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

The company’s total income rose by 70.93 per cent to Rs 276.37-crore as compared to Rs 161.68-crore in the same period last year,a press release issued here said.

During the quarter,the company’s investment banking business sealed three deals including public issues of BS Transcomm of Rs 190-crore and Claris Lifesciences of Rs 300-crore and an advisory transaction for investment of USD 125-million in JSW Infrastructure,the release said.

“The investment advisory and distribution business continued gathering momentum in the distribution of equity and fixed income products. The distribution business has done reasonably well on account of a surge in IPO mobilisations,” JM Financial Group Chairman,Nimesh Kampani,said.

While the securities funding and fund-based activities and alternative asset management businesses of JM Financial continued to gain momentum in the quarter as compared to Q2 of FY 11,its mutual fund business continued to be under pressure.

The average assets under management (AUM) for Q3 stood at around Rs 6,209-crore,as against Rs 6,525-crore reported in Q2 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 book size over the previous quarter on account of 17 IPOs and FPOs hitting the market,the release said.

The overall margin financing book size of the company increased by around 14 per cent to Rs 1,869-crore in Q3 as against 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 around Rs 574-crore.

During the quarter,the asset reconstruction business made good progress and acquired more NPAs. “The quarter also saw enhancement in revenue and profitability due to resolution of assets by the distressed assets business,” he said.

The combined AUM/AUA of the private equity fund,real estate fund and special situations fund stood at around Rs 1,725-crore,the release said.

The private equity fund is in its advanced stage of closing an investment transaction and with this,the funds would get fully deployed,it said.

The real estate fund has executed term sheets for two new investments,which are subject to final due diligence and documentations,Kampani said.

“Infinite India,the investment manager to the real estate fund sponsored by JM Financial Group,has finalised plans to launch a new real estate domestic fund for investments in income generating assets. In principle approval from SEBI for registration as Venture Capital Fund has been obtained,” he added.