A high net profit of Rs 668 crore for the period of July through September was reported by Jio Financial Services in its first quarterly statement following its initial public offering in August. This represents a startling 101 percent rise from the previous quarter. This financial organization, a division of Mukesh Ambani’s Reliance Industries, earned Rs 608 crore in total throughout that time.
Fluctuations in Interest Income
Regardless of these gains, the lender’s interest income declined, falling from Rs 202 crore in the prior quarter to Rs 186 crore in its April-June FY24 quarter.
Based on information from the stock exchanges, Jio Financial Services currently has a market capitalization of ₹ 1.43 lakh crore.
New Chief Technology Officer
The business also declared that AR Ganesh has been appointed as its Group the chief technology officer, starting as of October 16, 2023. Ganesh, who formerly held the position of Chief Information Security Officer (CISO) at the ICICI Bank, offers a plethora of expertise in cybersecurity to his current position.
Trades and Stock Performance
On October 16, Jio Financial Services’ stock increased 0.13 percent to close at Rs 224.85. It is important to note that the stock is now trading more than 15% below its IPO price.
Analysis of Sales and Profits of Jio Financial services
In addition, the company’s sales decreased by 31 percent, from ₹214.57 crore in Q1FY24 to ₹148.9 crore in Q2 FY24. The profit however increased dramatically, from just 2.03 crore in the same period last year to 88.76 crore this year.
Rational Demerger of RIL
Jio Financial Services (JFS) stockholders received five JFS shares for every one Reliance Industries (RIL) share they had earlier this year as a result of Reliance Industries’ (RIL) demerger of its financial services division. The company’s entry into the public market was made possible by this strategic choice.
In conclusion, Jio Financial Services has had a strong financial start since being listed, and the choice to hire AR Ganesh as Group Chief Technology Officer is a sign of the company’s dedication to improving its technological prowess. But compared to the price at which it was listed, the stock is currently selling for a significant discount.
Article by Debanjana Talukdar
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