Table of Content
Introduction to Jio Financial Services
Jio Financial Services Ltd. was previously known as Reliance Strategic Investments Private Limited which was incorporated on July 22, 1999. Jio Financial Services Ltd. was incorporated in July 2023 with a new Non-Banking Financial Company (NBFC) certification.
Key Financial Metrics
Performance Highlights
- Total revenue from operations: ₹ 608.04 Cr
- Total profit after tax: ₹ 668.18 Cr, jumps 101%
The net profit including the results from its associates and joint venture stood at ₹ 668.18 Cr. This is a whopping 101% higher than its previous quarterly performance. Although the total income from operations was an impressive ₹ 608.04 Cr (against ₹ 414.13 Cr for the quarter ending 30 Jun, 2023) the interest income from lending operations saw a dip from ₹ 201.86 Cr in Q1 to ₹ 186.06 Cr in Q2. However, the acceleration in the overall revenue can be largely attributed to the ₹ 216.85 Cr it earned as dividend in the second quarter of the current financial year.
Additional Read: Q2 Results Dashboard
The total profit before tax of JFS subsidiaries stood at ₹ 536.61 Cr. Add to that another ₹ 217.82 Cr as profit earned by associates and its joint venture, and you get the company’s total Q2 profits pre-tax profits of ₹ 754.43 Cr. With taxes paid of around ₹ 86.25 Cr, the total net profit (after tax) was reported to be ₹ 668.18 Cr, over twice the amount earned in Q1 as net profit. The earnings per share (EPS) for the period is ₹ 1.05 per share.
Additional Read: Jio Financial Services Share Price
Management Commentary
Major Announcements
- Mr. AR Ganesh (ex-Chief Information Security Officer –CISO– at ICICI Bank) appointed as the Group Chief Technology Officer.
- JFS likely to enter the insurance segment to cover life, general, and health insurance segments
JFS QoQ Comparison: Consolidated Financial Figures
| Q1 FY 2023-24 | Q2 FY 2023-24 | |
| Interest income | ₹ 201.86 Cr | ₹ 186.06 Cr |
| Total revenue from operations | ₹ 414.13 Cr | ₹ 608.04 Cr |
| Profit before tax | ₹ 427.30 Cr | ₹ 754.43 Cr |
| Profit after tax | ₹ 331.92 Cr | ₹ 668.18 Cr |
JFS QoQ Comparison: Standalone Financial Figures
| Q1 FY 2023-24 | Q2 FY 2023-24 | |
| Interest income | ₹ 110.29 Cr | ₹ 93.40 Cr |
| Total revenue from operations | ₹ 214.57 Cr | ₹ 148.90 Cr |
| Profit before tax | ₹ 195.69 Cr | ₹ 123.56 Cr |
| Profit after tax | ₹ 145.47 Cr | ₹ 88.76 Cr |
Consolidated Statement of Assets and Liabilities
| As of 30 Sep, 2023 2022-23 | |
| Total Financial Assets | ₹ 119,283.11 Cr |
| Total Non-financial Assets | ₹ 4,914 Cr |
| Assets Under Management | ₹ 314.48 Cr |
| Total Assets | ₹ 119,597.59 Cr |
| Total Financial Liabilities | ₹ 52.21 Cr |
| Total Non-financial liabilities | ₹ 3,914.54 Cr |
| Total Liabilities | ₹ 3,966.75 Cr |
| Equity | ₹ 115,630.84 Cr |
| Total Liabilities and Equity | ₹ 119,597.59 Cr |
Stock Performance
After its demerger from Reliance Industries Ltd., Jio Financial Services Ltd. was listed at ₹ 265 per share on the BSE in Aug, 2023, bringing its market capitalisation to ₹ 1.68 Lakhs Cr. Since then, it has been a rocky ride for the company with shares prices reaching the lowest level of ₹ 202.80.
Today, 16 Oct, 2023, the day of its quarter results announcement the share opened at a price of ₹ 224.90 and closed the trading day at ₹ 224.85. This, however, was ₹ 0.30 higher than its previous close to ₹ 224.55 marking a 0.13% rise and bringing the current market capitalisation to around ₹ 1.43 Lakhs Cr.
About Jio Financial Services
Jio Financial Services was created by the Reliance Industries group to extend the digital revolution initiated by Jio into the financial sector. It was a strategic move to leverage Jio’s extensive digital infrastructure and user base to provide a wide array of financial services to Indian consumers. The company’s subsidiaries include
- Jio Finance Limited (JFL) – previously known as Reliance Retail Finance Limited
- Jio Insurance Broking Limited (JIBL) – (previously known as Reliance Retail Insurance Broking Limited)
- Jio Payment Solutions Limited (JPSL) – previously known as Reliance Payment Solutions Limited
- Jio Infrastructure Management Services Limited
- Jio Information Aggregator Services Limited
- Reliance Industrial Investments and Holdings Limited
JFS also has a joint venture called Jio Payments Bank Limited (JPBL). Furthermore, it also has two associates that account for the company’s consolidated financial results and statements. These are, Reliance Services and Holdings Limited and Petroleum Trust.
Since JFS was incorporated in July 2023 and listed in Aug 2023, the company’s first official quarterly results were announced on 16 Oct, 2023. This covers the operating period of 01 Jul, 2023 to 30 Sep, 2023. Our report summarises the key takeaways for you in an easy-to understand manner.
Also Read: Reliance Industries Q2 Results
Source:
https://jiwjfslcmsimageprod.azureedge.net/jwijfslcmsimage/assets/Financial_Results_Q2_Report_2023_24_39d3f36674.pdf
