Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q1 FY20 Earnings Presentation
40 slides from Jm Financial's earnings presentation, Jul 19, 2019
Slide 1: Cover letter to exchanges: Outcome of the Board Meeting
j JM FINANCIAL July 19, 2019 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 Securi
Slide 2: Press Release: Q1 FY20 consolidated results
PRESS RELEASE For Immediate Release JM Financial’s consolidated revenue increased by 0.48% and consolidated net profit is decreased by 10.81% for Q1 FY20. Mumbai, July 19, 2019: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for th
Slide 3: Press release: Management comment and business update
Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said, “The NBFC and HFC sectors have been facing headwinds since last September. Given the situation we are maintaining high liquidity levels in the group. The liquidity starvation since l
Slide 4: Mortgage Lending update
Mortgage Lending The total mortgage lending book stood at Rs. 8,455 Cr as on June 30, 2019. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. We are at the initial stages of our retail mortgage lending and are curr
Slide 5: Distressed Credit and Asset Management update
healthy security / cashflow covers to enable us to recover our entire loan even if the situation were to worsen. Distressed Credit During the quarter, Banks/NBFCs announced various NPA portfolio auctions. We closed 2 deals during the quarter for one of our accounts as part of debt aggregation. Dur
Slide 6: About JM Financial
The unaudited financial results are attached. The press release and unaudited financial results are available on our website www.jmfl.com About JM Financial JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth m
Slide 7: on the basis of the information contained herein is that person’s responsibility alone
This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such ac
Slide 8: Quarter ended June 30, 2019 – Results update
JM Financial Limited Quarter ended June 30, 2019 – Results update July 19, 2019
Slide 9: 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 10: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 3
Slide 11: Key Highlights – Consolidated Performance
Key Highlights – Consolidated Performance Rs. Revenues PBT Net Profit EPS BVPS ROA* Gross Debt **/ ROE* Equity# 857 Cr 302 Cr 127 Cr 1.51 61.95 3.4% 1.92x 9.9% Q1 FY20 0.5% -4.4% -10.8% Q1 FY19 852 Cr 316 Cr 143 Cr 1.70 55.34 3.4% 2.73x 12.5% Revenues PBT Net Profit EPS BVPS ROA* Gross Debt **/ ROE*
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q1FY20 Q1FY19 YoY % Q4FY19 QoQ % Gross Revenue 857 852 1% 792 8% Finance cost 350 335 4% 352 -1% Net Loss on Fair value changes # - N/M 22 N/M Impairment of Financial Instruments* 24 19 22% (14) N/M Employee cost 105 107 -1% 103 3% Depreciatio
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at June 30, 2019 As at March 31, 2019 Assets Loan book - Static Financing * 13,828 13,999 (Gross loan book: Q1FY20 – Rs. 13,926 Cr; FY19 – Rs. 14,107 Cr) Loan book - Episodic Financing * 742 - Distressed asset book (Investment in SRs / Loan) 4,280 4,
Slide 14: Lending book Profile
Lending book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%) 13.9% 14.0% 16,442 13.3% 12.7% 14,772 14,107 2,568 13,926 2,746 9.5% 9.8% 2,317 2,451 2,837 8.9% 9.0% 2,334 1,078 350 581 1,232 6.6% 432 567 6.5% 6.1% 5.6% 10,131 11,073 9,259 9,290 Q4 FY18 Q4 FY19 Q1 FY19 Q1 FY20 Q4 FY18 Q4 FY19 Q1 FY19
Slide 15: Stressed Assets in Wholesale Mortgages
Stressed Assets in Wholesale Mortgages Wholesale Mortgage NPA stood at 0.87% and SMA2 at 3.11% of loan book Micro market Dynamics Risk Mitigation / Resolution Plan Chennai • Healthy security cover to • Investment climate affected since 2016 and no major minimize loss given default. employment opport
Slide 16: Stressed Assets in Wholesale Mortgages (cont’d)
Stressed Assets in Wholesale Mortgages (cont’d) Micro market Dynamics Risk Mitigation / Resolution Plan Bangalore • Strong development partner Sales in Bengaluru continue to be strong and the profile of with potential to take over developers is relatively stronger. other partner’s share as well • NP
Slide 17: Borrowing Profile
Borrowing Profile Gross Debt/Equity : ~ 1.9x Gross Debt/Equity: ~1.9x Gross Debt/Equity: ~2.7x Net Debt/Equity: ~1.7x Net Debt/Equity: ~1.7x Net Debt/Equity: ~2.5x June 30, 2019* March 31, 2019 June 30, 2018 3% 2% Short 2% 2% Short 1% 3% Short Term Term Term Borrowing Breakup 28% 27% 37% 23% 23% 25%
Slide 18: Segment-wise Commercial Paper Borrowing and Repayment Capabilities
Segment-wise Commercial Paper Borrowing and Repayment Capabilities¹ Rs. in crore Amount % of CP Particulars (as on 30th June, 2019) Assets backing Rs Crore borrowing IWS Capital Market Financing 377 11.6% High quality liquid assets Trading & Broking 400 12.3% Fixed deposits and highly liquid assets
Slide 19: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 12
Slide 20: Our Business
Our Business Our Business Segments Investment Banking, Mortgage Distressed Asset Wealth Management & Lending Credit Management Securities Business (IWS) Investment Banking and Wholesale – Developer Asset Reconstruction Mutual Fund Securities Funding Retail - Housing, LAP and Wealth Management EIL* B
Slide 21: Segment Performance
Segment Performance Ind AS Segment revenue (Rs Cr) Q1 FY20 Q4 FY19 QoQ Q1 FY19 YoY IWS 368 357 3.2% 424 -13.2% Mortgage Lending 340 331 2.8% 292 16.4% Distressed Credit 133 91 46.1% 103 28.5% Asset Management 18 19 -6.4% 26 -31.3% Others 15 12 22.8% 20 -24.2% Total Segment Revenue 874 810 7.9% 865 1
Slide 22: IWS – Key Non Financial Information
IWS – Key Non Financial Information PE and RE AUM (Rs Cr) Securities Business(Rs Cr) 802 845 Average Daily Turnover (Rs Cr) Total 716 794 794 AUM 155 155 155 155 155 7,264 4,546 4,779 4,793 4,834 561 647 639 639 690 1,039 1,266 878 986 941 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q2 FY19 Q3 F
Slide 23: IWS – Key Financial Information
IWS – Key Financial Information Particulars (Rs Cr) Q1 FY20 Q4 FY19 QoQ % Q1 FY19 YoY % FY19 Net worth + MI 2,595 2,533 2.4% 2,563 1.2% 2,533 Loan Book 5,320 5,627 -5.5% 7,788 -31.7% 5,627 Gross Revenue 368 357 3.2% 424 -13.2% 1,602 Finance cost 144 161 -10.3% 152 -5.2% 643 Net Loss / (Gain) on Fair
Slide 24: Mortgage Lending
Mortgage Lending Wholesale Retail Loan Book (Rs Cr) • Provides an integrated financial solution to real estate • Home loans business loan book at developers with major focus on real estate project financing Rs.259 crore 8,505 8,324 8,455 • 81 groups – significant focus on repeat business • Expanded
Slide 25: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction Business Overview Long Term Positive Drivers • Rollout of Corporate Insolvency Resolution Process Long Term Credit Rating of AA- and Short Term Credit (CIRP) under Insolvency & Bankruptcy Code 2016 Rating of A1+ by ICRA & CARE. Comfortable gearing of (IBC)
Slide 26: Distressed Credit – Asset Reconstruction (cont’d)
Distressed Credit – Asset Reconstruction (cont’d) AUM (Rs Cr) Asset Acquisitions (Rs Cr) 14,044 14,191 12,965 13,294 657 526 363 304 223 2,939 3,140 1,987 2,260 109 74 40 Q4 FY18 Q4 FY19 Q1 FY19 Q1 FY20 Q4 FY18 Q4 FY19 Q1 FY19 Q1 FY20 ARC's AUM JM's share in ARC's AUM Assets Acquired by ARC JM's sha
Slide 27: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AUM (Rs Cr) Mutual Fund: 12,672 12,073 11,364 • Quarterly Average AUM (QAAUM) – Rs 7,710 cr. 4,118 4,233 8,712 • Rank (QAAUM) – 23 among 41 Mutual Funds. 3,007 7,710 3,053 • Market Share – 0.30 %. 3,068 8,439 8,357 • 15 Schemes categorized as Long Term
Slide 28: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 21
Slide 29: Organisational Structure – June 2019
Organisational Structure – June 2019 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 47.05%(2) 99.35% 59.54% 100% 59.25% 100% 100% 100% JM Financial JM Financial Infinite India JM Financial Overseas JM Financial Asset
Slide 30: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) As on 30.06.2019 140.0 Market Capitalization (Rs Cr) 6,466.28 120.0 100.0 80.0 Price (Rs) 76.80 60.0 40.0 No. of Shares Outstanding (Cr) 84.09 20.0 - Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 52 Week High-Low (Rs) 135.15 - 64.25 Key Inst
Slide 31: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 24
Slide 32: Performance of Select Subsidiaries – IND AS
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd Q1 FY 20 Q1 FY19 Q1 FY 20 Q1 FY19 Revenue 340 291 Revenue 239 243 Net Profit 109 83 Net Profit 62 63 Net worth 3,018 1,756 Net worth 1,622 1,535 Loan book 8,196 8,475 Loan book# 5,503 6,9
Slide 33: Journey of JM Financial Group
Journey of JM Financial Group JM Financial Joint Venture with Morgan Stanley 1973 1986 1994 1998 2003-2004 2005-2006 2006 -2007 2007 Incorporation of JM JM Financial Set up mutual JV with Capital Preferential issue of shares Launched Separated Financial and Limited(1) fund Morgan market to Tiger Glo
Slide 34: 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 35: 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 36: Integrated Rural Transformation - Bihar
Integrated Rural Transformation - Bihar • Five pre-school learning centers across five villages of Sikandra block in Jamui district, providing daily learning and Project nutrition for pre-school children’s holistic development Bachpan • Concepts of weather, fruits, vegetables and occupations introdu
Slide 37: Integrated Rural Transformation – Maharashtra & Jharkhand
Integrated Rural Transformation – Maharashtra & Jharkhand • Holistic rural intervention undertaken in seven villages of Mokhada block of Palghar district MAHARASHTRA Integrated • During the quarter, under Zilla Parishad 50-50 subsidy scheme, 57 farmers benefitted from 57 bags of 25kg rice Village ea
Slide 38: Integrated Rural Transformation – Glimpses
Integrated Rural Transformation – Glimpses ILDC farmers education – Sijhori Model Village Project – Nutrition Bachpan Learning Center – Korasi village Garden in Nawadih village Farmer beneficiaries digging Continuous Critical baby suffering from Daily Mobile Health Unit (MHU) Trenches (CCT) in Mokha
Slide 39: Philanthropic Giving and Support
Philanthropic Giving and Support • JMFF has partnered with an old & renowned Institute to provide education to students with intellectual disability, Education from age 3 to 18 years with functional academics and pre-vocational training • JMFF has supported a Trust that runs an Eye Hospital in Shiro
Slide 40: For Further Queries
For Further Queries Mr. Manish Sheth Mr. Nishit Shah Group CFO Business Strategy and Investor Email: manish.sheth@jmfl.com Relations & CFO – JM Financial Contact No: 022 66303461 Products Limited Email: nishit.shah@jmfl.com Contact No: 022 66303522 Mr. Gagan Kothari CFO – JM Financial Credit Solutio