JM Financial (523405) Q4 16/17 earnings summary

Executive summary

• FY17 consolidated gross income rose 40% YoY to ₹2,359.26 crore; net profit increased 17% to ₹470.20 crore, supported primarily by fund-based activities.

• Growth priorities included technology-led processes, expansion into new verticals and geographies, and greater focus on retail lending and higher-quality asset mix.

Financial highlights

• Consolidated revenue ₹2,359.26 crore vs ₹1,684.66 crore; PBT ₹971.73 crore vs ₹692.85 crore; PAT ₹470.20 crore vs ₹400.46 crore.

• Profit before depreciation, finance costs and tax was ₹1,777.01 crore vs ₹1,225.23 crore; reported basic EPS ₹5.93 vs ₹5.08.

• Standalone gross income was ₹162.95 crore vs ₹157.77 crore; PAT ₹106.72 crore vs ₹112.25 crore, including ₹114.11 crore dividend income from subsidiaries.

• Recommended FY17 final dividend ₹0.85/share, alongside ₹0.65 interim dividend; total dividend ₹1.50/share and stated total outgo ₹119.28 crore.

Outlook and guidance

• Management anticipated opportunities from reforms and economic growth, while prioritising technology-enabled processes, new verticals, stronger governance and investment in people and capital.

• Plans included adding wealth-management assets and advisors, expanding real-estate lending into Kolkata and NCR, and diversifying wholesale finance into affordable housing and SME lending.

• The dividend policy targets payout of at least 25%–30% of consolidated PAT, subject to liquidity, capital adequacy, growth needs and other stated considerations.