Submission Details
• Date of submission: June 4, 2024
• Transcript of Q4 FY 2023-24 earnings call held on May 29, 2024
• Hosted by JM Financial with management members Mr. Alok Patel and Mr. Vivek Modi
• Purpose: Regulatory compliance under SEBI regulations
Company Performance Highlights
• Strong performance amid post-COVID recovery
• 30% increase in disbursements (INR 2,300 crores)
• 36% rise in consolidated assets under management (AUM) (INR 2,639 crores)
• Record profit after tax of INR 174 crores (85% YoY increase)
• Key indicators: Gross non-performing assets at 2.88%, collection efficiency at 96.6%
• Expansion of branch network and technological advancements
• Recent QIP raised INR 230 crores for capital enhancement
• Future growth target: INR 5,000 crores in AUM with balanced debt-to-equity ratio
Key Inquiries and Responses
• Lending Rates and Collection Efficiencies
• Lending rates around 11-11.5% for listed NCDs
• Reduction in lending rates for competitiveness; collection efficiencies impacted by over-lending and external pressures
• Target loan book growth of 25-30% for the financial year
• Credit Costs and Capital Adequacy
• Estimated credit costs: 2.5-3%
• Target debt-to-equity ratio of 4.5x, capital adequacy ratio of 22-25%
• Write-offs around INR 40 crores with additional provisions of INR 20 crores
• Branch Expansion Plans
• Target of 60-75 new branches, focusing on Bihar, Jharkhand, and Telangana
• Challenges in expanding rural Loan Against Property (LAP) products
• Microfinance Growth and Market Conditions
• Cautious optimism about sustainable growth in microfinance
• Acknowledgment of saturation in some areas but potential in underpenetrated markets
Operational Insights
• Increased average ticket size for microfinance loans (up to INR 60,000)
• Focus on service quality and quick loan processing over interest rates
• Strong net interest margins (NIMs) of 15% and net NPAs below 0.5%
• Cautious approach to provisioning and expected credit loss policies
Customer Credit and Operational Expenses
• 75% of customers likely have loans from other institutions, complicating assessments
• Initial operational costs may rise with expansion but stabilize by year-end
• Skepticism about shifting to a weekly collection model due to customer preferences
• No specific timelines provided for achieving INR 5,000 crores AUM target; reassessment planned in future quarters

Conference Call Overview
• Date: February 6, 2024
• Hosted by: JM Financial
• Key Management: Alok Patel (Joint Managing Director), Vivek Modi (Group CFO)
• Purpose: Provide insights into company performance and future outlook
Financial Highlights
• Qualified Institutional Placement (QIP): Completed INR 230 crores to enhance market presence.
• Assets Under Management: Grew 48% YoY to INR 2,437 crores.
• Gross Total Income: Increased by 64% to INR 169 crores.
• Profit After Tax: Rose by 91% to INR 42 crores.
• Asset Quality: Gross non-performing assets at 2.83%.
Operational Updates
• Micro LAP Pilot: Launched to provide secured business loans in rural India with positive initial results.
• Collection Efforts: Enhanced to address minor concerns regarding provisions and loan slippages.
Market Insights
• Segmental Yields: Decline attributed to RBI guidance and specific schemes affecting microfinance and MSME sectors.
• Cultural Shift: Increased borrowing culture leading to higher household debt and slippages.
• Competition: Stable landscape with varying intensity; company growth outpacing industry average.
Future Projections
• Credit Cost: Projected long-term credit cost for microfinance at around 2.5%.
• Return Targets: Aim for at least 4.5% ROA and over 25% ROE.
• AUM Growth: Long-term target of 35-40%, with potential short-term fluctuations.
Strategic Initiatives
• Branch Expansion: Focused on specific states with minimal impact from recent RBI guidelines.
• Micro LAP Details: Preliminary pilot with 22 loans issued; challenges include extensive paperwork in rural areas.
• Individual Business Loans (IBL): Currently underperforming but expected to grow as group loans decline.
Conclusion
• Management expressed optimism about growth prospects and the ability to navigate competitive challenges while maintaining strong asset quality.

Earnings Call Overview
• Date: November 3, 2023
• Submission to: BSE and NSE on November 7, 2023
• Key Management: Vice Chairman Jayendra Patel, Group CFO Vivek Modi, and Aalok Patel
Performance Highlights
• Assets Under Management (AUM):
• 60.5% year-on-year growth, reaching INR 2,304 crores
• Significant contributions from microfinance subsidiary, Namra Finance
• Consolidated Disbursements:
• Grew by 63.5% to INR 1,075 crores in H1 FY '24
• Asset Quality:
• Gross Nonperforming Assets (GNPA) decreased to 2.48%
Financial Results
• Gross Total Income:
• Increased by 73% to INR 160.3 crores for Q2
• Profit After Taxes:
• Rose by 105% to INR 40.8 crores
• Management Confidence:
• Focus on prudent lending and digital innovation for long-term goals
Key Inquiries and Responses
• Branch Expansion and Demand:
• Stable demand, slightly lower than expected, especially in Bihar
• Asset Quality Concerns:
• Slight drop in collection efficiency noted; long-term expectation of 3% loan losses
• Impact of Rate Increases:
• Significant portion of loan book adjusted to higher rates
• MSME Business Strategy:
• Challenges with high rejection rates, but growth potential acknowledged
• Two-Wheeler Financing Outlook:
• Challenges due to market shrinkage and competition; opportunities with electric vehicles
Challenges in Two-Wheeler Electric Vehicle Industry
• Key issues include:
• Rising vehicle prices
• Mandatory two-year insurance
• Reduced demand post-COVID
• Consumer hesitation due to rapid technological changes
• Concerns over charging infrastructure
• Potential removal of government subsidies
Financial Metrics and Asset Quality
• Yields and Net Interest Margins (NIMs):
• Indicated stable, with no further interest rate increases expected
• Stage 3 Delinquencies:
• Slight increase noted, particularly in Two-Wheeler segment
• Non-Performing Loans (NPLs):
• Current levels within expected ranges; monitoring ongoing
Closing Remarks
• Acknowledgment of rising NPAs in MSME and microfinance segments due to broader trends
• Minimal overlap between MSME and microfinance customers
• Higher stress levels in Maharashtra and Madhya Pradesh compared to Bihar and Uttar Pradesh
• Call concluded with management's closing remarks.

Conference Call Overview
• Date: August 18, 2023
• Submitted to: BSE Limited and National Stock Exchange of India on August 24, 2023
• Hosted by: JM Financial
• Key Management Participants:
• Mr. Jayendra Patel (Managing Director)
• Mr. Alok Patel (Joint Managing Director)
• Mr. Vivek Modi (Group CFO)
• Moderator: Akshay Jain
• Purpose: Record-keeping and factual accuracy; audio recordings available
Financial Performance Highlights
• Assets Under Management (AUM): Rs. 2143 Crores (41.6% growth in disbursements)
• Microfinance Segment: Constituted 84% of AUM
• Collection Efficiency: 98%
• Non-Performing Assets: Notable decline
• Gross Total Income: Rs. 149 Crores
• Profit After Tax: Rs. 40 Crores
• Capital Adequacy Ratio: 31.64%
• Outlook: Optimism about credit cycle and regulatory environment
Geographic Expansion Strategy
• Plans to expand in existing and new states, focusing on microfinance
• Importance of careful planning before entering new markets
Collection Efficiency Post-COVID
• Reported collection efficiency of about 98% for disbursements made post-COVID
Individual Business Loans
• Contribution to AUM: Approximately 2%
• Average yield for individual loans: Around 27%
Performance in New States
• Early assessment of performance in Jharkhand and Telangana
• Bihar identified as a leading market for microfinance
Employee Compensation and Fundraising
• Competitive overall compensation package, including ESOPs
• Recent fundraising of Rs. 115 Crores; focus on internal accruals for now
Portfolio Diversification
• Plans to explore products aligned with rural strategy despite challenges in rural mortgage paperwork
Customer Demographics and Provisions
• 20-25% of disbursements to new credit customers
• Current provisions: Rs. 73 Crores, slightly above regulatory requirements
Cost of Borrowing and Sustainability
• Average cost of borrowing for the quarter: Approximately 12.5%
• 70% of borrowing from PSU banks
• High operating costs in microfinance contribute to high yields
Conclusion
• Call concluded with gratitude expressed by Alok Patel for participant support and questions.

Conference Call Overview
• Date: June 2, 2023
• Submitted to: BSE Limited and National Stock Exchange of India on June 9, 2023
• Hosted by: Monarch Networth Capital Limited
• Key Management Present:
• Jayendra Patel (Vice Chairman and Managing Director)
• Aalok Patel (Managing Director)
• Vivek Modi (Group CFO)
• Format: Presentation followed by Q&A session
Company Performance Highlights
• Strong performance despite global economic challenges
• Resilience in the Indian economy with recovery in credit demand, especially in microfinance
• Assets Under Management (AUM): INR 1,943 crores (58% YoY increase)
• Record disbursements in Q4 FY '23: INR 631 crores
• Expansion: 44 new branches opened across eight states
• FY '23 gross total income: INR 424 crores (80% growth)
• Profit after tax: INR 94 crores (196% increase)
• Commitment to technology and customer experience improvement
Key Insights from Q&A
• Branch Expansion: Plans to open 50-70 branches; breakeven after 600-800 customers in 6-8 months.
• Demand Trends: Consistent MSME demand; Two-Wheeler demand below pre-COVID levels.
• Financial Asset Gain: INR 12 crores recognized upfront; yield for microfinance borrowers: 24%-27%.
• Product Innovations: Focus on durable financing and rural two-wheeler loans over the next 12-24 months.
• Individual Business Loan (IBL): Represents 2-3% of the portfolio; future growth area.
Challenges and Projections
• Asset quality issues, particularly in Maharashtra; credit costs projected at 2-2.5% for FY '24.
• Aiming for consistent annual growth rate of 35-40%.
• Portfolio growth in Bihar projected to increase from 6-7% to 12-13%.
Technology and Operations
• Investment in technology via SaaS model; annual costs between INR 2.5 to 3 crores.
• Focus on customer acquisition and branch expansion; no immediate plans to raise ticket sizes.
Market Insights
• Microfinance loans primarily for income-generating activities; significant portion for cattle farming.
• Uttar Pradesh contributes about 30% of the portfolio; plans to diversify operations.
Financial Management
• Debt-to-equity ratio currently at 4x; cap of 5x mentioned for future fundraising.
• Capacity to raise INR 2,500 crores without direct assignments; plans for additional equity raising.
Human Resources
• Departure of Chief Risk Officer (CRO) due to personal obligations; recruitment process ongoing.
• Emphasis on employee retention strategies, including ESOP program and no layoffs during COVID-19.
Conclusion
• Management expressed confidence in maintaining a loyal workforce and internal promotions.
• Call concluded with an invitation for further questions and appreciation for attendees.

Submission Details
• Date of submission: February 23, 2023
• Conference call date: February 16, 2023
• Moderated by: Jignesh Shial (InCred Equities)
• Key speakers: Aalok Patel (Joint Managing Director), Vivek Modi (Group CFO)
• Purpose: Provide insights into company performance
Economic Overview
• Global economic recovery noted, especially in Western economies and China.
• Indian economy projected to grow by 6.5% in FY24.
• Microfinance sector rebounding post-COVID.
Financial Performance Highlights
• Q3 disbursements increased by 61.2% to INR 478 crores.
• Nine-month disbursements rose by 65.8% to INR 1,135 crores.
• Assets under management grew by 57.2% year-on-year to INR 1,642 crores.
• Gross total income: INR 103 crores.
• Profit after tax tripled to INR 22 crores.
• Improved asset quality metrics and healthy liquidity position.
Strategic Initiatives
• Introduction of individual business loans for microfinance customers with a 100% repayment rate.
• Received highest MFI-1 grading from CARE Ratings.
• Focus on scaling disbursements while ensuring profitability and loan book quality.
Liquidity and Cost Management
• Emphasis on maintaining higher liquidity as disbursements increase.
• Anticipated higher carry costs in Q4 due to increased cash reserves.
• Direct assignment transaction worth INR 100 crores yielded a gain of INR 6.6 crores.
Asset Quality Concerns
• Slight deterioration in asset quality attributed to regional pressures, particularly in Maharashtra.
• Increase in GNPA due to new RBI guidelines, not indicative of real decline in asset quality.
Geographical Diversification
• Reduced reliance on top states from 80% in 2017 to 60% currently.
• Positive performance in new markets like Bihar.
• Long-term growth target of 35-40% CAGR with a debt-equity ratio not exceeding 5x.
MSME Segment Insights
• Evaluation of government MSME schemes, particularly the PRAYAS initiative.
• MSME segment showing steady growth in profitability and asset quality.
• Cautious growth approach compared to rapid microfinance expansion.
Borrowing Costs and Capital Structure
• Projected borrowing costs around 12.7% to 13.0%.
• Ability to pass on increased borrowing costs to customers, leading to marginal rise in net interest margins (NIM).
• Improved capital structure following an equity raise.
Customer Engagement and Lending Strategy
• Focus on customer engagement rather than competing on interest rates.
• Selective lending approach with rejection rates exceeding 70%.
• Negative impairment costs in MSME book; full provisioning for NPAs.
Funding and Revenue Targets
• No current sourcing pressures; diversified funding sources.
• Projected revenue targets at an AUM of INR 2,500 crores with a NIM of around 14%-15%.