JM Financial announces unaudited financial results for the quarter and nine months ended December 31, 2011.
Mumbai, February 7, 2012: The Board of Directors of JM Financial Limited, at its meeting held today, considered and approved the unaudited financial results for the quarter and nine months ended December 31, 2011.
Consolidated Results – Key Highlights:
FY 12 – Q3 compared to FY 12 – Q2
Ø Total income was Rs. 190.67 crore as compared to Rs. 215.19 crore
Ø Net operating profit before tax stood at Rs. 44.47 crore as compared to Rs. 44.20 crore
Ø Net profit after tax, minority interest and share of associates stood at Rs. 28.69 crore as compared to Rs. 27.29 crore.
FY 12 – Q3 compared to FY 11 – Q3
Ø Total income was Rs. 190.67 crore as compared to Rs. 276.37 crore
Ø Net operating profit before tax stood at Rs. 44.47 crore as compared to Rs. 81.05 crore
Ø Net profit after tax, minority interest and share of associates stood at Rs. 28.69 crore as compared to Rs. 59.50 crore.
FY 12 – 9 months compared to FY 11 – 9 months
Ø Total income stood at Rs. 613.98 crore as compared to Rs. 702.20 crore
Ø Net operating profit before tax stood at Rs. 124.44 crore as compared to Rs. 193.33 crore
Ø Net profit after tax, minority interest and share of associates stood at Rs. 80.39 crore as compared to Rs. 146.48 crore.
The Earnings per share and Diluted Earnings per share, for the nine months ended December 31, 2011 is Rs. 1.07 (not annualised)
Announcing the results, Mr. Nimesh Kampani, Chairman, JM Financial Group said, “There has been substantial decrease in revenues from Investment Banking and securities business on account of Global uncertainty and domestic tight monetary policy measures caused by high inflation. The fund raising activity remained muted on account of negative investor sentiments. FIIs continued to remain net sellers due to global market scenario. Due to these factors, the volume, both in the secondary and primary markets dropped substantially. As a result, our financial performance during the third quarter was adversely affected. We have however been able to maintain the same level of profitability in our fixed income division.
We remain optimistic about the long term growth prospects of the Indian economy and believe that once the capital market is stabilised, the group will capture the opportunities that come up its way.”
Investment banking and securities business:
The Investment banking business closed two capital market deals and one merger & acquisition transaction during the quarter. These include public issues of long term infrastructure bonds of Infrastructure Development Finance Company Limited (Tranche I) for Rs.533 crore and L & T Infrastructure Finance Company Limited (Tranche I) for Rs.529 crore. We were the financial advisor to Omnicom Group for acquisition of Mudra Group from Reliance ADAG.
The Institutional Equities business continues to add new clients. During the quarter, the Institutional Equities Business hosted JM Financial India Conference in two cities, Mumbai & Delhi, which saw participation by 83 corporates and 315 investors.
The investment advisory and distribution business has continued to focus on the distribution of Equity and Fixed Income products. It continued to expand its franchisee network by adding 26 new franchisees during the quarter. With this, it has increased its presence to 150 cities across the country.
Fund based activities:
Our loan financing book (other than IPO financing) has been stable. The IPO financing business was very low during the quarter ended December 31, 2011 as there were no IPOs to finance.
The overall funding book stood at Rs. 2,136 crore as on December 31, 2011.
The treasury book for fixed income securities as on December 31, 2011 was at Rs. 457 crore.
During the quarter, the Asset Reconstruction business continued to resolve the assets acquired. With expectation of sizeable proportion of loans restructured by Banks slipping into NPAs combined with incremental NPAs, the distressed assets market will offer interesting opportunities. However, primarily due to price expectation mis-match between the Banks and the ARCs, the acquisitions are expected to increase less than proportionately. We hope to achieve a significant market share in the ARC segment and consolidate our leadership position.
Alternative Asset Management:
At the end of the quarter, the combined AUM / AUA of the private equity fund, real estate fund and special situations group stood at around Rs.1,575 crore.
The Private Equity Fund and Real Estate Fund have been focusing on management of its existing investments.
The Mutual Fund Average AUM for the quarter ended December 31, 2011 stood at Rs. 6,915 crore The average AUM under Equity schemes was at Rs. 646 crore and under the Debt Schemes was at Rs. 6,269 crore.
Forward - Looking statements
This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.
This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.