Jio Financial Services (JFS), the demerged entity of Reliance Industries (RIL), released its first quarterly results post listing on stock exchanges on July 20, 2023, showing that its net profit more than doubled sequentially. The non-banking financial services (NBFC) arm of RIL posted a profit of ₹668.18 crore in the September quarter of the current fiscal (Q2 FY24), up 101.3% from ₹331.92 crore in the June quarter of FY24, as per the exchange filing on Monday.
Total revenue from operations of the Mukesh Ambani-back firm jumped 48% on a sequential basis to ₹608 crore, aided by dividend income of ₹217 crore.
As per the company, total expenses increased sequentially by 32.7% to ₹71.43 crore as against ₹53.81 crore in the previous quarter.
The board of JFS, formerly known as Reliance Strategic Investments Limited, approved the appointment of AR Ganesh as group chief technology officer forming part of senior management personnel of the company with effect from October 16, 2023, on the recommendation of the nomination and remuneration committee.
Ahead of Q2 results, Jio Financial stock ended 0.27% higher at ₹224.85 per share, while the market capitalisation rose to ₹1.42 lakh crore. Early today, the stock opened marginally higher at ₹225 against the previous closing price of ₹224.25 on the BSE. During the session, the NBFC major gained as much as 0.75% to hit an intraday high of ₹225.95. The company is the third largest NBFC after Bajaj Finance and its holding company Bajaj Finserv in terms of market capitalisation.
The counter hit an all-time high of ₹278.20 on August 21, 2023, while it touched its record low of ₹205.15 on August 25, 2023.
JFS, a part of billionaire Mukesh Ambani-led conglomerate, was demerger from the parent on July 20, 2023. The RIL’s board appointed Hitesh Kumar Sethi as managing director and chief executive officer of the company, as well as Isha Mukesh Ambani and Reliance executive Anshuman Thakur as non-executive directors. Besides, former Union Home Secretary Rajiv Mehrishi, former MD and CEO of Punjab National Bank Sunil Mehta, and Bimal Manu Tanna, a chartered accountant who worked with PwC, have been appointed as independent directors on the board for a term of five consecutive years up to July 6, 2028.
Reliance Industries chairman Mukesh Ambani at the 46th annual general meeting announced that JFSL will foray into the insurance segment. JFS will enter the insurance segment to offer simple, yet smart, Life, General, and Health insurance products through a seamless digital interface, potentially partnering with global players.
Besides, JFS has partnered with the U.S. investment major BlackRock India to enter the asset management industry in the country. It has formed a 50:50 joint venture (JV), Jio BlackRock, to foray into the Indian asset management market with JFS and BlackRock targeting an initial investment of $150 million each in the JV.
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