Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Investor Presentation (May 2021)
24 slides from Jm Financial's investor presentation, May 5, 2021
Slide 1: Exchange cover letter: Corporate Presentation
May 5, 2021 BSE Liimited Natioonal Stock Exchange E o India Lim of mited Departm ment of Corrporate Servvices Exchhange Plazaa 1st Floo or, New Trading Ring Plot No.C-1, G Block Rotund da Building, P J Towerss Banddra-Kurla Complex C Dalal Street, Fort, Banddra (East) Mumbaai 400001 Mummbai – 400 05
Slide 2: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited March 2021
Slide 3: Safe Harbour
Safe Harbour This presentation have been prepared solely for information purposes and do not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoev
Slide 4: Business Overview
1 Business Overview
Slide 5: Overview
Overview JM Financial Group overview Strong Financial Profile (As of March 2021) • Presence of over four decades Revenue 46.68%(1) Rs. 3,227 Cr • Established financial services player with presence in fund JM Financial Credit based activities, investment banking and securities PAT Solutions Limited
Slide 6: Key Products
Key Products Construction / Project finance This includes offering loans to developers for construction of residential or Construction / 44.7% Project finance commercial projects. Loans against property Loan against This includes loans against the residential or commercial properties with property 2
Slide 7: Key Lending Philosophy
Key Lending Philosophy To be senior secured lender at all times together with focus on risk adjusted profitable growth 1 Avoid entering into consortium arrangements In most cases, we conduct micro market surveys and lend largely to residential projects 2 We ensure that both developers and residentia
Slide 8: Key Strengths
Key Strengths 1 Strong background of shareholders along with the brand name and 6 parentage of the 2 JM Financial group Experienced Strong financial and Management Team operating performance JM Financial Credit Solutions 5 Limited 3 Diversified funding sources Wide customer base, and strong credit p
Slide 9: Strong financial and operating performance
Strong financial and operating performance Gross Loan Book (1) Net Total Income (1) Rs. Cr Rs Cr 9,000 8,123 7,339 7,342 900 7,219 761 700 718 700 5,658 550 6,000 476 500 345 4,074 300 3,000 100 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Gross loan book calculated without impact of
Slide 10: Strong financial and operating performance (cont'd)
Strong financial and operating performance (cont’d) Yields and Margins(1,2) Asset Quality (1) Yields, Cost of Borrowing, Net Interest Margin (NIM)(%) Gross NPA (%), Net NPA (%) and SMA2 (%) (PCR %) 20% 0.7% 0.8% 0.9% 2.8% 5.4% 16.6% 4.0% 15.7% 3.5% 14.7% 14.8% 14.9% 3.3% 14.2% 15% 2.1% 2.3% 10.4% 2.
Slide 11: Wide customer base, strong customer relationships and geographic diversification
Wide customer base, strong customer relationships and geographic diversification Geography wise split of loan book – March 2021 65 borrower groups* North – East – 10.2% 5.4% Kolkata Others NCR 5.4% 1.9% 10.2% Predominant focus on financing residential development Hyderabad 1.3% Mumbai 35.9% Chennai
Slide 12: Concentration Analysis – Top 10 Accounts Group-wise
Concentration Analysis – Top 10 Accounts Group-wise As on Mar 31, 2021 Sr No Group Location % of total (Rs. Cr) 1 Piramal Group Mumbai 800 11.1% 2 Kalpataru Mumbai 406 5.6% 3 Spenta Mumbai 354 4.9% 4 Divyasree Group Bangalore 347 4.8% 5 Pashmina Mumbai 280 3.9% 6 Subhash Goel / Marvel Group Pune 248
Slide 13: Loan book details
Loan book details Book Size GNPA SMA2 Average Cover Locations GNPA % SMA2 % (Rs Cr.) (Rs Cr.) (Rs Cr.) (In times) Mumbai / Others 2,720 53 0.74% 167 2.31% 1.89 Pune 641 - - - - 2.00 Thane 969 107 1.48% - - 1.95 Bangalore 760 - - - - 3.38 Chennai 903 129 1.78% 86 1.19% 2.06 Hyderabad 95 - - - - 2.06
Slide 14: Likely disruption on account of second wave of Covid
Likely disruption on account of second wave of Covid 19 Momentum of improvement in the real estate sector likely to get hampered in the short term We anticipate further delays in decision making with respect to SARFAESI action and NCLT due to stay from High court to take possession. This is expected
Slide 15: NPA accounts
NPA accounts Principal Principal % to total Provision Security Resolution Developer Sanction O/s in Resolution Mechanism loan book % Cover expected by in Crore Crore NPA Mumbai Developer 47.3 47.2 0.65% 29.03% 1.1 SARFAESI action Dec 21 – Mar 22 Mumbai Developer 5.0 4.7 0.07% 60.94% 2.2 SARFAESI act
Slide 16: SMA2 accounts
SMA2 accounts Principal Principal % to total Provision Security Resolution Developer Sanctioned O/s in Resolution Mechanism loan book % Cover expected by in Crore Crore SMA2 Mumbai Developer 175.0 152.2 2.11% 23.16% 1.2 DM / JDA with strong developer Dec 21 – Mar 22 Mumbai Developer 17.5 14.6 0.20%
Slide 17: Diversified funding sources and strong credit profile
Diversified funding sources and strong credit profile – Adequately capitalized to fund growth 2,969 4,138 5,661 5,605 4,853 5,507 3.4 2.9 2.6 3.3 2.9 Borrowing Breakup 2.5 1.9 1.8 1.5 1.5 Short Short 1.2 Short Short 1.0% 2.6% 0.9 1.8% 23% 5.1% 1.6% 13% 2.4% 0.0% 1.8% 21% 15% 13.9% 9.4% Short 17.6% 1
Slide 18: Structural Liquidity (ALM 2) – Mar 2021
Structural Liquidity (ALM 2) – Mar 2021 Over 15 1 to 7 8 to 14 1-2 2-3 3-6 6 months 1-3 3-5 Over 5 (Rs. in Crore) days to Total days days months months months - 1 year years years years one month OUTFLOWS 1. Networth - - - - - - - - - 3,650 3,650 2. Borrowings 109 - 6 156 363 1,337 463 1,716 1,053 9
Slide 19: Board of Directors
Board of Directors • Nominee Director representing JM Financial Limited in the • Nominee Director representing INH Mauritius 1 in the Company since October 28, 2015.. She serves as Director on Company since January 6, 2015. He serves as a Director the Boards of several companies such as JM Financial
Slide 20: Annexure – Financial Information
2 Annexure – Financial Information 19
Slide 21: Profit and Loss Statement – Ind AS
Profit and Loss Statement – Ind AS Half year ended Year ended Particulars (Rs. Crore) 31-03-2021 31-03-2020 31-03-2021 31-03-2020 Interest income 582.01 614.11 1,131.18 1,264.11 Fees and commission income - 1.22 0.99 1.37 Net gain on fair value changes 18.25 20.22 35.11 41.76 Net gain on derecogniti
Slide 22: Balance Sheet – Ind AS
Balance Sheet – Ind AS As at As at Particulars (Rs Crore) March 31, 2021 March 31, 2020 ASSETS Financial Assets Cash and cash equivalents (CCE) 232.60 28.39 Bank Balance other than CCE 0.25 - Trade receivables - 0.30 Loans 6,830.71 7,175.97 Investments 2,027.70 907.14 Other Financial assets 5.93 1.0
Slide 23: Balance Sheet – Ind AS (cont'd)
Balance Sheet – Ind AS (cont’d) As at As at Particulars (Rs Crore) March 31, 2021 March 31, 2020 LIABILITIES AND EQUITY LIABILITIES Financial Liabilities Trade Payables 7.86 9.88 Debt Securities 3,507.66 3,045.40 Borrowings (Other than Debt Securities) 1,999.45 1,807.59 Other financial liabilities 4
Slide 24: For Further Queries
For Further Queries Mr. Gagan Kothari Chief Financial Officer Email: gagan.kothari@jmfl.com Contact No: 022 66303360 23