SUMMARY
- Jio Financial Services reported a net profit of Rs 689.07 crore in Q2 FY25.
- The firm’s operating revenue grew by over 14% to Rs 693.50 crore in Q2 FY25.
- The total expenses for the quarter more than doubled, reaching Rs 146.07 crore.
Fintech Jio Financial Services (JFS) reported a net profit of Rs 689.07 crore in Q2 FY25, marking a 3.13% increase from Rs 668.18 crore in Q2 FY24.
On a QoQ basis, the company’s net profit jumped 120.27%, rising from Rs 312.83 crore in Q1 FY25.
The firm’s operating revenue grew by over 14% to Rs 693.50 crore in Q2 FY25 compared to Rs 608.04 crore in the same period of the previous fiscal year. This represents a 65.91% increase from Rs 418 crore in the preceding quarter.
The total expenses for the quarter more than doubled, reaching Rs 146.07 crore from Rs 71.43 crore in the year-ago quarter. The total expense for the first quarter of FY25 was Rs 79.35 crore.
JFS, which was taken off from Reliance Industries Ltd (RIL) and went public on the stock exchanges in August 2023, offers a variety of financial services including UPI payments, loans, and insurance.
The company has seen significant growth with its JioFinance app, which was launched in a beta phase in May 2024. It now has an average of 6.5 million monthly active users (MAUs) and has introduced a new version of the app in October 2024, which was previously integrated with the MyJio app in September.
In its investor presentation, the company announced an increase in its ownership in the Jio Payments App to 82.17% in August 2024. It also expanded its network of business correspondents to 3,000, with plans for further expansion.
The company has recently received SEBI’s in-principle approval for its joint venture with BlackRock to launch a mutual fund business.
Regarding the joint venture, the company has stated that its product roadmap and go-to-market strategy are in advanced stages. Additionally, it mentioned that the deployment of technology platforms and infrastructure is on track.
In September, Jio Financial Services introduced new products such as loans against property, loans on securities, and term life insurance. In August, it expanded its product offerings to include home loans – balance transfer, health insurance, salary accounts, and physical debit cards.
In July, the company launched loans on mutual funds, home loans, and insurance for two-wheelers and automobiles, along with corporate lending services like term loans and working capital.
The company now offers a D2C product portfolio of 24 insurance plans across four categories – auto, two-wheeler, health, and life.
On the UPI front, the company has enabled UPI International in France, UAE, Singapore, Bhutan, Sri Lanka, and Nepal.
Jio Financial Services is also reportedly in talks with BlackRock to establish a private credit venture. This partnership, which is set to be a 50:50 joint venture, aims to capitalize on the growing direct lending market in India, with plans to provide loans to a spectrum of businesses, ranging from large corporations to startups.
