Jio Financial Q1: Jio Financial share price fell 2.3 per cent to Rs 346.8 per share in Tuesday's (July 16's) intraday trade on the BSE. The decline comes after the non-bank finance company (NBFC) posted mildly weak quarterly financial results for the April-June quarter (Q1) of the current financial year (FY25).
At 11:40 AM, Jio Financial shares were down 2.18 per cent at Rs 347.5 as against 0.26 per cent rise in the benchmark BSE Sensex.
In Q1FY24, Jio Financial reported a marginal decrease of 5.72 per cent in the consolidated net profit at Rs 313 crore. In Q1FY24, Jio Financial's net profit was Rs 332 crore.
Operationally, interest income of Jio Financial Services declined 19.8 per cent to Rs 162 crore in Q1FY25 from Rs 202 crore in Q1FY24. Its total income, however, rose to Rs 418 crore in the recently concluded quarter on the back of higher net gain on fair value changes over the same period last year. Its net gain on fair value changes in Q1FY25 stood at Rs 218 crore as against Rs 174 crore Y-o-Y.
Jio Financial Services primarily serves unserved and underserved individuals and small sized businesses in urban, semi-urban and rural India to offer sustainable and comprehensive range of financial services.
During the quarter, Jio Finance, a 100-per cent subsidiary of JFS, launched loans against mutual funds. It also introduced auto and two-wheeler digital insurance in July. Going forward, it plans to venture into loan against property as well as loan against securities.
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That apart, Jio Leasing Services, another 100 per cent subsidiary of Jio Financial Services, commenced the business of leasing AirFiber devices.
Previously, Jio Financial and BlackRock had formed a 50:50 joint venture to enter the wealth management and broking business.
According to analysts, Jio Financial Services is eyeing a better market position and operational capabilities by focusing on the digital-first approach. Besides, the company has launched several initiatives, e.g., acquiring multi-bank UPI and integrated payments solutions and streamlining transaction processes, which has helped Jio Financial improve customer convenience.
"A cornerstone of company’s growth strategy is its diversified product portfolio and innovative financial solutions. Recently, the company introduced embedded finance products like EMI options on credit/debit cards and Brand EMI. This move not only enhances affordability for consumers but also strengthens competitiveness in the marketplace," said analysts at Motilal Oswal Financial Services.
Jio Financial Services is a spun-off entity of Reliance Industries. It debuted on the bourses on August 21, 2023, via a price discovery method. The shares' discovered price was Rs 261.85 per share, and is up 35.6 per cent since then.
Jio Financial Services' shares hit an all-time high of Rs 394.7 per share on April 23, 2024, and an all-time low of Rs 204.65 on October 23, 2023. Jio Financial's m-cap stands at Rs 2.2 trillion.