JM Financial (523405) Q4 22/23 earnings summary

Executive summary

• Consolidated revenue was 3,343.07 crore in FY23, down 11.2% YoY; PAT after non-controlling interests was 597.29 crore, down 22.7%, mainly reflecting weaker Alternative and Distressed Credit and Platform AWS results.

• Adjusted PAT was 704.69 crore, down 8.86% YoY, excluding the after-tax impact of additional Security Receipt provisions; the diversified loan book grew 20.3% YoY.

Financial highlights

• Consolidated EBITDA was 2,172.99 crore vs 2,467.55 crore; PBT was 952.61 crore vs 1,348.04 crore, and reported PAT after non-controlling interests was 597.29 crore vs 773.16 crore.

• Interest income rose to 1,935.30 crore from 1,850.71 crore; fees and commissions declined to 657.48 crore from 816.96 crore, and fair-value gains fell to 183.42 crore from 588.59 crore.

• Finance costs increased to 1,178.51 crore from 1,081.73 crore; impairment expense fell to 95.56 crore from 348.36 crore.

• Standalone revenue was 488.56 crore, down 21.2%; standalone PAT was 273.07 crore, down 16.7%, reflecting lower investment-banking fees, partly offset by higher dividend income from subsidiaries.

Outlook and guidance

• Investment-banking transaction pipeline was described as healthy; execution in FY24 is subject to market conditions.

• Platform AWS investment is planned to continue over the next 2–3 years to build digital capabilities and expand asset management, including mutual funds; this is expected to add scale and value over time.

• Mortgage outlook remained constructive over the medium term; affordable housing demand may be pressured by higher rates and property costs, while mid- and luxury-segment demand was expected to remain stable.