JM Financial Limited · NSE:JMFINANCIL
JM Financial — Q4 FY2023 Earnings Presentation
53 slides from JM Financial's earnings presentation, May 2023
Slide 1: JM Financial Limited – Q4FY23 Results Update
JM Financial Limited – Q4FY23 Results Update 0
Slide 2: Disclaimer/ Safe Harbor
Disclaimer/ Safe Harbor This presentation and the following discussion may contain certain words or phrases that are “forward looking statements” by JM Financial Limited (together with its subsidiaries and associates), referred to as (“JM Financial” or “JMFL” or “the Company”) that are not historica
Slide 3: Table of Contents
Table of Contents Section 1 Group Overview Section 2 Consolidated Financial Performance Tab A Investment Bank Tab B Mortgage Lending Tab C Platform AWS Tab D Alternative and Distressed Credit Section 3 Group Structure and Shareholding Details Section 4 Financial Performance and Other Details Annexur
Slide 4: Section 1: Group Overview
Section : 1 Group Overview A JM FINANCIAL | EC °
Slide 5: Evolution of the Franchise Over Five Decades; Unmatched Depth and Breadth
Evolution of the Franchise Over Five Decades; Unmatched Depth and Breadth Launched Bondskart. Received license Reported highest ever for Housing consolidated operating Set up a dedicated Finance from PAT real estate business National Housing with a Global Fund Bank (NHB) Terminated JV with led by Mr
Slide 6: Diversified Businesses with Multiple Growth Opportunities
Diversified Businesses with Multiple Growth Opportunities 1 Integrated Investment Bank : Cornerstone of our Franchise 3 Alternative and Distressed Credit : Expertise Built in a Niche Business • Distressed Credit relates to acquisition and • Caters to Institutional, Corporate, resolution of stressed
Slide 7: Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Clients
Integrated Investment Bank: Deep Client Relationships; Delivering One Firm to Clients Clients Products / Services Business Priorities Q4FY23 Highlights • Investment Banking • Strategy to integrate the investment bank is Promoters • Institutional Equities Expand the depth and breadth of the client
Slide 8: Mortgage Lending: Wholesale and Retail Mortgage
Mortgage Lending: Wholesale and Retail Mortgage Clients Products / Services/ Business Priorities Q4FY23 Highlights Wholesale Mortgage Wholesale Mortgage: Wholesale Mortgage Wholesale Mortgage: • Project / Construction Finance • Loan Book has grown from Rs.9,299 crore in • Growth of loan book • Devel
Slide 9: Alternative and Distressed Credit
Alternative and Distressed Credit Clients Products / Services Business Priorities Q4FY23 Highlights • Acquisition of • One time additional provision on Security Banks distressed assets Receipts of Rs. 246 crore made on corporate Co-Investment model with strategic partners/ financial investors incl
Slide 10: Platform AWS: Integrated Platform for Individual Clients; Focus on Digital
Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Products / Services / Clients Business Priorities Q4FY23 Highlights Geography Future and digital readiness; On-boarding • Digital businesses: Building FinTech platform Retail Investors • Securities modern tools and enhanci
Slide 11: Section 2: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance 10
Slide 12: Consolidated Performance
Consolidated Performance FY22 PAT includes Rs. 123 Cr** from IPO Financing activity Rs. #Adjusted Pre- #One time #Adjusted #Adjusted Reported Net End of period Revenues Provision Additional EPS PBT Net Profit Profit Loan book # Operating Profit Provision 871 Cr 292 Cr 300 Cr 165 Cr 57 Cr 0.6 15,653
Slide 13: Consolidated Performance: Diversified Business Model for Earnings Resilience
Consolidated Performance : Diversified Business Model for Earnings Resilience Total Revenue (Rs Cr) Pre-Provision Operating Profit (Rs Cr) PBT (Rs Cr) AWS Alternative and Distressed Credit 372 364 322 318 322 Mortgage Lending Investment Bank 347 946 300 292 877 871 291 259 839 806 163 162 169 153 13
Slide 14: Tab A: Investment Bank
TAB :A Investment Bank A JM FINANCIAL | EC
Slide 15: Franchise Enhancing Financing
Franchise Enhancing Financing End of Period Loan Book(1) Loan Book Description Wholesale Mortgage Retail Mortgage Bespoke FI Financing* Capital Market Bespoke Finance : Promoter, Structured financing 4,591 4,497 4,908 4,512 4,612 Capital Markets : Loan against Securities 895 644 951 783 1,029
Slide 16: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) Interest Income Non Interest Income 350 134 134 131 308 299 122 284 113 251 54.3% 50.3% 48.5% 55.6% 46.2% 49.7% 51.5% 45.7% 53.8% 44.4% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Profit
Slide 17: Tab B: Mortgage Lending
TAB :B Mortgage Lending A JM FINANCIAL | EC 1
Slide 18: JM Financial Credit Solutions Limited
JM Financial Credit Solutions Limited End of Period Loan Book* (Rs Cr) Spread Analysis (%) 9,501 Yield % COF % NIM % 9,299 13.4% 13.4% 13.3% 13.0% 13.1% 8,415 7,362 9.3% 9.1% 9.4% 6,865 9.0% 9.0% 7.3% 7.4% 7.2% 7.2% 7.0% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 2*(%)* Gr
Slide 19: JM Financial Home Loans Limited
JM Financial Home Loans Limited Branch Network Disbursement (Rs Cr) End of Period Loan Book (Rs Cr) Average Ticket Size of Rs. 12 Lakhs 93 362 1,387 75 78 1,181 1,035 64 223 919 205 55 175 819 145 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY2
Slide 20: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 214 161 160 150 194 119 120 178 112 177 175 147 148 145 79 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 PAT (Pre Non Co
Slide 21: Tab C: Platform AWS
TAB: C Platform AWS A JM FINANCIAL | EC 20
Slide 22: Broking: Advisory Led, Leveraging Technology and Expanding Market
Broking : Advisory Led, Leveraging Technology and Expanding Market Clients ~ 2.15+ Lakhs Growth of ADTO* & Volume Mix % ‘000 Rs Cr Affluent, HNI and strong vintage Cash Future Option ADTO 100% 32 36 Presence in 206 Cities 32 80% 27 29 28 Franchisees – 744 (Q3FY23 – 710, Q4FY22 - 634) 24 60% 20 21 88
Slide 23: Wealth Channels: Increasing Scale in Equity AUM, Client Engagement and Reach
Wealth Channels : Increasing Scale in Equity AUM, Client Engagement and Reach Private Wealth AUM (Rs Cr)* Private Wealth AUM Transactional and Recurring (Rs Cr)* Equity Debt Liquid Recurring Transactional 61,211 61,660 61,211 61,660 57,679 57,681 56,515 57,679 57,681 3,070 4,643 56,515 4,349 4,209 4
Slide 24: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 162 163 169 125.2% 153 130 95.2% 88.8% 86.3% 70.5% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23* Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) PBT PAT (post Non Contro
Slide 25: Tab D: Alternative & Distressed Credit
TAB : D Alternative & Distressed Credit 24
Slide 26: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview AUM split as of March 31, 2023 – Rs. 13,558 Cr • Effective shareholding of 58.28% held by JM Financial Ltd as of March 31 2023 • 45 member professional team as on March 31, 2023. The team is also Infrastructure Port
Slide 27: Alternative & Distressed Credit: Financial Performance
Alternative & Distressed Credit: Financial Performance Asset Acquisitions (Rs Cr) Recoveries (Rs Cr) *Adjusted for the impact of one Assets Acquired by ARC JM Financial ARC's acquisition time additional provision on 480 2,736 451 Security Receipts of Rs. 246 Cr made on corporate assets on 342 accoun
Slide 28: Section 3: Group Structure and Shareholding Details
Section 3 Group Structure and Shareholding Details 27
Slide 29: Group Structure: March 31, 2023
Group Structure : March 31, 2023 JM Financial Limited (1) Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 59.54% 99.71% 46.68%(2) 53.62% 100% 100% 100% 100% JM Financial JM Financial Asset Overseas Holdings JM Financial Asset JM Financial Inf
Slide 30: Section 4: Financial Performance
Section 4 Financial Performance 29
Slide 31: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q4 FY23 Q3 FY23 QoQ % Q4 FY22 YoY % Gross Revenue 871 946 -7.9% 839 3.8% Finance cost 347 301 14.9% 250 38.6% Net loss on fair value changes 157 - - - - Employee cost 174 159 9.4% 97 78.9% Depreciation 12 10 12.6% 10 22.1% Other expenses 135 1
Slide 32: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) FY23 FY22 YoY % Gross Revenue 3,343 3,763 -11.2% Finance cost 1,179 1,082 8.9% Employee cost 622 548 13.6% Depreciation 42 38 10.8% Other expenses 452 400 13.2% Adjustment of additional provision on Security Receipts** (246) - - Adjusted Pre P
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at March 31, 2023 As at March 31, 2022 Assets Loan book* - Steady state Financing 15,723 12,771 Loan book* – Episodic Financing - 1,374 Distressed asset book (Investment in SRs / Loan) 4,488 3,825 Cash and cash equivalents (CCE)** 2,207 3,637 Other I
Slide 34: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed Networth As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 Investment Bank 2,687 2,499 2,681 2,492 JM Financial Products Limited 1,949 1,734 1,943 1,728 JM Financial Limited 379 495 379 495 JM Financ
Slide 35: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q4 FY23 Q3 FY23 QoQ % Q4 FY22 YoY % FY23 FY22 YoY % Investment Bank 251 350 -28.3% 284 -11.5% 1,232 1,273 -3.2% Mortgage Lending 368 335 9.9% 298 23.6% 1,319 1,191 10.7% Alternative & Distressed Credit 86 91 -4.7% 86 0.2% 137 522 -73.7% Platform AWS 169 16
Slide 36: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q4FY23 FY23 Q4FY23 FY23 Investment Bank: 251 1,232 83 387 JM Financial Limited 49 390 3 200 JM Financial Products Limited 149 858 64 318 JM Financial Institutional Securities Limited 55 132 9 13 Overseas Entities 3 16 6 (2) Add/(L
Slide 37: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue PAT* Q4FY23 FY23 Q4FY23 FY23 Platform AWS: 169 628 (15) 9 JM Financial Services Limited 169 573 (3) 12 JM Financial Capital Limited 7 35 8 26 JM Financial Asset Management Limited 4 19 (10) (31) JM Financial Commtrade Limited + Astute
Slide 38: Investment Bank
Investment Bank Particulars (Rs Cr) Q4 FY23 Q3 FY23 QoQ % Q4 FY22 YoY % FY23 FY22 YoY % Segment Net worth + NCI 2,687 2,630 2.1% 2,499 7.5% 2,687 2,499 7.5% Gross Revenue 251 350 -28.3% 284 -11.5% 1,232 1,273 -3.2% Finance cost 94 100 -6.5% 75 24.8% 368 319 15.7% Net loss on fair value changes (23)
Slide 39: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q4 FY23 Q3 FY23 QoQ % Q4 FY22 YoY % FY23 FY22 YoY % Segment Net worth + NCI 4,349 4,241 2.5% 3,970 9.5% 4,349 3,970 9.5% Gross Revenue 368 335 9.9% 298 23.6% 1,319 1,191 10.7% Finance cost 163 141 15.4% 121 34.0% 557 483 15.2% Net loss on fair value changes (9) -
Slide 40: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q4 FY23 Q3 FY23 QoQ % Q4 FY22 YoY % FY23 FY22 YoY % Segment Net worth + NCI 1,812 1,860 -2.6% 1,855 -2.3% 1,812 1,855 -2.3% Gross Revenue 86 91 -4.7% 86 0.2% 137 522 -73.7% Finance Cost 72 62 15.9% 56 28.9% 247 229 7.7% Net loss on fair value cha
Slide 41: Platform AWS
Platform AWS Particulars (Rs Cr) Q4 FY23 Q3 FY23 QoQ % Q4 FY22 YoY % FY23 FY22 YoY % Segment Net worth + NCI 728 731 -0.4% 767 -5.0% 728 767 -5.0% Gross Revenue 169 163 3.2% 153 10.5% 628 662 -5.2% Finance cost 36 29 24.2% 14 N/M 104 74 41.1% Net loss on fair value changes (3) - - - - - - - Impairme
Slide 42: Consolidated Lending Book Profile
Consolidated Lending Book Profile End of Period Gross Loan Book (Rs Cr)# NIM Analysis (%)# Wholesale Mortgage Retail Mortgage Bespoke FI Financing*** Capital Market Wtd. Avg Tenure Yield % COF % NIM % 15,234 15,653 (Months) 14,670 12.7% 12.9% 12.7% 12.8% 13.1% 904 1,062 13,017 12,606 1,141 1,009 1,5
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) Cash and Cash equivalents (Rs Cr) Equity** Debt* D/E Net D/E 14,702 15,875 12,783 13,063 11,747 3,637 1.45 1.34 1.22 1.21 1.10 2,878 1.25 0.87 1.15 2,207 1.08 2,109 0.83 10,938 10,972 1,388 10,453 10,656 10,781 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY
Slide 44: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) Q4FY23 Q4FY22 Q4FY23 Q4FY22 Revenue 322 294 Revenue 168 164 Net Profit 100 87 Net Profit 64 41 Net worth 4,257 3,942 Net worth 2,188 1,952 End of period Loan book# 9,501 7,787 End of peri
Slide 45: Annual Performance of Select Subsidiaries
Annual Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd (Rs Cr) FY23 FY22 FY23 FY22 Revenue 1,173 1,136 Revenue 858 678 Net Profit 335 289 Net Profit 318 129 Net worth 4,257 3,942 Net worth 2,188 1,952 End of period Loan book# 9,501 7,787 End of period L
Slide 46: Annexure: Corporate Social Responsibility and Other Details
Annexure Corporate Social Responsibility and Other Details 45
Slide 47: Corporate Social Responsibility
Corporate Social Responsibility EDUCATION JMFF SHIKSHA SAMARTHAN PROJECT BACHPAN – JAMUI, BIHAR • 7,750 students supported in FY • Six new centres in the process of 2022-23 Direct fee remittance initiating operations, in addition to for 4,131 students in private existing 12 Bachpan centres schools
Slide 48: Corporate Social Responsibility (Cont’d)
Corporate Social Responsibility (Cont’d) HEALTH SHRI VARDHMAN NIDAAN SEVA MAITRI KARUNA NETRALAYA - JAMUI, BIHAR - JAMUI, BIHAR • 24,223 patients treated in FY 22-23 through two • The Netralaya opened its doors to OPD Mobile Health Units (MHUs) in 30 villages in two patients in Jan 2023. blocks • 1,
Slide 49: Corporate Social Responsibility (Cont’d)
Corporate Social Responsibility (Cont’d) AGRICULTURE AND ALLIED ACTIVITIES MODEL VILLAGE DEVELOPMENT PROJECT WATER CONSERVATION INTEGRATED LIVESTOCK - JAMUI, BIHAR PROGRAM – JAMUI, BIHAR DEVELOPMENT CENTRES – • 37 farmers mobilized and taken for a training cum • 12 wells completely renovated and – J
Slide 50: Effective Risk Management Framework
Effective Risk Management Framework Robust risk management architecture encompassing independent identification, measurement and management of risk across various businesses of the 1 Group 2 Effective systems, processes and adequate review mechanism to actively monitor, manage and mitigate risks 3 Q
Slide 51: Board of Directors
Board of Directors Mr. Nimesh Kampani, Chairman Mr. Vishal Kampani, Vice Chairman B. Com, FCA M.com, M. S. (Finance) from London Business School. • Founder and Chairman of JM Financial Group, one of India’s leading financial • Launched the Asset Reconstruction business in 2008 and the Real Estate se
Slide 52: Board of Directors (Cont’d)
Board of Directors (Cont’d) Mr. P S Jayakumar, Independent Director Mr. Navroz Udwadia, Independent Director CA, Post graduate in business management from XLRI Jamshedpur. BA in English, MA in Law, MBA from Harvard Business School • 23 years of work experience with Citibank in their India and Singap
Slide 53: For Further Queries
For Further Queries Mr. Nishit Shah Mr. Manish Sheth Business Strategy, Investor Relations and Group CFO, MD & CEO, JM Financial Home CFO – JM Financial Products Limited Loans Limited Email: [email protected] Email: [email protected] Contact No: 022 66303522 Contact No: 022 66303461 Mr. Gagan