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Financial services group JM Financial Ltd on Tuesday (January 28) reported a 21.5% year-on-year (YoY) decline in net profit at ₹70.5 crore for the third quarter that ended December 31, 2024.
In the corresponding quarter of the previous fiscal, JM Financial posted a net profit of ₹89.8 crore, the company said in a regulatory filing. The company's revenue from operations dipped 3.8% to ₹209.2 crore as against ₹217.5 crore in the corresponding period of the preceding fiscal.
JM Financial has pivoted from an on-balance sheet model to syndicating transactions to investors. As a result, the loan book across wholesale real estate, financial institutions, and MSMEs has reduced from ₹7,529 crore as of March 31, 2024, to ₹4,207 crore as of December 31, 2024.
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Notably, the provision coverage ratio for the wholesale real estate loan book has increased substantially from 54% to 93%, with the gross NPA remaining stable at ₹685 crore. Additionally, JM Financial's cash and cash equivalents rose to ₹5,840 crore from ₹4,769 crore, while group borrowings decreased from ₹16,145 crore to ₹12,143 crore over the same period.
In terms of growth, the Integrated Investment Banking division has been highly successful, closing 42 deals that cumulatively raised ₹88,996 crore in CY24, securing the top spot for the highest number of QIP deals. The Private Wealth AUM grew 18% year-on-year to ₹77,024 crore.
The Platform AWS business, which includes asset management, wealth management, and securities, also reported strong growth. The SEBI Margin Trade Financing book saw a 38% year-on-year increase to ₹2,093 crore, while retail and elite wealth AUM grew by 12% and 42%, respectively. The mutual fund business closed AUM grew nearly three times to ₹13,871 crore, with equity schemes crossing ₹10,000 crore in AUM.
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In the mortgage lending segment, JM Financial saw a reduction in its wholesale mortgage loan book, driven by strong repayments, and the provision coverage ratio for the segment increased to 94%.
Retail mortgage lending also performed well, with AUM growing 33% year-on-year to ₹2,588 crore and a branch network expansion to 128 branches. Lastly, JM Financial’s Asset Reconstruction Company (JMFARC) reported an AUM of ₹12,842 crore, with gross recoveries of ₹1,129 crore for the quarter.
The results came after the close of the market hours. Shares of JM Financial Ltd ended at ₹106.65, down by ₹0.85 or 0.79 % on the BSE.
