JM Financial consolidated net nearly doubles to Rs 87 cr

Diversified financial services firm JM Financial Group, promoted by noted rainmaker Nimesh Kampani, today reported near doubling of its consolidated net at Rs 87 crore in the December quarter, up from Rs 44.16 crore a year ago.
The city-based group said its consolidated net profit, after tax, minority interest and share of associates increased 97 per cent to Rs 87.03 crore during the reporting period, while revenue jumped 65 per cent to Rs 366.56 crore.
Commenting on the healthy set of numbers, chairman Nimesh Kampani said during the quarter the company continued to drive profitability and revenue growth, with continuous efforts at strengthening all businesses which remains the central focus. But he did not offer any insights into the key drivers of the profitability during the quarter.

The group's fund-based activities and AMC businesses done well during the quarter, he said, adding "Our focus on asset quality and net interest margin provides a solid foundation to our growth in the fund based business."
He said the company has concluded Rs 540 crore of investment into the group by a global fund led by the ex-Citi chief Vikram Pandit, while the company infused Rs 360 crore into the businesses. This has taken the overall funding book to Rs 4,856 crore, he added.
The board has declared an interim dividend of Re 0.55 per share of the face value of Re 1, which will result in cash outflow of Rs 45.38 crore,including dividend distribution tax.

Its AMC business continued to grow during the quarter, taking the average AUM to Rs 14,240 crore out of which Rs 7,128 crore were into equity schemes and Rs 7,112 crore were in debt schemes.

I-banking and securities business grew well with it managing the Rs 400-crore QIP issue from Ceat, Rs 175-crore investment by Premji Invest into Future Group and the Rs 2,295-crore open offer by Network 18 Group during the quarter.
Kampani said the pipeline of the company's i-banking business continues to remain healthy with several mandated transactions under execution.
Its wealth management business AUM rose to Rs 20,188 crore, while distribution business grossed up over Rs 850 crore in fixed deposit schemes.

JM Financial Group is into i-banking, institutional equities, trading, research and broking, private and corporate wealth management, equity broking, portfolio management, asset management, commodity broking, fixed income broking, NBFC, private equity and asset reconstruction.