Jio Financial's Q2 Net Profit Shows Remarkable Growth, Doubles to Rs 668 Crores

17 Oct, 2023

Jio Financial's Q2 Net Profit Shows Remarkable Growth, Doubles to Rs 668 Crores

Jio Financial Services (JFS) reported a significant boost in its second-quarter profit, doubling to Rs 668 crore compared to the previous quarter. This marks the company's first earnings report after being carved out from Reliance Industries, led by Mukesh Ambani, and subsequently listed on stock exchanges.

The consolidated profit after tax for the quarter ending September 30 surged to Rs 668 crore, a substantial increase from the Rs 332 crore recorded in the April-June quarter. JFS attributed this remarkable performance to a 48% sequential rise in total revenue from operations, which amounted to Rs 608 crore. Part of this increase can be attributed to dividend income amounting to Rs 217 crore.

In a strategic move, Jio Financial Services appointed AR Ganesh as its Group Chief Technology Officer (CTO). Ganesh brings with him a wealth of experience, having been

associated with ICICI Bank for the past 13 years. His previous role as Chief Information Security Officer (CISO) gave him oversight of cybersecurity, and before that, he was responsible for Treasury and Corporate Centre Technology. His expertise spans various

domains, including Cybersecurity, Enterprise IT, Service Delivery, and Banking Software product management.

Though the specific plans for JFS under Mukesh Ambani's leadership remain undisclosed, it is positioned to become a "full-service financial services" company and has already announced its intentions to launch an asset management company. Ambani has also expressed a desire for JFS to enter the insurance segment. Notably,

despite the robust growth, the penetration of financial investment products in India remains relatively low compared to the country's economic size.

The financial services sector in India is becoming increasingly competitive, with non-bank lender Bajaj Finance planning to raise up to Rs 10,000 crore, while Tata Capital and Aditya Birla Capital are also racing to secure fresh funds. It's worth mentioning that JFS, in collaboration with US asset manager BlackRock, has ventured into asset management services in India. However, the stock's performance has not met the company's initial expectations, trading at about a 14% discount as of Monday's closing.