Home / Companies / Company Results /  JM Financial’s Q1 FY22 net profit rises 117% to Rs203 crore

JM Financial, a diversified financial services company, reported its highest ever quarterly net profit, a 117% rise in its June quarter, aided by a growth in investment banking, wealth management, and securities business.

During the April-June period, JM’s net profits were at 203.14 crore against 93.61 crore in the corresponding period a year ago. The year ago period was impacted due to the nationwide lockdown implemented by the central government.

Gross NPA and Net NPA stood at 3.46% and 1.89% respectively as of June 30, 2021 compared to 1.80% and 1.22% respectively as of June 30, 2020. During the quarter, it made additional gross provisions of Rs. 132 crore on account of the uncertainties around covid-19 for the quarter ended June 30, 2021, aggregating to Rs. 515 crore on account of the pandemic.

Vishal Kampani, Managing Director, JM Financial Group, said, “We have reported our highest ever quarterly operating net profit. Our diversified business model has demonstrated time and again resilience through economic and market volatility. Over the last few years, the integration amongst the various sub businesses in IWS has worked extremely well.

As of June 30, 2021, the consolidated loan book stood at Rs. 11,010 crore, distressed credit business AUM at Rs. 10,880 crore, wealth management AUM at Rs. 78,320 crore, mutual fund AAUM at Rs. 2,130 crore.

The AUM of wealth businesses rose 65% to Rs. 78,320 crore for the June 2021 quarter against 47579 crore for the same quarter last year. It comprises of Private wealth management at Rs. 60,385 crore, Retail wealth management at Rs. 17,276 crore and Elite wealth management at Rs. 659 crore.

“The Investment Bank has demonstrated strong performance and the pipeline is robust. The Alternative and Distressed credit business witnessed significant recovery during the quarter and contributed to the overall profitability of the Group. Overall, our strong balance sheet, well capitalised and diverse set of businesses and strategic client-focused approach positions us to perform well and drive sustainable value for our stakeholders as we are hopeful about economic revival in the year ahead" Kampani added.

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