JM Financial (523405) Q4 15/16 earnings summary

Executive summary

• FY 2015-16 consolidated revenue rose 20% to ₹1,684.66 crore and net profit rose 21% to ₹400.46 crore; fund-based activities were the main earnings engine.

• Strategy targets diversified financial services growth, expansion of lending and fund management, fintech partnerships and broader international reach.

Financial highlights

• Consolidated revenue ₹1,684.66 crore vs ₹1,403.04 crore; PBT ₹692.85 crore vs ₹516.91 crore; net profit ₹400.46 crore vs ₹330.52 crore.

• Earnings before interest, depreciation and tax ₹1,225.23 crore vs ₹955.16 crore; fees and commission ₹315.76 crore vs ₹301.47 crore.

• Consolidated basic EPS ₹5.08 vs ₹4.32; diluted EPS ₹5.04 vs ₹4.25.

• Standalone revenue ₹157.77 crore vs ₹104.54 crore; net profit ₹112.25 crore vs ₹78.10 crore, including ₹113.56 crore dividend income from subsidiaries.

• Total dividend proposed and paid for FY16 was ₹1.45/share, including ₹0.60 interim and ₹0.85 proposed final; total outgo ₹114.45 crore.

Outlook and guidance

• India growth outlook was 7.5% per IMF and 7.6% per RBI; easing input costs, supportive monetary conditions and project measures were expected to support demand.

• Medium- to long-term growth was expected to come largely from fund-based and fund-management activities; lending products and carefully selected transactions were priorities.

• Plans included evaluating fintech partnerships, deepening products, expanding in international markets and pursuing exits from existing alternative-asset funds.

• Mutual fund strategy centers on marquee equity arbitrage and balanced funds; US broker-dealer operations had commenced following FINRA approval.