Jio Financial Services' net profit doubles sequentially in Sept quarter

A R Ganesh appointed group chief technology officer

Jio Financial Services (JFS) said on Monday that its net profit for the second quarter of the current financial year (Q2FY24) doubled from the previous quarter, in its first earnings after being demerged from Reliance Industries and listed on the stock exchanges.

JFS’ net profit zoomed 101.30 per cent to Rs 668.18 crore in the quarter ended September 30 from Rs 331.92 crore in Q1FY24 on the back of healthy growth in revenue, , the company said.

The total revenue from operations rose 46 per cent to Rs 608.04 crore from Rs 414.13 crore in the previous quarter. This was partly helped by a dividend income of Rs 216.85 crore. Its expenses rose by 32.74 per cent sequentially to Rs 71.43 crore from Rs 53.81 crore.

JFS aims to become a full-service financial sector player with operations across retail lending, asset management, insurance broking, and digital payments.

The company had announced a 50:50 joint venture with BlackRock for the asset management business. According to the arrangement, the two entities will make an initial investment of $150 million each.

During the 46th Annual General Meeting of Reliance Industries, Chairman Mukesh Ambani had announced Jio Financial’s intent to enter the insurance market in collaboration with global players.

In a separate exchange filing, the company announced the appointment of A R Ganesh as group chief technology officer with immediate effect. Ganesh previously served as the chief information security officer at ICICI Bank with overall oversight on cybersecurity. 

In an increasingly competitive environment, rival non-banking financial company Bajaj Finance has revealed plans to raise up to Rs 10,000 crore, while Tata Capital and Aditya Birla Capital are also looking to raise fresh funds.

The company is adopting a Direct to customer (D2C) approach to drive low cost acquisition. It is also developing a unified application which will cater to the diverse financial needs of its customers.

Further, after successfully relaunching savings account and bill payments, the company plans to unveil debit cards.