Jio Financial Services plunges over 7% on Q3 flop show

16 Jan 2024 , 01:43 PM

Jio Financial Services (JFSL), which demerged from Reliance Industries (RIL) last year, slumped over 7% on Tuesday to a day’s low of Rs 247 on the NSE after the NBFC announced a 56% reduction in consolidated profit in Q3.

Jio Financial Services, a non-banking financial institution (NBFC), announced its Q3FY24 results on Monday. The Reliance Industries-backed firm had a 56% fall in QoQ net earnings, from Rs 668.18 crore in Q2FY24 to Rs 293.82 crore during the period under review.

Jio Financial Services’ quarterly revenue fell 32% from Rs 608.04 crore in September 2023 to Rs 413.61 crore in Q3FY24.

The decrease in PAT to Rs 294 crore was caused by the absence of dividend income from RIL shares, as well as an increase in opex for personnel addition, capacity building, and CSR spending.

Jio Financial Services’ financial performance improved significantly over the nine-month period ending December 2023, compared to the fiscal year ended March 2023.

Over the nine-month period, the company’s net profit increased from Rs 32.25 crore to Rs 1,293.92 crore. Jio Financial Services’ income increased from Rs 41.63 crore in March 2023 to Rs 1,435.78 crore by December 2023.

At around 1.37 PM, Jio Financial Services was trading 7.09% lower at Rs 247.85, against the previous close of Rs 266.75 on NSE. 

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