Jio Financial Services shares dip 2% after Q1 results disappoint
Jio Financial shares fell 3% to Rs 346.80 following a Q1FY25 net profit drop to Rs 313 crore. Revenue was Rs 418 crore, interest income Rs 162 crore. Sequential net profit increased to Rs 311 crore. Standalone PAT recorded Rs 72 crore. Shares surged 48% year-to-date since August 21, supported by partnerships with 31 insurance firms.
Shares of Jio Financial Services dipped nearly 3% on Tuesday to the day’s low of Rs 346.80 after reporting a 6% year-on-year (YoY) decline in its net profit for the quarter ended June 2024.The net profit for Q1FY25 stood at Rs 313 crore as against Rs 332 crore reported by the company in the corresponding period of the last financial year.
Total revenue from operations for the reported quarter stood at Rs 418 crore, gaining 0.9% over Rs 414 crore reported in the year-ago period, meanwhile, the interest income for the reported quarter stood at Rs 162 crore, down from Rs 281 crore in Q4FY24 and Rs 202 crore in Q1FY24.
On a standalone basis, the PAT for the reporting quarter stood at Rs 72 crore versus 78 crore reported in the January-March quarter and Rs 145 crore in the year-ago period. Total standalone revenue from operations stood at Rs 134 crore in the reported quarter as against Rs 141 crore in Q4FY24 and Rs 215 crore in Q1FY24.
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On a sequential basis, profit after tax (PAT) for the reported quarter was 0.64% up from Rs 311 crore.
Meanwhile, revenue witnessed a marginal decline from Rs 418 crore reported in the January-March quarter.
As for its business updates, Jio Financial Services tied up with 31 insurance companies and launched digital auto and two-wheeler insurance on the JioFinance app. It also launched Metro Cash & Carry for shopkeeper insurance and its institutional channel sales gained momentum.
The stock has rallied over 40% since its listing on the exchanges on August 21, 2023, while on a year-to-date basis, the shares of Jio Financial shares have surged 48%.
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Source: Stocks-Markets-Economic Times
