The shares of Reliance Industries’ newly listed company dropped by 6.71 percent on Tuesday and closed at Rs. 248.85 after its underperforming Q3 results.
Shares prices of Jio Financial Services Limited (JFSL) were down 7.1 percent in afternoon trade on January 16 which is their worst one-day fall since their trading debut in August last year. So far in 2024, the company has given over 6 percent returns, while since its listing, Jio Financial Services has given over 15 percent of returns.
The consolidated revenue from operations fell almost 32 percent to Rs. 413.61 crore in December 2023 quarter from Rs. 608.04 crore in September 2023 quarter, while the consolidated net profit dropped 56 percent in the December 2023 quarter to Rs. 293.82 crore from Rs. 668.18 crore in the September 2023 quarter.
Here, the company’s consolidated earnings include the results of its subsidiaries, associates and joint venture.
JFSL reported a profit of Rs. 1,293.92 crore and a revenue of Rs. 1,436.5 crore for the nine months ended December 2023 quarter. As of the December 2023 quarter, the total expenses were Rs. 95.95 crore compared with Rs. 71.43 in the September 2023 quarter.
The interest income was Rs. 269.08 crore for the December 2023 quarter compared to Rs. 186.06 crore in the earlier quarter, while on the other side, the net gain on fair value declined to Rs. 10.3.3 crore from Rs. 163.56 crore a quarter ago.
As of the September quarter, FIIs hold 21.58 percent of shares in the company and DIIs hold 13.64 percent, aggregating to 35.22 percent of the institutional holding. The Promoters hold 46.77 percent of the shares while the public holds 17.86 percent of the shares in the company
Jio Financial Services, the financial services arm of Reliance Industries was originally incorporated as Reliance Strategic Investments Private Limited in 1999. The Holding Company and Blackrock have agreed to form a joint to enter India’s Asset Management Industry on January 5.
It provides accessible non-deposit financial solutions and is engaged in the business of investing & financing, insurance broking, payment bank, payment aggregator and payment gateway services.
The company is a non-deposit NBFC (Non-Banking Financial Company) registered with the RBI and has applied to the RBI for the conversion to NBFC-CIC (core investment company).
Written by Shivani Singh
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