Mumbai, October 27, 2020: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the second quarter and half year ended September 30, 2020.
Summary of Consolidated results FY 21 – Q2 compared to FY 20 – Q2
(Rs. in Cr)
Particulars | Quarter ended September 30, 2020 | Quarter ended September 30, 2019 | % Increase / (Decrease) |
|---|---|---|---|
Total income | 803.40 | 851.39 | (5.64%) |
Profit before tax | 239.52 | 271.45 | (11.76%) |
Net profit after tax and before non-controlling interest | 183.91 | 197.14 | (6.71%) |
Net profit after tax, non-controlling interest and share of associate | 139.06 | 129.59 | 7.31% |
Adjusted Net Profit after tax, non-controlling interest and share of associate (on account of COVID-19)1 | 167.44 | 129.59 | 29.21% |
Summary of Consolidated results FY 21 – H1 compared to FY 20 – H1
(Rs. in Cr)
Particulars | Half year ended September 30, 2020 | Half year ended September 30, 2019 | % Increase / (Decrease) |
|---|---|---|---|
Total income | 1,494.51 | 1,707.52 | (12.47%) |
Profit before tax | 423.69 | 573.82 | (26.16%) |
Net profit after tax and before non-controlling interest | 323.52 | 392.17 | (17.51%) |
Net profit after tax, non-controlling interest and share of associate | 232.67 | 256.88 | (9.42%) |
Adjusted Net Profit after tax, non-controlling interest and share of associate (on account of COVID-19)2 | 288.80 | 256.88 | 12.43% |
The earnings per share for the half year ended September 30, 2020 is Rs. 2.56. The consolidated net worth* as at September 30, 2020 stands at Rs. 6,568 Cr and the gross debt equity (equity + non-controlling interest of Rs. 2,494 Cr) ratio is 1.20 times* and net debt equity of 0.89 times* (post reducing cash and cash equivalents of Rs. 2,831 Cr). The book value per share is Rs. 68.97. Our total loan book** stood at Rs. 11,386 crore as of September 30, 2020 compared to Rs. 13,810 crore as of September 30, 2019. Gross NPA and Net NPA stood at 1.69% and 1.13% respectively as of September 30, 2020 compared to 1.27% and 1.11% respectively as of September 30, 2019. We have made additional gross provisions of Rs. 123 Cr# on account of the uncertainties around COVID-19 for the half year ended September 30, 2020, thereby taking the total provisions to Rs. 298 Cr# on account of the pandemic.
* Computed after reducing goodwill of Rs.52.44 Cr from shareholder’s funds and excludes borrowings for episodic financing
**Loan book does not include episodic financing book
# Unaudited and based on management estimates
Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,
“The headwinds due to the COVID-19 induced economic disruptions continue to impact the group’s businesses. Despite the headwinds, our Investment banking, wealth management and securities business has shown resilience by demonstrating strong performance. We continue to maintain liquidity buffers and healthy leverage ratios. The cash and cash equivalent as on September 30, 2020 stood at Rs. 2,831 Crore and our net debt-equity ratio stands at 0.89x.
We have made gross provisions of Rs. 298 Crore on our balance sheet to deal with the uncertainties on account of COVID-19. Looking ahead, we continue to monitor the situation very closely. We are committed to work with our clients to steer through the uncertain times and leverage the emerging market opportunities backed by our well-capitalised and diversified business model.”
Business Update
The IWS segment gained traction 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, our completed investment banking transactions include
Mortgage Lending
The total mortgage lending book- (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,526 Cr as at September 30, 2020. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR.
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The highlights of the quarter in respect of the wholesale mortgage lending are as under:
Distressed Credit
Until September 30, 2020, we have acquired total outstanding dues of Rs. 60,401 Crat a gross consideration of Rs. 17,079 Cr. Security Receipts worth ~Rs. 22 Cr were redeemed during the quarter. The outstanding Security Receipts stood at Rs. 11,429 Cr as on September 30, 2020 as compared to Rs. 11,441 Cr as on June 30, 2020. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs.3,244 Cr as on September 30, 2020 as compared to Rs. 2,982 Cr as on June 30, 2020. Even in this quarter, the focus was on recoveries however the COVID-19 pandemic has cast a shadow over the recoveries. NCLTs have gradually started hearing matters however due to the current situation the resolution is taking more time than usual. Recoveries from SARFAESI have started to pick up in September and we expect more recoveries in the coming quarters. During the quarter, resolution plans for 3 companies were approved by NCLT and we expect approval of few more companies in the coming quarters.
The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2020 stood at Rs. 4,182 Cr; comprising of Rs. 905 Cr in equity schemes (including hybrid schemes) and Rs. 3,277 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2020 stood at Rs. 4,049 Cr; comprising of Rs. 964 Cr in equity schemes (including hybrid schemes) and Rs. 3,085 Cr in debt schemes (including liquid scheme). In addition, we have commitments aggregating to Rs. 159 Crore 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 September 30, 2020 our long term borrowing as a proportion of total borrowing stood at approximately 83%. Borrowing through Commercial paper (CP) consisted approximately 8% of the total borrowing as on September 30, 2020. These CP’s were utilised primarily towards the short term liquid assets.
Awards & Recognitions
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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 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 September 30, 2020, the consolidated loan book stood at ~Rs. 113.9 BN, distressed credit business AUM at ~Rs. 114.3 BN, wealth management AUA at ~Rs. 540.2 BN, mutual fund AAUM at ~Rs. 41.8 BN.
The Group is headquartered in Mumbai and has a presence across 492 locations spread across 166 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 Communications 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.