Jio Financial Services Set To Announce Q3 Financial Results Today
Jio Financial Services (JFS) is set to announce its financial results for the December quarter on Monday, along with a presentation to analysts on the company's performance for the first nine months of the fiscal year after the board meeting.
This marks the second quarterly report for JFS since its September quarter results, where the Non-Banking Financial Company (NBFC) reported a doubling of profit at Rs 668 crore, driven by interest and dividend income. JFS was separated from Reliance Industries in 2023 and was listed on stock exchanges on 21 August of that year.
Jio Financial operates as a holding company and conducts financial services through its consumer-facing subsidiaries, including Jio Finance (JFL), Jio Insurance Broking (JIBL) and Jio Payment Solutions (JPSL), as well as the joint venture Jio Payments Bank. According to Sebi's latest processing status report on mutual fund applications, the application by Jio Financial and BlackRock Financial Management, dated 19 October 2023, is under consideration for in-principle approval. The initial investment target for the joint venture by Jio Financial and BlackRock Financial Management is USD 150 million each.
"Jio Financial aims to offer personalized financial products and services to cater to the needs of this segment. Additionally, its partners will act as a catalyst for its growth due to the varied business interests which could assist the NBFC in running various pilot programs and customised service offerings to meet the diverse requirements of each sector," noted KRChoksey Shares and Securities in a January report.
JFS stock has seen a 9 per cent increase in January. KRChoksey's target price of Rs 290 suggests a 14 per cent potential upside over the closing price of Rs 255.20 on Friday.
Jio Financial Services is focused on strengthening financial services penetration by accelerating its strategy of being a digital-first financial solutions firm. The NBFC plans to leverage its strong brand equity to build a robust customer base across businesses through cross-selling, as per KRChoksey's 'Buy' rating.
Given its strong parentage and a wide customer base, Jio Financial is well-positioned to gain higher traction across all business segments, according to KRChoksey. The diversified business model is seen as capable of fulfilling the financial requirements of customers, especially as lending demand shifts towards consumption and unsecured finance.
In the September quarter, JFS' consolidated profit after tax surged to Rs 668 crore from Rs 332 crore in the June quarter.
