Jio Financial Services shares were losing sharply on Tuesday after the firm posted a 56% sequential decline in its net profit for the December quarter.
What Happened: Jio Financial Services consolidated net profit dropped quarter-on-quarter to ₹294 crore for the third quarter ended December 2023. In the second quarter of the current fiscal, the company earned a consolidated net profit of ₹668 crore, as per a regulatory filing.
Additionally, its revenue moderated to ₹414 crore from ₹608.04 crore in the September quarter. For the nine months ending December, the net profit stood at ₹1,294 crore. Total expenses increased sequentially to ₹98.95 crore against ₹71.43 crore in the previous quarter.
Jio Financial Services, which was spun out of Mukesh Ambani’s Reliance Industries last year, operates in investing and financing, insurance broking, payment banking, payment aggregation, and payment gateway services.
The company, in collaboration with BlackRock, is set to establish a joint venture to enter the asset management industry. The joint venture has applied to the Securities and Exchange Board of India to start a mutual fund business. Jio Financial Services also has plans to venture into the insurance segment.
Price Action: Jio Financial’s share price dropped 4.85% to ₹253.85 at the start of trade on Tuesday. The stock had gained 4.55% on Monday ahead of its results.
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