JM Financial announces unaudited financial results for the quarter and nine months ended December 31, 2009

Mumbai, January 27, 2010: The Board of Directors of JM Financial Limited, at its meeting held today, considered and approved the unaudited financial results for the quarter and nine months ended December 31, 2009.

Consolidated Results – Key Highlights:

FY 10 – Q3 compared to FY 09 – Q3

Ø  Total income at Rs. 157.10 crore compared to Rs. 110.43 crore.

Ø  Net operating profit before tax stood at Rs. 47.00 crore as against a loss of Rs. 226.81 crore.

Ø  Net profit after tax, minority interest and share of associates, at Rs. 36.18 crore, as against a Net loss after tax, minority interest and share of associates at Rs 230.04 crore.

The Earnings Per Share (EPS), for the quarter ended December 31, 2009 is Re 0.48 (not annualised).

FY 10 – 9 months compared to FY 09 – 9 months

Ø  Total income at Rs. 427.30 crore compared to Rs. 388.80 crore

Ø  Net operating profit before tax stood at Rs. 168.52 crore as against a loss of Rs. 174.52 crore.

Ø  Net profit after tax, minority interest and share of associates, at Rs. 124.31 crore, as against a Net loss after tax, minority interest and share of associates at Rs 190.81 crore.

The Earnings Per Share (EPS), for the nine months ended December 31, 2009 is Rs1.66 (not annualised).

Announcing the results, Mr. Nimesh Kampani, Chairman, JM Financial Group said, “During the quarter, our NBFC has done well in the margin funding business as well as fixed income business seeing good momentum. The Institutional Equities division has also grown steadily focusing on providing quality research and analyses. We believe that the distressed assets business will continue to sustain and provide good investment opportunities. While the environment remains challenging, we will continue to have a strong financial services franchise catering to our large client network. JM Financial Group remains committed to providing quality advice and returns to all its clients and shareholders.”

Business Update

Investment banking and securities:

The Investment banking business had two deal closures during the quarter. These include public issue of JSW Energy Limited of Rs.2,700 crore and QIP for HCL Infosystems Limited of Rs.473 crore.

The Institutional equity business continues to grow at a steady pace with its focus on greater client and research coverage.

Securities funding and fund based activities:

IPO financing business was lackluster on account of reduced client interest in borrowing for IPOs. On the other hand, margin funding business maintained the momentum during the quarter. Revenues from trading activities in fixed income segment continued to build up.

The distressed assets business continues 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. 2,750 crore. During the quarter, the private equity fund and the real estate fund have not made any fresh investments and they remained focused on its existing investments. 

Asset Management:

The total AUM as on December 31, 2009 stood at around Rs. 6,605 crore, down from Rs.6,724 crore as of September 30, 2009. This comprises AUM under Equity schemes at Rs. 2,565 crore and under Debt Schemes at Rs. 4,040 crore.

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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.