Jio Financial Services Q1: Net Profit Declines 5.7% YoY To INR 313 Cr

Fintech company Jio Financial Services (JFS) posted a consolidated net profit of INR 313 Cr in the April-June quarter (Q1) of the financial year 2024-25 (FY25), a decline of 5.7% from INR 332 Cr in the year-ago quarter.

On a quarter-on-quarter basis, net profit rose marginally from INR 311 Cr.

Operating revenue rose marginally to INR 418 Cr during the quarter under review from INR 414 Cr in Q1 of FY24. However, it was almost flat sequentially.

Total expenses shot up to INR 79 Cr in the first quarter of FY25 from INR 54 Cr in Q1 FY24.

JFS was carved out from Reliance Industries Ltd (RIL) and listed on the stock exchanges in August last year. The company offers a gamut of financial services like UPI payments, loans, insurance, among others.

Commenting on the progress in various areas, JFS CFO Abhishek Pathak said in a post-earnings call, “Over the last three full quarters of Jio Financial Services as a listed company, we’ve been working on multiple fronts… importantly, setting the governance and policy framework in line with the highest regulatory standards, hiring and integrating the right talent at all levels across all our operating entities and setting a modern fit for purpose, cost effective technology and data architecture to enable product launches at pace and distribution at scale… ”

In an investor presentation, the company said that it launched loans against mutual funds and auto and two-wheeler digital insurance services in July 2024.

Highlighting the progress of the JioFinance app, which was launched in beta phase in May this year, JFS said that the app has garnered 5 Lakh downloads. The consumer app complements the merchant app, which was launched in December 2023. With both apps now in place, the company believes it has established a vital digital channel to reach its target customers.

On the lending business, the company said that besides loan against mutual funds, vendor financing and enterprise solutions for device financing have gone live. JFS also beta launched home loans in the current month and plans to make it available to all the customers soon.

On its leasing business, the company said that it commenced leasing AirFiber devices last month. JFS also said that it leased the first ship leased under Reliance International Leasing IFSC Limited (RILIL), which is a joint venture (JV) between JFS’ subsidiary Jio Leasing Services and RIl subsidiary Reliance Strategic Business Ventures Limited. JFS also plans to enter the solar panels and IT equipment sector for the leasing business.

Last week, JFS also received the RBI’s approval to convert itself into a core investment company (CIC) from a non-banking financial company. 

It is pertinent to note that the company has also formed JVs with BlackRock to set up an asset management company and foray into wealth management and broking space. On these JVs, the company said that it has identified the key leadership and infrastructure and tech platforms are in advanced phases of development. It added that the GTM strategy and the building blocks of the JVs are in advanced stages.