JM Financial Consolidated March 2020 Net Sales at Rs 835.89 crore, up 6.63% Y-o-Y
NULL08-05-2020
Earnings Call Transcript - Q4FY20 and Full Year for JM Financial
Conference Call between JM Financial Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen in to the full earnings transcript. Call Participants: Mr. Vishal Kampani - Group Managing Director, Mr. Manish Sheth - Group Chief Financial Officer, Mr. Subodh Shinkar - MD & CEO, Mr. Shashwat Belapurkar - MD & CEO, Anil Bhatia - MD & CEO, Gitanjali Mirchandani - Managing Director & Country Head, Mrs. Sonia Das Gupta - MD, Mr. Ajay Mishra - Executive Director Introductory Remarks from Vishal Kampani On behalf of JM Financial, we extend a very warm welcome to all of you to the conference call to discuss our financial results both for the fourth quarter and full 2019-2020. I hope most of you had a chance to go through the presentation, our press release as well as our results. We have updated them on our website and also the stock exchanges. I shall now provide an update on the performance of our businesses. Our consolidated revenue for FY20 stood at Rs 2,453.55 crores. It is a small decline of 1.3% YoY. Profit After Tax for the full year FY20 valued at Rs 545 crore, a decrease of approximately 5% YoY During the uncertainties around Covid-19, we have taken additional provisions across the group to the tune of Rs 175 crores over the last quarter Our adjusted FY20 PAT without the pre-Covid impact after minority interest was at Rs 621 crores for FY20 and Rs 206.6 crore for the fourth quarter FY20 With that, I will move on to the loan book detail - Our consolidate loan book stood at Rs 11,041 crores, down 18.3% YoY The breakup of the loan book is as follows: Wholesale mortgages continue to be the largest part of the book and constitutes 70% of our loan book which is approximately Rs 8,000 crores. The wholesale mortgages book registered a YoY degrowth of 20.5% and this has been a conscious strategy for the group The capital market loan book constitutes 4% of the loan book which is approximately Rs 465 crores. This book has registered a YoY degrowth of 56.8% The corporate lending loan book which also includes promoter lending constitutes 20% of our loan book which is at Rs 2,272 crore and which is largely flat from last year The retail mortgages loan book constitutes now 6% of our loan book at roughly Rs 760 crores and the book has registered YoY growth of 28%. This loan book comprises largely of housing finance and our education institutional lending business and also a cost sell of loan against property to our wealth management Moving on to asset quality, the gross NPA ratio of lending businesses is at 1.65% and net NPA is at 1.13% and the SMA2 stands at 2.64% as of March 31st, 2020 Few comments on liabilities and leverage - On a consolidated basis, our gross debt to equity stands at 1.47 times as of March 31st, 2020 and on a net basis at 1.04 times as of March 31st, 2020 During the full year FY20, we raised approximately Rs 640 crores through public issue of NCDs which has helped us diversify our industry base As of March 31st, 2020, our borrowing mix comprised of 91% of borrowings from long-term sources and 29% from short term sources. This is compared to 84% from long term sources and 16% from short term sources as of December 31st, 2019 We feel very comfortable with this current position. Infact, we see extraordinarily comfortable having excellent long term borrowing mix currently For FY20, Investment Banking, Wealth Management and Securities business (IWS) posted revenues of Rs 1611 crore with a profit before tax of Rs 434.6 crores. The business contributed 40% of our growth for FY20. The profit after tax from this segment increased to Rs 311.26 crores for FY20 compared to Rs 239.6 crores for FY19 The AUM/AUA of our wealth management business stood at Rs. 44,883 crore (excluding custody assets) as on March 31, 2020 as compared to Rs. 41,886 Cr as on March 31, 2019 and Rs. 46,886 Cr as on December 31, 2019 The equity component as of March 31st, declined 17.7% YoY. Last part of the decline on March 31st was because of the value of the assets coming down due to the drop in the stock market because of the Covid-19 crisis. The loan book for this segment stood at Rs 3,880 crores which is a decrease of 31.1%. As of FY20, the gross debt to equity for the IWS segment stood at 1.54x and the net debt to equity stood at 0.8x. We are in a extremely cash rich position in the IWS segment and we will look to gain more market share over the next 12 months in these businesses Moving on to the mortgage lending business - For FY20 this segment had revenues of Rs 1,350 crore with a profit before tax of Rs 543 crores. Profit after tax for this segment stood at Rs 178.6 crores. Our loan book stands at Rs 7,641 crore which is a decrease of 8.1% YoY. The wholesale loan book has decreased as the lower strategic decision we had taken post IFLS and our retail mortgage book has increased because of the strategic decision we had taken 18 months ago We had some significant recoveries in the distress credit business in the last 12 months and despite an extremely challenging environment, we have managed to have a significant amount of resolution and we hope that we are able to keep up that stream over the next two years despite the crisis we are facing with the current Covid crisis Moving on to the asset management business which comprises our mutual fund business had revenues of Rs 63 crores with a PBT of Rs 22.5 crores. PAT from this segment de-grew to Rs 10.2 crores for FY20 Group results from Manish Sheth: Good evening everyone! As usual, before I present the financials, I would like to bring to your notice that any forward looking statements made on this call are based on management’s current expectations. However, the actual results may vary significantly and therefore the accuracy and completeness of this expectation cannot be guaranteed. In Q4FY20, our revenue grew by 6.12% YoY to Rs 840 crores from Rs 792 crores The Q4FY20 profit before tax is at Rs 215 crore which is a decline of 12% YoY but Profit after tax increased by 1.49% YoY from Rs 128 crore to Rs 130.56 crore With regard to the full year numbers, for FY20, the gross revenue is Rs 3,453 crore and our net consolidated profit is Rs 544.98 crore. This represents an EPS of 6.48 versus 6.82 for the same period, last year As of March 31, 2020, the net worth is at Rs 5,586 crore which is a book value of Rs 66.41 per share The group finance cost has decreased to Rs 1,385 crore in FY20 as against Rs 1,446 crores during the same period last year, primarily on account of decrease in the borrowings Our cost of funds for the lending business stood at 10% compared to 9.2% YoY, primarily due to increase in borrowings cost and also due to change in the borrowing mix Retail business for the short-term and mid-term will suffer. I am bullish in long term for retail but very negative for the short-term. I think you will see bankruptcies going high in the month of September, this year.07-05-2020
JM FINANCIAL LTD.-$ - 523405 - Intimation Of Closure Of Register Of Members
In continuation of our letter dated May 6, 2020, and the subsequent telephonic conversation our Ms. Dimple Mehta had with your Mr. Marian D Souza (BSE) and Mr. Joyce Rodrigues (NSE), please find below the fresh dates of closure of Register of Members of the Company. Security Code/ Symbol - 523405 / JMFINANCIL Type of Security & Paid up Value - Equity Share Re. 1/- per share Book Closure Dates (both the days inclusive) - From Tuesday, May 19, 2020 to Friday, May 22, 2020 Purpose - For determining the members who would be eligible to receive Dividend for the financial year 2019-20. We request you to disseminate the above information on your website.07-05-2020
JM FINANCIAL LTD.-$ - 523405 - Intimation Of Closure Of Register Of Members
We wish to inform you that pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015, the Register of Members of the Company shall remain closed as per the details given below: Security Code/ Symbol Type of Security & Paid up Value Book Closure Dates (both the days inclusive) Purpose From To 523405 / JMFINANCIL Equity Share Re. 1/- per share Friday, May 15, 2020 Friday, May 22, 2020 For determining the members who would be eligible to receive Dividend for the financial year 2019-20. We request you to disseminate the above information on your website.06-05-2020
JM FINANCIAL LTD.-$ - 523405 - Announcement under Regulation 30 (LODR)-Investor Presentation
Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para A of Part A of Schedule III thereto, we wish to inform you that a corporate presentation by JM Financial Credit Solutions Limited (a material subsidiary) is being uploaded on the website of the Company viz., www.jmfl.com for information of the investors. A copy of the said presentation is attached. We request you to disseminate the above presentation on your website.06-05-2020
JM FINANCIAL LTD.-$ - 523405 - Announcement - Investor Presentation
In continuation of our letter of even date enclosing therewith the Audited Standalone and Consolidated Financial Results of the Company for the fourth quarter and financial year ended March 31, 2020 along with the Press Release, we are enclosing a copy of the Investor Presentation. We request you to disseminate the above information on your website.06-05-2020
JM Financial Q4 net rises to 130.56 cr
Our Bureau JM Financial, a diversified financial services company, has posted a 1.5 per cent rise in net profit at 130.56 crore for the fourth quart06-05-2020
JM FINANCIAL LTD.-$ - 523405 - Announcement under Regulation 30 (LODR)-Investor Presentation
Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para A of Part A of Schedule III thereto, we wish to inform you that a corporate presentation by JM Financial Asset Reconstruction Company Limited (a material subsidiary) is being uploaded on the website of the Company viz., www.jmfl.com for information of the investors. A copy of the said presentation is attached. We request you to disseminate the above presentation on your website.06-05-2020
JM FINANCIAL LTD.-$ - 523405 - Standalone And Consolidated Audited Financial Results For The Fourth Quarter And Financial Year Ended March 31, 2020
We wish to inform you that the Board of Directors of the Company, at its meeting held today, has: 1) Approved the Standalone and Consolidated Audited Financial Results for the fourth quarter and financial year ended March 31, 2020; and 2) The Board of Directors has recommended a lower Dividend of Re. 0.20 per share for the financial year 2019-20 as compared to previous year due to the uncertainties arising out of COVID-19. A copy each of the above Audited Financial Results, the Statutory Auditors' Report thereon and a copy of Press Release being issued by the Company, is enclosed for your information and record. These documents are also being uploaded on the website of the Company, viz., www.jmfl.com. We hereby declare that the Statutory Auditors have issued the Audit Report on Standalone and Consolidated Audited Financial Results for the financial year ended March 31, 2020 with unmodified opinion.06-05-2020