JM Financial (523405) Q4 21/22 earnings summary

Executive summary

• FY 2021-22 delivered record annual operating consolidated net profit of ₹773.16 crore, up 31.0% YoY, supported by Investment Bank, Alternative and Distressed Credit, and Platform AWS performance.

• Loan growth was strongest in bespoke and retail mortgage lending; management cited a strong long-term India outlook while flagging volatility and macroeconomic uncertainty.

Financial highlights

• Consolidated gross income rose 16.6% to ₹3,763.28 crore; PBT increased 26.4% to ₹1,348.04 crore and PAT attributable to owners grew 31.0% to ₹773.16 crore.

• Pre-provision operating profit increased 28.2% to ₹1,696.40 crore; profit before depreciation, amortisation, finance costs and tax was ₹2,467.55 crore versus ₹2,217.47 crore.

• Consolidated interest income was ₹1,850.71 crore, fees and commission income ₹816.96 crore, brokerage ₹330.54 crore and net fair-value gains ₹588.59 crore.

• Standalone gross income rose 65.5% to ₹619.63 crore and PAT rose 87.1% to ₹327.78 crore, driven by higher investment-banking fees and treasury fair-value gains.

• Consolidated impairment on financial instruments increased to ₹348.36 crore from ₹256.76 crore, reflecting macro uncertainty, Covid-19 and higher Stage 2 and Stage 3 assets.

Outlook and guidance

• Investment-banking transaction pipeline was described as healthy; execution in FY 2022-23 remains subject to market conditions, with capital-market activity expected to regain momentum in H2 FY 2022-23.

• Management expects bespoke lending opportunities to build on investment-banking relationships and low leverage; growth focus includes profitable lending and retail mortgage expansion.

• Management expects business momentum in retail mortgage to take firmer roots in FY 2022-23; the housing-finance monthly disbursement run rate more than doubled in H2 FY 2021-22 versus a year earlier.

• Distressed-credit acquisitions are expected to use more co-investment with financial investors and strategic partners, with continued focus on cash acquisitions and retail portfolios at appropriate prices.