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Informist, Thursday, Jul. 17, 2025

 

--Jio Fincl Apr-Jun consol net profit INR 3.25 bln 

--Jio Fincl Apr-Jun consol net profit INR 3.25 bln vs INR 3.13 bln year ago 

--Jio Fincl Apr-Jun consol revenue INR 6.12 bln vs INR 4.18 bln year ago 

--Jio Fincl Apr-Jun consol pre-provisioning operating profit INR 3.66 bln 

--Jio Fincl Apr-Jun consol pre-provisioning operating profit up 8% on year 

 

By Kabir Sharma

 

MUMBAI – A sharp rise in interest income and a fall in impairment on financial instruments helped Jio Financial Services Ltd. to reported a rise in net profit for the June quarter. The company's bottom line could have risen more if not for the sharp jump in its finance costs. 

 

The financial services holding company reported a net profit of INR 3.25 billion for the June quarter, up from INR 3.13 billion a year ago. The company released its earnings after market hours. Shares of Jio Financial Services had ended 0.4% lower Thursday at INR 318.15 on the National Stock Exchange.

 

The company's interest income more than doubled to INR 3.63 billion in Apr-Jun, from INR 1.62 billion in the corresponding quarter of the previous year. The net gain on fair value changes witnessed a slight fall and was down 10% from the previous year at INR 1.96 billion. Consequently, the company's total income for the reporting quarter grew 48.3% to INR 6.19 billion.

 

The income of Jio Financial Services comprises fee and net interest income from its non-banking finance company, net interest income from the payments bank, and fee and commission income from the payment solutions and insurance broking businesses. The consolidated pre-provisioning operating profit of the company rose to INR 3.66 billion, up 8% on year.

 

On the expenses side, the company's finance cost rose to INR 988.00 million from nil a year ago, weighing on the bottom line. The total expenses rose to INR 2.61 billion, up 228.3% on year.

 

The newly minted JioBlackRock asset management company's assets under management were at INR 178.76 billion as of Jul. 2. The entity for asset management, wealth management, and broking received regulatory approvals and strong investor participation in its maiden fund offer. The other entities of the JioBlackRock joint venture--Jio BlackRock Investment Advisers Pvt. Ltd. and Jio BlackRock Broking Pvt. Ltd.--also received regulatory approvals to commence wealth management and securities broking operations, respectively, during the quarter. "These businesses are currently in the process of building the teams and firming up their go-to-market strategy," the company said. 

 

Jio Credit Ltd., earlier Jio Finance Ltd., the company's non-banking finance arm which has services such as home loans and loans against property, saw 240% growth in its net interest income to INR 1.18 billion. Its assets under management rose to INR 116.65 billion from INR 2.17 billion a year ago and INR 100.53 billion a quarter ago. The non-banking financier reported a net profit of INR 450.00 million for the quarter. The company has a "prudent liability mix to optimise cost of funding and support quality asset book", it said. 

 

During the reporting quarter, Jio Financial Services acquired State Bank of India's 14.96% stake in Jio Payments Bank for INR 1.05 billion. With this, the payments bank has become a wholly-owned subsidiary of the company. As of Jun. 30, the payments bank had 2.58 million customers and a deposit base of INR 3.58 billion. 

 

The JioFinance app, a unified digital store front for the company's retail-focused products and services, recorded 8.1 million average monthly active users across all digital properties in Apr-Jun. "We are also in the advanced stages of enhancing the JioFinance app as an intuitive and intelligent platform which will offer a diverse range of products from well-known finance brands, complementing our in-house product portfolio," the company said.

 

Jio Financial Services, a holding company for multiple financial services businesses, was listed in August 2023. Jio Finance was established in 2006 as Reliance Retail Finance Ltd., a non-deposit-taking non-banking finance company.  End

 

Edited by Rajeev Pai

 

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