Jio Financial Services reports flat growth in Q1 FY25 as interest income declines 43%

Jio Financial Services has published its first quarter results for the ongoing fiscal year (FY25). Its revenue from operations remained flat at Rs 418 crore in Q1 FY25 as the firm’s interest income declined sharply, Jio Financial Services’ filings with the National Stock Exchange show.

The Mumbai-based company posted Rs 1,855 crore in revenue with a profit of Rs 1,604 crore in the fiscal year ending March 2024.

Income from the interest, which accounted for 38.5% of the total operating revenue, declined by 42.7% to Rs 161 crore in Q1FY25 from Rs 281 crore in Q4 FY24. Income from fees/commissions and net gain on fair value change added Rs 38 crore and Rs 218 crore, respectively, to Jio Financial Services coffers in the quarter ending June 2024.

Despite fall in interest, its controlled expense mechanism and growth in net gain on fair value helped Jio Financial Services to post profits of Rs 313 crore in Q1 FY25. As compared to Q1 FY24, the firm experienced a decline of 5.7% in profits.

Jio Financial Services received the RBI’s approval to convert into a core investment company from a non-banking financial company (NBFC) last week to offer wider financial and wealth management services.

Jio Financial Services and BlackRock Inc. have also sought approval for the application to the Securities Exchange Board of India to act as co-sponsors of mutual funds, according to its previous filings. The two companies also signed an agreement in April 2024 to form a 50:50 joint venture to operate a wealth management company.

Jio Financial Services was listed on stock exchanges using the price discovery method following its spin-off from Reliance Industries Limited's financial services division in August 2023.  The company is currently trading at Rs 348.25 per share (as of 11.30 AM) with a market capitalization of Rs 2,21,253 crore.