JM Financial : Press Release (Revised)

PRESS RELEASE

For Immediate Release

JM Financial's consolidated net profit increased by 19.94% YoY for Q3 FY22.

Mumbai, February 7, 2022: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the third quarter and nine months ended December 31, 2021.

The Board of Directors have declared an interim dividend of Re. 0.50 per share of the face value of Re.1/- each.

Summary of Consolidated results FY 22 - Q3 compared to FY 21 - Q3

										(Rs. in Cr)
	Particulars			Quarter ended			Quarter ended			% Increase /
			December 31, 2021			December 31, 2020			(Decrease)
Total income	964.48		890.99		8.25%
Profit before tax	348.74		330.76		5.44%
Net profit after tax
and before non-	260.91		251.00		3.95%
controlling interest
Net profit after tax,
non-controlling	216.80		180.76		19.94%
interest and share of
associate
Summary of Consolidated results FY 22 - 9M compared to FY 21 - 9M
										(Rs. in Cr)
	Particulars			Nine months ended			Nine months ended			% Increase /
			December 31, 2021			December 31, 2020			(Decrease)
Total income	2,926.47		2,385.50		22.68%
Profit before tax	1,026.45		754.45		36.05%
Net profit after tax
and before non-	763.99		574.52		32.98%
controlling interest

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	Particulars			Nine months ended			Nine months ended			% Increase /
			December 31, 2021			December 31, 2020			(Decrease)
Net profit after tax,
non-controlling	594.37		413.43		43.77%
interest and share of
associate

The earnings per share for the nine months ended December 31, 2021 is Rs. 6.23. The consolidated net worth* as at December 31, 2021 stands at Rs. 7,499 Cr and the gross debt equity (equity of Rs. 7,499 Cr + non-controlling interest of Rs. 2,770 Cr) ratio is 1.05 times* and net debt equity of 0.68 times* (post reducing cash and cash equivalents of Rs. 3,854 Cr). The book value per share is Rs. 78.60.

Our consolidated loan book** stood at Rs. 11,240 Cr as of December 31, 2021 compared to Rs. 10,407 Cr as of December 31, 2020. Gross NPA and Net NPA stood at 4.39% and 2.76% respectively as of December 31, 2021 compared to 1.79% and 1.16% respectively as of December 31, 2020 and 2.32% and 1.38% respectively as of September 30, 2021. The loan book under the Resolution Framework for Covid-19 announced by RBI stood at 0.91% as of December 31, 2021 (0.87% as of September 30, 2021). Our Gross NPAs have increased by Rs. 0.66 Cr on account of the clarifications issued by the Reserve Bank of India on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated November 12, 2021.

We have made additional gross provisions of Rs. 185 Cr# on account of the uncertainties around Covid-19 for the nine months ended December 31, 2021, thereby taking the total provisions (net of reversals) to Rs. 536 Cr# on account of the pandemic. Overall provisions on the loan book stood at 7.0% of the loan book as of December 31, 2021 as compared to 5.1% as of December 31, 2020 and 6.4% as of September 30, 2021.

• Computed after reducing goodwill of Rs.52.44 Cr from shareholders' funds and excludes borrowings for episodic financing
  **Loan book does not include episodic financing book
  # Unaudited and based on management estimates

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Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said,

"We are pleased to achieve the highest ever quarterly operating consolidated net profit in Q3 FY22, despite having a strong Q1FY22 and Q3FY21. Our consolidated net profit for 9MFY22 at Rs. 594.4 Cr has already surpassed full year consolidated net profit for FY21 of Rs. 590.1 Cr.

We are actively looking to grow the loan book across our lending segments and are witnessing strong traction particularly in bespoke finance.

Our retail mortgage business is now achieving critical size and scale. We have already expanded to around 50 locations and increased disbursements to over Rs. 150 Cr per quarter. The pipeline of digital initiatives remains strong. We announced the launch of Bondskart, a unique digital platform for ease of investment in debt securities. We have made critical hires, launched new products and added new features to our existing digital products for a seamless customer experience.

We remain focused on serving our clients and in line with the recent budget announcements, we look forward to participate in a strong growth environment."

Business Update

• Investment Bank

During the quarter, our completed investment banking transactions include:

• Book Running Lead Manager to the
• • Initial Public Offer of Equity Shares of FSN E-Commerce Ventures Limited (~Rs. 5,350 Cr), Aditya Birla Sun Life AMC Limited (~Rs. 2,768 Cr), Sapphire Foods India Limited (~Rs. 2,073 Cr), CMS Info Systems Limited (~Rs. 1,100 Cr), C.E Info Systems Limited (~Rs. 1,040 Cr), Go Fashion (India) Limited (~Rs. 1,014 Cr) and Tega Industries Limited (~Rs. 620 Cr)

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• • Pre-IPOPlacement and Initial Public Offer of Equity Shares of Data Patterns (India) Limited (~Rs. 650 Cr)
  • Qualified Institutions Placement of Equity Shares of Route Mobile Limited (~Rs. 867 Cr), Saregama India Limited (~Rs. 750 Cr), HFCL Limited (~Rs. 600 Cr) and Gokaldas Exports Limited (~Rs. 300 Cr)
• Lead Manager to the Rights Issue of Equity Shares of Bharti Airtel Limited (~Rs. 20,987 Cr)
• Advisor to the Private Placement in API Holdings Limited (~Rs. 2,600 Cr) and Car Dekho (~Rs. 1,500 Cr)
• Arranger for the Public Issue of NCDs by JM Financial Products Limited (~Rs. 500 Cr)
• Sole Broker to the Block trade of Equity Shares of Go Fashion (India) Limited (~Rs. 180 Cr) and Metropolis Healthcare Limited (~Rs. 135 Cr)
• Lead M&A Advisor to API Holdings and Docon Technologies, and Manager to the Open Offer to the shareholders of Thyrocare Technologies
• Exclusive Financial Advisor to Sundaram Asset Management Company for the purchase of the Indian asset management businesses of Principal Group, USA
• Transaction Advisor and Manager to the Open Offer to the public shareholders of Just Dial
• Financial and Transaction Advisor to IL&FS on sale of stake in TerraCIS Technologies
• Financial Advisor in connection with a scheme of arrangement involving Orient Refractories and certain group companies
• Fairness Opinion to the Board of Shriram City Union Finance Limited
  ("SCUF") for the Merger of SCUF with Shriram Transport Finance
  Company Limited

During the quarter, we acted as an arranger to the Private Placement of:

• NCDs of REC Limited (~Rs. 1,200 Cr and ~Rs. 2,000 Cr), Indian Railway Finance Corporation Limited (~Rs. 1,180 Cr), National Highway Authority

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