Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q1 FY21 Earnings Presentation
30 slides from Jm Financial's earnings presentation, Jul 30, 2020
Slide 1: Exchange cover letter: Investor Presentation
July 30, 2020 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: Quarter ended June 30, 2020 – Results update
JM Financial Limited Quarter ended June 30, 2020 – Results update July 30, 2020
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: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 3
Slide 5: Key Highlights – Consolidated Performance
Key Highlights – Consolidated Performance Rs. Revenues PBT Net Profit EPS BVPS ROA* ROE* Debt/ Equity# 691 Cr 184 Cr 94 Cr 1.01 67.71 2.7%** 6.6%** 1.17 x Q1 FY21 -19.3% -39.1% -26.5% Q1 FY20 857 Cr 302 Cr 127 Cr 1.51 61.95 3.4% 9.9% 1.92 x Revenues PBT Net Profit EPS BVPS ROA* ROE* Debt/ Equity# 3,
Slide 6: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q1FY21 Q1FY20 YoY % Q4FY20 QoQ % Gross Revenue 691 857 -19.3% 841 -17.8% Finance cost 273 350 -22.0% 333 -18.2% Net Loss on Fair value changes - # N/M - - Impairment on Financial Instruments* 69 24 N/M 118 -41.4% Employee cost 91 105 -13.3% 65
Slide 7: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at June 30, 2020 As at March 31, 2020 Assets Loan book* - Steady state Financing 10,485 11,307 (Gross loan book: June’20 – Rs. 10,833 Cr; Mar’20 – Rs. 11,531 Cr) Loan book* – Episodic Financing 700 - Distressed asset book (Investment in SRs / Loan) 3
Slide 8: Lending book Profile
Lending book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%) 14.0% 14.1% 14.0% 14.3% 14.5% 13,926 13,810 12,662 10.3% 11,531 9.8% 9.9% 9.9% 10.1% 2,837 2,904 10,833 2,188 1,232 1,100 1,156 2,270 1,413 7.6% 567 639 719 465 744 369 6.6% 6.5% 6.6% 6.6% 736 9,290 9,167 8,599 8,052 8,316 Q1 FY20 Q2 FY2
Slide 9: Borrowing Profile
Borrowing Profile 1.9 1.8 1.7 1.7 1.5 1.5 Borrowing Breakup* 1.3 1.2 14,270 1.0 2% 13,544 13,410 3% 2% 1% 1% 1% 0.8 Short Short Short 15% 14% 11,756 22% 17% 16% Short 1% 2% 10,440 27% 6% 9% 1% Short 3% 1% 26% 27% 10% 6% 1% 26% 26% 24% Long Long Long Long 73% 84% Long 83% 91% 57% 57% 64% 90% 47% 65%
Slide 10: Liability Profile over the last one year
Liability Profile over the last one year Amount in Rs crore, unless stated Jun-19 Sep-19 Dec-19 Mar-20 June-20 otherwise • Reduced leverage across Consolidated gross borrowing* 14,270 13,544 13,410 11,756 10,440 lending segments Gross Debt / Equity 1.92 1.78 1.71 1.47 1.17 • Diversified sources of b
Slide 11: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 10
Slide 12: Businesses Performance
Our Business Our Business Segments Investment Banking, Mortgage Distressed Asset Wealth Management & Lending Credit Management Securities Business (IWS) Investment Banking & Securities Wholesale – Developer Funding Asset Reconstruction Mutual Fund Wealth Management Retail - Housing, LAP & EIL* Busin
Slide 13: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q1 FY21 Q4 FY20 QoQ % Q1 FY20 YoY % FY20 IWS 290 411 -29.4% 368 -21.1% 1,612 Mortgage Lending 298 316 -5.5% 340 -12.3% 1,351 Distressed Credit 98 98 -0.3% 133 -25.9% 413 Asset Management 7 7 - 18 -61.0% 63 Others 13 28 -56.9% 15 -19.7% 80 Total Segment Rev
Slide 14: IWS – Key Performance Matrix
IWS – Key Performance Matrix Securities Business (Rs Cr) Average Daily Turnover (Rs Cr) Equity Market Share on NSE (%) 13,676 13,894 10,748 11,175 2.54 2.42 2.34 2.18 8,205 1.53 0.74 0.95 0.88 12,746 12,963 0.64 0.77 9,861 10,282 7,264 0.91 0.59 0.70 0.85 0.74 941 887 930 931 893 Q1 FY20 Q2 FY20 Q3
Slide 15: IWS – Key Financial Information
IWS – Key Financial Information Particulars (Rs Cr) Q1 FY21 Q4 FY20 QoQ % Q1 FY20 YoY % FY20 Net worth + NCI 2,746 2,694 1.9% 2,595 5.8% 2,694 Loan Book* 3,405 3,880 -12.2% 5,320 -36.0% 3,880 Gross Revenue 290 411 -29.4% 368 -21.1% 1,612 Finance cost 96 130 -25.4% 144 -33.0% 558 Net Loss on Fair val
Slide 16: Mortgage Lending
Mortgage Lending Wholesale Loan Book* Retail • Provides an integrated financial solution to real estate developers 8,455 • Home loans business loan book at Rs with major focus on real estate project financing 8,302 8,008 327 crore 7,651 7,428 • 72 groups – significant focus on repeat business • Bran
Slide 17: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction AUM (Rs Cr) Asset Acquisitions (Rs Cr) 14,191 14,037 223 200 11,413 11,489 11,441 109 120 3,140 3,107 2,946 3,012 2,982 - - 5 5 - - Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 ARC's AUM JM's share in ARC's AUM Assets Acquir
Slide 18: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction Particulars (Rs Cr) Q1 FY21 Q4 FY20 QoQ % Q1 FY20 YoY % FY20 Net worth + NCI of Company* 1,531 1,513 1.2% 1,284 19.2% 1,513 Gross Revenue 98 98 -0.3% 133 -25.9% 413 Net Loss on Fair value changes - - - 19 N/M - Impairment on financial instruments 1 7 -89.3% 3
Slide 19: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AAUM (Rs Cr) Mutual Fund: • Quarterly Average AUM (QAAUM) – Rs 4,049 Cr. 7,710 • Rank (QAAUM) – 26 among 43 Mutual Funds. 6,488 • 15 Schemes categorized as Equity, Hybrid and Debt. 5,683 6,109 3,068 1,979 4,049 • Investor reach – 1,24,400 base, 13 bran
Slide 20: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 19
Slide 21: Organisational Structure – June 2020
Organisational Structure – June 2020 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 46.68%(2) 99.35% 59.54% 100% 59.25%(3) 100% 100% 100% JM Financial Overseas JM Financial Infinite India JM Financial JM Financial As
Slide 22: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) As on June 30, 2020 140.0 120.0 Market Capitalization (Rs Cr) 6,663.29 100.0 80.0 Price (Rs) 70.00 60.0 40.0 No. of Shares Outstanding (Cr) 95.19 20.0 - Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 52 Week High-Low (Rs) 126.00/55.50 Key Ins
Slide 23: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview 22
Slide 24: Performance of Select Subsidiaries
Performance of Select Subsidiaries In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Revenue 287 340 Revenue 156 240 Net Profit 76 109 Net Profit 32 62 Net worth 3.367 3,018 Net worth 1,739 1,622 Loan book# 7,591 8,196 Loan book# 3,445 5,503 Net Int
Slide 25: Journey of JM Financial Group
Journey of JM Financial Group JM Financial Joint Venture with Morgan Stanley 1973 1986 1994 1998 2004 2005-2006 2006 -2007 2007 Incorporation of JM JM Financial Set up mutual JV with Capital Preferential issue of shares Launched Terminated Financial and Limited (JMFL)(1) fund Morgan market to Tiger
Slide 26: 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 27: 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 28: Our CSR progression amidst the COVID-19 lockdown
Our CSR progression amidst the COVID-19 lockdown LIVESTOCK DEVELOPMENT PROJECT MODEL VILLAGE DEVELOPMENT Integrated Livestock Development Center (ILDC) Project – Model Village Development Project undertaken in 15 villages of Sikandra block, Chakai, Jhajha and Sikandra blocks, Jamui district, Bih
Slide 29: Our CSR progression amidst the COVID-19 lockdown
Our CSR progression amidst the COVID-19 lockdown RESPONSE TO COVID-19 COVID-19 – OUR RESPONSE TO THE STRUGGLE AGAINST THE PANDEMIC In Q1 FY 20-21, we continued our efforts towards the country’s struggle against COVID-19. Initiated and implemented four community kitchens under the name Trishala R
Slide 30: For Further Queries
For Further Queries Mr. Manish Sheth Mr. Nishit Shah Group CFO Business Strategy, Investor Relations Email: manish.sheth@jmfl.com and CFO – JM Financial Products Contact No: 022 66303461 Limited Email: nishit.shah@jmfl.com Contact No: 022 66303522 Mr. Gagan Kothari CFO – JM Financial Credit Solution