Mumbai, May 9, 2023:While approving the financial results for the last quarter and financial year ended March 31, 2023,the Board of Directors has recommended a final dividend of Re. 0.90 per share (face value of Re.1/-).
Business Update for Q4FY23
Summary of Consolidated results FY 23 – Q4 compared to FY 22 – Q4
(Rs. in Cr)
|
Particulars* |
Quarter ended March 31, 2023 |
Quarter ended March 31, 2022 |
% Increase / (Decrease) |
|
Total income |
871.16 |
839.22 |
3.81% |
|
Pre-Provision Operating Profit |
291.93 |
372.02 |
(21.53%) |
|
Profit before tax |
300.24 |
321.59 |
(6.64%) |
|
Net profit after tax and before NCI |
216.64 |
228.40 |
(5.15%) |
|
Net profit after tax, NCI and share of associate |
164.51 |
178.79 |
(7.99%) |
|
Additional provision on Security Receipts (post tax and post NCI) |
(107.40) |
- |
N/M |
|
Net profit after tax, NCI and share of associate |
57.11 |
178.79 |
(68.06%) |
* Pre-Provisioning Profit, Profit Before Tax is before considering the impact of Rs. 246 Cr (Post tax impact of Rs.184 Cr) on account of additional provision considered in Security Receipts (“SRs”) on a few accounts in our distressed credit business for Q4FY23 (Nil for Q4FY22). Net Profit after tax, NCI and share of associate is prior to adjusting a loss of Rs. 107.40 Cr.
Summary of Key Statistics
(Rs. in Cr, unless otherwise stated)
|
Particulars |
Quarter ended March 31, 2023 |
Quarter ended March 31, 2022 |
Quarter ended December 31, 2022 |
|
Loan book** |
15,653 |
13,017 |
15,234 |
|
Gross NPA |
3.35% |
4.27% |
3.60% |
|
Net NPA |
2.14% |
2.67% |
2.23% |
|
SMA-2 |
0.14% |
3.13% |
1.07% |
|
Total Provision to Loan book |
3.08% |
5.81% |
4.11% |
|
Loan book under the Resolution Framework for Covid-19 by RBI |
0.33% |
0.81% |
0.35% |
|
EPS (Rs.)* |
0.60 |
1.87 |
1.99 |
|
Consolidated net worth^ |
8,084 |
7,634 |
8,025 |
|
BVPS (Rs.)^ |
84.66 |
80.01 |
84.05 |
|
Gross debt /equity^ |
1.45x |
1.22x |
1.34x |
|
Cash and Cash equivalents |
2,207 |
3,637 |
2,109 |
*Q4FY23 PAT includes loss of Rs. 107.40 Cr from additional provision on SRs of few accounts in our distressed credit business, which is Nil for Q4FY22.
^ Computed after reducing goodwill of Rs.52.44 Cr from shareholders’ funds and excludes borrowings for episodic financing
** Loan book for the lending entities and does not include episodic financing book and SEBI Margin Trade Financing Book which is a part of the Platform AWS business
Summary of segment-wise Loan book
(Rs. in Cr)
|
Particulars |
Quarter ended March 31, 2023 |
Quarter ended March 31, 2022 |
YoY Increase / (Decrease) |
Quarter ended December 31, 2022 |
|
Wholesale Mortgage |
8,445 |
6,286 |
34.36% |
7,938 |
|
Bespoke |
2,636 |
4,287 |
(38.51%) |
3,811 |
|
Retail Mortgage |
1,918 |
1,170 |
63.88% |
1,572 |
|
FI Financing |
1,592 |
440 |
2.62x |
1,009 |
|
Capital Market |
1,062 |
834 |
27.23% |
904 |
|
Total |
15,653 |
13,017 |
20.25% |
15,234 |
Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said,
“FY22-23 was marked by uncertain geopolitical developments, global inflation and bouts of market volatilities. On the back of recession concerns, the markets delivered mixed and range-bound performances.
Given the market volatility, we reported reasonable results for the quarter and financial year ended 2023 especially given the absence of IPO financing product which contributed meaningfully to the earnings in the last financial year. During the quarter, we have also taken additional provision of Rs. 246 crore in the distressed credit business across assets due to delay in their respective resolutions on account of various factors such as proceedings in the National Company Law Tribunal, Other Courts, etc. The distressed credit business has generated a profit at the operating level without considering these provisions of Rs. 30 crore.
In line with the guidance provided, we continue to grow our loan book across verticals. We continued our investments in asset management, digital business and portfolio management services. We are excited with the progress on our FinTech platform which cuts across WealthTech, LendingTech, and InvestmentTech domains. We will continue to invest in these businesses in the current financial year as well.
Our employee base across the group has increased by 1,281 over the last two financial years to 3,259 as of March 31, 2023.
Our retail mortgage business has scaled further and continued the growth momentum with the number of branches increasing to 93 as of March 31, 2023. We are exploring strategic options including a potential combination and listing of the retail mortgage portfolio of JM Financial Home Loans Limited and the home finance business of Indostar Home Finance Private Limited including other mortgage-backed business of Indostar.
This year is a seminal for us, as JM Financial group is one of the very few financial services players to complete 50 years in business.”
Summary of Segment-wise performance FY 23 – Q4 compared to FY 22 – Q4
(Rs. in Cr)
|
Consolidated Net Profit* |
Quarter ended March 31, 2023 |
Quarter ended March 31, 2022 |
% Increase / (Decrease) |
|
Investment Bank |
82.87 |
97.17 |
(14.72%) |
|
Mortgage Lending |
56.95 |
30.38 |
87.46% |
|
Alternative & Distressed Credit (adj) |
16.31 |
9.66 |
68.85% |
|
Platform AWS |
(14.90) |
14.13 |
(205.45%) |
|
Others |
23.28 |
27.45 |
(15.19%) |
|
Total Adjusted Consolidated Net Profit |
164.51 |
178.79 |
(7.99%) |
|
Additional provision on Security Receipts (post tax and post NCI) |
(107.40) |
- |
N/M |
|
Total Consolidated Net Profit |
57.11 |
178.79 |
(68.06%) |
* Prior to adjusting Rs. 107.40 Cr from additional provision on SRs of few accounts (Nil for Q4FY22).
Awards & Recognitions
The Asset Triple A Country Awards for Sustainable Finance 2022
-ends-
The press release and audited 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 (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (affordable home loans and secured MSME); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business.
As of March 31, 2023, the consolidated loan book stood at ~Rs. 156.5BN, distressed credit business AUM at ~Rs.135.6BN, wealth management AUM at ~Rs.815.7BN, mutual fund AAUM at ~Rs.29.7BN.
The Group is headquartered in Mumbai and has a presence across 744 locations spread across 206 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.
For more information, log on to www.jmfl.com or contact:
|
Manish Sheth Group Chief Financial Officer Tel.: +91 22 6630 3460 Email: manish.sheth@jmfl.com Manali Pilankar Corporate Communication Tel.: +91 22 6630 3475 Email: manali.pilankar@jmfl.com |
Nishit Shah
and CFO – JM Financial Products Limited
Gagan Kothari CFO – JM Financial Credit Solutions Limited Tel.: +91 22 6630 3360 Email: gagan.kothari@jmfl.com |
Forward - Looking statements
This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.
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 actions.