Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q1 FY23 Earnings Presentation
58 slides from Jm Financial's earnings presentation, Aug 2, 2022
Slide 1: Covering letter to exchanges: Investor Presentation
j JM FINANCIAL August 2, 2022 BSE Limited National Stock Exchange oflndia Limited Department of Corporate Services Exchange Plaza Ist 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 Secur
Slide 2: JM Financial Limited – Q1FY23 Results Update
JM Financial Limited – Q1FY23 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 and Shareholding Details Section 4 Corporate Social Responsibility Annexure Financ
Slide 5: Section 1: Group Overview
Section : 1 Group Overview A JM FINANCIAL °
Slide 6: Evolution of the Franchise Over Four Decades; Unmatched Depth and Breadth
Evolution of the Franchise Over Four Decades; Unmatched Depth and Breadth Launched Bondskart. Received license Reported highest ever for Housing consolidated operating Set up a dedicated Finance from PAT real estate business National Housing with a Global Fund Bank (NHB) Terminated JV with led by Mr
Slide 7: Diversified Businesses with Multiple Growth Opportunities
Diversified Businesses with Multiple Growth Opportunities 1 Investment Bank : Cornerstone of our Franchise 3 Alternative and Distressed Credit : Expertise Built in a Niche Business • Distressed Credit relates to acquisition and • Caters to Institutional, Corporate, resolution of stressed assets Gove
Slide 8: Investment Bank: Deep Client Relationships; Delivering One Firm to Clients
1 Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Depth and breadth of markets increasing significantly; digital companies expected to add Key Business Priorities Strategic M&A trends likely to continue Expand the depth and breadth of the client base IPO Listings Equ
Slide 9: Mortgage Lending: Wholesale and Retail Business
2 Mortgage Lending : Wholesale and Retail Business Benign competition in wholesale business Key Business Priorities Strong momentum in residential real estate market Grow wholesale loans upon Low Penetration Underserved Affordable Market (2) easing of travel conditions (Mortgage/GDP)(1) 66.3%
Slide 10: Alternative and Distressed Credit: Strong Expertise in a Niche Market
3 Alternative and Distressed Credit : Strong Expertise in a Niche Market Ferocity of the second and third wave of COVID-19 has dented economic activity Key Business Priorities Significant interest from strategic and financial investors in acquiring distressed assets Co-Investment model with st
Slide 11: Platform AWS: Integrated Platform for Individual Clients; Focus on Digital
4 Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Financialization of savings to continue; digitization to make it simpler and faster Key Business Priorities Income levels expected to increase Future and digital readiness Rising Penetration of Non Institutional Brok
Slide 12: Section 2: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance 10
Slide 13: Consolidated Performance
Consolidated Performance Rs. Pre-Provision Revenues Operating Net Profit EPS End of period PBT BVPS ROA* ROE* Profit (PPOP) Loan book # 806 Cr 291 Cr 259 Cr 170 Cr 1.8 81.83 3.2% 8.8% 12,606 Cr Q1 FY23 -18.8% -37.9% -28.1% -16.3% 14.5% Q1 FY22 993 Cr 469 Cr 360 Cr 203 Cr 2.1 75.03 4.7% 11.5% 11,014
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 469 Mortgage Lending Investment Bank 993 431 424 360 969 964 349 143 839 806 372 317 322 180 187 225 153 130 12
Slide 15: TAB A: Investment Bank
TAB :A Investment Bank A JM FINANCIAL 8
Slide 16: Investment Banking: Decades of Trust from Clients
Investment Banking : Decades of Trust from Clients Transaction details for Q1 FY23 : Strong Mix of Advisory and Capital Market Transactions Exclusive Financial Advisor to Rapido on Fairness Opinion to the Board of JSW Ispat Advisor and manager in relation to the open Exclusive Financial Advisor to H
Slide 17: Institutional Research: Strong Knowledge Base
Institutional Research : Strong Knowledge Base Overview Research Coverage Across Sectors Specialty Chemicals Others • Research Coverage of 237 Companies Real Estate & REITs, Cement & Industrials Multiplexes Metals, Airlines, Textile, Exchanges • Strong breadth of sector coverage IT Services, Interne
Slide 18: Private Equity Funds
Private Equity Funds Fund III Investments (Initial Closing in Dec’21) (Targeted Corpus: Fund I All investments exited (Fund corpus: Rs. 952 cr) Rs 1,000 Cr with green shoe of Rs 500 Cr) • Sector: Health-tech • Sector: Consumer & Retail • Sector: Health-tech • A designer, manufacturer • Sector: Finan
Slide 19: Franchise Enhancing Financing
Franchise Enhancing Financing End of Period Loan Book(1) Loan Book Description Wholesale Mortgage Retail Mortgage Bespoke FI Financing* Capital Market Bespoke Finance : Loan Book available to clients of 4,591 4,497 Investment Bank segment 3,781 3,663 644 439 951 Capital Markets : Loan Book origi
Slide 20: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 361 134 134 131 316 312 308 284 115 58.9% 57.1% 50.3% 93 66.3% 55.6% 42.9% 41.1% 44.4% 49.7% 33.7% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Profit
Slide 21: TAB B: Mortgage Lending
TAB :B Mortgage Lending A JM FINANCIAL %
Slide 22: Mortgage Lending
Mortgage Lending Dedicated real estate subsidiary (JM Financial Credit Solutions) formed in 2014 and backed by Global Fund led by Mr. Vikram Pandit (Ex CEO of Citibank) JM Financial Limited holds 46.7% stake Wholesale # groups with relationship – 100+ Average ticket size per group – ~Rs. 114
Slide 23: Wholesale Mortgages: JM Financial Credit Solutions (JMFCSL)
Wholesale Mortgages : JM Financial Credit Solutions (JMFCSL) End of Period Loan Book* (Rs Cr) Spread Analysis (%) 7,362 Yield % COF % NIM % 7,166 14.7% 14.7% 6,865 13.9% 6,741 13.4% 6,595 13.0% 9.8% 9.4% 9.2% 9.3% 9.1% 7.0% 8.1% 8.3% 7.8% 7.4% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22
Slide 24: Retail Mortgages: JM Financial Home Loans
Retail Mortgages : JM Financial Home Loans Branch Network Disbursement (Rs Cr) End of Period Loan Book (Rs Cr) Average Ticket Size of Rs. 12 Lakhs 64 223 919 55 819 51 50 153 145 636 40 105 507 448 29 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23* Q1FY22 Q2FY22 Q3FY22 Q4FY22
Slide 25: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 191 162 112 177 177 175 96 97 166 153 147 79 145 71 139 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 PAT (Pre Non Contr
Slide 26: TAB C: Platform AWS
TAB: C Platform AWS A JM FINANCIAL a4
Slide 27: Broking: Advisory Led, Leveraging Technology and Expanding Market
Broking : Advisory Led, Leveraging Technology and Expanding Market Growth of ADTO** & Volume Mix % ‘000 Rs Cr Clients ~ 1.92+ Lakhs Affluent, HNI and strong vintage Cash Future Option ADTO 100% 24 20 20 20 80% 18 Customised products and services 16 60% 80% 13 83% 86% 88% 91% 12 40% 12 8 20% 4 12% 9%
Slide 28: Broking: Online and Mobile Trading Gaining Momentum
Broking : Online and Mobile Trading Gaining Momentum Online v/s Offline Mobile Trading Online Offline ADTO (Cr) Users 12,763 12,623 11,737 31% 11,012 44% 37% 36% 9,897 45% 1,755 1,870 1,603 63% 69% 64% 1,292 56% 55% 1,123 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Gross, N
Slide 29: Wealth Channels: Increasing Scale, Client Engagement and Reach
Wealth Channels : Increasing Scale, Client Engagement and Reach Private Wealth AUM (Rs Cr) Private Wealth AUM Transactional and Recurring (Rs Cr) Equity Debt Liquid Recurring Transactional 63,760 64,683 61,660 64,683 60,385 61,211 63,760 61,211 61,660 3,846 3,931 60,385 4,597 3,070 4,643 31,600 32,7
Slide 30: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 180 187 95.2% 153 78.0% 143 130 70.5% 61.6% 56.0% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23* Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) PBT PAT (post Non Control
Slide 31: TAB D: Alternative & Distressed Credit
TAB : D Alternative & Distressed Credit 29
Slide 32: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of June 30, 2022 – Rs. 11,405 Cr • 59.25%** equity stake held by JM Financial Ltd as of June 30, 2022 Infrastructure Portfolio & Others Real Estate 18.5% 17.7% • 48 member professional team as June 30,
Slide 33: Alternative & Distressed Credit: Financial Performance
Alternative & Distressed Credit: Financial Performance Net Total Income (Rs Cr) PAT Post Non Controlling Interest (Rs Cr) 164 65 68 24 30 30 10 9 10 2 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Gross, Net NPA Leverage & SMA Analysis (Rs2*Cr) (%) Annualized Return Ratios (%
Slide 34: Section 3: Group Structure and Shareholding Details
Section 3 Group Structure and Shareholding Details 32
Slide 35: Group Structure: June 30, 2022
Group Structure : June 30, 2022 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 46.68%(2) 99.71% 59.54% 100% 59.25% 100% 100% 100% JM Financial Infinite India JM Financial Asset Overseas Holdings JM Financial JM Finan
Slide 36: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) June 30, 2022 Price 120 5,836 Market Capitalization (Rs Cr) 110 100 Price (Rs) 61.15 90 80 No. of Shares Outstanding (Cr) 95.44 70 60 50 52 Week High-Low (Rs) 117.55/56.95 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 %Gross, Net NPA–&June S
Slide 37: Section 4: Corporate Social Responsibility
Section 4 Corporate Social Responsibility 35
Slide 38: Corporate Social Responsibility
Corporate Social Responsibility INTEGRATED VILLAGE DEVELOPMENT PROJECT (MAHARASHTRA) Cashew Processing Unit set up at Kalamgaon, Mokhada, Palghar by Pragati Kaju Prakriya Mahila Bachat Gat, an SHG promoted under the project 3400 saplings of Custard Apple provided to 20 farmers in 3 villages Co
Slide 39: Corporate Social Responsibility (Cont'd)
Corporate Social Responsibility (Cont’d) MODEL VILLAGE DEVELOPMENT PROJECT (BIHAR) JMFF participated in Kisan Mela cum exhibition at Simultala organized by Krishi Vigyan Kendra (KVK) and Agricultural Technology Management Agency (ATMA). Bagged the first prize for best exhibition and awarded an aut
Slide 40: Philanthropy
Philanthropy Supported 300 adults with Intellectual & Development Disabilities (IDD) for their vocational training, life skills training and livelihoods development 749 OPD patients helped through Ayurvedic treatment at Institute of Ayurveda and Integrative Medicine vis Foundation for Revitalizati
Slide 41: Annexure: Financial Performance and Other Details
Annexure Financial Performance and Other Details 39
Slide 42: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q1 FY23 Q4 FY22 QoQ % Q1 FY22 YoY % FY22 Gross Revenue 806 839 -4.0% 993 -18.8% 3,763 Finance cost 261 250 4.3% 261 -0.1% 1,082 Employee cost 148 97 51.6% 162 -8.9% 548 Depreciation 10 10 -0.8% 10 1.3% 38 Other expenses 96 110 -12.7% 91 5.9% 4
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at June 30, 2022 As at March 31, 2022 Assets Loan book* - Steady state Financing 12,598 12,771 Loan book* - Episodic Financing - 1,374 Distressed asset book (Investment in SRs / Loan) 3,873 3,825 Cash and cash equivalents (CCE)** 2,878 3,637 Other In
Slide 44: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at June 30, 2022 As at March 31, 2022 As at June 30, 2022 As at March 31, 2022 Investment Bank 2,438 2,499 2,432 2,492 JM Financial Products Limited 1,812 1,734 1,806 1,728 JM Financial Limited 357 495 357 495 JM Financia
Slide 45: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q1 FY23 Q4 FY22 QoQ % Q1 FY22 YoY % FY22 Investment Bank 308 284 8.5% 316 -2.4% 1,273 Mortgage Lending 300 298 0.7% 300 -0.1% 1,191 Alternative & Distressed Credit 65 86 -25.0% 225 -71.3% 522 Platform AWS 130 153 -14.8% 143 -8.9% 662 Others 36 52 -31.4% 36
Slide 46: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q1FY23 FY22 Q1FY23 FY22 Investment Bank: 308 1,273 105 352 JM Financial Limited 95 544 32 274 JM Financial Products Limited 195 678 76 129 JM Financial Institutional Securities Limited 27 155 2 33 Overseas Entities (3) 22 (8) (4)
Slide 47: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q1FY23 FY22 Q1FY23 FY22 Platform AWS: 130 662 7 96 JM Financial Services Limited 116 600 4 122 JM Financial Capital Limited 9 54 7 12 JM Financial Asset Management Limited 3 21 (8) (14) JM Financial Commtrade Limited + Astute Inve
Slide 48: Investment Bank
Investment Bank Particulars (Rs Cr) Q1 FY23 Q4 FY22 QoQ % Q1 FY22 YoY % FY22 Segment Net worth + NCI 2,438 2,499 -2.4% 2,289 6.5% 2,499 Gross Revenue 308 284 8.5% 316 -2.4% 1,273 Finance cost 85 75 12.7% 74 14.8% 319 Impairment on Financial Instruments (18) 1 N/M 18 N/M 90 Employee cost 67 41 64.7%
Slide 49: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q1 FY23 Q4 FY22 QoQ % Q1 FY22 YoY % FY22 Segment Net worth + NCI 4,028 3,970 1.5% 3,841 4.9% 3,970 Gross Revenue 300 298 0.7% 300 -0.1% 1,191 Finance cost 124 121 2.7% 124 0.7% 483 Impairment on Financial Instruments 67 36 86.9% 81 -17.9% 225 Employee cost 21 22
Slide 50: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q1 FY23 Q4 FY22 QoQ % Q1 FY22 YoY % FY22 Segment Net worth + NCI 1,858 1,855 0.2% 1,761 5.5% 1,855 Gross Revenue 65 86 -25.0% 225 -71.3% 522 Finance Cost 55 56 -2.0% 61 -10.9% 229 Employee Cost 5 (5) N/M 15 -69.3% 23 Depreciation 1 1 5.7% 1 -2.3%
Slide 51: Platform AWS
Platform AWS Particulars (Rs Cr) Q1 FY23 Q4 FY22 QoQ % Q1 FY22 YoY % FY22 Segment Net worth + NCI 770 767 0.4% 727 6.0% 767 Gross Revenue 130 153 -14.8% 143 -8.9% 662 Finance cost 17 14 18.1 15 15.2% 74 Impairment on Financial Instruments (3) 8 N/M 6 N/M 17 Employee cost 53 44 21.9% 48 10.9% 200 Dep
Slide 52: Consolidated Lending Book Profile
Consolidated Lending Book Profile End of Period Gross Loan Book (Rs Cr)# NIM Analysis (%)# Wholesale Mortgage Retail Mortgage Bespoke FI Financing*** Capital Market Wtd. Avg Tenure Yield % COF % NIM % 13,017 (Months) 12,606 834 14.1% 13.9% 11,014 11,072 11,240 440 1,208 13.3% 12.9% 461 12.7% 821 800
Slide 53: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash Equivalents (Rs Cr) Equity** Debt* D/E Net D/E 12,783 11,747 10,671 10,789 3,957 10,808 3,892 3,854 1.22 3,637 1.09 1.08 1.05 1.10 0.87 0.83 2,878 0.69 0.68 0.68 9,827 10,453 10,656 10,006 10,269 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY2
Slide 54: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd Q1FY23 Q1FY22 FY22 Q1FY23 Q1FY22 FY22 Revenue 272 283 1,136 Revenue 195 139 678 Net Profit 58 53 289 Net Profit 76 24 129 Net worth 4,000 3,703 3,942 Net worth 2,028 1,853 1,952 End of period Loa
Slide 55: 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 56: 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 ser
Slide 57: 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
Slide 58: For Further Queries
For Further Queries Mr. Nishit Shah Mr. Manish Sheth Business Strategy, Investor Relations and Group CFO, MD & CEO, JM Financial Home CFO – JM Financial Products Limited Loans Limited Email: nishit.shah@jmfl.com Email: manish.sheth@jmfl.com Contact No: 022 66303522 Contact No: 022 66303461 Mr. Gagan