Jio Financial Services Reports Q3 Results with 56% Profit Fall; Stocks Surge

Jio Financial Services (JFS), a non-banking financial institution under Reliance Industries, has announced its quarterly results for Q3, alongside a presentation on its financial performance for the first nine months of the fiscal year. The company reported a standalone profit after taxes (PAT) of ₹305 crore for the first nine months, with ₹71 crore in Q3. The consolidated PAT for the same period stood at ₹1,294 crore, with ₹294 crore in Q3. However, the consolidated net profit for Q3 plummeted by 56% to ₹293.82 crore, compared to ₹668.18 crore in the previous quarter.

JFS, which emerged as a separate entity from Reliance Industries in 2023, witnessed a twofold increase in profit during the September quarter, primarily driven by interest and dividend income. This surge in expectations regarding Jio Financial Services’ quarterly reports has led to a significant demand for its stocks, resulting in a notable surge of around nine percent in the first 15 days of January 2024. The share price of Jio Financial closed 4.55% higher on the BSE ahead of the Q3 results, reaching ₹266.80 per share.

As of December 31, 2023, Jio Financial Services had a total of 516 employees. The company is following its planned capability building, including filling critical leadership positions and completing the technology stack for personal loans and consumer durable loans sandbox.

The total expenses for the December quarter amounted to ₹98.95 crore, compared to ₹71.43 crore in the September quarter. The total tax outgo for the quarter ended December was ₹88 crore, compared to ₹86.3 crore in the previous quarter.

Jio Financial Services’ consolidated earnings include all its joint ventures, affiliates, and subsidiaries such as Jio Payments Bank, Jio Insurance Brokering, Jio Infrastructure Management Services, Jio Information Aggregator Services, Jio Finance, Jio Payment Solutions, Reliance Industrial Investments and Holdings, Jio Petroleum Trust, and Jio Infrastructure Management Services.

Looking ahead, Jio Financial Services plans to introduce supply chain financing and leasing business. The company also announced the appointment of Rupali Adhikari Sawant as Group Head – Internal Audit and Sudheer Reddy Govula as Group Chief Compliance Officer, effective from January 15, 2024.

KRChoksey Shares and Securities, a leading financial advisory firm, had initiated coverage on JFS with a ‘Buy’ rating and a target price of ₹290. The company aims to offer personalized financial products and services, leveraging its strong brand equity and diverse portfolio of consumer-facing subsidiaries.