Jio Financial Q4 Results: Profit Rises 10.3% On Higher Gain On Investments
Jio Financial Services Ltd.'s profit increased in the fourth quarter of fiscal 2024.
The company's standalone net profit rose about 10.3% quarter-on-quarter to Rs 77.76 crore for the quarter-ended March, according to an exchange filing on Friday.
Jio Financial Services Q4 FY24 Highlights (Standalone, QoQ)
Net profit up 10.3% to Rs 77.76 crore vs Rs 70.5 crore.
Total income rose 4.79% to Rs 140.51 crore.
The rise in profit was largely due to higher gain in investments and deferred tax credit. Here, the net gain on fair value changes rose 18.56% quarter-on-quarter to Rs 51.67 crore.
Deferred tax credit for the quarter increased to Rs 5.05 crore, from the previous Rs 2.6 crore.
The company's total income surged 4.79% quarter-on-quarter to Rs 140.51 crore. Other income stayed nil. Interest income, however, fell 3.4% QoQ to Rs 87.42 crore.
On a consolidated basis, the company's net profit rose 5.72% quarter-on-quarter to Rs 310.6 crore. Total income soared 0.92% to Rs 418.2 crore.
In Q4, on a standalone basis, the company's employee benefit expenses fell 12.3% quarter-on-quarter to Rs 12.6 crore. Other expenses, however, rose 10.4% to Rs 20.8 crore.
The company's standalone net worth stood at Rs 24,437 crore as of Q4 FY24, according to the investor presentation.
Business Updates
Under its lending and leasing business, Jio Financial has started vendor financing to address working capital needs of suppliers, according to the Q4 FY24 investor presentation. Going ahead, it also plans to launch home loans, loans against property and loan against mutual funds.
In the previous quarter, the company announced its plans to launch the leasing business under Jio Information Aggregator Services Ltd.
In line with this, the company has also started DaaS (device-as-a-service) under its leasing business, which is a service model for consumer devices. It will target several products like AirFibre, phone, laptop, ship lease, solar panels, EV batteries and IT equipment.
Under its payments bank business, Jio Financial has launched its debit card along with a revamped digital savings account. However, under Jio Payment Solutions, it launched voice box in pilot stage in Mumbai, along with a merchant mobile app.
As for the insurance business, the company has tied up with 29 companies and started embedded insurance for white goods at point of sale. In the investor presentation, it even said that it has started rolling out extended warranty for consumer durables and mobiles.
Recently, Jio Financial signed the agreement for a 50:50 joint venture with BlackRock to set up wealth management and brokerage businesses, subject to regulatory approval.
According to the investor presentation, the company is doing top-level hiring for the AMC and has identified the infrastructure and tech platforms needed for this business.
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