JM Finance reports 20% jump in Q3 profits aided by investment banking revenues

MUMBAI - JM Financial reported a 20 percent year-on-year jump in the third quarter net profits as the financial services company earned higher revenues helping companies to sell equity shares and bonds.

Its net profits were at Rs 216.80 crore in the December quarter compared with Rs 180.76 crore in the corresponding period a year ago. The board of directors declared an interim dividend of Re. 0.50 per share of the face value of Re.1 each.

“We are actively looking to grow the loan book across our lending segments and are witnessing strong traction particularly in bespoke finance,” said Vishal Kampani, non-executive chairman, JM Financial.

Investment banking arm, which is engaged in equity share and bond sales posted a 24 percent spike in revenues to Rs 361 crore year-on-year. Revenues from asset and wealth management segments grew 38 percent to Rs 187 crore.

Home loans, alternative and distressed assets witnessed revenue falls during the three-month period.

JM was involved in share sales of Adity Birla Sun Life AMC, Bharti Airtel, Sapphire Foods that runs KFC and Pizza Hut as flagship brands, CMS Info Systems, Route Mobile, API Holdings, Car Dekho via initial public offers, rights issue, qualified institutional and private placements.

It helped lenders including Canara Bank, Punjab National, Bank of Baroda and Union Bank of India to sell perpetual and tier-II bonds in the local market.

On the private sector side, it sold local bonds on behalf of M&M Finance and Tata Capital.

During the quarter, the consolidated loan book expanded 8 percent to Rs 11,240 crore.