JM Financial Q3 net up 64.45 pc at Rs 59.50-crore

Mumbai, Jan 31 (PTI) Integrated financial servicesprovider, JM Financial, today reported a 64.45 per centincrease in its net profit at Rs 59.50-crore for the third-quarter (Q3) FY 11 as against Rs 36.18-crore in the year-agoperiod.

The company''s total income rose by 70.93 per cent to Rs276.37-crore as compared to Rs 161.68-crore in the same periodlast year, a press release issued here said.

During the quarter, the company''s investment bankingbusiness sealed three deals including public issues of BSTranscomm of Rs 190-crore and Claris Lifesciences of Rs300-crore and an advisory transaction for investment of USD125-million in JSW Infrastructure, the release said.

"The investment advisory and distribution businesscontinued gathering momentum in the distribution of equity andfixed income products. The distribution business has donereasonably well on account of a surge in IPO mobilisations,"JM Financial Group Chairman, Nimesh Kampani, said.

While the securities funding and fund-based activitiesand alternative asset management businesses of JM Financialcontinued to gain momentum in the quarter as compared to Q2 ofFY 11, its mutual fund business continued to be underpressure.

The average assets under management (AUM) for Q3 stood ataround Rs 6,209-crore, as against Rs 6,525-crore reported inQ2 FY 11, the release said. .

The average AUM for the quarter under equity schemes was Rs 1,287-crore and under debt schemes Rs 4,922-crore, it said.

There has been an increase in the margin funding booksize over the previous quarter on account of 17 IPOs and FPOshitting the market, the release said.

The overall margin financing book size of the companyincreased by around 14 per cent to Rs 1,869-crore in Q3 asagainst Rs 1,604-crore reported in Q2 FY 11.

The average book for the quarter ended December 31, 2010,was at Rs 1,784-crore, the release said.

The total book size as on December 31, 2010 was at aroundRs 574-crore.

During the quarter, the asset reconstruction businessmade good progress and acquired more NPAs. "The quarter alsosaw enhancement in revenue and profitability due to resolutionof assets by the distressed assets business," he said.

The combined AUM/AUA of the private equity fund, realestate fund and special situations fund stood at around Rs1,725-crore, the release said.

The private equity fund is in its advanced stage ofclosing an investment transaction and with this, the fundswould get fully deployed, it said.

The real estate fund has executed term sheets for two newinvestments, which are subject to final due diligence anddocumentations, Kampani said.

"Infinite India, the investment manager to the realestate fund sponsored by JM Financial Group, has finalisedplans to launch a new real estate domestic fund forinvestments in income generating assets. In principle approvalfrom SEBI for registration as Venture Capital Fund has beenobtained," he added.

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