RIL-Backed NBFC's Shares Surge After Two-Fold Increase In Q2 Net Profit

Jio Financial Services, backed by Reliance Industries, announced a net profit of ₹668.2 crore on Monday, marking a two-fold increase from the last quarter due to a surge in operational income. The company, which recently went public on August 21, revealed these figures as its first post-listing financial results.

Jio Financial Services (JFS) Q2 Performance: Following its separation from Reliance Industries’ financial services division, Jio Financial Services is gearing up to delve into consumer finance, asset management, and insurance. The firm’s total revenue for the September quarter reached ₹608 crore, a 47% jump from the previous quarter. Although interest income saw a dip in the second quarter, a dividend income of ₹217 crore boosted the overall revenue.

Operational expenses climbed by 33% to ₹71 crore, mainly because of increased staffing costs as the company assembles its team. Mukesh Ambani, Reliance’s chairman, highlighted in August that they are forming a dynamic leadership team comprising both industry veterans and ambitious young professionals.

Jio Financial also welcomed AR Ganesh, a former ICICI Bank executive, as their new group chief technology officer. The company, registered as a significant non-deposit accepting non-banking financial company with the Reserve Bank of India (RBI), is now working towards meeting the RBI’s criteria for a core investment company.

Ambani emphasized in August that Jio Financial Services aims to revolutionize financial services for India’s vast population, offering them user-friendly, affordable, and innovative solutions.

Price Action: Jio Financial Services Ltd shares were trading 1.47% higher at ₹228.10 on Tuesday morning, right after markets opened for trading.