JM Financial (523405) Q4 20/21 earnings summary

Executive summary

• FY21 consolidated revenue was ₹3,226.63 crore and profit attributable to owners was ₹590.14 crore; profit rose despite lower revenue and pandemic-related impairment charges.

• Results benefited from IWS performance and treasury gains, while lending income and asset-management fees faced pressure.

Financial highlights

• Consolidated revenue was ₹3,226.63 crore versus ₹3,453.55 crore in FY20; PBT was ₹1,066.85 crore versus ₹1,093.52 crore.

• Profit attributable to owners was ₹590.14 crore versus ₹544.98 crore; total profit after tax and associate income was ₹808.17 crore versus ₹777.95 crore.

• Pandemic-related incremental impairment provision was ₹207.55 crore; adjusted PAT excluding this impact was ₹688.64 crore.

• Consolidated net fair-value gains increased to ₹311.91 crore from ₹175.53 crore, mainly from equity holdings and bond trading; interest income declined to ₹1,908.54 crore from ₹2,281.27 crore.

Outlook and guidance

• Management expected FY22 equity-market momentum to continue, with quality issuers supported by robust markets; domestic institutional inflows were expected to recover and FII inflows to remain strong.

• Affordable housing collections had returned to pre-Covid levels and Q4 FY21 delivered record quarterly performance, though the second wave was expected to slow momentum.

• Wholesale mortgage lending outlook anticipated continued end-user demand, while new corporate lending was to remain selective amid uncertain recovery prospects.

• Distressed-credit acquisitions were being reconsidered from Q4; expansion was to be gradual and focused on suitable opportunities and co-investment.