JM Financial today reported a marginal rise in net profit at Rs 118.60 crore for the third quarter of the current fiscal, up 1.28 per cent from year ago.
The company had posted a net profit of Rs 117.11 crore in the October-December quarter of previous fiscal.
Total income of the company rose by 39.43 per cent to Rs 593.97 crore for the reported quarter as against Rs 426 crore year earlier.
For the quarter under review, JM Financial said the profit and loss account was consolidated as JM Financial Asset Reconstruction Company became its subsidiary from being an associate earlier.
"The Indian economy witnessed a challenging period during the third quarter as it had to cautiously manoeuvre through the effects of demonetisation. While this will have a near term impact on the economy, the long term growth tailwinds remain intact," said Vishal Kampani, MD, JM Financial Group.
Company's fund based business, mainly developer financing remained resilient during the period.
"Decline in interest rates and passing of Real Estate Regulatory Act (RERA) will augur well for organised players like us to gain market share. We have made an application to National Housing Bank for our foray into housing business with a focus on affordable housing," he added.
Going forward, the company sees strong pipeline of opportunities in the ARC space driven by RBI's thrust on banks to significantly reduce their non-performing assets over the coming year, the company said in a statement.
As on December 31, 2016, the lending book of JM Financial stood at Rs 4,088 crore. Of this, corporate and capital market lending book was at Rs 2,174 crore and for real estate it stood at Rs 1,914 crore.
The company said it has applied to Sebi for a category II alternative investment fund (AIF) registration to launch a new private equity fund JM Financial India Fund II.
The board of directors have also declared an interim dividend of Re 0.65 per share for 2016-17.
This interim dividend, will be paid on and from February 6, 2017, said the company.
JM Financial provides services like investment banking, institutional equity sales, trading, research and broking, wealth management, non-banking finance products and asset reconstruction.
Stock of JM Financial closed 1.97 per cent higher at Rs 72.50 on BSE.
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