JM Financial's Q2 net profit up 83% over last year

Institutional, merchant banking businesses see action

JM Financial's latest quarterly results showed a rise in total income and net profit, helped by a pick-up in its institutional equities and investment banking activities.

The net profit available to ordinary shareholders (after taxes, and share of profits due to associates and other minority stakeholders in its various businesses) rose to Rs.92.19 crore.

This is up 83% over the same quarter last year, according to a statement issued by the company. Total income was up 52% in the same period. It rose from Rs.247.67 crore to Rs.377.23 crore.

Both foreign institutional activity and mutual fund investments have increased following expectations of market-friendly reforms from the new government at the centre, according to the result press statement.

"While all our businesses have done well during the quarter, our fee based business has been a significant contributor to our growth. Our fund based business has been very selective and we continue to remain focus on the asset quality and net interest margin. In spite of our low leverage, we have been able to garner higher returns," said Nimesh Kampani, Chairman, JM Financial Group.

The funding book has reached Rs.4067 crore, according to the company statement. The mutual fund arm's average assets under management has risen to Rs.11976 crore, it said.