Mumbai, January 19, 2018: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the quarter and nine months ended December 31, 2017.
The Board of Directors declares an interim dividend of Re.0.70 per share of the face value of Re.1/- each.
Summary of Consolidated results FY 18 – Q3 compared to FY 17 – Q3
(Rs. in Cr)
Particulars | Quarter ended | Quarter ended | % Increase |
Total income | 837.73 | 593.97 | 41.04% |
Profit before tax | 350.80 | 245.40 | 42.95% |
Net profit after tax and before minority interest | 237.62 | 163.95 | 44.94% |
Net profit after tax, minority interest and share of associates | 168.10 | 118.60 | 41.73% |
Summary of Consolidated results FY 18 – 9 Months compared to FY 17 – 9 Months
(Rs. in Cr)
Particulars | Nine months ended December 31, 2017 | Nine months ended December 31, 2016* | % Increase |
Total income | 2,302.26 | 1,634.30 | 40.87% |
Profit before tax | 906.83 | 645.48 | 40.49% |
Net profit after tax and before minority interest | 610.00 | 438.40 | 39.14% |
Net profit after tax, minority interest and share of associates | 442.12 | 319.35 | 38.45% |
*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.
The Earnings per share and Diluted Earnings per share, for the nine months ended December 31, 2017 is Rs.5.55 and Rs.5.52 respectively (not annualized). The consolidated net worth* as at December 31, 2017 stands at Rs.3,573.08 Cr and the debt equity (equity + minority Interest) ratio is 3.0 times*. The book value per share is Rs. 44.80.
* Computed after reducing goodwill from shareholder’s funds
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 CY2017 based on completed transactions.*
*Source: Mergermarket
Wealth Management
The AUM of our wealth management business stood at Rs. 31,910 Cr (excluding custody assets) as on December 31, 2017 as compared to Rs. 27,289 Cr as of September 30, 2017 and Rs. 22,337 Cr as of December 31, 2016.
Securities business
The Indian market continues to scale new highs driven largely by strong flows from domestic institutions. We have extensive research coverage of companies and also cover institutional investors that include marquee long only FIIs, hedge funds, sovereign funds, domestic mutual funds and insurance companies. Assisted by our global offices in New York, Singapore and Mauritius, we continue to enhance our relationship with global investors.
During the quarter, the average daily trading volume stood at Rs. 5,688 Cr
Fund based business
The lending book of JM Financial Products stood at Rs. 7,043 Cr as on December 31, 2017. Out of the said lending book, the Corporate Credit & Structured Financing was Rs. 2,766 Cr and Capital Market lending book stood at Rs. 2,380 Cr, the Real Estate lending at Rs. 1,897 Cr.
During the quarter, in IPO financing business, we funded 21 IPOs wherein the aggregate amount of funding was around Rs. 13,204 Cr.
The lending book of JM Financial Credit Solutions stood at Rs. 6,475 Cr as on December 31, 2017 which includes real estate lending book of Rs. 6,464 Cr. Our commercial real estate funding focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai and Hyderabad. We have recently entered the Kolkata and NCR market and plan to selectively enter into new geographies to expand our business.
During the quarter, JM Financial Home Loans Limited, a step-down subsidiary of JM Financial Limited, has received certificate of registration from National Housing Bank for carrying out housing finance activities.
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 59% on December 31, 2017.
During the quarter, Banks/NBFCs announced various NPA portfolio auctions and we continued to actively participate in several auction processes. We closed 5 deals consisting of 4 accounts out of which 1 account was a fresh acquisition and 3 accounts as part of debt aggregation process. The quarter witnessed higher recovery compared to previous quarter backed by recovery from sale of assets and restructured accounts. The outstanding Security Receipts (SRs) stood at Rs.12,500 Cr as on December 31,2017 as compared to Rs.12,469 Cr as on September 30, 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 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. The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2017 stood at Rs. 13,952 Cr; comprising of Rs. 6,987 Cr in equity schemes and Rs. 6,965 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.520 Cr.
Both the Private Equity and Real Estate Funds continue to work closely with their portfolio companies to seek exit opportunities.
As on December 31, 2017, the Private Equity Fund has returned an aggregate of ~98% of the capital contribution received from its Investors in Indian Rupee terms.
As on December 31, 2017, the Real Estate Fund has returned an aggregate of ~66% of the capital contribution received by it in Indian Rupee terms.
Awards & Recognitions
-ends-
The unaudited financial results are attached. Both, 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 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, private equity and asset reconstruction. For more information, log on to www.jmfl.com or contact:
Manali Pilankar
Nishit Shah | Manish Sheth
Karishma Mehta |
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.