Jio Financial Services shares fell as much as 5.68 per cent in early trade on Tuesday after the company reported a 56 per cent decline in quarter-on-quarter (QoQ) net profits, falling from Rs 668.18 crore in Q2 FY24 to Rs 293.82 crore in the reviewed period.
The quarterly revenue of the Reliance Industries-backed company also dropped by 32 per cent, decreasing from Rs 608.04 crore in the quarter ending September 2023 to Rs 413.61 crore in Q3 FY24.
The net profit for the company during the nine-month period increased from Rs 32.25 crore to Rs 1,293.92 crore. In terms of revenue, Jio Financial Services experienced a surge from Rs 41.63 crore in revenue during the year ending March 2023 to Rs 1,435.78 crore in December 2023.
The company's net interest income rose by 44 per cent quarter-on-quarter (QoQ) to Rs 269.08 crore in Q3 FY24 from Rs 186.06 crore in the quarter ending September 2023. In the nine-month period, the NII of the company increased from Rs 38.34 crore in March 2023 to Rs 657 crore in December 2023.
This marks Jio Financial Services' second financial report after its stock exchange listing in August 2023. Following its demerger from Reliance Industries, the non-banking financial company aims to expand into various sectors, including consumer finance, asset management, and insurance.
Jio Financial Services operates as a holding company involved in financial services through its consumer-oriented subsidiaries, namely Jio Payment Solutions (JPSL), Jio Insurance Broking (JIBL), and Jio Finance (JFL). Additionally, it has a joint venture known as Jio Payments Bank.
As of 10:45 am, shares of Jio Financial Services traded at Rs 253.80, 4.85 per cent lower than the previous close of Rs 266.75.
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