Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q3 FY2020 Earnings Presentation
33 slides from Jm Financial's earnings presentation, Jan 23, 2020
Slide 1: Exchange filing cover letter
Aum FINANCIAL January 23, 2020 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza 15 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: Quarter ended December 31, 2019 – Results update
JM Financial Limited Quarter ended December 31, 2019 – Results update January 23, 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 Annexures 3
Slide 5: Key Highlights – Consolidated Performance
Key Highlights – Consolidated Performance Rs. Revenues PBT Net Profit EPS BVPS Gross Debt/ Equity# 905 Cr 305 Cr 158 Cr 1.87 64.90 1.71x Q3 FY20 0.5% -10.9% 14.6% Q3 FY19 901 Cr 342 Cr 137 Cr 1.64 60.01 2.15x Revenues PBT Net Profit EPS ROA* ROE* 2,613 Cr 879 Cr 414 Cr 4.93 3.6% 10.5% 9MFY20 -4.2% -
Slide 6: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q3FY20 Q3FY19 YoY % Q2FY20 QoQ % Gross Revenue 905 901 0.5% 851 6.3% Finance cost 354 378 -6.6% 349 1.2% Impairment of Financial Instruments* 42 7 N/M 50 -14.6% Employee cost 119 99 20.1% 106 12.3% Depreciation 10 7 49.9% 10 5.0% Other expense
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) 9MFY20 9MFY19 YoY % Gross Revenue 2,613 2,729 -4.2% Finance cost 1,052 1,095 -3.8% Impairment of Financial Instruments* 116 49 N/M Employee cost 330 319 3.6% Depreciation 30 20 49.6% Other expenses 205 208 -1.5% PBT 879 1,038 -15.4% Tax Expens
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet As at March 31, Particulars (Rs Cr) As at Dec 31, 2019 2019 Assets Loan book* 12,547 13,999 (Gross loan book: Dec’19 – Rs. 12,662 Cr; Mar’19 – Rs. 14,107 Cr) Distressed asset book (Investment in SRs / Loan) 4,011 4,194 Cash and cash equivalents (CCE)** 3,218 1,737 Other In
Slide 9: Lending book Profile
Lending book Profile Gross Loan Book (Rs Cr)# NIM Analysis (%) 16,136 13.9% 14.0% 14.1% 14.0% 13.3% 14,107 13,926 13,810 3,049 12,662 2,317 9.3% 9.5% 9.8% 9.9% 9.9% 1,624 2,837 2,904 458 1,078 2,188 581 1,232 1,100 639 1,156 567 719 6.5% 6.6% 6.5% 6.6% 5.7% 11,005 10,131 9,290 9,167 8,599 Q3 FY19 Q4
Slide 10: Borrowing Profile
Borrowing Profile 2.2 1.9 1.9 1.9 1.8 1.7 1.7 1.7 1.5 Borrowing Breakup 15,436 1.3 4% 0% 13,563 13,861 Short 2% 13,127 12,878 2% 2% 3% 2% 32% 28% Short 1% Short 1% 1% Short Short 23% 23% 18% 15% 14% 27% 28% 16% 27% 28% 25% 27% 27% Long Long Long Long Long 68% 73% 72% 82% 84% 43% 55% 56% 46% 45% Q3 F
Slide 11: Liability Profile over the last one year
Liability Profile over the last one year Amount in Rs crore, unless stated Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 otherwise • Reduced leverage across Consolidated gross borrowing 15,436 13,563 13,861 13,127 12,878 lending segments Gross Debt / Equity 2.15 1.94 1.92 1.78 1.71 • Diversified sources of bor
Slide 12: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 11
Slide 13: 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 14: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q3 FY20 Q2 FY20 QoQ Q3 FY19 YoY 9M FY20 9M FY19 YoY IWS* 442 382 15.6% 371 19.1% 1,200 1,238 -3.1% Mortgage Lending 342 345 -0.7% 343 -0.4% 1,035 956 8.2% Distressed Credit 96 106 -9.0% 162 -40.8% 315 445 -29.2% Asset Management 18 20 -14.5% 24 -26.2% 56 7
Slide 15: IWS – Key Performance Matrix
IWS – Key Performance Matrix Securities Business (Rs Cr) Average Daily Turnover (Rs Cr) 13,676 Equity Market Share on NSE (%) 10,748 2.46 2.59 2.54 2.42 2.34 8,205 5,671 5,820 12,746 0.74 0.95 0.55 0.54 0.64 9,861 7,264 4,793 4,834 0.49 0.59 0.70 0.91 0.48 878 986 941 887 930 Q3 FY19 Q4 FY19 Q1 FY20
Slide 16: IWS – Key Financial Information
IWS – Key Financial Information Particulars (Rs Cr) Q3 FY20 Q2 FY20 QoQ % Q3 FY19 YoY % 9MFY20 9MFY19 YoY % FY19 Net worth + MI 2,590 2,494 3.8% 2,564 1.0% 2,590 2,564 1.0% 2,533 Loan Book 4,548 5,374 -15.4% 7,387 -38.4% 4,548 7,387 -38.4% 5,627 Gross Revenue 442 382 15.6% 371 19.1% 1,200 1,238 -3.1
Slide 17: Mortgage Lending
Mortgage Lending Wholesale Loan Book Retail • Provides an integrated financial solution to real estate developers 8,641 • Home loans business loan book at with major focus on real estate project financing 8,324 8,455 8,302 Rs.272 crore 8,008 • 78 groups – significant focus on repeat business • Expan
Slide 18: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction AUM (Rs Cr) Asset Acquisitions (Rs Cr) 14,221 14,044 14,191 14,037 223 11,413 193 101 109 74 3,095 2,939 3,140 3,107 2,946 40 - - 5 5 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 ARC's AUM JM's share in ARC's AUM Assets Acqu
Slide 19: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction Particulars (Rs Cr) Q3 FY20 Q2 FY20 QoQ Q3 FY19 YoY % 9MFY20 9MFY19 YoY % FY19 Net worth + MI of Company 1,502 1,493 0.7% 1,271 18.2% 1,502 1,271 18.2% 1,265 Gross Revenue 96 106 -9.0% 162 -40.8% 315 445 -29.2% 501 Impairment of financial instruments 4 3 42.2
Slide 20: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AAUM (Rs Cr) Mutual Fund: 11,364 • Quarterly Average AUM (QAAUM) – Rs 5,683 cr. 8,712 3,007 7,710 6,488 5,683 • Rank (QAAUM) – 25 among 41 Mutual Funds. 3,053 3,068 1,979 1,540 • 15 Schemes categorized as Equity, Hybrid and Debt. 8,357 5,659 4,642 • In
Slide 21: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 20
Slide 22: Organisational Structure – December 2019
Organisational Structure – December 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%(4) 100% 100% 100% JM Financial JM Financial Infinite India JM Financial Overseas JM Financia
Slide 23: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) As on 31.12.2019 120.0 Market Capitalization (Rs Cr) 7,923.81 100.0 80.0 Price (Rs) 94.20 60.0 40.0 No. of Shares Outstanding (Cr) 84.12 20.0 - Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 52 Week High-Low (Rs) 100.00/61.45 Key Institutiona
Slide 24: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 23
Slide 25: Performance of Select Subsidiaries – IND AS
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Asset Reconstruction Company Ltd** Q3 FY 20 Q3 FY19 Q3 FY20 Q3 FY19 Revenue 331 340 Revenue 96 162 Net Profit 115 113 Net Profit 8 47 Net worth 3,242 2,790 Net worth + MI 1,442 1,271 Loan book 7,736 8
Slide 26: Performance of Select Subsidiaries – IND AS
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Asset Reconstruction Company Ltd** 9M FY 20 9M FY19 9M FY 20 9M FY19 Revenue 1,005 950 Revenue 315 445 Net Profit 333 283 Net Profit 34 137 Net worth 3,242 2,790 Net worth + MI 1,442 1,271 Loan book 7
Slide 27: 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 28: 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 29: 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 30: Integrated Rural Transformation Programme – Bihar
Integrated Rural Transformation Programme – Bihar JAMUI DISTRICT – SIKANDRA, CHAKAI AND JHAJHA BLOCKS INTEGRATED VILLAGE DEVELOPMENT LIVELIHOODS Adarsh Gram (Model Village) Development Project PRE-SCHOOL LEARNING Shri Vardhman Dugdhalaya (Dairy Project Bachpan – Five pre- Project) initiated as
Slide 31: Integrated Rural Transformation – Maharashtra and Jharkhand
Integrated Rural Transformation – Maharashtra and Jharkhand MAHARASHTRA – PALGHAR DISTRICT, MOKHADA BLOCK JHARKHAND – GIRIDIH DISTRICT, DUMRI & PIRTAND BLOCKS INTEGRATED VILLAGE DEVELOPMENT PROJECT Integrated Village Development Project implemented in 7 FIRST REFERRAL UNIT (FRU) villages of Mokhad
Slide 32: Philanthropic Giving and Support
Philanthropic Giving and Support • JMFF has provided support to an initiative to promote girl child education. A school is being Education set up exclusively for girls in an underprivileged area. JMFF has supported three institutions – Promoting • for Promotion of poetry & music Music & Culture • fo
Slide 33: 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