Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q1 FY2022 Earnings Presentation
61 slides from Jm Financial's earnings presentation, Jul 28, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation
AJM FINANCIAL July 28, 2021 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 Securit
Slide 2: JM Financial Limited – Q1FY22 Results Update
JM Financial Limited – Q1FY22 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 Alternative and Distressed Credit Tab D Platform AWS 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 Received license for Housing Set up a dedicated Finance from National real estate business Housing Bank (NHB) with a Global Fund led Terminated JV with by Mr. Vikram Pandit Morgan Stanley 2018- 2020 Capital market 2017 lending
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 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 strategic Pr
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 Low Penetration of Demat Non Institutional B
Slide 12: Section 2: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance 10
Slide 13: Consolidated Performance: Highest Ever Quarterly Operating PAT
Consolidated Performance: Highest Ever Quarterly Operating PAT Rs. Revenues PBT Net Profit EPS BVPS ROA* ROE* Debt/ Equity# 993 Cr 360 Cr 203 Cr 2.13 75.03 4.7% 11.5% 1.09 x Q1 FY22 43.6% 95.7% 117.0% Q1 FY21 691 Cr 184 Cr 94 Cr 1.01 67.71 2.7%** 6.6%** 1.17 x Revenues PBT Net Profit EPS BVPS ROA* R
Slide 14: Impact of Covid-19 Wave 2 on the results
Impact of Covid-19 Wave 2 on the results Particulars (Rs Cr) Q1 FY22 Q1 FY21 Net profit after tax and after non-controlling interest (Post Covid-19 Wave 2# Impact) 203 94 Add / (Less): Additional Provision for expected credit Loss 82 66 Diminution in fair valuation of security receipts 50 - Deferred
Slide 15: Consolidated Performance: Diversified Business Model for Earnings Resilience
Consolidated Performance : Diversified Business Model for Earnings Resilience Total Revenue (Rs Cr) Pre-Provision Profit (Rs Cr) PBT (Rs Cr) AWS Alternative and Distressed Credit 469 Mortgage Lending Investment Bank 993 360 891 803 841 143 400 331 691 136 312 116 164 225 352 86 127 86 76 319 99 292
Slide 16: TAB A: Investment Bank
TAB:A Investment Bank A JM FINANCIAL “
Slide 17: Investment Banking: Decades of Trust from Clients
Investment Banking : Decades of Trust from Clients Transaction details for Q1 FY22 BRLM to IPO of Sona BLW BRLM to IPO of Macrotech BRLM to IPO of Rights Issue of Equity Shares of Precision Forgings Limited Developers Limited Shyam Metalics and Energy Limited Sundaram Finance Holdings Limited Block
Slide 18: Institutional Research: Strong Knowledge Base
Institutional Research : Strong Knowledge Base Overview Research Coverage Across Sectors Internet & Business Others Cement & • Research Coverage of 204 Companies Real Estate & Industrials Services REITs Consumer Staples, Retail, • Strong breadth of sector coverage IT Services Multiplexes Metals, Air
Slide 19: Private Equity Funds: Fund III Raise Underway
Private Equity Funds : Fund III Raise Underway Fund II Investments (AUM : Rs. 505 Cr) : ~80% Deployed Fund I All investments exited • Sector: Consumer & Retail • Sector: Packaged Foods • Sector: Co-living • A designer, manufacturer • Sector: Financial Services • Fast growing D2C natural • A fast gro
Slide 20: Franchise Enhancing Financing
Franchise Enhancing Financing Loan Book(1) (Q1FY22) Loan Book Description Financial Institutions Bespoke Finance : Loan Book available to Clients of Financing Investment Bank segment 13% Bespoke 46% Capital Markets : Loan Book originated for Platform AWS Rs.3,228 Cr Clients Capital Markets 20%
Slide 21: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 316 113 115 298 291 285 106 100 210 54.4% 51.8% 66.3% 57.5% 43.7% 56 56.3% 45.6% 48.2% 42.5% 33.7% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Profit
Slide 22: TAB B: Mortgage Lending
TAB: B Mortgage Lending A JM FINANCIAL 20
Slide 23: 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. 109
Slide 24: Wholesale Mortgages: JM Financial Credit Solutions (JMFCSL)
Wholesale Mortgages : JM Financial Credit Solutions (JMFCSL) Loan Book** (Rs Cr) Product wise split of loan book – June 2021 LAS 6.6% Project at Early Stage 7,208 7,219 8.1% 7,166 7,101 6,993 Land 9.9% Project Loan 56.8% LAP 18.6% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Gross, Net NPA & SMA 2* (%) Geogra
Slide 25: Wholesale Mortgages: Operating and Financial Performance
Wholesale Mortgages : Operating and Financial Performance Net Total Income (Rs Cr) Spread Analysis (%) Operating Expenses and Cost to Income (Rs Cr) Yield % COF % NIM % Operating Expense Cost to Income 201 10.5% 15.1% 15.1% 15.1% 14.7% 14.6% 9.5% 174 170 174 166 7.8% 6.7% 5.5% 10.3% 10.4% 10.4% 10.4
Slide 26: Retail Mortgages: JM Financial Home Loans
Retail Mortgages : JM Financial Home Loans Branch Network Disbursement (Rs Cr) Loan Book Average Ticket Size of Rs. 11 Lakhs 90 40 448 431 56 363 46 327 30 318 27 29 25 25 14 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Geography wise split
Slide 27: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 209 189 143 166 130 156 157 153 181 183 177 177 102 103 71 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 PAT (Pre Non Co
Slide 28: TAB C: Alternative & Distressed Credit
TAB : C Alternative & Distressed Credit 26
Slide 29: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of June 30, 2021 – Rs. 10,885 Cr • 59.25%** equity stake held by JM Financial Ltd as of June 30, 2021 Infrastructure Portfolio & Others Textiles 16.1% 20.4% • 48 member professional team as June 30, 202
Slide 30: Alternative & Distressed Credit: Financial Performance
Alternative & Distressed Credit: Financial Performance Net Total Income (Rs Cr) PAT Post Non Controlling Interest (Rs Cr) 164 65 59 21 35 12 19 15 8 5 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Gross, Net NPA Leverage & SMA Analysis (Rs2*Cr) (%) Annualized Return Ratios (%
Slide 31: TAB D: Platform AWS
TAB: D Platform AWS A JM FINANCIAL 8
Slide 32: 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 ~ 1.5 Lakhs Affluent, HNI and strong vintage Cash Future Option ADTO 14 12 12 Customised products and services 11 11 82% 80% 85% 87% 84% 10% 10% 11% 12% Presence in 177 Cities 8% 7% 8%
Slide 33: Broking: Online and Mobile Trading Gaining Momentum
Broking : Online and Mobile Trading Gaining Momentum Online v/s Offline Mobile Trading Online Offline ADTO (Crs) Users 9,897 8,840 42% 39% 44% 62% 61% 7,256 7,041 1,123 1,003 820 58% 61% 56% 655 695 38% 39% 5,783 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Gross, Net NPA Se
Slide 34: 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 59,052 60,385 56,757 59,052 60,385 54,015 4,597 56,757 4,327 4,165 54,015 47,579 5,130 47,579 4,702 29,528 25,1
Slide 35: PMS and Mutual Fund: New Hires in Place to Grow the Business
PMS and Mutual Fund : New Hires in Place to Grow the Business PMS AUM (Rs Cr) Discretionary Non-Disecretionary New hires made to strengthen the team. Mr. Vinay Jaising has joined as 757 673 Co-Head of PMS 608 135 555 118 480 106 Consistent performance 93 84 Gaining traction 555 622 462 502 396
Slide 36: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 164 143 96.6% 136 116 78.1% 78.0% 66.8% 69.7% 86 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) PBT PAT (post Non Controlli
Slide 37: Section 3: Group Structure and Shareholding Details
Section 3 Group Structure and Shareholding Details 35
Slide 38: Group Structure: June 30, 2021
Group Structure : June 30, 2021 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 46.68%(2) 99.64% 59.54% 100% 59.25%(3) 100% 100% 100% JM Financial Infinite India JM Financial Asset Overseas Holdings JM Financial JM Fi
Slide 39: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) June 30, 2021 Price 110 8,433.46 Market Capitalization (Rs Cr) 100 90 Price (Rs) 88.45 80 70 No. of Shares Outstanding (Cr) 95.35 60 50 52 Week High-Low (Rs) 101.60/69.25 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 %Gross, Net NPA–&June Sh
Slide 40: Section 4: Corporate Social Responsibility
Section 4 Corporate Social Responsibility 38
Slide 41: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) PROJECT SHIKSHA SAMARTHAN Launched in May 2021 to support children who have lost an earning parent or both parents to Covid-19. The project is extending support for the school fees of all such children up till the age of 18 years (higher-secondary grade) by
Slide 42: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) INTEGRATED VILLAGE DEVELOPMENT PROJECT – PALGHAR, MAHARASHTRA 1,910 cashew and 976 mango saplings distributed to 25 farmers to promote wadi farming across 36.24 acres. 3,460 custard apple saplings provided to 20 farmer beneficiaries to promote horticulture p
Slide 43: Philanthropic Giving and Support
Philanthropic Giving and Support The Foundation continued support to our partner organisations for ongoing activities. Online classes continued for students in lieu of the second wave of Covid 19. One of our partner Gurgaon Vidyalayas taught students Science projects and models .These were made wi
Slide 44: Annexure: Financial Performance and Other Details
Annexure Financial Performance and Other Details 42
Slide 45: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q1 FY22 Q4 FY21 QoQ % Q1 FY21 YoY % FY21 Gross Revenue 993 841 18.0% 691 43.6% 3,227 Finance cost 261 271 -3.7% 273 -4.3% 1,111 Impairment on Financial Instruments* 109 40 N/M 69 57.5% 257 Employee cost 162 115 40.6% 91 77.8% 441 Depreciation
Slide 46: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at June 30, 2021^ As at March 31, 2021 Assets Loan book* - Steady state Financing 10,446 10,325 Loan book* – Episodic Financing 1,379 33 Distressed asset book (Investment in SRs / Loan) 3,830 3,915 Cash and cash equivalents (CCE)** 3,892 5,351 Other
Slide 47: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at June 30, 2021 As at March 31, 2021 As at June 30, 2021 As at March 31, 2021 Investment Bank 2,276 2,491 2,270 2,482 JM Financial Products Limited 1,719 1,693 1,713 1,684 JM Financial Limited 312 563 312 563 JM Financia
Slide 48: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q1 FY22 Q4 FY21 QoQ % Q1 FY21 YoY % FY21 Investment Bank 316 285 10.8% 210 50.7% 1,084 Mortgage Lending 300 302 -0.6% 298 0.6% 1,218 Alternative & Distressed Credit 225 76 195.5% 99 126.9% 389 Platform AWS 143 164 -13.0% 86 65.8% 502 Others 36 52 -31.7% 14
Slide 49: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q1FY22 FY21 Q1FY22 FY21 Investment Bank: 316 1,084 87 279 JM Financial Limited 143 340 58 141 JM Financial Products Limited 139 661 24 138 JM Financial Institutional Securities Limited 45 134 10 25 Overseas Entities 8 21 (2) # Add
Slide 50: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q1FY22 FY21 Q1FY22 FY21 Platform AWS: 143 502 9 50 JM Financial Services Limited 126 414 8 32 JM Financial Capital Limited 7 48 # 15 JM Financial Asset Management Limited 8 31 (1) (2) JM Financial Commtrade Limited / Astute Invest
Slide 51: Investment Bank
Investment Bank Particulars (Rs Cr) Q1 FY22 Q4 FY21 QoQ % Q1 FY21 YoY % FY21 Segment Net worth + NCI 2,276 2,491 -8.6% 2,247 1.3% 2,491 Loan Book* 3,228 3,048 5.9% 3,235 -0.2% 3,048 Gross Revenue 316 285 10.8% 210 50.7% 1,084 Finance cost 74 87 -14.9% 81 -8.9% 335 Impairment on Financial Instruments
Slide 52: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q1 FY22 Q4 FY21 QoQ % Q1 FY21 YoY % FY21 Segment Net worth + NCI 3,841 3,788 1.4% 3,508 9.5% 3,788 Gross Revenue 300 302 -0.6% 298 0.6% 1,218 Finance cost 124 119 4.2% 118 5.1% 468 Impairment on Financial Instruments 81 37 N/M 54 50.0% 191 Employee cost 14 12 14.
Slide 53: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q1 FY22 Q4 FY21 QoQ % Q1 FY21 YoY % FY21 Segment Net worth + NCI 1,761 1,651 6.6% 1,620 8.7% 1,651 Gross Revenue 225 76 195.5% 99 126.9% 389 Finance Cost 61 61 1.1% 65 -5.1% 261 Employee Cost 15 (2) N/M 7 103.5% 21 Depreciation 1 1 0.6% 1 -3.4% 3
Slide 54: Platform AWS
Platform AWS Particulars (Rs Cr) Q1 FY22 Q4 FY21 QoQ % Q1 FY21 YoY % FY21 Segment Net worth + NCI 727 718 1.2% 668 8.9% 718 Gross Revenue 143 164 -13.0% 86 65.8% 501 Finance cost 15 20 -27.0% 14 4.9% 74 Impairment on Financial Instruments 6 4 32.5% # N/M 9 Employee cost 48 53 -8.7% 34 40.2% 166 Depr
Slide 55: Consolidated Lending Book Profile
Consolidated Lending Book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%)# Wholesale Mortgage Retail Mortgage Bespoke FI Financing*** Capital Market Yield % COF % NIM % 11,386 14.5% 14.1% 14.3% 14.3% 14.1% 10,833 10,854 11,014 678 10,407 508 282 376 851 322 821 429 683 1,401 1,604 348 10.1% 9.9% 9
Slide 56: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) Equity** Debt* D/E Net D/E 5,351 12,369 10,674 10,440 10,879 10,384 1.29 3,892 1.17 1.20 3,716 1.11 1.09 3,394 0.73 0.69 2,831 0.89 0.79 0.72 8,898 9,061 9,552 9,827 9,315 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1
Slide 57: Performance of Select Subsidiaries
Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd Q1FY22 Q1FY21 FY21 Q1FY22 Q1FY21 FY21 Revenue 283 287 1,167 Revenue 139 156 661 Net Profit 53 76 359 Net Profit 24 32 138 Net worth 3,703 3.367 3,650 Net worth 1,853 1,739 1,829 Loan book# 7,166 7,591 7,21
Slide 58: 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 59: Board of Directors
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 leading financial services • Managing Director of JM Financial Ltd., the group’s flagship
Slide 60: Management Team
Management Team • Managing Director of JM Financial Ltd., the group’s flagship listed company. • Launched the Asset Reconstruction business in 2008 and the Real • Joined JM Financial Group in 2009 Estate Finance business in 2009. • Prior to that worked with the global markets group of Bank of Ameri
Slide 61: For Further Queries
For Further Queries Mr. Shashwat Belapurkar Mr. Manish Sheth MD, Group Borrowings, Investor Group CFO, MD & CEO, JM Financial Home Relations, Treasury and Alternative Credit Loans Limited Email: shashwat.belapurkar@jmfl.com Email: manish.sheth@jmfl.com Contact No: 022 66303545 Contact No: 022 663034