Mumbai, May 5, 2021: While approving the financial results for the fourth quarter and financial year ended March 31, 2021, the Board of Directors of JM Financial Limited has recommended a dividend of Re. 0.50 per share of the face value of Re.1/- each.
Summary of Consolidated results FY 21 – Q4 compared to FY 20 – Q4 (Rs. in Cr)
Particulars | Quarter ended March 31, 2021 | Quarter ended March 31, 2020 | % Increase / (Decrease) |
|---|---|---|---|
Total income | 841.13 | 840.58 | 0.07% |
Profit before tax | 312.40 | 215.02 | 45.29% |
Net profit after tax and before non-controlling interest | 233.65 | 162.96 | 43.38% |
Net profit after tax, non-controlling interest and share of associate | 176.71 | 130.56 | 35.35% |
Summary of Consolidated results FY 21 compared to FY 20 (Rs. in Cr)
Particulars | Year ended March 31, 2021 | Year ended March 31, 2020 | % Increase / (Decrease) |
|---|---|---|---|
Total income | 3,226.63 | 3,453.55 | (6.57%) |
Profit before tax | 1,066.85 | 1,093.52 | (2.44%) |
Net profit after tax and before non-controlling interest | 808.17 | 777.95 | 3.88% |
Net profit after tax, non-controlling interest and share of associate | 590.14 | 544.98 | 8.29% |
The earnings per share for the year ended March 31, 2021 is Rs. 6.34. The consolidated net worth* as at March 31, 2021 stands at Rs. 6,947 Cr and the gross debt equity (equity of Rs. 6,947 Cr + non-controlling interest of Rs. 2,605 Cr) ratio is 1.29 times* and net debt equity of 0.73 times* (post reducing cash and cash equivalents of Rs. 5,351 Cr). The book value per share is Rs. 72.92.
Our consolidated loan book** stood at Rs. 10,854 crore as of March 31, 2021 compared to Rs. 11,531 crore as of March 31, 2020. Gross NPA and Net NPA stood at 3.50% and 1.95% respectively as of March 31, 2021 compared to 1.65% and 1.13% respectively as of March 31, 2020. We have made additional gross provisions of Rs. 208 Cr on account of the uncertainties around COVID-19 for the year ended March 31, 2021, thereby taking the total provisions to Rs. 383 Cr on account of the pandemic.
* Computed after reducing goodwill of Rs.52.44 Cr from shareholders’ funds and excludes borrowings for episodic financing
**Loan book does not include episodic financing book
Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,
“FY20-21 has been one of the most challenging years amidst the uncertainties on account of COVID-19. In spite of the economic volatility during the year, the capital markets remained strong on the back of strong liquidity.
We are pleased to report that we have concluded the financial year on a positive note, banking on our diversified and resilient business model with strong performance across our business segments.
Our investment banking, wealth and securities businesses have done exceedingly well and our pipeline for these businesses is extremely healthy. Despite the challenges from COVID-19, we had strong recoveries in our distressed credit business in FY2020-21. Our retail mortgage business has gained momentum and its further build will be a key focus area. The lending book continues to remain robust and asset quality is in check. Our balance sheet is extremely strong with Net Debt to Equity at 0.73x.
We continue to closely monitor the external environment given the uncertainties due to the second wave of the pandemic. Looking ahead, we are well positioned to grow and further scale our businesses in this financial year.”
Business Update
The IWS segment continued the momentum during the quarter. The pipeline for our investment banking transactions continues to remain healthy.
During the quarter, our completed investment banking transactions include:
During the quarter, we acted as an arranger to the Private Placement of:
The AUA of our private wealth management business stood at Rs. 59,052 Cr (excluding custody assets) as on March 31, 2021 as compared to Rs. 44,883 Cr as on March 31, 2020 and Rs. 56,757 Cr as on December 31, 2020. The AUA of our Independent Financial Distribution (IFD) business stood at Rs. 16,171 Cr as on March 31, 2021 as compared to Rs. 13,437 Cr as on March 31, 2020 and Rs. 15,731 Cr as on December 31, 2020.
During the quarter, the average daily trading volume stood at Rs. 14,248 Cr.
During the quarter, we also funded 17 public issues (including 1 NCD issue) aggregating to a funding of ~Rs. 38,641 Cr.
The total mortgage lending book (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,650 Cr as at March 31, 2021. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR.
The highlights of the quarter in respect of the wholesale mortgage lending are as under:
The last quarter has seen a significant increase in sales velocity across all geographies we are present in. Efforts made by some state governments along with measures by the central government have helped developers in many ways. The reduction in stamp duty, coupled with the correction in prices along with the general view that prices have bottomed out has helped increase the demand for residential real estate. We have seen some movement in credit to the sector. We have also seen rapid consolidation and believe that going forward the industry will have very few players and the market share of the larger developers will continue to increase. Given the reduction of the inventory overhang across geographies and the rise in demand, developers are looking at acquiring new projects and we will witness increase in new launches.
All the above have been in line with our expectations and we feel that this end user driven sales is here to stay. We are cautiously evaluating opportunities across geographies and will look at gradually increasing the lending book. However, the impact of the second wave of COVID 19 which we have been currently experiencing is yet to be seen.
During the quarter ended March 31, 2021, JM Financial Credit Solutions Limited invested Rs. 50 Cr in JM Financial Home Loans Limited for 8.99% stake. The infusion is at Rs. 33.74/- per equity share at a pre-money equity valuation of JM Financial Home Loans Limited of Rs. 510 Cr. Further, JM Financial Credit Solutions Limited shall have a right but not an obligation to invest an additional amount of ~Rs.440 Cr at the same price per share of Rs.33.74/- on or prior to June 30, 2021 or such timeline as may be mutually extended, subject to regulatory and other customary approvals as may be required. If JM Financial Credit Solutions Limited decides to make further investment of Rs. 440 Cr as above, upon receipt of all the approvals as are required, it would hold 49% equity stake in JM Financial Home Loans Limited post the allotment of the said shares.
Higher focus on recoveries yielded results and recoveries during quarter were about ~Rs. 240 Cr and Security Receipts of ~Rs. 141 Cr were redeemed. We also acquired loans of two companies during the quarter. The outstanding Security Receipts stood at Rs. 11,060 Cr as on March 31, 2021 as compared to Rs. 10,915 Cr as on December 31, 2020. The contribution of JM Financial Asset Reconstruction Company Limited towards the Security Receipts stood at Rs. 3,193 Cr as on March 31, 2021 as compared to Rs. 2,923 Cr as on December 31, 2020. Until March 31, 2021, we have acquired total outstanding dues of Rs. 61,666 Cr at a gross consideration of Rs. 17,427 Cr. In spite of the pandemic we achieved good results with total recovery of ~Rs 1,192 Cr in FY 21 through the Corporate Insolvency Resolution Process, SARFAESI and settlement. Going forward, our focus would remain on recoveries and resolution while we continue to work with financial and strategic investors for acquisition.
Beginning this quarter we have restarted evaluating few accounts for acquisition purposes. We closed one large acquisition and acquired a significant majority of the debt of the Company. We will continue to aggregate the balance debt in the coming quarters. Going forward we would continue to evaluate the right acquisition opportunities and gradually grow our book.
The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2021 stood at Rs. 2,389 Cr; comprising of Rs. 591 Cr in equity schemes (including hybrid schemes) and Rs. 1,798 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2020 stood at Rs. 3,700 Cr; comprising of Rs. 815 Cr in equity schemes (including hybrid schemes) and Rs. 2,885 Cr in debt schemes (including liquid scheme). In addition, we have commitments aggregating ~Rs. 146 Cr under JM Financial Yield Enhancer (Distressed Opportunity) Fund I.
Borrowing Profile
We continued our focus on diversifying our sources and maturities for our borrowing profile. As on March 31, 2021 our long term borrowing as a proportion of total borrowing stood at approximately 78%. Borrowing through Commercial paper (CP) consisted approximately 9% of the total borrowing as on March 31, 2021. These CP’s were utilised primarily towards the financing of short term liquid assets.
Awards & Recognitions
14th Institute of Chartered Accountants of India (ICAI) Awards
The Asset Triple A Sustainable Capital Markets Country & Regional Awards 2020
-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 (a) Investment banking, wealth management and securities business (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management which includes the mutual fund business.
As of March 31, 2021, the consolidated loan book stood at ~Rs. 108.5 BN, distressed credit business AUM at ~Rs. 110.6 BN, wealth management AUA at ~Rs. 590.5 BN, mutual fund AAUM at ~Rs. 23.9 BN.
The Group is headquartered in Mumbai and has a presence across 550 locations spread across 170 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:
Manali Pilankar Corporate Communication Tel.: +91 22 6630 3475 Email: manali.pilankar@jmfl.com Nishit Shah and CFO – JM Financial Products Limited | Manish Sheth Group Chief Financial Officer Tel.: +91 22 6630 3460 Email: manish.sheth@jmfl.com
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.