Jio Financial Services Q4 Profit Jumps 6% to ₹311 Cr

Jio Financial Services logo

Three points you will get to know in this article:

  • Flipkart achieves 5 million UPI transactions in March.
  • Emerges ahead of competitors in the fintech landscape.
  • Strategic collaboration with Axis Bank enhances nationwide expansion.

Flipkart's Remarkable UPI Journey

During its inaugural month of fully embracing UPI, Flipkart, the ecommerce giant backed by Walmart, racked up a notable achievement: 5 million UPI transactions totaling INR 197.24 crores in March.

This milestone not only underscores Flipkart’s expanding foothold in fintech but also positions it ahead of competitors like Jio Payments Bank apps, Navi, and several other banking applications, according to data from the National Payments Corporation of India (NPCI).

Expressing satisfaction with the customer response, Flipkart highlighted how UPI has significantly enhanced accessibility and convenience for both commercial and personal transactions. The company aims to uphold this same level of convenience within its platform, ensuring a seamless experience for all users.

Jio Financial Services Financial Performance

Jio Financial Services (JFS), a leading fintech company, saw a notable uptick in its consolidated net profit, marking a nearly 6% increase to INR 311 Cr during the March quarter (Q4) of the financial year 2023-24 (FY24), up from the INR 294 Cr reported in the previous December quarter.

During this period, the company’s operating revenue experienced a slight uptick, reaching INR 418 Cr compared to the INR 414 Cr in Q3 FY24.

The surge in JFS’ profit was primarily fueled by a rise in the share of profit from associates and joint ventures, coupled with reduced tax expenses.

Strategic Partnerships and Ventures

Earlier this week, JFS inked a joint venture (JV) deal with the US-based investment powerhouse BlackRock to kickstart wealth management and broking businesses. It’s worth noting that last year, these companies teamed up to step into the Indian asset management scene, putting in an initial investment of $300 million.

As a company offering a variety of financial services like lending, payments, investments, and insurance, JFS makes its money from interest earnings, fees, and commissions from customers, as well as from gains on changes in fair value.

In the fourth quarter of FY24, the company saw a 4.3% increase in its main source of revenue, interest income, reaching INR 281 Cr. However, fees, commission, and service charges decreased by 26% to INR 30.5 Cr during the same quarter.

Fiscal Year Performance of Jio Financial Services

For the full fiscal year FY24, JFS reported a net profit of INR 1,604.5 Cr on an operating revenue of INR 1,854 Cr. JFS’ total expenses on the expenditure side rose by 4.2% to INR 103 Cr in Q4 FY24 from INR 99 Cr in the previous quarter, Q3 FY24. Specifically, employee benefits expenses increased to INR 39.3 Cr from around INR 34 Cr in Q3 FY24. JFS was listed on the stock exchanges in August of the previous year following its demerger from Reliance Industries Ltd.

Business Expansion and Initiatives

In a recent investor presentation released alongside the Q4 results, the company highlighted its efforts to support the financial needs of suppliers in the lending sector. Looking ahead, JFS plans to expand its services into new areas such as home loans, loans against property, and loans against mutual funds.

In addition, JFS has introduced its debit card and a user-friendly mobile app for merchants in its payments division. Furthermore, the company has initiated the pilot phase of its voice assistant device (a competitor to Paytm’s Soundbox) in Mumbai.

JFS announced partnerships with 29 insurance companies in the insurance sector. The company emphasized its solid capital foundation to support its growth strategy and highlighted its competitive edge as a new entrant with comprehensive digital services.

Prior to the upcoming Q4 results on Friday, April 19, shares of JFS closed 2.2% lower at INR 370 on the BSE.

Jio Financial Services (JFS) witnessed a 6% increase in consolidated net profit during Q4 FY24, driven by partnerships and strategic ventures, notably with BlackRock. The company experienced a rise in interest income but a decrease in fees and service charges. Overall, JFS reported a net profit of INR 1,604.5 Cr for the full fiscal year FY24. Additionally, JFS is expanding its services into new areas and has introduced innovative initiatives such as a debit card, mobile app, and a voice assistant device. Despite a 2.2% drop in share price, JFS is poised for growth with robust digital services and solid capital foundation.

Neha Kamath

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