JM Financial Limited · NSE:JMFINANCIL
JM Financial — Q1 FY2019 Earnings Presentation
31 slides from JM Financial's earnings presentation, Jul 18, 2018
Slide 1: JM Financial Limited Q1 FY19 Results Update
JM Financial Limited Quarter ended June 30, 2018 – Results update July 18, 2018
Slide 2: Safe Harbour
Safe Harbour This presentation and the following discussion may contain “forward looking statements” by JM Financial Limited (“JM Financial” or “JMFL” or the “Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of ope
Slide 3: Key implications on financial statements upon migration to Ind AS
Key implications on financial statements upon migration to Ind AS Under the ECL model, the loan loss provision is made on the basis of the loan book’s historical loss experience Expected Credit and future expected credit loss depending on the credit quality assessment. ECL adjustment has had a negat
Slide 4: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 4
Slide 5: Key Highlights – Consolidated Performance – Ind AS
Key Highlights – Consolidated Performance – Ind AS Rs. Leverage Revenues PBT Net Profit EPS BVPS ROA* (Debt / (Equity ROE* + Minorities) 855 Cr 316 Cr 143 Cr 1.70 55.34 0.9% 2.73x 3.1% Q1 FY19 16.9% 11.3% 12.6% Q1 FY18 732 Cr 284 Cr 127 Cr 1.59 42.93 1.0% 2.60x 3.7% Net Profit – IGAAP (Rs Cr) Net Pr
Slide 6: Consolidated Profit & Loss Statement – Ind AS
Consolidated Profit & Loss Statement – Ind AS Particulars (Rs Cr) Q1 FY19 Q1 FY18 YoY % Gross Revenue 855 732 16.9% Employee cost 105 98 7.1% Other expenses 93 81 13.0% Finance cost 335 263 27.4% Depreciation 6 6 1.0% PBT 316 284 11.3% Tax Expense 117 101 15.7% PAT 199 183 8.8% Share in profit of As
Slide 7: Reconciliation of Net Profit - IGAAP and Ind AS
Reconciliation of Net Profit - IGAAP and Ind AS Quarter ended Particulars (Rs Cr) 30.06.2018 Unaudited Net profit after tax and before minority interest (IGAAP) 196 Add / (Less): Provision for expected credit Loss (8) Inc / (Dec) in interest income / borrowing cost pursuant to application of effecti
Slide 8: Consolidated Balance Sheet – Ind AS
Consolidated Balance Sheet – Ind AS As at As at Particulars (Rs Cr) June 30, 2018 June 30, 2017 Assets Loan book (Net of Effective Interest Rate) 16,314 12,017 Distressed asset book (Investment in SRs / Loan) 3,037 2,468 Treasury fund 2,614 1,308 Arbitrage and trading book 748 406 Property, Plant an
Slide 9: Reconciliation of Net worth - IGAAP and Ind AS
Reconciliation of Net worth - IGAAP and Ind AS As at 30.06.2018 Particulars (Rs Cr) Unaudited Net worth as per the erstwhile Indian GAAP (IGAAP) before minority interest 5,939 Add / (Less): Provision for expected credit Loss (26) Increase in interest income / borrowing cost pursuant to application o
Slide 10: Lending book Profile – Ind AS
Lending book Profile – Ind AS Gross Loan Book (Rs Cr) NIM Analysis (%) 13.9% 13.3% 16,442 2,520 12,108 8.8% 9.0% 2,451 1,955 398 1,646 429 7.1% 6.1% 11,073 8,077 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Wholesale Mortgage Retail Mortgage Capital Market Corporate Yield % COF % NIM % Gross, Net NPA & SMA 2** (
Slide 11: Borrowing Profile
Borrowing Profile June 30, 2018 June 30, 2017 1% 3% 2% 1% Short Short Term Term 37% 50% Borrowing Breakup 21% 25% 33% 47% Long Long Term Term 29% 63% 50% 38% Total: Rs 16,569 Cr Total: Rs 11,929 Cr Commercial Papers NCD Terms Loans Short Term Loans from Banks Others ICD Key Highlights of Public Issu
Slide 12: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 12
Slide 13: Our Business
Our Business Our Business Investment Banking, Mortgage Distressed Asset Segments Wealth Management & Lending Credit Management Securities Business (IWS) Investment Banking and Wholesale – Developer Asset Reconstruction Mutual Fund Securities Funding Retail - Housing, LAP and Wealth Management EIL* B
Slide 14: Segment Performance – Ind AS
Segment Performance – Ind AS Ind AS Segment revenue (Rs Cr) Q1 FY19 Q1 FY18 YoY Investment Banking, Wealth Management and Securities Business* 456 505 -9.7% Mortgage Lending 292 237 23.1% Distressed Credit 103 81 27.2% Asset Management 26 22 17.0% Others 20 10 101.7% Total Segment Revenue 897 855 3.
Slide 15: IWS – Key Non Financial Information
IWS – Key Non Financial Information Investment Banking Transactions Securities Business(Rs Cr) Average Daily Turnover (Rs Cr) • Lead Financial & Transaction Advisor to Adani Enterprises Limited on the demerger of its Renewable Energy Business into Adani Green Energy Limited 4,797 4,516 4,546 • Fairn
Slide 16: IWS – Key Financial Information
IWS – Key Financial Information PE and RE AUM (Rs Cr) Wealth Management AUM (Rs Cr) Total 655 655 597 520 716 AUM 42,808 155 180 180 180 155 31,910 31,808 27,289 475 417 561 24,203 340 340 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Private Equity (PE) Real Estate
Slide 17: Mortgage Lending
Mortgage Lending Business Overview Loan Book (Rs Cr) • Provides an integrated financial solution to real 8,504 estate developers with major focus on real estate project financing • 82 groups – significant focus on repeat business 5,678 • Most of the clients with over 25 years of experience in the in
Slide 18: Distressed Credit – Asset Reconstruction
Distressed Credit – Asset Reconstruction Business Overview Long Term Positive Drivers • The various initiatives taken by regulatory authorities Long Term Credit Rating of AA- and Short Term Credit shall lead to increase in bad loans due to slippages Rating of A1+ by ICRA & CARE. Comfortable gearin
Slide 19: Distressed Credit – Asset Reconstruction (cont’d)
Distressed Credit – Asset Reconstruction (cont’d) AUM (Rs Cr) Asset Acquisitions (Rs Cr) 1,689 2,260 800 657 600 526 13,294 339 12,202 400 62 200 0 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 ARC's AUM JM's share in ARC's AUM Assets Acquired by ARC JM's share in acquisition Particulars (Rs Cr) – IND AS - Consol
Slide 20: Asset Management – Mutual Fund
Asset Management – Mutual Fund Asset Management AUM (Rs Cr) Mutual Fund: 13,952 • Quarterly Average AUM (QAAUM) – Rs 12,073 cr. 16,663 12,073 13,668 12,313 • Rank (QAAUM) – 23 among 41 Mutual Funds. 5,174 5,052 6,965 • Market Share – 0.52%. 4,118 6,692 • 15 Schemes categorized as Long Term Debt, Sho
Slide 21: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 21
Slide 22: Organisational Structure
Organisational Structure JM Financial Limited Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries 100% 100% 59.54% 99.35% 50.01% 57.07% 100% 100% 100% JM Financial JM Financial Infinite India JM Financial JM Financial JM Financial JM Financial Oversea
Slide 23: Shareholding Summary
Shareholding Summary Share Price Information Market Information (BSE) As on 30.06.2018 200.0 Market Capitalization (Rs Cr) 9,729.16 150.0 Price (Rs) 115.90 100.0 No. of Shares Outstanding (Cr) 83.94 50.0 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 52 Week High-Low (Rs) 190.95-104.30 Key Institutional Investo
Slide 24: Table of Contents
Table of Contents Group Performance Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 24
Slide 25: Performance of Select Subsidiaries – IND AS
Performance of Select Subsidiaries – IND AS In Rs Cr JM Financial Credit Solutions Ltd JM Financial Products Ltd Q1 FY19 Q1 FY18 Q1 FY19 Q1 FY18 Revenue 291 237 Revenue 243 211.7 Net Profit 83 84 Net Profit 63 49 Net worth 1,756 1,438 Net worth 1,535 1,317 Loan book 8,475 5,678 Loan book 6,962 6,017
Slide 26: Journey of JM Financial Group
Journey of JM Financial Group JM Financial Joint Venture with Morgan Stanley 1973 1986 1994 1998 2003-2004 2005-2006 2006 -2007 2007 Incorporation of JM JM Financial Set up mutual JV with Capital Preferential issue of shares Launched Separated Financial and Limited(1) fund Morgan market to Tiger Glo
Slide 27: Corporate Governance – Strong Board of Directors
Corporate Governance – Strong Board of Directors Mr. Nimesh Kampani, Chairman Mr. Vishal Kampani, Managing Director B. Com, FCA M.com, M. S. (Finance) from London Business School • Founder and Chairman of JM Financial Group, one of India’s • Managing Director of JM Financial Ltd., the group’s flagsh
Slide 28: Effective Risk Management Framework
Effective Risk Management Framework 1 Robust risk management architecture encompassing independent identification, measurement and management of risk across various businesses of the Group 2 Effective systems, processes and adequate review mechanism to actively monitor, manage and mitigate risks 3 Q
Slide 29: CSR – Integrated Rural Transformation Programme
CSR – Integrated Rural Transformation Programme Project Bachpan – 4 learning centers in Sikandra block, Jamui district, Integrated Livestock Development Center (ILDC) Project in completes 11 months of operations with 100 students’ (3 – 6 years) of Sikandra, Chakai & Jhajha blocks. All 21 centers
Slide 30: JM Financial Foundation – Giving & Ongoing Activities
JM Financial Foundation – Giving & Ongoing Activities Support to hospital and medical college to provide health care services in rural Gujarat Philanthropic Athletes supported by the Foundation win medals in Common Wealth Games 2018. giving Continued support through being part of fund raising
Slide 31: For Further Queries
For Further Queries Mr. Manish Sheth Group CFO Email: [email protected] Contact No: 022 66303461 Ms. Karishma Mehta Investor Relations Email: [email protected] Contact No: 022 66303585 Mr. Nishit Shah Business Strategy and Investor Relations Email: [email protected] Contact No: 022 6630