JM Financial announces unaudited financial results for the quarter and half year ended September 30, 2009

Mumbai, October 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 and half year ended September 30, 2009.

Consolidated Results – Key Highlights:

FY 10 – Q2 compared to FY 09 – Q2

Ø       Total income at Rs. 165.07 crore compared to Rs. 135.36 crore

Ø       Net operating profit before tax at Rs. 78.57 crore compared to Rs. 20.18 crore.

Ø       Net profit after tax, minority interest and share of associates, at Rs. 56.93 crore (after reversal of provision of Rs. 9.60 crore for mark-to-market loss on securities held as a result of underwriting and other long term investments) compared to Rs 20.89 crore.

Earnings Per Share (EPS) for the quarter ended September 30, 2009 is Re. 0.76 (not annualised).

FY 10 – H1 compared to FY 09 – H1

Ø       Total income at Rs. 270.20 crore compared to Rs. 278.36 crore

Ø       Net operating profit before tax at Rs. 121.52 crore compared to Rs. 52.29 crore.

Ø       Net profit after tax, minority interest and share of associates, at Rs. 88.13 crore (after reversal of provision of Rs. 27.22 crore for mark-to-market loss on securities held as a result of underwriting and other long term investment) compared to Rs 39.23 crore.

Earnings Per Share (EPS) for the half year ended September 30, 2009 is Rs. 1.18 (not annualised).

Announcing the results, Mr. Nimesh Kampani, Chairman, JM Financial Group said, "The last quarter has shown increased momentum resulting in greater business activity. The surge in the capital markets activity has resulted in improved performance in investment banking and broking business, both, retail and institutional. If the capital markets activity sustains at higher level the performance of Asset Management businesses is also expected to pick up pace. With a positive outlook on market developments, JM Financial Group remains committed to identifying suitable opportunities that will help create value for all its stakeholders."

Business Update

Investment banking and securities:

On the back of steady inflows from the institutional investors and opening up of credit markets, both capital markets and merger & acquisitions activity have seen an increase in volumes.

The Institutional equity business also continues to see good momentum in the equity business in line with the markets.

Securities funding and fund based activities:

Fund-based activities gained momentum with a pick up in the issues in primary market and volumes in secondary market. Competitive borrowing rates also contributed to increase in revenue. Revenues from trading activities in debt segment increased and are expected to maintain momentum in the coming quarter.

The distressed asset business continues to examine and invest in interesting opportunities for acquisition of non-performing assets and their subsequent resolution.

Alternative Asset Management:

During the quarter, the private equity fund made a new investment in the healthcare space.

The real estate fund has been focusing on portfolio management in its existing investments. No new investments have been made during the last quarter. However with the gradual recovery in the real estate sector, the fund is looking at making further investments.

Asset Management:

The asset management (mutual fund) business has done reasonably well during the quarter.

The total AUM as on September 30, 2009 stood at around Rs. 6,724 crore, up from Rs. 6,365 crore as of June 30, 2009. This comprises AUM under Equity schemes at Rs. 2,672 crore and under Debt Schemes at Rs. 4,052 crore against Rs. 2,569 crore and Rs. 3,796 crore respectively as on June 30, 2009

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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.