JM Financial Limited · NSE:JMFINANCIL
JM Financial — JM Financial Credit Solutions — Investor Presentation (September 2019)
22 slides from JM Financial's investor presentation, September 2019
Slide 1: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited September 2019
Slide 2: Safe Harbour
Safe Harbour This presentation have been prepared solely for information purposes and do not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoev
Slide 3: Business Overview
1 Business Overview 3
Slide 4: Overview
Overview JM Financial group overview Strong Financial Profile (As of H1 FY 20) • Presence of over four decades Revenue 47.05%(1) Rs. 1,708 Cr • Established financial services player with presence in fund JM Financial Credit based activities, investment banking and securities PAT Solutions Limited bu
Slide 5: Key Products
Key Products Construction This includes offering loans to developers for / Project construction of residential or commercial Construction / Project 44.8% finance projects. finance Loans This includes loans against the residential or against commercial properties with occupation Loan against property
Slide 6: Key Lending Philosophy
Key Lending Philosophy To be senior secured lender at all times together with focus on risk adjusted profitable growth 1 Avoid entering into consortium arrangements In most cases, we conduct micro market surveys and lend largely to residential projects 2 and developers that are not subject to any co
Slide 7: Key Strengths
Key Strengths Strong background of shareholders along with the brand name and parentage of the JM Financial group Strong financial and operating performance Wide customer base, strong customer relationships and geographic JM Financial diversification Credit Solutions Limited Well defined process, se
Slide 8: Strong financial and operating performance
Strong financial and operating performance Gross Loan Book (1) Net Total Income (1) Rs. Cr Rs Cr 9,000 8,123 8,042 7,339 900 700 700 5,658 550 6,000 476 500 389 345 4,074 300 3,000 100 FY16 FY17 FY18 FY19 H1 FY20 FY16 FY17 FY18 FY19 H1FY20 Gross loan book calculated without impact of EIR, Interest a
Slide 9: Strong financial and operating performance (cont’d)
Strong financial and operating performance (cont’d) Yields and Margins(1,2) Asset Quality (1) Yields, Cost of Borrowing, Net Interest Margin (NIM)(%) Gross NPA (%) and SMA2 (%) 20% 2.50% 4.0% 3.3% 16.6% 15.7% 2.0% 14.8% 2.00% 14.7% 14.2% 3.0% 15% 1.50% 10.4% 1.0% 1.1% 2.0% 9.8% 9.5% 10.1% 9.2% 1.00%
Slide 10: Wide customer base, strong customer relationships and geographic diversification
Wide customer base, strong customer relationships and geographic diversification Geography wise split of loan book – September 2019 81 borrower groups* Hyderabad NCR Others 3.3% 9.6% Predominant focus on financing residential Ahmedabad 0.7% 3.7% development Kolkata Mumbai 5.6% 37.9% Advances towards
Slide 11: Concentration Analysis – Top Accounts
Concentration Analysis – Top 10 Accounts Group-wise Concentration Analysis – Top 20 Accounts Group-wise As on Sep 30, 2019 Sr No Group Location % of total (Rs. Cr) 1 Adarsh Group Bangalore 471 5.9% 2 Divyasree Group Bangalore 319 4.0% 3 Adani Group Ahmedabad 300 3.7% 4 RMZ Group Bangalore 284 3.5% 5
Slide 12: Loan book details
Loan book details Book Size GNPA SMA2 Average Cover Locations GNPA % SMA2 % (Rs Cr.) (Rs Cr.) (Rs Cr.) (In times) Mumbai / Ahmedabad 3,401 47 0.59% 140 1.76% 2.13 Bangalore 1,509 - - - - 2.69 Chennai 944 111 1.40% 20 0.25% 2.35 NCR 774 - - - - 3.14 Pune 696 - - - - 2.10 Kolkata 450 - - - - 2.40 Hyde
Slide 13: Overview of Stressed Assets
Overview of Stressed Assets NPA stood at 1.99% and SMA2 2.01% of loan book Micro market Dynamics Resolution strategy Chennai • Investment climate affected since 2016 and no major employment opportunities created. • Healthy security cover to minimize loss • NPA % of loan book: 1.40% given default. Se
Slide 14: Overview of Stressed Assets (cont’d)
Overview of Stressed Assets (cont’d) Micro market Dynamics Resolution strategy Bangalore • Resolved SMA2 : • Sales in Bangalore continue to be strong and the Developer brought in equity by • NPA % of loan book: Nil profile of developers is relatively stronger. leveraging/selling non core assets • SM
Slide 15: Diversified funding sources and strong credit profile - Adequately capitalized to fund growth
Diversified funding sources and strong credit profile - Adequately capitalized to fund growth Liquidity Borrowings – September 30, 2019 Surplus liquidity as on September 30 2019 Rs. 796 crore % comprising of bank balances/FDs and unutilised cash credit lines of Cash credit Rs.174 crore, Facilities C
Slide 16: Structural Liquidity (ALM 2) - September 2019
Structural Liquidity (ALM 2) - September 2019 1 to 14 14 days to 1-2 2-3 3-6 6 months 3-5 Over 5 (Rs. in Crore) 1-3 years Total days 1 month months months months - 1 year years years OUTFLOWS 1. Networth - - - - - - - - 3,127 3,127 2. Borrowings 13 39 53 171 923 793 1,800 1,061 668 5,521 3. Current
Slide 17: Board of Directors
Board of Directors Board of Directors • Nominee Director representing INH Mauritius 1 in the • Nominee Director representing JM Financial Limited in Company since January 6, 2015. He serves as a Director the Company since October 28, 2015. She has been on the Board of Directors of Bombardier, Inc. a
Slide 18: Annexure – Financial Information
2 Annexure – Financial Information 18
Slide 19: Profit and Loss Statement – Ind AS
Profit and Loss Statement – Ind AS Half year ended Particulars (Rs. Crore) H1FY20 H1 FY19 FY19 Interest income 650.00 605.86 1,258.01 Fees and commission income 0.15 2.10 5.11 Net gain on fair value changes 21.54 2.67 13.90 Net gain on derecognition of financial 2.22 - 1.79 instruments under amortis
Slide 20: Balance Sheet – Ind AS
Balance Sheet – Ind AS As at As at Particulars (Rs Crore) September 30, 2019 March 31, 2019 ASSETS Financial Assets Cash and cash equivalents (CCE) 21.72 178.33 Bank Balance other than CCE 4.50 4.50 Loans 7,946.08 8,016.04 Investments 25.00 295.29 Other Financial assets 604.20 4.06 Total Financial A
Slide 21: Balance Sheet – Ind AS (cont’d)
Balance Sheet – Ind AS (cont’d) As at As at Particulars (Rs Crore) September 30, 2019 March 31, 2019 LIABILITIES AND EQUITY LIABILITIES Financial Liabilities Trade Payables 12.53 11.23 Debt Securities 3,714.13 3,248.56 Borrowings (Other than Debt Securities) 1,793.30 2,356.43 Other financial liabili
Slide 22: For Further Queries
For Further Queries Mr. Shashwat Belapurkar Chief Executive Officer Email: [email protected] Contact No: 022 66303545 Mr. Gagan Kothari Chief Financial Officer Email: [email protected] Contact No: 022 66303360 22
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