JM Financial (523405) Q3 24/25 earnings summary

Executive summary

• Strategic pivot from on-balance sheet wholesale credit to syndication and high-ROE businesses, with increased focus on capital markets, wealth, asset management, and affordable home loans.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board and auditors, with unmodified opinions issued.

• Results include JM Financial Limited, 16 subsidiaries, and one associate, reflecting the Group's diversified financial services operations.

• Continued investment in talent and digital platforms, especially in wealth and broking, to capitalize on market opportunities.

• Investment bank led segment performance with ₹153 Cr PAT in Q3FY25, while mortgage lending and alternative credit segments saw lower profits.

Financial highlights

• Q3 FY25 revenue at ₹1,121 crore; profit after tax (PAT) at ₹209 crore; nine months ended December 2024: revenue at ₹3,426 crore, PAT at ₹612 crore.

• Consolidated total income for Q3 FY25 was ₹1,120.54 crore, down from ₹1,260.96 crore in Q3 FY24; nine-month income was ₹3,425.62 crore, down from ₹3,556.04 crore year-over-year.

• Net profit after tax and share in associate for Q3 FY25 was ₹207.39 crore, compared to ₹322.35 crore in Q3 FY24; nine-month net profit was ₹538.57 crore, down from ₹704.85 crore year-over-year.

• Cash and cash equivalents increased to ₹5,840 crore; group borrowing reduced to ₹12,143 crore.

• Consolidated net worth at ₹8,874 crore; book value per share at ₹92.8.

Outlook and guidance

• Strong deal pipeline in investment banking and syndication, with expectations of continued market share and growth.

• Continued focus on high-ROE businesses and off-balance sheet models, with investments in digital, wealth, and asset management infrastructure to continue over the next 12–24 months.

• Affordable home loans and digital broking expected to drive future growth.

• Anticipated write-backs in credit solutions as provisions reach near 100%, with future growth focused on syndication.

• The impact of SEBI's order restricting new lead manager mandates in public debt issues until March 31, 2025, remains uncertain and will be assessed in future periods.