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We are forefront asset reconstruction company in India, that provide the necessary financial cushion to the toppling system by removing the NPA (non performing asset) burden from the banks thus providing smooth functioning of the financial system. visit http://bit.ly/2kWZAes

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jm financial limited

JM Financial Limited

Investor Presentation

May 13, 2016

safe harbour

Safe harbour

This presentation describing our activities, projections and expectations for the future, may contain

certain ‘forward looking statements’ within the meaning of applicable laws and regulations. The actual

results of business may differ materially from those expressed or implied due to various risk factors

and uncertainties. These risk factors and uncertainties include the effect of domestic as well as global

economic and political events, volatility in interest rates and in the securities market, new regulations

and government policies that may impact our businesses as well as ability to implement our

strategies. We are under no obligation to publicly amend, modify or revise any forward looking

statement on the basis of any subsequent developments, information or events and assume no

liability for any action taken by anyone on the basis of any information contained herein.

2

sustainable growth oriented portfolio

Sustainable growth – Oriented portfolio

Revenue & PBT in ` ` ` ` Cr.

• JM Financial is a four

decade old institution

founded by Mr. Nimesh

Kampani

Corporate Finance

Advisory

M&A Advisory –

domestic & cross border

Private Equity Synd

Equity Capital Markets -

Debt Capital Markets

Equity Research, Sales

& Trading

Wealth Management

Financial Products

Distribution

46% 19%

41% 19%

41% 16%

37% 24%

29% 11%

Investment

Banking,

Securities and

Wealth

Management

495

522

600

429

404

408

300

124

79

47

45

35

0

FY12

FY13

Revenue

FY14

FY15

FY16

PBT

• Servicing clients across the

financial services spectrum

47% 73%

53% 72%

53% 71%

57% 67%

64% 79%

Margin Financing

Loan against property

Loan against Shares

Broker Funding

Commercial Real Estate

Debt Restructuring

ESOP Funding

1,079

1,200

806

Fund based

activities

900

529

552

549

414

600

347

• PAN India Presence

200

183

133

300

0

FY12

FY13

Revenue

FY14

FY15

FY16

PBT

• Firm four-decade footprints

- proven track record of

growth & sustainability

3% (1%)

3%

1%

3%

1%

3%

3%

5%

8%

86

100

56

75

29

47

Asset

27

30

50

Mutual Funds

18

4

25

2

Management

0

(25)

(2)

• Pioneered innovative

products in the financial

services space

FY12

FY13

FY14

FY15

FY16

Revenue

PBT

5%

5%

3%

6%

3%

7%

2%

3%

1%

1%

46

50

Alternative

Asset

Management

30

Real Estate Fund

Private Equity Fund

27

27

• Trusted & preferred partner

– client centric business

model

19

16

25

15

12

9

4

0

FY12

FY13

FY14

FY15

FY16

Revenue

PBT

400

319

214

Asset

158

120

200

89

75

61

60

Reconstruction

Business

Acquisition of Bank NPA’s and resolution thereof

40

22

0

FY12

FY13

FY14

FY15

FY16

Revenue

PBT

% contribution of consolidated revenue

% contribution of consolidated PBT

3

accelerated pace of growth

Accelerated pace of growth

• Four decades of prominent

presence depicting –

Consistent performance amidst volatile markets

Expanding latitude year on year

– value driven growth and;

– long-term sustainability

CAGR : 5 year

Income : 13.5% , PAT : 18.1%,

PAT before minority interest : 23.6%

2,000

450

NBFC (Real Estate Lending, Debt

Trading and Corporate Financing)

1,685

400

1,403

1,600

400

350

2008 – 2016

Asset Reconstruction

300

• Q4 FY16 highlights –

− Revenue ` 475 Cr

− PBT ` 201 Cr

− Net profit before minority

interest ` 148 Cr

− EPS ` 1.44

− ROE 17.4%

− ROA 6.1%

1,200

1,042

331

1,007

International Expansion in advisory

business

896

874

250

800

200

210

121

150

183

175

400

NBFC (Securities Backed

Financing)

100

0

50

FY11

FY12

FY13

FY14

FY15

FY16

2003 – 2007

Alternative Asset Mgmt (Private

Equity & Real Estate)

Revenue (Rs Cr)

PAT (Rs Cr)

Broking (Debt & Commodity)

Institutional Equities (Research &

Sales)

6

20.0%

15.3%

5

14.6%

Asset Management (Mutual Fund)

16.0%

1991 – 2002

4

5.08

Cross Border (M&A, ADR & GDR)

10.3%

4.32

12.0%

9.9%

9.5%

3

Broking (Equity)

6.6%

8.0%

2.78

2

2.44

2.33

5.4%

4.0%

Wealth Management (Investment

Advisory)

1

1.62

5.3%

3.6%

3.5%

3.2%

0

2.3%

FY12

0.0%

FY11

FY13

FY14

FY15

FY16

1973-1990

Financial Product Distribution –

creation of retail investing culture

EPS (Rs/share)

ROE (%)

ROA (%)

Investment Banking

ROA = Net profit before minority interest / Average total assets

4

delivering value

Delivering value

• Delivering consistent

superior returns to

shareholders -

Augmenting value year-on-year

Stock performance vs. Indices

4,000

40

35.54

31.10

Stock / Index

12-M

3-Y

• Stock trading at a P/E of

around 8.2x and a P/B of

1.1x

35

3,738

27.69

26.29

3,000

30

3,290

24.87

24.20

JMFL

-8%

126%

25

2,804

2,438

2,000

20

CNX 500

-3%

38%

2,092

1,976

1,947

15

1,865

• Continued focus on

maximizing shareholders’

return

1,814

1,803

1,000

10

1,214

1,170

CNX Smallcap

-4%

50%

5

0

0

CNX Bank

-7%

22%

FY11

FY12

FY13

FY14

FY15

FY16

Market Cap (Rs Cr)

Book Value (Rs/share)

Net Worth (Rs Cr)

CNX Finance

-6%

25%

Gross and Net gearing (x)

2.5

2.4

2.1

2.0

1.9

1.8

2.1

1.7

1.5

1.7

1.4

Conservative D/E depicting business strength,

adequate cash cushion and strong business

model

1.4

1.3

1.0

0.9

0.9

0.5

0.0

FY11

FY12

FY13

FY14

FY15

FY16

Gross Gearing (x)

Net Gearing (x)

5

Note

Stock/Index data per NSE as on 12/05/2016

key features of consolidated financial performance

Key features of consolidated financial performance

? ? ? ?

Net worth on March 2016 ` ` ` ` 2,804 Cr (March 2015 ` ` ` ` 2,438 Cr), Book value on March 2016 ` ` ` ` 35.54

? ? ? ?

Loan book on March 2016 at ` ` ` ` 7,214 Cr (March 2015 at ` ` ` ` 5,388 Cr)

? ? ? ?

Average Daily Turnover as on March 2016 in the secondary market at ` ` ` ` 2,137 Cr

(March 2015 ` ` ` ` 2,420 Cr)

Key

? ? ? ?

Wealth Management AUM on March 2016 at ` ` ` ` 26,958 Cr (March 2015 ` ` ` ` 17,383 Cr)

Features

? ? ? ?

Asset Reconstruction AUM on March 2016 at ` ` ` ` 9,820 Cr (March 2015 ` ` ` ` 8,398 Cr)

? ? ? ?

Alternative Asset Management AUM on March 2016 at ` ` ` ` 773 Cr (March 2015 ` ` ` ` 942 Cr)

? ? ? ?

Asset Management Quarterly Average AUM at ` ` ` ` 16,161 Cr (Q4 FY15 ` ` ` ` 12,231 Cr)

6

key features of fy16 consolidated financial

Key features of FY16 Consolidated financial

performance

? ? ? ?

Gross revenue ` ` ` ` 1,685 Cr (FY15 ` ` ` ` 1,403 Cr), up 20 %

? ? ? ?

Profit before tax ` ` ` ` 693 Cr (FY15 ` ` ` ` 517 Cr), up by 34 %

? ? ? ?

Profit after tax and before minority interest ` ` ` ` 526 Cr (FY15 ` ` ` ` 379 Cr), up by 39%

Key

? ? ? ?

Profit after tax ` ` ` ` 400 Cr (FY15 ` ` ` ` 331 Cr), up by 21 %

Features

? ? ? ?

PAT Margin at 23.8 % (FY15 23.6 %)

? ? ? ?

Earning per share stood at ` ` ` ` 5.08 (FY15 ` ` ` ` 4.32)

? ? ? ?

Consolidated group RoE at 15.3 % (FY15 14.6%)

8

results for fy16 consolidated

Results for FY16 (Consolidated)

` ` ` ` Cr

FY16

FY15

YoY

1,685

1,403

20%

Gross Revenue

77

97

-21%

Sub-brokerage

264

235

12%

Employee cost

118

115

3%

Operating cost

512

420

22%

Finance cost

20

18

12%

Depreciation

693

517

34%

Profit before tax

470

361

30%

Profit after tax

55

19

195%

Share in profit of Associates

526

379

39%

Net profit before minority interest

-125

-49

157%

Minority interest

400

331

21%

Net Consolidated profit

9

segment performance

Segment performance

Segment revenue

FY16

FY15

YoY

Investment Banking and Securities Business

495

522

-5%

Fund Based Activities

1,079

806

34%

Alternative Asset Management

13

27

-53%

Asset Management

86

47

83%

Others

194

139

39%

Total Segment Revenue

1,866

1,542

21%

Less: Inter - segmental revenue

181

139

31%

Total Revenue

1,685

1,403

20%

Segment PAT

FY16

FY15

YoY

Investment Banking and Securities Business

54

85

-36%

Fund Based Activities

315

217

45%

Alternative Asset Management

4

11

-66%

Asset Management

25

10

158%

Others

2

8

-67%

Total

400

331

21%

10

key features of q4 fy16 consolidated financial

Key features of Q4 FY16 consolidated

financial performance

? ? ? ?

Gross revenue ` ` ` ` 475 Cr (Q3FY16 ` ` ` ` 426 Cr, Q4FY15 ` ` ` ` 393 Cr)

? ? ? ?

Profit before tax ` ` ` ` 201 Cr (Q3FY16 ` ` ` ` 178 Cr, Q4FY15 ` ` ` ` 158 Cr)

? ? ? ?

Profit after tax and before minority interest ` ` ` ` 148 Cr (Q3FY16 ` ` ` ` 150 Cr, Q4FY15 ` ` ` ` 114 Cr)

Key

? ? ? ?

Profit after tax ` ` ` ` 114 Cr (Q3FY16 ` ` ` ` 117 Cr, Q4FY15 ` ` ` ` 93 Cr)

Features

? ? ? ?

PAT margin at 24.0 % (Q3FY16 27.5%, Q4FY15 23.7%)

? ? ? ?

Earning per share stood at ` ` ` ` 1.44 (Q3 FY16 1.49, Q4 FY15 1.21) (not annualised)

? ? ? ?

Consolidated group annualised RoE at 17.4% (Q3FY16 17.8%, Q4FY15 16.2%)

12

consolidated financial performance quarter

Consolidated financial performance – Quarter by Quarter

Snapshot

Gross revenue (` ` ` ` Cr)

Profit before tax (` ` ` ` Cr)

475

500

250

426

401

201

393

383

377

400

200

367

178

168

158

146

137

137

266

300

150

200

84

100

100

50

0

0

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Net consolidated profit (` ` ` ` Cr)

EPS (` ` ` `)( not annualised)

1.49

1.44

1.5

117

125

114

1.22

1.23

1.21

97

1.14

92

93

100

87

0.92

1.0

72

75

0.77

58

50

0.5

25

0

0.0

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

13

consolidated financial performance quarter 1

Consolidated financial performance – Quarter by Quarter

Snapshot

Book value per share (` ` ` `)

Net worth (` Cr

` Cr

` Cr

` Cr)

2,822

2,804

40

3,000

2,702

36

36

34

2,536

2,466

2,438

35

32

31

31

2,500

2,246

30

2,151

28

30

2,000

25

20

1,500

15

1,000

10

500

5

0

0

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Borrowings (` Cr

` Cr

` Cr

` Cr)

Debt equity

6,671

2.4

7,000

2.5

2.2

5,638

2.0

2.0

2.0

2.0

6,000

5,422

1.9

1.9

2.0

5,032

4,721

4,662

4,618

5,000

4,485

1.5

4,000

3,000

1.0

2,000

0.5

1,000

0

0.0

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

14

results for q4 fy16 consolidated

Results for Q4 FY16 (Consolidated )

` ` ` ` Cr

Q4 FY16

Q3 FY16

Q4 FY15

QoQ

YoY

Gross Revenue

475

426

11%

393

21%

Sub-brokerage

18

20

-8%

25

-28%

Employee cost

71

64

12%

51

39%

Operating cost

40

25

58%

41

-3%

Finance cost

139

134

4%

113

24%

Depreciation

5

5

-2%

4

19%

Profit before tax

201

178

13%

158

27%

Profit after tax

143

117

22%

107

33%

Share in profit of Associates

5

33

-85%

7

-29%

Net profit before minority interest

148

150

-1%

114

30%

Minority interest

-34

-33

-5%

-21

64%

Net Consolidated profit

114

117

-3%

93

22%

15

segment performance 1

Segment performance

Segment revenue

Q4 FY16

Q3 FY16

QoQ

Q4 FY15

YoY

Investment Banking and Securities Business

143

109

32%

131

10%

Fund Based Activities

297

288

3%

245

21%

Alternative Asset Management

4

4

7%

8

-52%

Asset Management

23

24

-7%

13

71%

Others

51

17

205%

18

176%

Total Segment Revenue

518

441

17%

416

25%

Less: Inter - segmental revenue

43

15

189%

23

88%

Total Revenue

475

426

11%

393

21%

Segment PAT

Q4 FY16

Q3 FY16

QoQ

Q4 FY15

YoY

Investment Banking and Securities Business

18

5

271%

15

19%

Fund Based Activities

85

102

-17%

75

14%

Alternative Asset Management

1

1

-8%

1

2%

Asset Management

5

8

-34%

1

763%

Others

4

0

919%

1

259%

Total

114

117

-3%

93

22%

16

balance sheet highlights

Balance sheet highlights

? ? ? ?

Net worth on March 2016 ` ` ` ` 2,804 Cr (March 2015 ` ` ` ` 2,438 Cr)

? ? ? ?

Borrowings on March 2016 ` ` ` ` 6,671 Cr (March 2015 ` ` ` ` 4,721 Cr)

? ? ? ?

Free cash and cash equivalent on March 2016 ` ` ` ` 914 Cr (March 2015 ` ` ` ` 578 Cr)

Balance

Sheet

Highlights

? ? ? ?

Debt equity : Gross gearing 2.4x, Net gearing 2.1x

? ? ? ?

Balance sheet size on March 2016 ` ` ` ` 10,956 Cr (March 2015 ` ` ` ` 8,400 Cr)

? ? ? ?

Loan book on March 2016 ` ` ` ` 7,214 Cr (March 2015 ` ` ` ` 5,388 Cr)

CRISIL upgrades long term rating of JM Financial group companies to 'CRISIL AA/Stable‘

ICRA and India ratings have maintained long term rating of JM Financial group companies to

AA/Stable‘

? ? ? ?

18

summary balance sheet

Summary Balance sheet

As at

As at

` ` ` ` Cr

March 31, 2016

March 31, 2015

Equity and Liabilities

Shareholders’ funds

2,804

2,438

Minority interest

669

655

Borrowings

6,671

4,721

Other liabilities and provisions

812

586

TOTAL

10,956

8,400

Assets

Loan book

7,214

5,388

Investment in associates

269

214

Treasury fund

1,969

1,258

Arbitrage and trading book

316

359

Fixed assets

340

342

Other assets

848

839

TOTAL

10,956

8,400

19

investment banking business

Investment Banking business

• Over four decades of

leadership in M&A and

Capital Markets

?

Key strength lies in innovative structuring and execution of complex, challenging deals

and restructuring of corporate groups & businesses.

• Strong track record of

landmark M&A transactions

• Pioneer in innovating

capital market products

?

Strong long-term Indian Corporate relationships

• Wide & deep sectoral

coverage both from a

corporate finance &

research perspective

?

Leadership positions in all product areas and unmatched market share for landmark

transactions

• BW Business World Magna

Awards 2015 – “M&A Deal

Maker of the Year”

• Ranked as number 2 in the

indian M & A league table

for FY16 by Mergermarket

?

Best-in-Class Execution Team with focus on client satisfaction

Won a number of awards and recognitions over the years for our advisory and execution

capabilities. Awarded ‘Best Corporate and Institutional Bank –Domestic’ and ‘Best Equity

House’ at the The Asset Triple A Country Awards.

?

21

investment banking business snapshot for q4fy16

Investment banking business

Snapshot for Q4FY16

As BRLM for Qualified Institutional Placement by Suprajit Engineering Limited – Rs 150 crore

As financial advisor to Bain Capital for its investment in QuEST Global Services Pte Ltd

As Financial advisor and manager to the delisting offer made by Essar Oil Limited

As Sole financial advisor to Hotel Leelaventures Limited on the closure of the Leela, Goa to Medtube Group

As Sole financial advisor and merchant banker to Reliance Infrastructure Limited for their open offer to the shareholders of Pipavav

Defence and Offshore Engineering Company Limited

As advisor and arranger for a Private Equity investment round for a leading healthcare distribution company

22

wealth management and broking business

Wealth Management and Broking business

Wealth Management

Broking business

Wealth AUM stands at ` 26,959 Cr with a team size of 53

wealth advisors as on March 2016

Worldwide institutional reach - dominant global & local

institutional franchise

?

? ?

?

?

? ?

?

Presence in 7 major cities in India i.e. Mumbai, Delhi,

Bangalore, Ahmedabad, Pune, Kolkata & Hyderabad

Institutional distribution strength - We cover 150 funds

across regions

?

? ?

?

?

? ?

?

Intensely client-oriented approach, create customised

long-term Asset Allocation strategy and provide them

with unbiased investment solutions

?

? ?

?

?

? ?

?

Institutional Equities offices at Singapore and New York

Full service providers to clients across all products like

Investment Banking, Corporate Finance etc.

?

? ?

?

?

? ?

?

Extensive research coverage of 179 companies

Average daily turnover in Q4FY16 - Rs. 2,127 Cr, which

includes cash segment of Rs. 591 Crs

?

? ?

?

?

? ?

?

Focus on growing Discretionary Assets

Around 8,320 active IFDs

Coverage of broking segment - 111 cities

Market Share on NSE in Q4FY16 – overall 0.64%, 2.83

% cash segment

?

? ?

?

?

? ?

?

23

wealth management and broking business 1

Wealth Management and Broking business

Average Daily Turnover (` ` ` ` Cr)

Equity Market Share on NSE (%)

3,000

6.0

2,500

5.0

2,000

4.0

0.78

1.22

0.84

0.95

0.94

0.78

0.76

0.64

0.93

0.61

0.69

0.79

0.51

1.06

0.66

0.62

0.81

1,500

3.0

1,847 1,766

0.80

1,624

1,536

1,352

1,221

1,000

2.0

1,015 1,005 1,056

3.00

2.88

2.83

2.74

2.74

2.74

2.64

2.54

2.43

500

1.0

591

573

568

555

555

481

414

370

349

0

0.0

FY11 FY12 FY13 FY14 FY15

Q1

FY16

Q2

FY16

Q3

FY16

Q4

FY16

FY11

FY12

FY13

FY14

FY15

Q1

FY16

Q2

FY16

Q3

FY16

Q4

FY16

Avg Cash (Rs. Cr)

Avg FAO (Rs. Cr)

Cash Market Share

FAO Market Share

Overall Market Share

Significant turnover in cash translating in higher returns

24

securities lending and financing business

Securities Lending and Financing business

• JM Financial Products Ltd.

is the Non-Banking Finance

Company (NBFC) of the JM

Financial Group. The

company enjoys the highest

short-term credit rating of

A1+ from CRISIL

Securities Lending &

Financing business

Lending / Financing to clients of traditional

businesses

Investment / Lending to new age Financial

Technology related businesses

• During the year CRISIL re-

affirmed the “CRISIL A1+”

(highest grading) rating for

the Commercial Paper

program as well its “CRISIL

AA/ Stable” rating for long

term NCD issuances and

bank loan rating

• Corporate Loans

• Structured loans

• Promoter loans

• Bridge loans

• Acquisition finance loans

• Partnering with new age Fin tech

platforms with 3-5 year view

Investment

Banking Clients

Investments

• Take minority stake with an ability to

integrate with JM Financial platform

over a period of time

• Loan against Property

• Loan against Security

• ESOP Funding

• IPO Financing

• Broker Funding

• Margin Trade Funding

Wealth Clients

• Partnering with new age Fin tech

platforms for providing leverage to

SME & Retail business at an

insignificant customer acquisition

cost, coupled with robust credit

analysis & recovery mechanism

Lending

• Overflow of loans from RE lending

arm

RE Clients

• Further need of capital post

restructuring

• Co-Investments in selective

acquisitions

ARC Clients

25

commercial real estate lending business

Commercial Real Estate Lending business

JM

Vikram

Pandit &

Associates

?

The real estate financing arm of JM Financial Limited, looks at providing an integrated

financial solution to real estate developers – Major focus on real estate project financing

Financial

Limited

50.01%

49.99%

JM Financial Credit

Solutions Limited

?

Lending book has grown from INR 1,844 crs in the beginning of FY 2015-16 to

` 4,074 Cr till March 2016

• Strong Balance sheet : Net

worth / Owned fund of

1,136 Crore

• Book comprises of 40 clients – significant focus on repeat business

• JMFL and Vikram Pandit &

Associates have created a

true strategic partnership

not a vanilla PE deal

• Most of the clients with over 25 years of experience in the industry

• Focus on Tier I markets – Mumbai, Bengaluru, Pune and Chennai

?

− With loan disbursements of 50% in Mumbai, 24% Bengaluru, 15% Pune, 11%

Chennai and others

• 90% of the book is cashflow backed lending

• 73% of the book is against residential projects

?

Prominent Relationships – Kalpataru, Wadhwa, RMZ, Embassy, Kanakia, Peninsula,

Adarsh, Goel Ganga, Rajesh Lifespaces and Lodha amongst others

26

highlights fund based activities

Highlights – Fund Based Activities

Loan book (` ` ` `Cr)

Net Interest Margin (%)

10,000

10

9.1

8.3

7,214

8.1

8.0

8,000

7.7

6,550

8

6,118

5,492

5,388

1,586

6.2

6,000

4,856

5.4

2,137

6

4,067

5.1

2,151

3,816

1,980

2,543

4,000

2,325

4

2,227

5,628

2,421

4,413

2,000

2,531

3,512

2,845

2

1,840

3,967

1,395

0

Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16

Real Estate

Capital Market

0

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Includes 116 Cr of IPO funding in Q3FY16

Gross NPA (%)

Capital Adequacy Ratio (%)

37.3

40

3

35.0

2.6

2.5

34.0

33.9

32.3

3

28.8

2.1

30

2

21.5

21.3

20

2

0.9

0.9

1

0.8

10

0.3

1

0.3

0

0

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Q3FY16

Q4FY16

27

borrowing profile

Borrowing profile

• Capital Adequacy Ratio :

28.8%

Business expertise translating into superior

returns on funds deployed

8,000

12%

10.11%

• Long term debt rating:

6,671

7,000

10%

10.85%

CRISIL AA STABLE

ICRA AA STABLE

11.00%10.25%

6,000

9.3%

4,721

8%

4,196

5,000

8.17%

4,000

6%

3,347

3,122

Borrowing vs. Loan book translating into a NIM

of 7.7%

India Ratings AA STABLE

2,987

3,000

4%

2,000

2%

• Short term debt rating:

CRISIL A1+

1,000

0

0%

FY11

FY12

FY13

FY14

FY15

FY16

ICRA A1+

Borrowing (Rs. Cr)

Cost of funds

• Business strength coupled

with visible future growth &

long-term sustainability

facilitate minimal debt

servicing risk

March 16 - Borrowing Breakup (%) - ` ` ` ` 6,671 Cr

March 15- Borrowing Breakup (%) - ` ` ` ` 4,721 Cr

Long Term

Non

Term loan

from banks

170 Cr 4%

Term loans

1,471 Cr 22%

Long Term

convertible

debentures

399 Cr 8%

Short Term

Others 360 Cr

8%

• Group Borrowing & ALM

committee meets regularly

to :

− review the ALM profile of

the group

Commercial

paper 3,060

Cr 46%

Short Term

Non

Short term

loan from

banks 128 Cr

3%

convertible

debentures

1,192 Cr 18%

Commercial

Paper 3,666

Cr 77%

Short term

loan from

banks 397 Cr

6%

− advise on diversifying

borrowings based on

asset maturity profiles

Others 551 Cr

8%

28

Near term focus on diversifying sources of funds and lenders’ profiles

asset reconstruction

Asset Reconstruction

• RBI registered ARC

engaged in the business of

Distressed Assets

management in India

Significant potential upside in the asset

reconstruction business

AUM over years

• RBI’s concern over bank NPA’s expected to

increase the sell-down of distressed assets to

ARCs

8,398

11,000

1,600

9,820

10,000

1,400

1,461

9,000

1,200

8,000

• Highest capitalized private

sector ARC in the Indian

industry

1,227

7,000

• Recent amendments expected to pave way

for better & quicker returns –

1,000

6,000

3,647

800

5,000

600

4,000

– improve quality of sell-down by banks at

proper valuation

– better due diligence by ARCs

1,083

3,000

584

400

758

599

2,000

• Current AUM of ` 9,820 Cr

comprising Corporate, SME

and Retail portfolios

200

1,000

340

205

179

FY11

0

0

FY12

FY13

FY14

FY15

FY16

– speedy recovery due to early involvement

of ARCs

ARC's AUM (Rs. Cr)

JM's share in ARC's AUM (Rs. Cr)

• In-house legal expertise

and synergies from group

wide professional expertise

Building robust asset base

6,000

1,200

5,028

5,000

1,000

Breakthrough Hotel Leela deal

974

4,000

800

2,639

Hotel Leela Resolution – Phase I

3,000

600

1,488

2,000

400

Concluded sale of Hotel Leela Goa for ` 725 Cr.

69% of class A SRs along with yield and incentive

fees.

1,000

200

478

477

276

223

241

113

240

FY13

86

0

0

FY11

FY12

FY14

FY15

FY16

Assets Acquired by ARC (Rs. Cr)

JM's share in acquisition (Rs. Cr)

29

asset management

Asset Management

Real Estate

As on March 31, 2016

Significant increase in AUM – CAGR 22.3%

India focused fund with

investments in commercial,

residential, retail and

hospitality sectors

Approx. 45% funds raised

from international investors

AUM as on March 31, 2016 –

` 233 Cr

No. of investments: 13

No. of Exits: 5 full and 2 part

Fully drawn down & invested

Amount distributed till date

` 202 Cr.

• Quarterly Average AUM (QAAUM): `16,161

Cr

18,000

15,858 15,868 16,161

• Rank (QAAUM): 17 among 43 Mutual Funds

16,000

• Market Share: 1.19%

14,000

6,117 5,441 6,081

11,353 11,676

Reach

12,000

• Servicing and investor base of around

140,656 through 17 branches and 81 Investor

Service Centres

10,000

5,262

Private Equity

8,000

6,975

6,654 6,283 6,585 6,561

• 17 schemes categorized under – Long Term

Debt, Short Term Debt, Balance, Equity

Arbitrage and Equity

India focused long term PE

fund - providing growth capital

to fast growing, primarily

unlisted companies

Approx. 85% of funds raised

from International investors

AUM as on March 31, 2016 -

` 540 Cr

No. of investments: 13

No. of Exits: 5 full

Fully drawn down & invested

Amount distributed till date

` 682 Cr

6,000

9,741 10,427 10,080

5,104

4,000

5,555 6,031 6,103

6,414

4,378

2,000

1,550

728

554

459

0

FY11 FY12 FY13 FY14 FY15

Q1

FY16

Q2

FY16

Q3

FY16

Q4

FY16

Equity (Rs. Cr)

Debt (Rs. Cr)

• One of the well capitalized and profitable AMC in the industry

Note:

1.

30

Equity AUM for FY15 and Q4 FY16 include arbitrage fund of Rs. 3,084 and Rs.2,966 Cr resp

effective risk management framework

Effective Risk Management Framework

• Risk management given

paramount importance

Robust risk management architecture encompassing independent identification,

measurement and management of risk across various businesses of the Group

1

• Risk management

embedded in the business

processes

Effective systems, processes and adequate review mechanism to actively monitor,

manage and mitigate risks

2

• Effective and adequate

internal controls

3

Monthly risk meetings of all businesses with Group Risk Committee

Report of top risks and risk event update periodically placed before the Board of

Directors

4

Independent Internal Audit firms appointed to review and report on the business

processes and policies in all operating companies of the Group

5

31

community engagement

Community Engagement

• At JM Financial, CSR

extends beyond a statutory

obligation

• JM Financial Foundation drives our community engagement initiatives that focus on –

– Education – special focus on girl child education

– Healthcare

– Entrepreneurship promotion

– Vocational Training

– Women empowerment

– Disaster Relief

• Firm belief in strengthening

and uplifting the lesser

privileged communities

• JM Financial Foundation Walkathon –

– annual event where our clients & employees pledge their support for the under-

privileged

– fund-raiser inviting contributions towards the various causes supported by JM

Financial Foundation

• Employee volunteering at JM Financial –

– Sparsh - Employees aid the lesser privileged aged members of society and mentor

children

– Project Drishti - contributing glossy magazines used for preparing reading and

learning material in Braille

– Joy of Giving week – Joy boxes, Blood donation camps & Paraplegic Foundation

32

key takeaways

Key Takeaways

?

Strong presence for over four decades – proven track record of growth & sustainability

?

Client centric business model – Strong focus on long-term corporate relationships

Value driven growth – visible future growth roadmap, increased focus on Real Estate Lending,

Asset Reconstruction and Alternative Asset Management

?

?

Experienced & committed Management team - ensures future growth at minimal risk

?

Efficient & motivated talent pool – source of our competitive edge

?

Positive capital market outlook – strategically placed to benefit from every upswing

?

Conservative gearing backed with adequate cash facilitates

33

appendix

Appendix

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 the

information 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.

34

jm financial limited its subsidiaries associates

JM Financial Limited its Subsidiaries & Associates

JM Financial

Limited

Core

Investment

Holding Co.

100%

91%

53.5%

90%

50.01%

50%

100%

100%

100%

JM Financial

Institutional

Securities Ltd.

JM Financial

Asset

Management

Ltd.

JM Financial

Asset

Reconstruction

Co. Pvt. Ltd.

JM Financial

Credit

Solutions

Limited

JM Financial

Properties and

Holdings Ltd.

JM Financial

Investment

Managers Ltd

Infinite India

Investment

Mgmt Ltd.

JM Financial

Services Ltd.

JM Financial

Products Ltd.

9%

(Merchant

Banking &

Institutional

equity)

(Stock Broking

& Investment

Advisory)

(Private Equity

Asset Mgmt.)

(Real Estate

Asset Mgmt)

(Property

Holding)

(Mutual Fund

Management)

(Asset

(NBFC)

(NBFC)

Reconstruction)

4.2%

100%

100%

25%

4.2%

100%

100%

100%

60%

JM Financial

Trustee

Company Pvt.

Ltd

CR Retails

Malls (India)

Ltd.

JM Financial

Overseas

Holdings Pvt.

Ltd.

JM Financial

Commtrade

Ltd

JM Financial

Insurance

Broking Pvt

Ltd

40%

JM Financial

Capital

Limited

Astute

Investments

(Rental of

Property)

(Mauritius

Investment

Advisor)

(Commodity

Broking)

(Trusteeship)

Holding Co

100%

100%

JM Financial

Singapore Pte

Ltd

SEBI Regulated

JM Financial

Securities Inc.

RBI Regulated

Singapore

Corporate

Finance Advisory

& Financial

Advisory)

Companies outside India

(USA)

Others

Note

Includes Equity + CCPS

jm financial limited shareholding pattern

JM Financial Limited – Shareholding Pattern

Public holding of more than 1% of total number

of shares – as on March 31, 2016

Share holding pattern – as on March 31, 2016

Name of the Shareholder

% Shareholding

Name of the Shareholder

% Shareholding

Promoter & Promoter

Group

Morgan Stanley Asia

(Singapore) Pte

65.67%

6.33%

Foreign Institutional

Investors

Valiant Mauritius Partners Ltd

& Associates

13.64%

3.96%

Mutual funds / UTI

3.13%

IDFC Premier Equity Fund

2.99%

Financial Institutions /

Banks

Azim Hasham Premji

2.77%

0.01%

Vikram Shankar Pandit

1.48%

Non-Institutions

17.55%

Public Shareholding

34.33%

Total

17.53%

36