JM Financial (523405) Q2 24/25 earnings summary

Executive summary

• RBI lifted restrictions on loan-against-shares and debentures, enabling renewed growth in this segment.

• Strategic pivot underway from on-balance sheet wholesale lending to off-balance sheet, syndication-driven model, focusing on high ROE businesses and consolidating private credit expertise.

• Strong traction and market share gains in capital markets, corporate advisory, wealth, and asset management, supported by significant investments and digital expansion.

• Affordable home loans business expanded to 126 branches, with strong growth expected during the festival season.

• Group comprises multiple subsidiaries and an associate, with results consolidated as per Ind AS 34.

Financial highlights

• Q2 FY25 consolidated revenue: ₹1,211.21 crore, up 10.7% QoQ; PAT after non-controlling interest: ₹232 crore, up 19% YoY and 36% QoQ.

• H1 FY25 consolidated revenue: ₹2,305 crore; PAT after non-controlling interest: ₹403 crore, up 12% YoY.

• Basic and diluted EPS for Q2 FY25: ₹2.43 (consolidated); book value per share: ₹90.6.

• Gross NPA for Q2 FY25: ₹835 crore (7.3% for mortgage lending); provision coverage ratio increased to 70.4–77%.

• One-time deferred tax credit of ₹39 crore due to capital gains tax rate change.

Outlook and guidance

• Continued focus on growing affordable home loans AUM to ₹3,000 crore by March 2025 and scaling up asset management and wealth platforms.

• Bespoke lending book to be maintained at ₹2,500–3,000 crore, with increased syndication.

• SEBI margin trade financing loan book targeted to reach ₹2,500 crore by March 2025.

• Dividend payout expected to increase due to low incremental capital requirements.

• Awaiting RBI approval for major group restructuring transactions, which will impact future periods.