JM Asset Reconstruction Company profits up 142 per cent in H1 2015

MUMBAI: J M Asset Reconstruction Company (ARC), a subsidiary of the broking firm J M Financials, has posted 142% rise in net profit to Rs 34 crore in the first half of this fiscal year ending September 2015.

The ARC’s profit zoomed as it made huge gains on redemption and sale of security receipts which rose 10 times to Rs 60 crore.

J M emerged as a significant player in the ARC industry after it acquired Rs 4100 crore loans of Leela Hotels from a consortium of lenders over a year ago.

Earnings on account of recovery incentives and advisory fees also contributed to the bottom line. It rose 27% to Rs 61 crore.

The ARC industry has gained prominence with rising bad loans coupled with the slowdown in the Indian economy. A number of banks are selling their loans to ARCs in order to clean their balance sheet.

J M Asset Reconstruction Company has declared it results to the stock exchange since its bonds are listed on the exchange.