Q2 2025 JM Financial Ltd Earnings Call Transcript
Key Points
- The Reserve Bank of India has lifted restrictions on JM Financial Ltd (BOM:523405) for providing loans against shares and debentures, allowing the company to resume these operations.
- The company reported a 19% year-on-year and 36% quarter-on-quarter increase in profit after tax, reaching INR232 crores for the quarter ended September 2024.
- The mutual fund business's assets under management (AUM) have grown to INR12,500 crores, with equity AUM at INR9,500 crores.
- The Affordable Home Loans business has expanded, with the opening of its 126th branch and a 38% year-on-year increase in AUM to INR2,366 crores.
- There is strong traction in the capital markets, corporate advisory, wealth management, and asset management businesses, with significant cross-selling between wealth and investment banking divisions.
- The gross non-performing assets (NPA) increased slightly from INR813 crores to INR835 crores, necessitating a conservative increase in provisions.
- The company took a net loss of INR101 crores on the sale value changes related to security receipts, attributed to delays in resolving underlying assets.
- The Affordable Home Loans business experienced a decline in income due to the absence of asset sales in the current quarter, despite an increase in AUM.
- The company is experiencing a natural rundown in its loan book, particularly in the real estate and MSME segments, which could impact future revenue streams.
- The cost-to-income ratio in the AWS (retail broking/distribution) business remains high due to ongoing investments, with no expected easing in the next 18 months.
Ladies and gentlemen, good day, and welcome to the earnings conference call for JM Financial Limited. (Operator Instructions). Kindly note that any forward-looking statements made on this call are based on the management's current expectations. However, the actual results may vary significantly and therefore, the accuracy and completeness of this expectation cannot be guaranteed. Please note that this conference is being recorded.
I now hand the conference over to Mr. Vishal Kampani. Thank you, and over to you, sir.
Thank you. On behalf of JM Financial, we extend a very warm welcome to all of you to the earnings conference call to discuss our financial results for the half year ended September 2024. We have uploaded our results presentation, press release on the website and stock exchanges.
On the call, we also have Mr. Chirag Negandhi, MD, JM Financial Limited; Ms. Sonia Dasgupta, MD and CEO of Investment Banking, JM Financial Limited; Manish Sheth, MD and CEO
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