Mumbai, October 25, 2018: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the quarter and the half year ended September 30, 2018.
Summary of Consolidated results FY 19 – Q2 compared to FY 18 – Q2
(Rs. in Cr)
Particulars | Quarter ended | Quarter ended | % Increase |
|---|---|---|---|
Total income 1 | 975.70 | 768.51 | 26.96% |
Profit before tax | 379.55 | 315.50 | 20.30% |
Net profit after tax and before minority interest2 | 240.27 | 210.78 | 13.99% |
Net profit after tax, minority interest and share of associates2 | 163.36 | 151.03 | 8.16% |
Summary of Consolidated results FY 19 – H1 compared to FY 18 – H1
(Rs. in Cr)
Particulars | Half year ended | Half year ended | % Increase |
|---|---|---|---|
Total income 3 | 1,828.17 | 1,500.14 | 21.87% |
Profit before tax | 695.94 | 599.77 | 16.03% |
Net profit after tax and before minority interest 2 | 439.50 | 393.87 | 11.59% |
Net profit after tax, minority interest and share of associates 2 | 306.08 | 277.80 | 10.18% |
The Earnings per share and Diluted Earnings per share, for the half year ended September 30, 2018 is Rs.3.65 and Rs.3.64 respectively. The consolidated net worth* as at September 30, 2018 stood at Rs.4,923 Cr and the debt equity (equity + minority Interest of subsidiary companies) ratio is 2.61 times*. The book value per share is Rs. 58.63. Our total loan book stood at Rs. 17,108** crore as of September 30, 2018 compared to Rs. 16,442 crore as of June 30, 2018. Gross NPA and Net NPA stood at 0.5% and 0.4% respectively as of September 30, 2018 compared to 0.6% and 0.5% respectively as of June 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,
“Our conservative lending philosophy, focus on balance sheet and Asset Liability Management (ALM) framework has helped us maintain adequate liquidity buffers. Our consolidated gross debt-to-equity ratio of ~2.3x as of October 25, 2018 is amongst the lowest in the financial services space. During the quarter, we also announced equity fund raise in JM Financial Credit Solutions Limited of upto Rs. 875 crore to helped strengthen the balance sheet and meet its growth requirement. We are witnessing exciting opportunities in the Distressed Credit space. We believe our diverse set of businesses, strong underwriting processes and operating capabilities will hold us in good stead to achieve long term growth and help us moderate the impact of volatile market conditions”
Business Update
During the quarter, some of our investment banking transactions were as follows:
The AUM/AUA of our wealth management business stood at Rs.43,941 Cr (excluding custody assets) as on September 30, 2018 as compared to Rs. 27,289 Cr as on September 30, 2017 and Rs. 42,808 Cr as on June 30, 2018.
During the quarter, the average daily trading volume stood at Rs. 6,045 Cr.
Our loan book in the IWS segment stood at Rs. 8,176 Cr as on September 30, 2018.
During the quarter, in IPO financing business, we funded 14 IPOs wherein the aggregate amount of funding was around Rs. 7,183 Cr.
At the end of the quarter, the combined AUM of our private equity and real estate funds stood at around Rs. 802 Cr of which our new private equity fund has announced a second close and having a cumulative commitment of ~Rs. 346 Cr and it is in the process of raising additional capital.
The total mortgage lending book stood at Rs. 8,792 Cr as on September 30, 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 we entered into a Subscription and Shareholders' Agreement with JM Financial Credit Solutions Limited ("JMFCSL") and investors for a primary equity infusion ("Fund Raise") of upto Rs. 875 crore. The Fund Raise is at a pre-money equity valuation of Rs.6,300 crore implying a post-money equity valuation of upto Rs. 7,175 crore.
During the quarter, Banks/NBFCs announced various NPA portfolio auctions and we continued to actively participate in the same. We closed 9 deals during the quarter, for 3 accounts as part of debt aggregation. During the quarter, the Asset Reconstruction business also saw recoveries from various accounts. Also we see a big opportunity arising out of Companies undergoing Corporate Insolvency Resolution Process in IBC-NCLT
The outstanding Security Receipts (SRs) stood at Rs. 14,257 Cr as on September 30, 2018 as compared to Rs. 13,294 Cr as on June 30, 2018. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. 3,212 Cr as on September 30, 2018 and Rs. 2,260 Cr as on June 30, 2018.
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). The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2018 stood at Rs. 12,073 Cr; comprising of Rs.7,995 Cr in equity schemes (including arbitrage and balanced schemes) and Rs.4,118 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 65% as on October 25, 2018.
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 financial services group offering. The Group’s businesses include investment banking, wealth management and securities business; mortgage lending; distressed credit and asset management business (mutual fund). 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 | 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: investor.relations@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.