Mumbai, January 23, 2020: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the third quarter and nine months ended December 31, 2019.
Summary of Consolidated results FY 20 – Q3 compared to FY 19 – Q3
(Rs. in Cr)
Particulars | Quarter ended | Quarter ended | % Increase / (Decrease) |
|---|---|---|---|
Total income | 905.45 | 900.73 | 0.52% |
Profit before tax | 304.68 | 342.01 | (10.91%) |
Net profit after tax and before non-controlling interest | 222.82 | 221.09 | 0.78% |
Net profit after tax, non-controlling interest and share of associates | 157.54 | 137.46 | 14.61% |
Adjusted Net Profit after tax, non-controlling interest and share of associates1,3 | 154.99 | 141.72 | 9.36% |
Summary of Consolidated results FY 20 – 9M compared to FY 19 – 9M
(Rs. in Cr)
Particulars | Nine months ended | Nine months ended | % Increase / (Decrease) |
|---|---|---|---|
Total income | 2,612.97 | 2,728.90 | (4.25%) |
Profit before tax | 878.50 | 1,037.95 | (15.36%) |
Net profit after tax and before non-controlling interest | 614.99 | 660.59 | (6.90%) |
Net profit after tax, non-controlling interest and share of associates | 414.42 | 443.54 | (6.56%) |
Adjusted Net Profit after tax, non-controlling interest and share of associates2,3 | 433.04 | 481.94 | (10.15%) |
The Earnings per share for the nine months ended December 31, 2019 is Rs. 4.93. The consolidated net worth* as at December 31, 2019 stands at Rs.5,459 Cr and the gross debt equity (equity + non-controlling interest of Rs.2,366 Cr) ratio** is 1.71 times* and net debt equity of 1.30 times* (post reducing cash and cash equivalents of Rs.3,218 Cr). The book value per share is Rs. 64.90. Our total loan book stood at Rs. 12,662** crore as of December 31, 2019 compared to Rs. 16,136 crore as of December 31, 2018. Gross NPA and Net NPA stood at 1.56% and 1.35% respectively as of December 31, 2019 compared to 0.68% and 0.57% respectively as of December 31, 2018.
* Computed after reducing goodwill of Rs.52.44 Cr from shareholder’s funds
**Loan book does not include IPO Financing book and Borrowings do not include borrowings for IPO Financing
Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,
“Over the last fifteen months the external environment has been challenging. We have been able to demonstrate strong resilience from these challenges riding on our strong liquidity buffers, prudent leverage ratios as well as diversified businesses.
In the context of the overall challenging environment, we had a very good quarter led by our IWS businesses. We have significantly de-grown our wholesale book. Our retail mortgage presence has increased to 27 branches and we continue to grow that business. The distressed credit team is focused on recoveries.
We are hopeful that the measures announced by the government will lead to a faster recovery for the economy.”
Business Update
The IWS segment gained traction during the quarter. Our recruitment in this segment gained momentum especially in the wealth management business. The pipeline for our investment banking transactions continues to remain healthy.
During the quarter, some of our completed investment banking transactions were as follows:
The AUM/AUA of our wealth management business stood at Rs. 46,886 Cr (excluding custody assets) as on December 31, 2019 as compared to Rs. 42,738 Cr as on December 31, 2018 and Rs. 46,818 Cr as on September 30, 2019.
During the quarter, the average daily trading volume stood at Rs. 13,676 Cr.
During the quarter, in IPO financing business, we funded 8 public issues (including 4 NCD issues) wherein the aggregate amount of funding was around Rs. 14,647 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. 8,008 Cr as on December 31, 2019. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. After investing in the right talent, technology and processes, our retail mortgage lending business is all set to build its niche and achieve scale. We are optimistic about the tremendous opportunities prevailing in the segment and the co-lending arrangement with Bank of Baroda will further boost the momentum.
The highlights of the last quarter in respect of the wholesale mortgage lending are as under:
We continue to be in a challenging environment as far as the real estate sector is concerned. There have been positive actions by the government by way of the distressed fund which is committed to providing last mile funding to the real estate sector. We have also seen interest from foreign funds in the sector as can be witnessed by the transactions that have taken place in the sector.
Having said that, the liquidity crunch continues to affect the sector negatively. Lack of availability of credit for new projects or for refinancing the existing projects have created tremendous stress and pressure on the cash flows. Some of the erstwhile large HFCs continue to grow the mortgage lending business very slowly causing further slowdown in collections.
We are now seeing significant opportunities for deployment but continue to remain extremely selective and cautious about lending going forward.
We chose not to participate in any fresh acquisitions during the quarter. The complete focus of the business was on recoveries and resolutions. The recoveries during the quarter stood at Rs. 2,897 Cr. We continue to experience resolution delays in few of our key accounts and face delays in accounts which are under the NCLT process.
The outstanding Security Receipts (SRs) stood at Rs. 11,413 Cr as on December 31, 2019 as compared to Rs. 14,037 Cr as on September 30, 2019. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. 2,946 Cr as on December 31, 2019 and Rs. 3,107 Cr as on September 30, 2019.
The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2019 stood at Rs. 5,683 Cr; comprising of Rs. 4,143 Cr in equity schemes (including hybrid schemes) and Rs. 1,540 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2019 stood at Rs. 6,488 Cr; comprising of Rs. 4,509 Cr in equity schemes (including hybrid schemes) and Rs. 1,979 Cr in debt schemes (including liquid scheme).
Borrowing Profile
Our long term borrowing as a proportion of total borrowing stood at approximately 84% as on December 31, 2019.
Awards & Recognitions
-ends-
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 includes the mutual fund business.
As of December 31, 2019, the consolidated loan book stood at ~Rs. 126.6 BN, distressed credit business AUM at ~Rs. 114.1 BN, wealth management AUM at ~Rs. 468.9 BN, mutual fund AAUM at ~Rs. 56.8 BN.
The Group is headquartered in Mumbai and has a presence across 380 locations spread across 134 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.