Jio Financial Services Q2 Results: Net profit rises 3% to ₹689 crore, revenue up 14% YoY; 5 key highlights
- Jio Financial Services Q2 Results: The revenue from operations in the second quarter of the current fiscal rose 14 per cent to ₹693.5 crore, compared to ₹608.04 crore in the year-ago period
Jio Financial Services Q2 Results: Jio Financial Services Limited (JFSL) announced its July-September quarter results for fiscal 2024-25 (Q2FY25) on Friday, October 18, reporting a rise of 3.1 per cent in consolidated net profit at ₹689 crore, compared to ₹668 crore in the corresponding period last year.
Demerged from billionaire Mukesh Ambani-led oil-to-telecom conglomerate Reliance Industries Ltd (RIL), Jio Financial Services Ltd is engaged in the business of investing and financing, insurance broking, payment banking, payment aggregator/ payment gateway services and asset management.
Here are 5 key highlights of Jio Financial Services Q2 Scorecard
1.Revenue, Expenses
The financial services company's revenue from operations in the second quarter of the current fiscal rose 14 per cent to ₹693.5 crore, compared to ₹608.04 crore in the year-ago period. The total expenses doubled to ₹146 crore in the September quarter, compared to ₹71 crore in the same period last year.
Formerly known as Reliance Strategic Investments Limited, the company's net profit surged 120 per cent on a sequential basis, compared to ₹312.63 crore in the preceding June quarter. The interest income rose to ₹205 crore.
2.JFSL receives CIC status
Jio Financial Services Ltd, pursuant to the application made to the Reserve Bank of India (RBI) seeking registration as a Core Investment Company (CIC), received the necessary approval and certificate of registration from the RBI on July 9, 2024, and became a non-deposit-taking Systemically Important Core Investment Company (CIC-ND-SI) with effect from that date.
This means that JFSL became a CIC from a non-banking financial company (NBFC) after RBI's approval. In November of last year, Jio Financial Services submitted an application to the RBI to convert from an NBFC to a CIC. To incorporate the firm, Jio Financial Services applied to the RBI following the demerger of Reliance Industries' financial services division.
3.JFSL to set up MF biz with BlackRock
India's capital markets regulator, the Securities and Exchange Board of India (SEBI) granted in-principle approval to JFSL and BlackRock Inc, the world's biggest asset manager to act as cosponsors and set up a proposed mutual fund business in India.
In July 2023, JFSL and BlackRock Inc agreed to form a joint venture (JV) called Jio BlackRock, entering the country's asset management company (AMC) business. JFSL's assets under management (AUM) stands at ₹1,206 crore of the September quarter.
"The final approval for registration will be granted by SEBI subject to fulfilment by the Company and BlackRock of the requirements set out in the said letter," Jio Financial Services said in an exchange filing. The company received this notification on October 4, 2024," said JFSL earlier this month.
Also Read: Jio Financial Services lists on bourses today, shares hit 5% lower circuit: What happens next?
4.Product Launches
JFSL's subsidiary Jio Finance Ltd launched a home loan product and loan against mutual funds in July. The financial services company launched Loan against Property (LAP), a Loan on Securities and life insurance (Term) product in September. Earlier this month, JFSL also launched a new version of JioFinance app with improved features such as loan offerings and digital payments.
5.JFSL share price trend
JFSL made its stock market debut on August 21. The stock was listed at ₹265 per share on the BSE and ₹262 per share on the NSE against the discovered price of ₹261.85 apiece. Following the demerger with its parent firm RIL and listing on the bourses, JFSL was briefly a part of the Nifty 50, BSE Sensex, and FTSE indices.
Over the following weeks, it was removed from these indices as it did not meet their inclusion criteria. Upon the demerger, shareholders of RIL received one equity share of JFSL for one share. Currently, JFSL commands a market cap of ₹2,10,007.81 crore. On the BSE, shares settled 0.39 per cent higher at ₹330.55 apiece. JFSL shares have dropped nearly four per cent in one week.
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First Published:18 Oct 2024, 06:10 PM IST
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