jm financial consolidated performance q4 fy14

8/12/2019 JM Financial Consolidated Performance Q4 FY14

1/29

JM Financial Limited

Q4 FY14 Consolidated Performance

May 2014


2/29

Results for the Quarter and year ended March 31, 2014

Table of Contents

2

I : Key features

II : Quarterly performance

III : Annual performance

IV : Business performance


3/29


3

I : Key features


4/29


Key features of Q4 FY14 Consolidated Financial performance

4

Gross revenue ` 255 Cr (q-q` 222 Cr, y-y` 278 Cr)

Earning before Interest and Tax (EBIT) at `75 Cr (q-q` 66 Cr, y-y` 81 Cr)

Profit after tax` 59 Cr (q-q` 44 Cr, y-y` 70 Cr)

Net Interest Margin at 6.9 % (q-q 6.8%, y-y 4.9%)

Earning Per Share stood at` 0.79 (q-q 0.59, y-y 0.93) (not annualised)

Consolidated group annualised RoE at 11.7%

PAT Margin at 23.3 % (q-q 19.9%, y-y 25.1%)


5/29


Key features of FY14 Consolidated Financial performance

5

Gross revenue ` 1,007 Cr (` 1,042 Cr) 3 %

Earning before Interest and Tax (EBIT) at `295 Cr (` 266 Cr) 11 %

Profit after Tax` 210 Cr (` 183 Cr) 15 %

PAT margin at 20.8% (17.6%)

Earning Per Share stood at` 2.78 (` 2.44)

Consolidated group annualised RoE at 10.3%

Net Interest Margin at 6.2 % ( 4.3 %)


6/29


Key features of Q4FY14 and FY14 Consolidated Financial performance

6

Loan book on 31 Mar 2014 at`2,978 Cr ; treasury book for fixed income securities at`534 Cr

Wealth Management AUM on 31 Mar 2014 at`13,500 Cr

Dropping Cash market volumes continue to put brokerage yield under pressure

Asset Reconstruction AUM on 31 Mar 2014 at` 3,647 Cr

Alternate Asset management AUM on 31 March 2014 at` 1,188 Cr

Asset management Average AUM for Q4 FY14 at` 6,046 Cr


7/29


7

II : Quarterly performance


8/29


8

Consolidated Financial Performance Quarter by QuarterGross Revenue(```Crore)

250 245268

278 282

248

222

255

0

100

200

300

Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14

Profit before tax(```Crore)

35 34

44

70

5650

44

59

0

25

50

75


Profit after tax(```Crore)

EPS (```) ( not annualised)

Snapshot

Net Worth as on March 31, 2014 was ```2,092 Crore

0.47 0.45

0.59

0.93

0.740.67

0.59

0.79

0.0

0.3

0.6

0.9


58 55

63

78 79

6862

71

0

30

60

90



9/29


Consolidated Financial Performance Quarter by Quarter

Book Value Per Share (```)

25 2626 26 27

27 28 28

0

10

20

30


Snapshot

Net Worth as on March 31, 2014 was ```2,092 Crore

9

Net worth (` Cr` Cr` Cr` Cr)

1,908 1,9401,989 1,976 2,046

2,074 2,124 2,092

0

500

1,000

1,500

2,000

2,500



10/29


Results for Q4 FY14 (Consolidated )

10

```Cr Q4 FY14 Q3 FY14 QoQ Q4FY13 YoY

Gross Revenue 255 222 15% 278 -8%

Sub-brokerage 23 19 19% 21 5%

Net Revenue 232 203 15% 257 -9%

Employee cost 55 42 30% 51 7%

Operating cost 36 28 30% 27 36%

Finance cost 66 67 -1% 98 -32%

Depreciation 4 4 -2% 3 20%

Profit before tax 71 62 15% 78 -9%

Profit after tax 52 43 20% 57 -9%

Minority interest / Associate 7 1 740% 13 -42%

Net Consolidated profit 59 44 35% 70 -15%


11/29


SegmentsNet Revenue breakup (net of sub brokerage & finance cost)

11

IB & SB83 Cr,52.1%

FB 60

Cr,37.6%

AAM 7Cr, 4.2%

AM 6 Cr,4.1%

Others 3Cr, 2.0%

IB & SB79 Cr,47%

FB 62

Cr, 37%

AAM 10Cr, 6%

AM 5 Cr,3%

Others

11 Cr,7%

Q4 FY13Q4 FY14

```` 159 Crore```` 167 Crore

Q3 FY14

IB & SB

50 Cr,37%

FB 61Cr, 45%

AAM 10Cr, 7%

AM 4 Cr,3%

Others11 Cr,

8%

IB & SB - Investment banking and securities business, FB - Fund based activities,

AAM - Alternative asset management, AM - Asset management

```` 136 Crore


12/29


Segments Profit after tax breakup

12

IB & SB17 Cr,24%

FB49 Cr,71%

AAM 4Cr, 5%

AM 0.5Cr, 0%

Others -0.2 Cr,

0%IB & SB

9 Cr,15%

FB42 Cr,71%

AAM 5Cr, 8%

AM 1 Cr,2%

Others(3 Cr),

5%

Q4 FY13Q4 FY14

```` 70 Crore70 Crore70 Crore70 Crore```` 59 Crore59 Crore59 Crore59 Crore

Q3 FY14

IB & SB-1 Cr, -

1%

FB34 Cr,76%

AAM 5Cr, 11%

AM 1 Cr,1% Others 5

Cr, 12%

IB & SB - Investment banking and securities business, FB - Fund based activities,

AAM - Alternative asset management, AM - Asset management

```` 44 Crore44 Crore44 Crore44 Crore


13/29


13

III : Annual performance


14/29


Year ended results for Mar 14 (Consolidated)

14

```Cr FY14 FY13 YoY

Gross Revenue 1,007 1,042 -3%

Sub-brokerage 80 100 -20%

Net Revenue 926 942 -2%

Employee cost 203 198 3%

Operating cost 120 101 19%

Finance cost 308 377 -18%

Depreciation 15 12 25%

Profit before tax 280 254 10%Profit after tax 200 179 12%

Minority interest / Associate 9 4 138%

Net Consolidated profit 210 183 15%


15/29


Balance Sheet Highlights

15

Net worth on 31 March 2014`2,092 Cr (March 2013`1,976 Cr)

Borrowings on 31 March 2014 `2,987 Cr ( March 2013 `4,196 Cr)

Debt Equity : Gross Gearing - 1.4x, Net Gearing 0.9x

Balance sheet size on 31 March 2014 `5,825 Cr (March 2013 `6,853 Cr)

Loan book on 31 March 2014` 2,978 Cr (March 2013 ` 3,005 Cr)

Treasury funds on 31 March 2014 `974 Cr

Short term rating by CRISIL A1+ ; long- term rating of CRISIL AA- with stable outlook


16/29


Summary Balance Sheet

16

Rs CrAs at March

31, 2014

As at March

31, 2013

Equity and Liabilities

Shareholders Funds 2,092 1,976

Minority Interest 165 150

Borrowings 2,987 4,196TOTAL 5,244 6,322

Assets

Loan book 2,978 3,005

Investment and Treasury fund 1,469 1,987

Arbitrage and trading book 534 1,100

Other net assets 263 230

TOTAL 5,244 6,322


17/29


Lending portfolio

17

Corporate lending 137 Cr, 5%

Lending for Commercial Real

Estate 1,374 Cr, 46%

Lending to Sponsors 696 Cr,23%

Margin Funding 419 Cr, 14%

Loan Against Shares 352 Cr,

12%

Break-up of Loan book (%)

As on March 31, 2014, the Loan book stood at Rs.2,978 Crores


18/29


Borrowing breakup

18

Commercial Paper 2,083Cr, 70%

Non convertible

Debentures 536 Cr, 18%

Intercorporate Deposit 25

Cr, 1%

Loan from Banks 343 Cr,

11%

Long term debt ratings: CRISIL AA-/STABLE

Short term debt ratings: CRISIL A1+.

Sources of Funds (%)

As on March 31, 2014, the total borrowing was Rs.2,987 Crores


19/29


19

IV : Business performance


20/29


Investment banking

20

Snapshot

Acted as book running lead manager to the Rs. 1,993 Crore Tata Power rights issue

Engaged as part of the team for Rs.5,449 Crore block trade for a partial exit by SUUTI

(Specified Undertaking of the Unit Trust of India) in Axis Bank.

The Monetary Authority of Singapore (MAS) has issued the Capital Markets Services (CMS)

licence to JM Financial Singapore Pte Ltd. in January 2014.

Singapore office continues to generate traction, JM Financial Singapore acted as the financial

advisor to Boston based Foliage Inc on its sale to French company Altran SA


21/29


Equities broking and Wealth advisory Highlights

21

Average daily turnover (```Cr)

279 367 396442 409 469 368 410

861938 1,014

1,223 1,351 1,074

837961

0

600

1200

1800


Avg Cash Avg FAO

Equity market share on NSE (%)

2.202.81 2.80 3.09 3.18

3.362.56 2.40

0.71

0.79 0.790.88 0.86 0.65

0.57 0.67

0.82

0.95 0.951.05 1.01 0.83

0.72 0.80

0

1

2

3

4

5

6


Cash Market share FAO Market share Overall Market share

Snapshot

Average daily turnover at` 1,370 Cr inQ4FY14

Market share on NSE at 0.80% in Q4FY14

Stocks under research coverage - 176

Wealth management AUM over` 13,400 Cr

Over 8,000 active IFDs

Presence in 116 cities

Despite equity market upsurge, retail participation still low


22/29


Fund based activities - Quarterly

22

Income at` 129 Cr (q-q` 126 Cr, y-y` 146 Cr)

Profit before tax at ` 53 Cr (q-q` 50Cr, y-y ` 52 Cr)

Profit after tax at` 36 Cr (q-q` 33Cr, y-y ` 36 Cr)

RoE (annualised) at 15.7%

Net Interest Income at` 47 Cr.

Net Interest Margin at 6.94 %

Capital Adequacy Ratio at 25.51%

Provision Coverage Ratio at 48%.

Provision Coverage Ratio including

standard asset provision at 299 %

Borrowings stood at 2,946 Cr

Gross Gearing - 3.0x,

Net Gearing 2.6x


23/29


24/29


Highlights - Fund based activities

24

2,222

2,4362,786

3,0052,728

2,4312,592

2,978

0

620

1,240

1,860

2,480

3,100


24.4

19.7

16.8

22.0 22.9

30.0 30.2

25.5

0

7

14

21

28

35


4.04.2 4.5

5.04.6

6.7 6.8 6.9

0

2

4

6

8


0.1 0.1

0.90.8

0.9

1.4

1.0

0.4

0

1

1

2


Loan book(```Cr)

Capital Adequacy Ratio(%)

Net Interest Margin(%)

Gross NPA(%)


25/29


26/29


Asset Reconstruction

26

1285

179 205

340 367 363 368

584

18

61

420

553

743 733 732804

3,063

30

146

599

758

1,083 1,100 1,095

1,172

3,647

0

400

800

1200

4000

FY09 FY10 FY11 FY12 FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14

JM share in AUM Others

AUM (```` Cr) Asset acquired during the period (```` Cr)

12

77113

86

240

361 15

224

18

44

365

137

237

1278

2,273

30

121

478

223

477

3613

93

2,497

0

200

400

600

2800

FY09 FY10 FY11 FY12 FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14

JM Share in acquisit ion Others


27/29


Alternative Asset Management

27

AUM ` 855 Cr.

No. of investments: 15

No. of Exits: 5

Fully drawn down & invested

AUM ` 333 Cr

No. of investments: 14

No. of Exits: 1 full and 3 part

Fully drawn down & invested

Private Equity

Real Estate


28/29


Asset Management

28

Average AUMEquity 458

Debt 5,588

Total 6,046

Over 2 Lacs active investors

Number of Scheme : 17

Average AUM(` i` i` i` in Cr)Mutual Fund

576564

569 506 487 443 447 458

5,2365,060

6,902 6,905

6,2636,745

5,588

5,8125,624

7,472 7,411

6,750

6,235

7,192

6,046

0

2000

4000

6000

8000


Equity Debt


29/29


29

The content of this document are for information purposes only and does not construe to be any investment, advice. Any action taken by you on the basis of theinformation contained herein is your responsibility alone and JM Financial Limited (hereinafter referred as JM Financial) and its subsidiaries or their employees or

directors, associates will not be liable in any manner for the consequences of such action taken by you. We have taken due care regarding authenticity of the

information contained herein, but do not represent that it is accurate or complete in all respect. JM Financial or any of its subsidiaries or associates or their

employees shall not in any way be responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this

document. The recipients of this document should rely on their own judgement while taking any action based on the information provided herein.

Thank You

jm financial consolidated performance q4 fy14

Documents