JM Financial Q1 results: Co reports record 117% jump in net profit, aided by share sales fees

JM Financial Services Wednesday reported a 117 percent jump in net profit during the April-June quarter as a flood of public share sales primarily boosted its fee income for helping companies raise money.

The diversified financial services company posted a net profit of Rs 203.14 crore in the three-month period compared with Rs 94 in the corresponding period last year. The quantum jump marked the highest ever quarterly profit by JM financial.

“Investment banking has demonstrated strong performance and the pipeline is robust,” said Vishal Kampani, Managing Director, JM Financial Group. The Alternative and Distressed credit business witnessed significant recovery during the quarter and contributed to the overall profitability of the Group.”

During the period income from fees and commission was at Rs 211 crore, more than two and a half times higher than a year ago.

JM helped arrange initial public offers of companies including Sona BLW Precision Forgings, Macrotech Developers and Shyam Metalics and Energy.

It was associated with the qualified institutional placement of IDFC First Bank, a new-age private sector lender.

Besides, JM Financial was involved in many other Offer for Sale (OFS) and rights issues that took place during the quarter.

On the debt capital side, the investment banking arm helped Muthoot Finance and India Grid Trust raise bonds via public issues.

Its consolidated loan book expanded to Rs 11,014 crore as on June 30, 2021, a marginal rise of 1.67 percent year-on-year basis.

The share of gross bad loans rose to 3.46 percent of total loans from 1.80 percent in the first quarter last fiscal year.

JM made additional gross provisions (including fair value loss) of Rs 132 crore on account of the uncertainties around Covid-19 for the quarter ended June 30, thereby taking the total provisions to Rs. 515 crore on account of the pandemic, the company said in a release.