Jio Financial Services Q2 Results: Key highlights and performance overview

Jio Financial Services Limited (JFSL) reported its financial results for the second quarter of fiscal 2024-25 (Q2FY25), showing a 3.1% rise in consolidated net profit to ₹689 crore from ₹668 crore in the same period last year. The company, demerged from Reliance Industries Ltd, operates in investing, financing, insurance broking, payment banking, payment aggregation, and asset management.

Key Highlights of Jio Financial Services Q2 Results:

1. Revenue and Expenses:

Revenue from operations increased by 14% to ₹693.5 crore compared to ₹608.04 crore in the year-ago period.

Total expenses doubled to ₹146 crore from ₹71 crore in the same quarter last year.

Sequentially, the net profit surged by 120% from ₹312.63 crore in the previous June quarter.

Interest income rose to ₹205 crore.

2. CIC Status Approval:

JFSL received Core Investment Company (CIC) status from the Reserve Bank of India (RBI) on July 9, 2024.

This approval transitioned JFSL from a non-banking financial company (NBFC) to a Systemically Important Core Investment Company (CIC-ND-SI).

The approval came after JFSL's application following the demerger of Reliance Industries' financial services division.

3. Mutual Fund Business with BlackRock:

JFSL and BlackRock Inc. received in-principle approval from SEBI to set up a mutual fund business in India as co-sponsors.

The joint venture, Jio BlackRock, was formed in July 2023.

JFSL's assets under management (AUM) stood at ₹1,206 crore in the September quarter.

Final approval for registration is pending, subject to the fulfillment of SEBI requirements.

4. Product Launches:

In July, JFSL's subsidiary, Jio Finance Ltd, launched home loan products and loans against mutual funds.

In September, the company introduced Loan against Property (LAP), Loan on Securities, and a life insurance (Term) product.

A new version of the JioFinance app with enhanced loan offerings and digital payment features was launched earlier this month.

5. Share Price Performance:

JFSL debuted on the stock market on August 21, listing at ₹265 per share on the BSE and ₹262 per share on the NSE.

Following its demerger from Reliance Industries, JFSL was briefly part of the Nifty 50, BSE Sensex, and FTSE indices but was later removed.

Shareholders of Reliance Industries received one equity share of JFSL for each share held.

As of now, JFSL has a market cap of ₹2,10,007.81 crore.

On the BSE, shares settled 0.39% higher at ₹330.55 apiece, with a near 4% drop in one week.

These results highlight JFSL's steady growth and strategic initiatives in expanding its financial services portfolio.