Diversified financial services player JM Financial Thursday reported an 8.2 per cent growth in consolidated net income at Rs 163.4 crore for the three months to September due to higher tax payout.
The company, which saw total income grow 27 per cent to Rs 975.70 crore for the quarter over the same period last year, attributed the lower bottomline growth to higher tax outgo as it does not create deferred tax assets.
Net income after tax but excluding minority interest rose 14 per cent to Rs 240.27 crore, it said in a statement.
Despite trying times, the company improved its asset quality with gross NPAs and net NPAs improving to 0.5 per cent and 0.4 per cent respectively from 0.6 per cent and 0.5 per cent each on a sequential basis. It did not share the comparative numbers on an annualised basis.
For the first half of the fiscal, its consolidated net rose 10.2 per cent to Rs 306.1 crore on an income of Rs 1,828.17 crore, which was up 21.9 per cent.
Commenting on the results Vishal Kampani, group managing director said, "our conservative lending philosophy, focus on balancesheet and asset liability management framework has helped us maintain adequate liquidity buffers."
During the quarter, it also announced equity fund raising of Rs 875 crore in JM Financial Credit Solutions to strengthen the balance sheet and meet its growth requirement.
On the ARC business, he said the company is "witnessing exciting opportunities in the distressed credit space. We believe our diverse set of businesses, strong underwriting processes and operating capabilities will hold us in good stead to achieve long term growth and help us moderate the impact of volatile market conditions."
The company closed nine deals during the quarter, for three distressed accounts as part of debt aggregation.
Its outstanding security receipts (SRs) stood at Rs 14,257 crore, up from Rs 13,294 crore in the June quarter. Of this, contribution of JM Financial Asset Reconstruction Company stood at Rs 3,212 crore as of September, up from Rs 2,260 crore in June.
During the quarter, average daily trading volume stood at Rs 6,045 crore while loan book in the IWS segment stood at Rs 8,176 crore.
Its IPO financing business funded 14 issues worth around Rs 7,183 crore.
Its AUM of private equity and real estate funds stood at Rs 802 crore of which new private equity fund has a cumulative commitment of Rs 346 crore.
Its mortgage lending book stood at Rs 8,792 crore, while wholesale mortgage lending arm which focuses on tier 1 cities of Mumbai, Pune, Bangalore, Chennai, Hyderabad, Kolkata and Delhi NCR.
During the quarter, Banks/NBFCs announced various NPA portfolio auctions and we continued to actively participate in the same.
The company said its consolidated networth stood at Rs 4,923 crore while the debt equity ratio stood at 2.61 times.
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