JM Financial

JM Financial announces unaudited financial results for the quarter ended June 30, 2010.

Mumbai, July 28, 2010: The Board of Directors of JM Financial Limited, at its meeting held today, has considered and approved the unaudited financial results for the quarter ended June 30, 2010

Ø Net operating profit before tax stood at Rs. 40.54 crore as compared to Rs.42.94 crore.

The Earnings Per Share (EPS), for the quarter ended June 30, 2010 is Re 0.39 (not annualised).

Given the positive and encouraging trend, we are poised to capture various opportunities that come up and look forward to continuing the growth momentum over the next quarter to further strengthen our position as India’s premier financial services Group.”

The Investment banking business had six deal closures during the quarter. These include IDR of Standard Chartered Bank aggregating Rs.2,456 crore, public issues of Jaypee Infratech Limited for Rs. 2,262 crore, SJVN Limited for Rs.1,063 crore, Nitesh Estates Limited for Rs. 405 crore and Shriram Transport Finance Company Limited for Rs. 500 crore, and a QIP of Deewan Housing Finance Corporation Limited for Rs. 375 crore.

The Institutional Equities business has added new clients and increased the number of companies under its research coverage to 132.

Investors continue to remain cautious but the demand for margin financing has been slowly gaining momentum resulting in an increase in the book size over the previous quarter. Interest spreads continue to be stretched on account of increased competition and premium customers demanding finer rates. The focus on the trading in fixed income securities has been enhanced. The peak trading position was at Rs 604 crore during the quarter and the book size was around Rs. 448 crore as on June 30, 2010.

With the development in the distressed assets market, the business will continue to offer interesting opportunities.

At the end of the quarter, the combined AUM / AUA of the private equity fund, real estate fund, and special situations fund stands at around Rs.1,725 crore. During the quarter, the private equity fund made a new investment in the financial services space. Further investments are being evaluated in the real estate sector as the Fund witnessed a number of quality investment opportunities. The funds hope to complete its investment program soon and focus its attention on asset management and investment monetization.

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 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.