Mumbai, May 2, 2018: The Board of Directors of JM Financial Limited, at its meeting held today, approved the audited financial results for the quarter and twelve months ended March 31, 2018.
The Board of Directors declares a final dividend of Rs. 1.10 per share of the face value of Re.1/- each.
Summary of Consolidated results FY 18 compared to FY 17
(Rs. in Cr)
Particulars | Twelve months ended March 31, 2018 | Twelve months ended March 31, 2017* | % Increase |
|---|---|---|---|
Total income | 3,234.89 | 2,359.26 | 37.11% |
Profit before tax | 1,308.53 | 971.73 | 34.66% |
Net profit after tax and before minority interest | 871.29 | 648.87 | 34.28% |
Net profit after tax, minority interest and share of associates | 630.92 | 470.20 | 34.18% |
*Upon JM Financial Asset Reconstruction Company Limited (the ARC) becoming a subsidiary of JM Financial Limited w.e.f. September 30, 2016, the profit and loss account is consolidated as a subsidiary from October 1, 2016 as compared to being an “Associate” till September 30, 2016.
Summary of Consolidated results FY 18 – Q4 compared to FY 17 – Q4
(Rs. in Cr)
Particulars | Quarter ended | Quarter ended | % Increase |
|---|---|---|---|
Total income | 932.63 | 724.96 | 28.65% |
Profit before tax | 401.70 | 326.25 | 23.13% |
Net profit after tax and before minority interest | 261.29 | 210.47 | 24.15% |
Net profit after tax, minority interest and share of associates | 188.80 | 150.85 | 25.16% |
The Earnings per share and Diluted Earnings per share, for the twelve months ended March 31, 2018 is Rs.7.86 and Rs.7.81 respectively. The consolidated net worth* as at March 31, 2018 stands at Rs.4,348.58 Cr and the debt equity (equity + minority Interest) ratio is 2.57 times*. The book value per share is Rs 51.90.
* Computed after reducing goodwill of Rs.73.37 Cr from shareholder’s funds
Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,
“We have reported our highest ever yearly and quarterly operating profit this financial year. During the quarter, we successfully concluded our maiden QIP of Rs.650 Cr. The group’s fund based and fee based businesses have shown strong traction through the year. We are witnessing a lot of opportunities in the ARC space and continue to evaluate new assets and resolve existing ones. We look forward to leveraging the opportunities in the new financial year.”
Business Update
Investment banking, Wealth Management and Securities business
Investment Banking
During the quarter, some of our investment banking transactions were as follows:
We have been ranked #1 in M&A League Tables for FY 2018 based on completed transactions.*
*Source: Mergermarket
Wealth Management
The AUM of our wealth management business stood at Rs.31,808 Cr (excluding custody assets) as on March 31, 2018 as compared to Rs. 31,910 Cr as of December 31, 2017 and Rs. 23,664 Cr as of March 31, 2017.
Securities business
The Indian market scaled another new high during the quarter driven largely by strong flows from domestic institutions. We continued to build on our extensive research coverage and further strengthened our coverage of institutional investors that include marquee long-only FIIs, hedge funds, sovereign funds, domestic mutual funds and insurance companies. We now have research coverage on over 180 stocks and cover more than 200 institutional investors. Assisted by our global offices in New York, Singapore and Mauritius, we continue to build traction and enhance our relationship with global investors.
During the quarter, the average daily trading volume stood at Rs. 5,972 Cr
Fund based business
The lending book of JM Financial Products stood at Rs. 6,582 Cr as on March 31, 2018. Out of the said lending book, the Corporate Credit & Structured Financing was Rs. 2,709 Cr and Capital Market lending book stood at Rs. 1,671 Cr, SME lending Rs. 375 Cr, Real Estate lending at Rs. 1,827 Cr.
During the quarter, in IPO financing business, we funded 19 IPOs wherein the aggregate amount of funding was around Rs. 7,361 Cr.
The lending book of JM Financial Credit Solutions stood at Rs. 7,339 Cr as on March 31, 2018. Our commercial real estate funding focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai and Hyderabad. We have successfully entered the Kolkata and NCR market and these two geographies constitute 11.1% of JM Financial Credit Solutions Loan Book.
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 66% on March 31, 2018.
For the Asset Reconstruction business, during the quarter, Banks/NBFCs announced various NPA portfolio auctions and we continued to actively participate in the same. We closed 8 deals during the quarter, 3 deals (for 2 accounts) as part of fresh acquisition, 4 deals (for 3 accounts) as part of debt aggregation and 1 SR Buyout deal (for 3 portfolios). During the quarter, the Asset Reconstruction business saw major recoveries from restructured accounts. The outstanding Security Receipts (SRs) stood at Rs.12,965 Cr as on March 31, 2018 as compared to Rs.12,500 Cr as on December 31, 2017.
Asset Management Business
Asset Management business comprises of Mutual fund, Private Equity Fund and Real Estate Fund.
Mutual Fund
The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2018 stood at Rs. 16,365 Cr; comprising of Rs. 11,313 Cr in equity schemes (including arbitrage and balanced schemes) and Rs. 5,052 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2017 stood at Rs. 16,633 Cr; comprising of Rs.11,459 Cr in equity schemes and Rs. 5,174 Cr in debt schemes.
Private Equity and Real Estate Fund
At the end of the quarter, the combined AUM/AUA of our private equity and real estate funds stood at around Rs. 495 Cr.
Both the Private Equity and Real Estate Funds continue to work closely with their portfolio companies to seek exit opportunities.
As on March 31, 2018, the Private Equity Fund has returned an aggregate of ~98% of the capital contribution received from its Investors in Indian Rupee terms.
As on March 31, 2018, the Real Estate Fund has returned an aggregate of ~72% of the capital contribution received by it in Indian Rupee terms.
-ends-
The audited financial results are attached. Both, the press release and audited financial results are available on our website www.jmfl.com
About JM Financial
JM Financial is an integrated financial services group offering a wide range of capital market services to its corporate and individual clients. The Group’s businesses include investment banking, institutional equity sales, trading, research and broking, wealth management, equity broking, portfolio management, asset management, commodity broking, fixed income broking, non-banking finance products, housing finance, SME lending, private equity and asset reconstruction. 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.