Jio Financial Services (JFS), a subsidiary recently spun off from Mukesh Ambani’s Reliance Industries and subsequently listed on stock exchanges, announced a twofold increase in its second-quarter profit compared to the preceding quarter. According to a regulatory filing, the consolidated profit after tax for the three months ending on September 30 surged to 6.68 billion rupees ($80.27 million), up from 3.32 billion rupees in the April-June quarter. On a standalone basis, the profit reached 887.6 million rupees, a significant rise from 20.3 million rupees a year earlier. Total revenue from operations also saw an impressive approximately 48% increase quarter-on-quarter, reaching 6.08 billion rupees, aided in part by dividend income of 2.17 billion rupees.
Although Ambani’s strategic vision for JFS remains somewhat undisclosed, it is positioned to become a comprehensive financial services entity. JFS has already unveiled its intentions to establish an asset management company and expand into the insurance sector, reflecting Ambani’s ambitions in the financial services domain.
Despite robust growth, the adoption of financial investment products in India lags behind relative to the country’s economic scale. In an environment marked by escalating competition, alternative non-bank lender Bajaj Finance has outlined plans to raise up to 100 billion rupees, with Tata Capital and Aditya Birla Capital also racing to secure fresh funding.
JFS, in partnership with U.S.-based asset manager BlackRock, ventured into asset management services in India. Its stock market debut in August saw a notable markdown from the company’s initial expectations, and as of the close of trading on Monday, the stock has experienced a decline of approximately 14%.
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