JM Financial Limited · NSE:JMFINANCIL
JM Financial — Investor Presentation (October 2018)
28 slides from JM Financial's investor presentation, Oct 25, 2018
Slide 1: Corporate Presentation filing letter to BSE and NSE
AliJM FINANCIAL October 25, 2018 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza 1st Floor, New Trading Ring Plot No.C-1, G Block Rotunda Building, P J Towers Bandra-Kurla Complex Dalal Street, Fort, Bandra (East) Mumbai 400001 Mumbai — 400 051 Se
Slide 2: JM Financial Asset Reconstruction Company Limited (JMFARC) Corporate Presentation
JM Financial Asset Reconstruction Company Limited (JMFARC) Corporate Presentation October 2018
Slide 3: Safe Harbour
Safe Harbour This presentation and the following discussion may contain “forward looking statements” by JM Financial Asset Reconstruction Company Limited (“JMFARC”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operati
Slide 4: Business Highlights
Business Highlights • JMFARC is the 3rd largest capitalised ARC with net worth of Rs. 1,067 Crore (as on September 30, 2018) Strong Balance Sheet • JM Financial Ltd is the holding company with 57.07% holding, balance equity held by Banks, HNIs & FII and Strong Sponsors • 77.07% stake is held by Spon
Slide 5: Industry Overview
Industry Overview Aim FINANCIAL
Slide 6: Current Legal Framework – IBC 2016
Current Legal Framework – IBC 2016 Insolvency and Bankruptcy Code – 2016 (Code) Bankruptcy & • National Company Law Tribunal governs Corporate Entities Insolvency Adjudicator • Debt Recovery Tribunal governs Individuals and Partnership Firms (provisions yet to be notified) Insolvency • Insolvency an
Slide 7: JMFARC Overview
JMFARC Overview Aim FINANCIAL
Slide 8: Summary of Assets Acquired & Outstanding
Summary of Assets Acquired & Outstanding as on September 30, 2018 Assets Acquired (Gross) & Security Receipts Outstanding • Acquired financial assets of Rs. 36,217 Crore (Total dues) • Cost of Acquisition Rs. 16,375 Crore • No of Trusts: 169 • No of Banks/FIs/NBFCs: 70 • Contribution by JMFARC in ac
Slide 9: Resolution and Recoveries
Resolution and Recoveries Cumulative recovery till September 30, 2018 Rs.3,943 Crore • Capital / Business restructuring as required with existing management • Right sizing of Debt • Conversion of Debt to Equity Sale of Resolution Assets Strategy • Additional financing 15% • Sale of Core / Non-Core A
Slide 10: JMFARC Financial Performance
JMFARC Financial Performance Last 6 years trend Total Income AUM (Rs.Crore) (Rs.Crore) 16,000 14,257 387 14,000 12,965 400 11,874 319 325* 12,000 9,821 300 10,000 8,398 214 224 8,000 200 6,000 120 3,646 4,000 100 2,000 0 - 2014 2015 2016 2017 2018 FY2019 H1 2014 2015 2016 2017 2018 FY2019 H1 Profit
Slide 11: JMFARC Financial Performance
JMFARC Financial Performance Last 6 years Trend Networth Total Borrowings (Rs.Crore) (Rs.Crore) 1400 3000 2,769 1,228^^ 1200 2500 967 1000 2000 800 580 1500 1,351 600 525 1,130 1,163 417 330 1000 765 400 500 346 200 0 0 2014 2015 2016 2017 2018 FY2019 H1 2014 2015 2016 2017 2018 FY2019 H1 Debt Equit
Slide 12: Liability Profile and Credit Rating
Liability Profile and Credit Rating Credit Rating Bank Loan of Rs. 1,000 Crore ICRA & CARE AA- (Stable) Non Convertible Debentures of Rs. 2,000 Crore ICRA & CARE AA- (Stable) Commercial Paper of Rs.1,500 Crore ICRA & CARE A1+ (Stable) Market Linked Debentures of Rs.300 Crore ICRA PP-MLD [ICRA]AA-(St
Slide 13: Select Case Studies - Acquisitions
Annexure 1 Select Case Studies - Acquisitions 11
Slide 14: Project Textile
Project Textile • Company is a vertically integrated textile company engaged in the manufacturing and sale of a wide range of fabrics and garments from its production facilities spread across the country. Company • The Company manufactures a wide variety of fabrics and garments through 13 manufactur
Slide 15: Project Pharma
Project Pharma • Engaged in the manufacturing and sale of Intermediates and Active Pharmaceutical Ingredient (APIs). Also engaged in contract Company manufacturing Overview • Has 8 manufacturing facilities including 2 USFDA approved plants. • Good product portfolio which includes 65+ APIs and 55+ In
Slide 16: Project Pan India
Project Pan India • Among the largest real estate developer in development of residential and commercial complexes across India Company • Group has delivered about 28.95 million sqft while it had about 33.16 million sqft in various stages of development as of FY17. Overview • Acquired dues of 13 pro
Slide 17: Project Hospitality
Project Hospitality • Leading player in the luxury hotels segment in India Company Overview • Owns & operates luxury 5-star hotels across India (5 owned hotels – Mumbai, Delhi, Chennai, Udaipur and Bangalore; and 4 managed hotels at Gurgaon, Kovalam, Goa, Shahdara) ARC • Acquired 96% of the debt res
Slide 18: Project Ceramics
Project Ceramics Company • Premium brand in India engaged in manufacturing of tiles (ceramic and vitrified), processing and refining of marbles Overview • Tile manufacturing units located at Alibaug and Morbi, and marble processing unit at Silvassa with non-core real estate assets ARC • Acquired 99%
Slide 19: Project Cements
Project Cements • Engaged in cement manufacturing business since 1987 in Suryapet, Telangana Company • Owns and operates approx. 1 mn TPA cement plant in Telangana Overview • Access to limestone reserves estimated more than 80 mn tonnes ARC • Acquired 88% of the total debt Investment • Listed entity
Slide 20: Select Case Studies – Closed/Exited Accounts
Annexure 2 Select Case Studies – Closed/Exited Accounts 18
Slide 21: Select Case Studies
Select Case Studies Project Resin Project Retail Company • Engaged in manufacturing and trading of resins • Acquisition of 3.76 lakh Personal Loan & Credit Cards accounts spread across 24 Background • Non-operational unit locations • Price expectation mismatch between bank and JMFARC for • Establish
Slide 22: Select Case Studies (cont’d)
Select Case Studies (cont’d) Project Poultry Project Paint • Integrated poultry breeder located in Western India • Promoter having more than 45 years of experience in the • Engaged in manufacturing of paints Company business • Plants located at Rajasthan, Maharashtra & Tamil Nadu and windmills at Sa
Slide 23: Select Case Studies (cont’d)
Select Case Studies (cont’d) Project Metal Project Real Estate • Operating in a niche industry - Engaged in production of minor • Real Estate Developer having operations in Bangalore and Hyderabad . Group metal oxides which are used for making carbide grade tool has delivered 5 mn sqft, has 5 mn sqf
Slide 24: Select Case Studies (cont’d)
Select Case Studies (cont’d) Project Township • Engaged in the development of Real Estate Projects. Company Background • Operating Company with good asset base • Aggregation of Debt from several lenders Challenges & • Low fidelity of cash flow projection due to uncertainty involved with real estate
Slide 25: List of Board of Directors
Annexure 3 List of Board of Directors 23
Slide 26: Board of Directors & Shareholders
Board of Directors & Shareholders Board of Directors Public sector Mr. V. P. Shetty Chairman Banks* 14.51% Mr. Narotam Sekhsaria Sponsor Director Valiant Mauritius Partners FDI Mr. Pulkit Sekhsaria Sponsor Director Limited 8.42% JM Financial Mr. H. N. Sinor Independent Director Limited* Radhakrishna
Slide 27: Profile of Board of Directors
Profile of Board of Directors • Banking experience of 40 years. • Commerce Graduate and holds a CAIIB degree • CMD of UCO Bank, Canara Bank and IDBI Bank. Mr. V. P. Shetty • Chaired the CDR Core Group meetings. • Recipient of "Banker of the Year – 2003“. • Currently also Chairman of JM Financial Pro
Slide 28: Profile of Board of Directors (cont’d)
Profile of Board of Directors (cont’d) • Holds bachelor’s degree in Chemical Engineering. • Former Chairman and Managing Director of Bank of Baroda and Dena Bank. • Former President- Indian Institute Banking & Finance. Dr. Anil K Khandelwal • Deputy Chairman- Indian Banks Association. • Member of va