Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q3 FY2023 Earnings Presentation
60 slides from Jm Financial's earnings presentation, Feb 10, 2023
Slide 1: Cover letter to stock exchanges
February 10, 2023 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: JM Financial Limited – Q3FY23 Results Update
JM Financial Limited – Q3FY23 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 Five Decades; Unmatched Depth and Breadth
Evolution of the Franchise Over Five 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 Low Penetration Underserved Affordable Market (2) Strengthen underwriting (Mortgage/GDP)(1) framework post Covid-19 66.3% EWS LI
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 On-boarding modern tools and Rising Penetr
Slide 12: Section 2: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance 10
Slide 13: Consolidated Performance
Consolidated Performance FY22 PAT includes Rs. 123 Cr (9MFY22 – Rs. 114 Cr)** from IPO Financing activity (9MFY23 – ^) Rs. Pre-Provision Revenues Operating Net Profit EPS End of period PBT ROA* ROE* Profit (PPOP) Loan book # 946 Cr 364 Cr 322 Cr 190 Cr 2.0 3.6% 9.5% 15,234 Cr Q3 FY23 -1.9% -14.2% -7
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 424 Mortgage Lending Investment Bank 964 946 372 349 877 364 839 806 347 322 318 322 187 163 162 153 130 91 86
Slide 15: Tab A: Investment Bank
TAB :A Investment Bank A JM FINANCIAL
Slide 16: Investment Banking: Decades of Trust from Clients
Investment Banking : Decades of Trust from Clients Transaction details for Q3 FY23: Select Issuances IPO and Pre IPO: Global Health Limited IPO : Archean Chemical Industries IPO : Fusion Micro Finance Limited IPO : Bikaji Foods International Limited IPO : Uniparts India Limited (~Rs. 2,206 Cr and ~R
Slide 17: Institutional Research: Strong Knowledge Base
Institutional Research : Strong Knowledge Base Overview Research Coverage Across Sectors Specialty Chemicals Others • Research Coverage of 254 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: Health-tech • Sector: Consumer & Retail Aarman • Sector: Financial Services • Indi
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 : Promoter, Structured financing 4,591 4,497 4,908 4,512 Capital Markets : Loan against Securities 895 3,663 644 951 783 Financ
Slide 20: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 361 350 134 134 134 131 308 299 122 284 58.9% 45.7% 50.3% 48.5% 55.6% 41.1% 49.7% 51.5% 54.3% 44.4% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 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. 143
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 (%) 13.9% Yield % COF % NIM % 9,299 13.4% 13.4% 13.0% 13.1% 8,415 7,362 9.2% 9.3% 9.1% 9.0% 6,741 6,865 9.0% 7.2% 7.8% 7.3% 7.4% 7.0% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23
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 223 78 205 1,181 75 175 1,035 64 153 919 145 819 55 50 636 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2F
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) 194 161 119 120 112 177 175 178 97 166 147 148 145 79 139 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 PAT (Pre Non Con
Slide 26: Tab C: Platform AWS
TAB: C Platform AWS A JM FINANCIAL 8
Slide 27: Broking: Advisory Led, Leveraging Technology and Expanding Market
Broking : Advisory Led, Leveraging Technology and Expanding Market Clients ~ 2.14 Lakhs Growth of ADTO* & Volume Mix % ‘000 Rs Cr Affluent, HNI and strong vintage Cash Future Option ADTO 100% 32 29 27 28 Presence in 199 Cities 80% 24 21 20 20 60% 86% 18 91% 93% 93% 16 88% 40% 12 Strong advisory capa
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 13,661 13,404 12,763 12,623 11,737 37% 31% 35% 38% 43% 2,610 2,362 63% 69% 65% 62% 1,755 1,899 57% 1,601 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Gross,
Slide 29: Wealth Channels: Increasing Scale in Equity AUM, Client Engagement and Reach
Wealth Channels : Increasing Scale in Equity AUM, Client Engagement and Reach Private Wealth AUM (Rs Cr) Private Wealth AUM Transactional and Recurring (Rs Cr) Equity Debt Liquid Recurring Transactional 64,683 61,660 64,683 61,211 61,211 61,660 3,931 57,679 57,681 57,679 57,681 3,070 4,643 4,349 4,2
Slide 30: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 187 95.2% 162 163 88.8% 86.3% 153 130 70.5% 56.0% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23* 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 December 31, 2022 – Rs. 11,039 Cr • Effective shareholding of 58.28% held by JM Financial Ltd as of December 31, Infrastructure Portfolio & Others Real Estate 1.6% 15.5% 18.3% 2022 Plywood/ laminates
Slide 33: Alternative & Distressed Credit: Financial Performance
Alternative & Distressed Credit: Financial Performance Net Total Income (Rs Cr) PAT Post Non Controlling Interest (Rs Cr) 44 10 10 9 30 30 28 6 10 2 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 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: December 31, 2022
Group Structure : December 31, 2022 JM Financial Limited (1) Investment Banking Management of Private Equity Fund 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 Overseas Holdings JM Financial Asset JM Financial
Slide 36: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) December 31, 2022 Price 90 6,841.05 Market Capitalization (Rs Cr) 80 Price (Rs) 71.65 70 No. of Shares Outstanding (Cr) 95.48 60 50 52 Week High-Low (Rs) 84.60/56.95 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Gross, Net NPA % Shareholding
Slide 37: Section 4: Corporate Social Responsibility
Section 4 Corporate Social Responsibility 35
Slide 38: Corporate Social Responsibility
Corporate Social Responsibility EDUCATION PROJECT BACHPAN – JAMUI, BIHAR JMFF SHIKSHA SAMARTHAN • Seven new centers developed, set up • 7,599 students supported (till and operationalized in Q3 - four Dec 2022): Direct fee centers in Sikandra and three in remittance - 3,980 students in Khaira block.
Slide 39: Corporate Social Responsibility (Cont'd)
Corporate Social Responsibility (Cont’d) HEALTH SHRI VARDHMAN NIDAAN SEVA MAITRI KARUNA NETRALAYA • 5,114 patients treated through two • A 9,000 sq. ft. eye hospital is in the Mobile Health Units (MHUs) in 30 process of being set up in Gidhaur block villages in Khaira and Sikandra blocks. of Jamui d
Slide 40: Corporate Social Responsibility (Cont'd)
Corporate Social Responsibility (Cont’d) AGRICULTURE AND ALLIED ACTIVITIES MODEL VILLAGE WATER CONSERVATION PROGRAM DEVELOPMENT PROJECT • To address water scarcity in the • For Rabi season, we rocky terrain of Jamui district, JMFF supported 46 farmers with undertook rejuvenation of existing 350 kg o
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) Q3 FY23 Q2 FY23 QoQ % Q3 FY22 YoY % Gross Revenue 946 877 7.9% 964 -1.9% Finance cost 301 270 11.7% 283 6.4% Net loss on derecognition of financial instruments under - # N/M - - amortised cost category Employee cost 159 141 13.1% 143 11.6% Dep
Slide 43: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) 9M FY23 9M FY22 YoY % FY22 Gross Revenue 2,629 2,926 -10.2% 3,763 Finance cost 832 832 - 1,082 Net loss on derecognition of financial instruments under - 2 N/M - amortised cost category Employee cost 448 450 -0.5% 548 Depreciation 30 28 6.9% 3
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at Dec 31, 2022 As at March 31, 2022 Assets Loan book* - Steady state Financing 15,181 12,771 Loan book* – Episodic Financing # 1,374 Distressed asset book (Investment in SRs / Loan) 4,146 3,825 Cash and cash equivalents (CCE)** 2,109 3,637 Other Inv
Slide 45: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at Dec 31, 2022 As at March 31, 2022 As at Dec 31, 2022 As at March 31, 2022 Investment Bank 2,630 2,499 2,625 2,492 JM Financial Products Limited 1,881 1,734 1,876 1,728 JM Financial Limited 389 495 389 495 JM Financial
Slide 46: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q3 FY23 Q2 FY23 QoQ % Q3 FY22 YoY % 9M FY23 9M FY22 YoY % FY22 Investment Bank 350 299 17.1% 361 -2.9% 958 988 -3.1% 1,273 Mortgage Lending 335 307 9.1% 282 18.9% 942 896 5.1% 1,191 Alternative & Distressed Credit 91 102 -11.1% 86 5.7% 257 436 -41.0% 522 P
Slide 47: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q3FY23 9MFY23 Q3FY23 9MFY23 Investment Bank: 350 958 102 304 JM Financial Limited 150 346 100 197 JM Financial Products Limited 266 690 95 255 JM Financial Institutional Securities Limited 26 75 2 4 Overseas Entities 3 6 (2) (8) A
Slide 48: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q3FY23 9MFY23 Q3FY23 9MFY23 Platform AWS: 163 456 9 24 JM Financial Services Limited 146 403 6 15 JM Financial Capital Limited 8 27 6 18 JM Financial Asset Management Limited 6 15 (7) (21) JM Financial Commtrade Limited + Astute I
Slide 49: Investment Bank
Investment Bank Particulars (Rs Cr) Q3 FY23 Q2 FY23 QoQ % Q3 FY22 YoY % 9MFY23 9MFY22 YoY % FY22 Segment Net worth + NCI 2,630 2,542 3.5% 2,397 9.7% 2,630 2,397 9.7% 2,499 Gross Revenue 350 299 17.1% 361 -2.9% 958 988 -3.1% 1,273 Finance cost 100 90 11.7% 90 11.9% 275 243 12.8% 319 Impairment on Fin
Slide 50: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q3 FY23 Q2 FY23 QoQ % Q3 FY22 YoY % 9MFY23 9MFY22 YoY % FY22 Segment Net worth + NCI 4,241 4,129 2.7% 3,894 8.9% 4,241 3,894 8.9% 3,970 Gross Revenue 335 307 9.1% 282 18.9% 942 896 5.1% 1,191 Finance cost 141 129 8.8% 115 21.9% 395 362 9.0% 483 Net loss on dereco
Slide 51: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q3 FY23 Q2 FY23 QoQ % Q3 FY22 YoY % 9MFY23 9MFY22 YoY % FY22 Segment Net worth + NCI 1,860 1,855 0.3% 1,839 1.1% 1,860 1,839 1.1% 1,855 Gross Revenue 91 102 -11.1% 86 5.7% 257 436 -41.0% 522 Finance Cost 62 58 7.6% 55 12.4% 175 174 0.8% 229 Emplo
Slide 52: Platform AWS
Platform AWS Particulars (Rs Cr) Q3 FY23 Q2 FY23 QoQ % Q3 FY22 YoY % 9MFY23 9MFY22 YoY % FY22 Segment Net worth + NCI 731 725 0.9% 757 -3.4% 731 757 -3.4% 767 Gross Revenue 163 162 0.4% 187 -12.7% 456 510 -10.5% 662 Finance cost 29 23 24.3% 23 23.7% 69 60 14.8% 74 Impairment on Financial Instruments
Slide 53: 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 % 14,670 15,234 (Months) 13.3% 12.9% 904 12.7% 12.7% 12.8% 13,017 12,606 1,141 1,009 11,240 834 995 4
Slide 54: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) Equity** Debt* D/E Net D/E 13,063 14,702 10,789 12,783 11,747 3,854 1.34 3,637 1.22 1.21 1.05 1.10 2,878 1.08 1.15 0.68 2,109 0.87 0.83 10,269 10,781 10,938 1,388 10,453 10,656 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY
Slide 55: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd Q3FY23 Q3FY22 Q3FY23 Q3FY22 Revenue 297 265 Revenue 266 195 Net Profit 86 74 Net Profit 95 36 Net worth 4,168 3,851 Net worth 2,125 1,911 End of period Loan book# 9,299 6,741 End of period Loan b
Slide 56: Nine Month Performance of Select Subsidiaries
Nine Month Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd 9MFY23 9MFY22 FY22 9MFY23 9MFY22 FY22 Revenue 851 842 1,136 Revenue 690 514 678 Net Profit 235 202 289 Net Profit 255 87 129 Net worth 4,168 3,851 3,942 Net worth 2,125 1,911 1,952 End of period
Slide 57: 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 58: 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 59: 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 60: 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