Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q4 FY2024 Earnings Presentation
55 slides from Jm Financial's earnings presentation, May 25, 2024
Slide 1: Cover letter to stock exchanges
May 24, 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: 523405
Slide 2: JM Financial Limited – Q4FY24 Results Update
JM Financial Limited – Q4FY24 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 Section 4 Financial Performance Annexure Corporate Social Responsibility and Other
Slide 5: Section 1: Group Overview
Section : 1 Group Overview A JM FINANCIAL
Slide 6: Evolution of the Franchise Over Five Decades
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 National Housing real estate business Bank (NHB) with a Global Fund led by Mr. Vikram Terminated
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 • Caters to Institutional, Corporate, • Distressed Credit relates to acquisition and Government, Ultra High
Slide 8: Integrated Investment Bank: Deep Client Relationships
Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Clients Products / Services Business Priorities Q4FY24 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 Q4FY24 Highlights Wholesale Mortgage Wholesale Mortgage: Wholesale Mortgage • Project / Construction Finance Wholesale Mortgage: • Loan Book stood at Rs. 7,062 Cr in Q4FY24 • Developers • Loan against Pro
Slide 10: Alternative and Distressed Credit
Alternative and Distressed Credit Clients Products / Services Business Priorities Q4FY24 Highlights • Acquisition of • Distressed Credit AUM as on March 2024 stood at Banks distressed assets Rs. 14,500 Cr (up 7% YoY) ✓ Co-Investment model with strategic partners/ financial investors including distre
Slide 11: Platform AWS: Integrated Platform for Individual Clients
Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Clients Products / Services Business Priorities Q4FY24 Highlights Future and digital readiness; On-boarding • Launched digital broking “BlinkX” and gearing Retail Investors • Securities ✓ modern tools and enhancing customer
Slide 12: Section 2: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance 10
Slide 13: Consolidated Performance
Consolidated Performance Rs. #PBT (before #Adjusted Revenues #Pre-Provision Net Profit #Adjusted #Adjusted End of period exceptional ROA* EPS Operating Profit Net Profit ROE* Loan book # item) 1,276 Cr 669 Cr 413 Cr (229) Cr 345 Cr 4.0% 15.6% (2.4) 12,917 Cr Q4 FY24 46.5% 129.0% 37.5% 110.0% -17.5%
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 669 417 413 Mortgage Lending Investment Bank 1,276 1,214 1,261 530 1,081 301 466 300 238 265 278 275 871 175 40
Slide 15: Tab A: Investment Bank
TAB :A Investment Bank 13 A JM FINANCIAL
Slide 16: Loan Book
Loan Book 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 4,612 4,593 4,600 ✓ Capital Markets : Loan against Securities 1,160 4,254 1,029 963 978 348 ✓ Financial Institut
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 65,009 68,105 65,009 68,105 58,163 60,287 2,390 58,163 60,287 56,515 2,935 56,515 3,456 3,567 13,971 4,191 14,046 13,294 13,448 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 395 605 495 487 391 72.3% 269 63.1% 65.2% 197 184 58.5% 47.9% 135 105 52.1% 41.5% 36.9% 34.8% 27.7% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Profit
Slide 19: Tab B: Mortgage Lending
TAB :B Mortgage Lending 17 A JM FINANCIAL
Slide 20: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited End of Period Loan Book* (Rs Cr) Spread Analysis (%) • Strong repayments of Rs. Yield % COF % 14.4% NIM % 9,711 13.9% 13.8% 2,542 crore during the quarter 9,501 9,293 13.3% 13.2% leading to reduction in loan 8,752 book 7,462 9.4% 9.4% 9.3% 9.3% 9.5% • Pre-Covid
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 112 112 449 2,104 105 362 352 93 93 1,759 1,450 1,504 236 1,387 148 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY2
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) 229 222 176 214 173 150 127 194 197 160 155 152 20 28 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 (86) Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 PAT (Pre Non Co
Slide 23: Tab C: Platform AWS
TAB: C Platform AWS 21 A JM FINANCIAL
Slide 24: Platform AWS: Key Highlights
Platform AWS: Key Highlights Clients ~ 2.9 Lakhs Affluent, HNI and strong vintage Growth of ADTO* & Volume Mix % ‘000 Rs Cr Cash Future Option ADTO Presence in 215 Cities 100% 60 Locations – 814 (Q3FY24 – 878, Q4FY23 – 744) 55 80% 48 43 Strong advisory capabilities 39 Research and Technical Team : 1
Slide 25: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 301 118.1% 265 238 92.6% 88.8% 73.9% 64.6% 175 151 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23* Q1FY24 Q2FY24 Q3FY24 Q4FY24 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) 92 30.5% PBT PAT (post N
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 March 31, 2024 – Rs. 14,500 Cr • Effective shareholding of 58.28% held by JM Financial Ltd as of March 31, Retail Loans 16.6% 2024 Infrastructure Plywood/ laminates 1.3% • 43 member professional team
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 recoveries of Rs. 2,736 1,181 2,855 Cr over last 4 Quarters 2,096 893 371 376 405 555 454 107 107 - - 42 21 Q4 FY23 Q1 FY24 Q2 FY24 Q3
Slide 29: Section 3: Group Structure
Section 3 Group Structure 27 A JM FINANCIAL
Slide 30: Group Structure: March 31, 2024
Group Structure : March 31, 2024 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: Quarterly Statement
Consolidated Profit & Loss Statement : Quarterly Statement Particulars (Rs Cr) Q4 FY24 Q3 FY24 QoQ % Q4 FY23 YoY % Gross Revenue 1,276 1,261 1.2% 871 46.5% Finance cost 407 400 1.7% 347 17.5% Net loss on fair value changes - - - 157 - Employee cost 120 246 -51.2% 174 -31.2% Depreciation 14 14 3.5% 1
Slide 33: Consolidated Profit & Loss Statement: Year Ended March 2024
Consolidated Profit & Loss Statement : Year Ended March 2024 Particulars (Rs Cr) FY24 FY23 YoY % Gross Revenue 4,832 3,343 44.5% Finance cost 1,562 1,179 32.5% Employee cost 795 622 27.8% Depreciation 53 42 26.6% Other expenses 645 452 42.6% Adjustment of additional provision on Security Receipts**
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at March 31, 2024 As at March 31, 2023 Assets Loan book* - Steady state Financing 13,106 15,723 Distressed asset book (Investment in SRs / Loan) 2,947 4,488 Cash and cash equivalents (CCE)** 4,769 2,207 Other Investments (including lien-marked FDs) 4
Slide 35: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 Investment Bank 3,092 2,730 3,086 2,724 JM Financial Products Limited 2,114 1,949 2,108 1,943 JM Financial Limited 565 422 565 422 JM Financ
Slide 36: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q4 FY24 Q3 FY24 QoQ % Q4 FY23 YoY % FY24 FY23 YoY % Investment Bank (IB) 605 487 24.1% 269 124.8% 1,978 1,299 52.3% Mortgage Lending 405 392 3.2% 368 10.1% 1,531 1,319 16.1% Alternative & Distressed Credit (38) 111 N/M 86 N/M 326 137 137.9% Platform AWS 30
Slide 37: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q4FY24 FY24 Q4FY24 FY24 Investment Bank: 605 1,978 298 706 JM Financial Limited 164 702 93 309 JM Financial Products Limited 370 1,169 179 427 JM Financial Institutional Securities Limited 66 202 15 43 Overseas Entities 14 29 9 8
Slide 38: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q4FY24 FY24 Q4FY24 FY24 Platform AWS: 300 978 46 90 JM Financial Services Limited^ 286 920 50 102 JM Financial Asset Management Limited 8 29 (8) (29) JM Financial Commtrade Limited + Astute Investments + ARB Maestro 19 81 4 20 Add
Slide 39: Investment Bank
Investment Bank Particulars (Rs Cr) Q4 FY24 Q3 FY24 QoQ % Q4 FY23 YoY % FY24 FY23 YoY % Segment Net worth + NCI 3,092 2,941 5.1% 2,730 13.3% 3,092 2,730 13.3% Gross Revenue 605 487 24.1% 269 124.8% 1,978 1,299 52.3% Finance cost 108 114 -5.6% 94 14.6% 439 368 19.0% Net loss on fair value changes - -
Slide 40: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q4 FY24 Q3 FY24 QoQ % Q4 FY23 YoY % FY24 FY23 YoY % Segment Net worth + NCI 4,611 4,546 1.4% 4,349 6.0% 4,611 4,349 6.0% Gross Revenue 405 392 3.2% 368 10.1% 1,531 1,319 16.1% Finance cost 176 170 3.4% 163 8.5% 688 557 23.5% Net loss on fair value changes - - - (
Slide 41: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q4 FY24 Q3 FY24 QoQ % Q4 FY23 YoY % FY24 FY23 YoY % Segment Net worth + NCI 720 1,694 -57.5% 1,812 -60.3% 720 1,812 -60.3% Gross Revenue (net of fair value loss) (38) 111 N/M 86 N/M 326 137 137.9% Finance Cost 73 77 -4.2% 72 1.9% 302 247 22.3% Ne
Slide 42: Platform AWS
Platform AWS Particulars (Rs Cr) Q4 FY24 Q3 FY24 QoQ % Q4 FY23 YoY % FY24 FY23 YoY % Segment Net worth + NCI 949 746 27.1% 685 38.5% 949 685 38.5% Gross Revenue 300 265 13.6% 151 99.0% 978 561 74.5% Finance cost 77 67 13.7% 36 114.5% 239 104 129.4% Net loss on fair value changes - - - (3) N/M - - -
Slide 43: Lending Book Profile
Lending Book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%)# Wholesale Mortgage Retail Mortgage Bespoke FI Financing*** Capital Market Yield % COF % NIM % 15,653 15,891 15,808 15,111 1,062 1,160 963 13.6% 978 12,917 13.1% 12.9% 13.3% 13.2% 1,592 1,653 1,927 1,884 348 2,636 3,079 2,726 1,477 2,547
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) Equity** Debt* D/E Net D/E 15,875 16,949 17,254 4,769 16,359 16,145 1.45 1.47 1.50 1.49 1.48 1,905 1.34 2,847 1.25 1.36 1.24 2,207 1.04 1,631 1,227 1,452 1,270 2,864 801 1,029 10,972 11,602 10,932 1,620 11,153
Slide 45: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) Q4FY24 Q4FY23 Q4FY24 Q4FY23 Revenue 342 322 Revenue 370 168 Net Profit (67) 100 Net Profit 179 64 Net worth 4,213 4,257 Net worth 2,544 2,188 End of period Loan book# 7,462 9,501 End of p
Slide 46: Annual Performance of Select Subsidiaries
Annual Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) FY24 FY23 FY24 FY23 Revenue 1,305 1,173 Revenue 1,169 858 Net Profit 47 335 Net Profit 427 318 Net worth 4,213 4,257 Net worth 2,544 2,188 End of period Loan book# 7,462 9,501 End of period
Slide 47: Annexure: Corporate Social Responsibility and Other Details
Annexure Corporate Social Responsibility and Other Details 45
Slide 48: Corporate Social Responsibility
Corporate Social Responsibility Project Bachpan - Bihar • 18 Bachpan centres remained operational for 67 days in Q4 with a total of 406 children enrolled across all centres. • The 19th Bachpan centre will soon be operationalised in the Taratand village, therefore bringing the total number of centres
Slide 49: Corporate Social Responsibility
Corporate Social Responsibility JM Financial Shiksha Samarthan 68 private school students’ fee Total INR 8.06 Cr fee disbursed in Ancillary support to 3030 disbursed with total 3275 0.64 Cr disbursed as ancillary FY 2023-24 with INR 0.13Cr government school students in students’ supported in the sup
Slide 50: Corporate Social Responsibility
Corporate Social Responsibility Maitri Karuna Netralaya - Bihar • Since its inception in January 2023, our hospital completed over 3,000 surgeries by the end of March, 2023. • A total of 4229 unique OPDs and 4082 Follows up were conducted in Q4. • 1153 surgeries were performed in Q4 along with 1467
Slide 51: Corporate Social Responsibility
Corporate Social Responsibility Model Village Development Project - Bihar • Nutrition Garden Kits: Two types of NG kits were provided to 544 farmers in Khaira and Sikandra blocks. • Watermelon seeds: 475 gms of watermelon seeds were distributed to 36 farmers in Khaira and Sikandra blocks. Under high
Slide 52: Corporate Social Responsibility
Corporate Social Responsibility JMF Sports Project - Bihar • Our sports league - Future Stars Sports Academy (FSSA) hosted an inter-satellite tournament at the project sports ground in Lachhuar village, featuring 82 participants from our four satellite grounds. The primary objective of the tournamen
Slide 53: 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 54: 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 55: 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