidated Profit & Loss Statement – Ind AS Particulars (Rs Cr) Q4FY19 Q4FY18 YoY % Q3FY19 QoQ % Gross Revenue 953 890 7.1% 864 10.3% Finance cost 352 303 15.9% 378 -7.1% Net Loss on Fair value changes 183 163 12.2% -37 N/M Impairment of Financial Instruments* -14 -1 N/M 7 N/M Employee cost 103 94
Slide 8: Consolidated Profit & Loss Statement – Ind AS (FY19)
Consolidated Profit & Loss Statement – Ind AS Particulars (Rs Cr) FY19 FY18 YoY % Gross Revenue 3,579 3,097 15.6% Finance cost 1,446 1,139 27.0% Net Loss on Fair value changes 79 64 24.4% Impairment of Financial Instruments* 35 34 4.5% Employee cost 422 391 7.8% Depreciation 27 26 3.6% Other expense
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet As at As at Particulars (Rs Cr) Mar 31, 2019 Mar 31, 2018 Assets Loan book * (Gross loan book: FY 2019 - Rs.14,107 Cr; FY 2018 – Rs. 14,772 Cr) 13,999 14,768 Distressed asset book (Investment in SRs / Loan) 4,194 3,026 Cash and cash equivalents** 1,737 1,469 Other Investme
Slide 10: Lending book Profile – Ind AS
Lending book Profile – Ind AS Gross Loan Book (Rs Cr)# NIM Analysis (%) 13.9% 16,136 12.8% 13.3% 12.7% 14,359 14,772 14,107 3,049 2,850 2,746 2,317 9.3% 8.9% 9.5% 1,624 8.5% 458 2,334 1,078 2,858 581 432 6.0% 6.5% 253 5.7% 5.6% 11,005 10,131 8,398 9,259 Q3 FY18 Q3 FY19 Q4 FY18 Q4 FY19 Q3 FY18 Q3 FY1
Slide 11: Borrowing Breakup
Borrowing Profile Consolidated Debt/Equity : ~ 1.9x Consolidated Debt/Equity: ~2.6x Consolidated Debt/Equity: ~2.5x March 31, 2019 September 30, 2018** March 31, 2018 2% 2% Short 4% 0% Short 2% 2% Short Term Term Term Borrowing Breakup 27% 41% 34% 23% 22% 30% 27% 37% 27% Long Long Long Term Term Ter
Slide 12: 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 Mar, 2019) Assets backing Rs Crore borrowing IWS Capital Market Financing 392 12.2% High quality liquid assets Trading & Broking 550 17.1% Fixed deposits and highly liquid assets C
Slide 13: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 12
Slide 14: Our Business
Our Business Our Business Segments Investment Banking, Mortgage Distressed Asset Wealth Management & Lending Credit Management Securities Business (IWS) Investment Banking and Wholesale – Developer Asset Reconstruction Mutual Fund Securities Funding Retail - Housing, LAP and Wealth Management EIL* B
Slide 15: Segment Performance – Ind AS (Q4)
Segment Performance – Ind AS Ind AS Segment revenue (Rs Cr) Q4 FY19 Q3 FY19 QoQ Q4 FY18 YoY IWS 381 373 2.0% 466 -18.2% Mortgage Lending 334 343 -2.7% 250 33.5% Distressed Credit 224 125 78.9% 144 55.6% Asset Management 18 23 -20.6% 27 -31.4% Others 13 12 5.5% 21 -37.3% Total Segment Revenue 971 878
Slide 16: Segment Performance – Ind AS (FY19)
Segment Performance – Ind AS Ind AS Segment revenue (Rs Cr) FY19 FY18 YoY IWS 1,635 1,724 -5.2% Mortgage Lending 1,291 942 37.1% Distressed Credit 560 319 75.4% Asset Management 94 112 -16.7% Others 60 55 8.3% Total Segment Revenue 3,640 3,153 15.4% Less: Inter - segmental revenue -61 -56 7.8% Total
Slide 17: IWS – Key Non Financial Information
IWS – Key Non Financial Information PE and RE AUM (Rs Cr) Securities Business(Rs Cr) Total 802 794 794 Average Daily Turnover (Rs Cr) 495 716 AUM 155 155 155 155 155 4,797 4,546 4,779 4,793 4,834 647 639 561 639 340 1,175 1,039 1,266 878 986 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q4 FY18 Q1 FY19 Q2
Slide 18: IWS – Key Financial Information
IWS – Key Financial Information Particulars (Rs Cr) – IND AS Q4 FY19 Q3 FY19 QoQ % Q4 FY18 YoY % FY19 FY18 YoY % 2,533 2,564 -1.2% 2,433 4.1% 2,533 2,433 4.1% Net worth + MI 5,627 7,387 -23.8% 7,415 -24.1% 5,627 7,415 -24.1% Loan Book 381 373 2.0% 466 -18.2% 1,635 1,724 -5.2% Gross Revenue Finance c
Slide 19: Mortgage Lending
Mortgage Lending Wholesale 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.201 crore 8,641 8,324 • 88 groups – significant focus on repeat business • Expanded branch
Slide 20: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction Business Overview Long Term Positive Drivers • Rollout of Corporate Insolvency Resolution Process Long Term Credit Rating of AA- and Short Term Credit (CIRP) under Insolvency & Bankruptcy Code 2016 Rating of A1+ by ICRA & CARE. Comfortable gearing of (IBC)
Slide 21: Distressed Credit – Asset Reconstruction (cont’d)
Distressed Credit – Asset Reconstruction (cont’d) AUM (Rs Cr) Asset Acquisitions (Rs Cr) 14,221 14,044 12,965 657 12,500 363 193 3,095 2,939 136 1,765 1,987 101 74 39 40 Q3 FY18 Q3 FY19 Q4 FY18 Q4 FY19 Q3 FY18 Q3 FY19 Q4 FY18 Q4 FY19 ARC's AUM JM's share in ARC's AUM Assets Acquired by ARC JM's shar
Slide 22: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AUM (Rs Cr) Mutual Fund: 16,365 • Quarterly Average AUM (QAAUM) – Rs 8,712 cr. 12,073 • Rank (QAAUM) – 24 among 41 Mutual Funds. 12,672 5,052 11,364 8.712 • Market Share – 0.36 %. 4,118 4,233 3,007 • 15 Schemes categorized as Long Term Debt, Short Term
Slide 23: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 22
Slide 24: Organisational Structure – March 2019
Organisational Structure – March 2019 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 47.05%(2) 99.35% 59.54% 100% 59.25% 100% 100% 100% JM Financial JM Financial Infinite India JM Financial Overseas JM Financial Asse
Slide 25: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) As on 31.03.2019 200.0 Market Capitalization (Rs Cr) 7,891.16 150.0 Price (Rs) 93.95 100.0 No. of Shares Outstanding (Cr) 83.99 50.0 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 52 Week High-Low (Rs) 150.00-64.25 % Shareholding – March 31,
Slide 26: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 25
Slide 27: Performance of Select Subsidiaries – IND AS (Q4)
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Asset Reconstruction Company Ltd*** Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Revenue 329 249 Revenue 224 144 Net Profit 124 78 Net Profit 28 (77) Net worth 2,909 1,668 Net worth + MI 1,265 1,106 Loan book 8,12
Slide 28: Performance of Select Subsidiaries – IND AS (FY19)
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Asset Reconstruction Company Ltd*** FY19 FY18 FY19 FY18 Revenue 1,279 940 Revenue 560 319 Net Profit 406 315 Net Profit 166 2 Net worth 2,909 1,668 Net worth + MI 1,265 1,106 Loan book 8,123 7,339 AUM
Slide 29: Journey of JM Financial Group
Journey of JM Financial Group 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 Financial and Limited(1) fund Morgan market to Tiger Glo
Slide 30: 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 31: 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 32: Integrated Rural Transformation Programme – Bihar
Integrated Rural Transformation Programme – Bihar JAMUI DISTRICT – SIKANDRA, CHAKAI AND JHAJHA BLOCKS INTEGRATED VILLAGE DEVELOPMENT Adarsh Gram (Model Village) EDUCATION Project Bachpan – Five pre-school Development Project learning centres running across five implemented in 15 villages of vill
Slide 33: Integrated Rural Transformation – Jharkhand and Maharashtra
Integrated Rural Transformation – Jharkhand and Maharashtra GIRIDIH DISTRICT – DUMRI AND PIRTAND PALGHAR DISTRICT – MOKHADA BLOCK BLOCKS INTEGRATED VILLAGE DEVELOPMENT Integrated Village FIRST REFERRAL UNIT (FRU) First Referral Unit (FRU) Project in Development Project Dumri block implemented in
Slide 34: Philanthropic giving and support
Philanthropic giving and support We encourage educating children by way of providing infrastructure support in rural areas, personal items such Education as uniforms for students and scholarships too. Inclusive education services for underprivileged children with special needs is provided by a p
Slide 35: 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