Financial services JM Financial reported a consolidated income of Rs 841.13 crore in the fourth quarter ending March 31, 2021, a marginal rise. For FY 2021, the company reported a consolidated income of Rs 3,226.63 crore, a decline of 6.57 per cent, from Rs 3,453.55 crore in FY 2020.
The company’s net profit was at Rs 233.34 crore for Q4 2021, a jump of 42.23 per cent compared to Q4 2020. Meanwhile, the consolidated net profit (excluding share in profit of associate) of JM Financial’s was at Rs 806.06 crore in FY 2021, an increase of over 3.60 per cent.
In the year ending March 31, 2021, the company’s expenses were down by 8.48 per cent, to Rs 2,159.78 crore compared to Rs 2,360.03 crore. In Q4 FY 2021, the consolidated expenses of the company was down by around 15.47 per cent, at Rs 528.73 crore, compared to Q4 of FY 2020.
On a consolidated basis, the Group has identified four reportable segments, namely, Investment Banking, Wealth Management & Securities Business (IWS); Mortgage Lending; Distressed Credit and Asset Management.
The Board of Directors of the Company has recommended a dividend of Re. 0.50 per share of the face value of Re.1 each. The dividend, if declared, at the Thirty Sixth Annual General Meeting, will result in cash outflow of Rs 47.64 crore, the company stated in its filing.
The consolidated financial results for the last quarter and for the financial year ended March 31, 2021 include incremental impairment provision of Rs 22.43 crore and Rs 207.55 crore respectively on account of the pandemic. “The said provision is in addition to the impairment provision and fair value loss aggregating Rs 175.21 crore for the year ended March 31, 2020, which significantly included potential impact on account of the pandemic,” the company added.
The standalone total income of the company for Q4 FY 2021 was at Rs 132.98 crore, up from Rs 90.69 crore in March quarter of FY 2020. The company’s profit after tax stood at Rs 68.66 crore in Q4 FY 2021 and Rs 175.23 crore in full FY 2021.
Vishal Kampani, Managing Director, JM Financial Group, said, “FY20-21 has been one of the most challenging years amidst the uncertainties on account of COVID-19. In spite of the economic volatility during the year, the capital markets remained strong on the back of strong liquidity. We are pleased to report that we have concluded the financial year on a positive note, banking on our diversified and resilient business model with strong performance across our business segments."
He added the investment banking, wealth and securities businesses have done exceedingly well and our pipeline for these businesses is extremely healthy. "Despite the challenges from COVID-19, we had strong recoveries in our distressed credit business in FY2020- 21. Our retail mortgage business has gained momentum and its further build will be a key focus area. The lending book continues to remain robust and asset quality is in check.”