JM Financial (523405) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated gross income reached ₹3,234.89 crore, up 37.11% YoY, while net profit rose 34.18% to ₹630.92 crore; operating profit was the highest-ever yearly and quarterly result.

• Growth reflected expansion across fund-based activities and investment banking and securities, alongside new affordable housing finance, SME lending and Dwello initiatives.

• A restructuring effective January 18, 2018, made the listed entity an operating cum holding company and brought investment banking and private equity fund management into its standalone operations.

Financial highlights

• Consolidated revenue from operations was ₹2,959.00 crore versus ₹2,159.24 crore; total revenue was ₹3,234.89 crore versus ₹2,359.26 crore.

• Consolidated PBT rose to ₹1,308.52 crore from ₹971.73 crore; PAT attributable to owners increased to ₹630.92 crore from ₹470.20 crore.

• Standalone gross income was ₹244.18 crore versus ₹162.95 crore and net profit was ₹136.16 crore versus ₹106.72 crore; FY18 includes merged businesses’ Q4 revenue and profit.

• Recommended final dividend of ₹1.10/share, together with ₹0.70/share interim dividend, brought FY18 total dividend to ₹1.80/share versus ₹1.50/share in FY17.

Outlook and guidance

• Management expected sustained growth in business and earnings, citing economic revival, rural consumption and demand prospects across business segments.

• Institutional equities planned to expand derivatives products and coverage in FY19; structured finance prioritized profitable growth, stronger client partnerships, credit assessment and portfolio monitoring.

• Housing finance planned to build affordable-housing lending in Tier II and III markets; lending strategy emphasized portfolio diversification and maintaining underwriting standards.

• Wealth management planned to improve asset mix, advisor productivity, net new money and technology; Dwello intended to expand across Mumbai and geographically over time.