Mumbai, January 23, 2019: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the quarter and the nine months ended December 31, 2018.
The Board of Directors have declared an interim dividend of Re. 0.50 per share of
the face value of Re.1/- each.
Summary of Consolidated results FY 19 – Q3 compared to FY 18 – Q3
(Rs. in Cr)
Particulars | Quarter ended | Quarter ended | % Increase / (Decrease) |
|---|---|---|---|
Total income 1 | 900.73 | 805.88 | 11.77% |
Profit before tax | 342.01 | 327.80 | 4.33% |
Net profit after tax and before minority interest2 | 221.09 | 219.27 | 0.83% |
Net profit after tax, minority interest and share of associates2 | 137.46 | 157.32 | (12.62%) |
Adjusted Net Profit after tax, minority interest and share of associates3 | 141.72 | 160.45 | (11.67%) |
Summary of Consolidated results FY 19 – 9M compared to FY 18 – 9M
(Rs. in Cr)
Particulars | Nine months ended | Nine months ended | % Increase / (Decrease) |
|---|---|---|---|
Total income 4 | 2,728.90 | 2,306.02 | 18.34% |
Profit before tax | 1,037.95 | 927.57 | 11.90% |
Net profit after tax and before minority interest 2 | 660.59 | 613.14 | 7.74% |
Net profit after tax, minority interest and share of associates 2 | 443.54 | 435.12 | 1.94% |
Adjusted Net Profit after tax, minority interest and share of associates3 | 481.94 | 431.17 | 11.77% |
The Earnings per share and Diluted Earnings per share, for the nine months ended December 31, 2018 is Rs.5.28 and Rs.5.27 respectively. The consolidated net worth* as at December 31, 2018 stood at Rs.5,041 Cr and the debt equity (equity + minority interest of subsidiary companies) ratio is 2.15 times* and net debt equity of 1.87* times. The book value per share is Rs. 60. Our total loan book stood at Rs. 16,136 crore as of December 31, 2018 compared to Rs. 17,108** crore as of September 30, 2018. Gross NPA and Net NPA stood at 0.7% and 0.6% respectively as of December 31, 2018 compared to 0.5% and 0.4% respectively as of September 30, 2018.
* Computed after reducing goodwill of Rs.73.36 Cr from shareholder’s funds
**Does not include Public issue of NCDs Financing book
Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,
“The tightness in liquidity for our NBFC businesses, volatility in the capital markets, extraordinary widening of credit spreads of AA rated entities over AAA rated entities and steep decline in deal closures in the investment banking have contributed to making the third quarter a challenging one. We continue to monitor the liquidity scenario and will remain prudent in our business planning over the next few quarters. At the same time we are hopeful about gradual improvement in credit spreads towards AA rated NBFCs and general liquidity position of NBFCs over calendar year 2019.”
Business Update
Whilst our pipeline is robust, Investment banking had a weak quarter due to volatility in capital markets and delay in important deal closures. During the quarter, we managed the Buyback of equity shares of HCL Technologies Limited (~Rs. 4,000 Cr).
The AUM/AUA of our wealth management business stood at Rs.42,738 Cr (excluding custody assets) as on December 31, 2018 as compared to Rs. 31,910 Cr as on December 31, 2017 and Rs. 43,941 Cr as on September 30, 2018.
During the quarter, the average daily trading volume stood at Rs. 5,671 Cr.
Our loan book in the IWS segment stood at Rs. 7,387 Cr as on December 31, 2018.
The total mortgage lending book stood at Rs. 8,641 Cr as on December 31, 2018. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. We are at the initial stages of our retail mortgage lending and are currently focused on acquiring the right talent, employing technology and processes before we ramp up our presence in terms of products and geography.
During the quarter, Banks/NBFCs announced various NPA portfolio auctions and we continued to actively participate in the same. We closed 4 deals during the quarter, for 2 accounts as part of debt aggregation. During the quarter, the Asset Reconstruction business also saw recoveries from various accounts. Also, we continue to see a big opportunity arising out of Companies undergoing Corporate Insolvency Resolution Process in IBC-NCLT.
The outstanding Security Receipts (SRs) stood at Rs. 14,221 Cr as on December 31, 2018 as compared to Rs. 14,257 Cr as on September 30, 2018. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. 3,095 Cr as on December 31, 2018 and Rs. 3,212 Cr as on September 30, 2018.
The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2018 stood at Rs. 11,364 Cr; comprising of Rs. 8,357 Cr in equity schemes (including arbitrage and balanced schemes) and Rs. 3,007 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2018 stood at Rs. 12,672 Cr; comprising of Rs.8,439 Cr in equity schemes (including arbitrage and balanced schemes) and Rs.4,233 Cr in debt schemes (including liquid scheme).
Borrowing Profile
We continued our efforts of diversifying our sources and maturities for our borrowing profile. Our long term borrowing as a proportion of total borrowing stood at approximately 68% as on December 31, 2018. During the quarter, we successfully concluded the second tranche of the public issue of secured Non-Convertible Debentures by JM Financial Credit Solutions Ltd and raised ~Rs.264 Cr (for the full year till date we have raised ~Rs.1,014 Cr).
Awards & Recognitions
-ends-
The unaudited financial results are attached. 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 (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, 2018, the consolidated loan book stood at ~Rs. 161.4 BN, distressed credit business AUM at ~Rs. 142.2 BN, wealth management AUM at ~Rs. 427.4 BN, mutual fund AAUM at ~Rs. 113.6 BN.
The Group is headquartered in Mumbai and has a presence across 320 locations spread across 120 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
Gagan Kothari CFO – JM Financial Credit Solutions Limited Tel.: +91 22 6630 3360 Email: gagan.kothari@jmfl.com | Manish Sheth Group Chief Financial Officer Tel.: +91 22 6630 3460 Email: manish.sheth@jmfl.com
Karishma Mehta Investor Relations
Tel.: +91 22 6630 3585 Email: karishma.mehta@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.