JM Financial announces unaudited financial results for the quarter ended June 30, 2009

Mumbai, July 29, 2009: The Board of Directors of JM Financial Limited, at its meeting held today, considered and approved the unaudited financial results for the quarter ended June 30, 2009.

Consolidated Results – Key Highlights:

FY 10 – Q1 compared to FY 09 – Q1

Ø       Total income at Rs. 105.13 crore compared to Rs. 143.00 crore

Ø       Net operating profit before tax stood at Rs. 42.94 crore compared to Rs. 32.11 crore.

Ø       Net profit after tax, minority interest and share of associates, at Rs. 31.20 crore, after reversal of provision of Rs.15.78 crore for mark-to-market loss on securities held as a result of underwriting compared to Net profit after tax, minority interest and share of associates at Rs 18.34 crore.

The Earnings Per Share (EPS), on weighted average number of shares, for the quarter ended June 30, 2009 is Rs. 0.42 (not annualised).

Business Update

Investment banking and securities:

Capital market activities have started to pick-up pace. Overall, there have been 16 equity issuances, majority of which were QIPs. The investment banking business is also showing signs of improvement.

The Institutional equity business is growing at a steady pace with its focus on research. More than 100 companies involving 18 sectors are currently under coverage. The business is now contributing to the bottom line of the consolidated results of the Company.

Securities funding and fund based activities:

IPO financing is expected to rise with the increase in equity issuances thereby enabling the NBFC business to expand its securities funding activity further. The margin funding business is also expected to grow with the revival seen in the secondary market.

The NBFC has not made any provision on standard assets during the quarter as the aggregate provision made till March 31, 2009 is adequate.

Although the economy is revitalising, we believe that the distressed assets business will continue to offer interesting opportunities.

Alternative Asset Management:

At the end of the quarter, the combined AUM / AUA of the private equity fund, real estate fund, and special situations group stands at around Rs. 3,300 crore. During the quarter, the private equity fund has exited one investment in financial services and infused further capital into two of its existing portfolio companies. The real estate fund has been focusing on portfolio management in its existing investments. No realisations have been made from any of the investments as all projects are in the planning or development phase. No new investments have been made during the last quarter.

Asset Management:

With 59 branches all over India, the Asset Management (Mutual Fund) business has done reasonably well during the quarter.

The total AUM as on June 30, 2009 stood at around Rs. 6,365 crore, up from Rs.4,787.56 crore as of March 31, 2009. This comprises AUM under Equity schemes at Rs. 2,569 crore and under Debt Schemes at Rs. 3,796 crore.

-ends-

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries, joint ventures and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.