JM Financial Reports Strong Q1 FY25 Performance

JM Financial Limited announced robust financial results for the first quarter ended June 30, 2024, reflecting growth across key business segments.

Key Highlights

• Strong growth in private wealth and PMS AUM
• Expansion of retail mortgage lending business
• Significant increase in platform AWS business
• Progress in alternative and distressed credit segment

Wholesale Credit Business

The company is undergoing a strategic shift from an on-balance sheet model to a syndication-focused approach, building a robust sales and distribution network in the private credit and alternatives space.

Integrated Investment Bank

The division witnessed strong performance, with private wealth AUM surging 27% YoY to ₹74,040 crore and PMS AUM growing 86% YoY to ₹2,325 crore. The platform’s average daily turnover increased significantly, reaching ₹60,740 crore, and the SEBI Margin Trade Financing book more than doubled.

Mortgage Lending

The wholesale mortgage lending portfolio saw a reduction due to strong repayments, while the retail mortgage business expanded its branch network and witnessed a 39% YoY growth in loan book.

Platform AWS

The asset management, wealth management, and securities businesses showcased impressive growth, with mutual fund AUM increasing over threefold to ₹9,318 crore.

Alternative and Distressed Credit

JM Financial Asset Reconstruction Company (JMFARC) reported a slight decline in AUM but successfully closed acquisition deals and implemented a resolution plan for Sevenhills Vizag Hospital.

Overall, JM Financial delivered a strong Q1 FY25 performance, driven by growth across key business segments. The company’s strategic pivot towards syndication in the wholesale credit business and expansion in the wealth management and securities platform have contributed to positive results.

These achievements position JM Financial for continued growth and success in the coming quarters.

Commenting on the results and financial performance, Mr Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said, “The growth in the key economies has been resilient as underlying inflationary pressure has moderated and as a result, a number of central banks have adopted a less restrictive monetary policy.”

He further added, “The Indian economy has demonstrated sustained resilience thanks to a positive business outlook and consumer sentiment, robust private consumption and continued momentum in manufacturing and services. A resilient capital market and strong retail participation, along with FIIs and DIIs, have set the stage for robust activities. The healthy balance sheets of banks and corporates and capex push by the government created a conducive climate for investment and growth.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.