Jio Financial Services Ltd (JFSL) reported a 3.1% increase in consolidated net profit to ₹689 crore for the July-September quarter of fiscal 2024-25 (Q2FY25), compared to ₹668 crore the previous year.
Jio Financial Q2 Results
Jio Financial Services announced a strong second-quarter performance. The company’s net profit rose to Rs 689 crore from Rs 668 crore last year. Revenue also increased to Rs 693.50 crore from Rs 608.04 crore prior. Interest income rose to Rs 205 crore from Rs 186 crore.
Jio Financial Q2 Results | Net profit up 3% to ₹689 crore, revenue grows 14% to ₹693 crore@jpullokaran https://t.co/xFtfI1muiL
— CNBC-TV18 (@CNBCTV18Live) October 18, 2024
The company’s net worth was Rs 1,37,144 crore as of September 30, 2024. Its assets under management (AUM) were reported at Rs 1,206 crore. Jio Financial also boosted its user base, with CASA customers reaching 15 lakh. Their network of business correspondents expanded to 3,000.
Jio Financial also expanded its stake in Jio Payments Bank to 82.17% in August 2024. Overall, the company’s profit and revenue are increasing rapidly, and its expanding business lines, such as payment banking and asset management, promise to drive even more growth.
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Jio Financial Q2 Results: Key Highlights
Jio Financial Services reported its results for the quarter ending September 2024 (Q2FY25) on October 18th, 2024. Here’s a quick summary of the key highlights:
1. Modest Profit Growth: Net profit increased by 3% YoY to ₹689 crore, which is a slight increase compared to the previous year.
2. Revenue Jump: Revenue grew at a healthier rate of 14% YoY to ₹693 crore.
3. Expense Increase: Total expenses also doubled to ₹142 crore in Q2.
4. JFSL receives CIC status: After submitting an application to the Reserve Bank of India (RBI) to be registered as a Core Investment Company (CIC), Jio Financial Services Ltd. was granted the required approval and a certificate of registration on July 9, 2024. As of that date, the company became a CIC-ND-SI, which stands for non-deposit-taking Systemically Important Core Investment Company.
Since JFSL was previously an NBFC, it has become a CIC thanks to the RBI’s green light. If Jio Financial Services wants to change its status from NBFC to CIC, it must apply to the Reserve Bank of India (RBI), which it did in November of last year. After the financial services section of Reliance Industries was demerged, Jio Financial Services appealed to the Reserve Bank of India (RBI) to incorporate the firm.
5. JFSL planning to establish mutual fund business with BlackRock: JFSL and BlackRock Inc., the largest asset manager in the world, were given in-principle clearance to establish a mutual fund operation in India by the Securities and Exchange Board of India (SEBI), the Indian capital markets regulator.
Jio BlackRock was formed in July 2023 as a joint venture (JV) between JFSL and BlackRock Inc., which allowed the two companies to join the asset management company (AMC) industry in the nation. As of the September quarter, JFSL’s AUM was 1,206 crore rupees.
“The final approval for registration will be granted by SEBI subject to fulfilment by the company and BlackRock of the requirements set out in the said letter,” mentioned Jio Financial Services in an exchange filing. Earlier this month, JFSL stated that the company “received this notification on October 4, 2024.”
Despite the modest profit growth, Jio Financial’s revenue growth indicates a positive outlook for the company
