The demerged company of Reliance Industries Ltd (RIL), Jio Financial Services Ltd (JFS), is scheduled to release its June quarter financial results on Monday. The unaudited financial statements of the firm for the quarter that ended on June 30 will be considered and approved during the board meeting scheduled for July 15, according to a notice sent by the NBFC to stock markets on July 10.
The Reserve Bank of India this week approved JFS's conversion into a core investment company (CIC), with its shares up 49% in 2024 thus far. JFS is a holding company that uses its subsidiaries to run a variety of financial services companies. JFS separated from Reliance Industries Ltd. in the 2024 fiscal year and became public as an independent company.
As of March 31, 2024, JFS declared a combined net value of Rs 1,39,148 crore, which included the valuation of the 6.1% interest held in RIL.
According to rating agencies, the promoter group has increased its share in JFSL post-listing from 45.8% to 47.12%, demonstrating their long-term commitment to the JFS group. They think the promoter group won't likely dramatically reduce its ownership of JFSL anytime soon.
JFS reported net interest income (NII) of Rs 280 crore and net profit of Rs 310 crore for the March quarter. It declared revenue and total income of Rs 418 crore and Rs 418 crore, respectively.
According to CARE, Jio Financial Services intends to carry out asset management, stock broking, insurance broking, leasing, payment banking, and payment solutions through its subsidiaries, affiliates, and joint ventures.
Recently, Care Ratings gave the long-term bank facilities worth Rs 4,000 crore of the JFS arm a stable CARE AAA rating, and the short-term bank facilities the same A1+ grade. It rated Jio Finance's Rs 3,000 crore non-convertible debentures (NCDs) CARE AAA with a stable rating and its commercial papers CARE A1+.
With regard to JFSL's need-based timely support, the rating agency is confident that JFL will maintain its steady business profile, considering its strategic significance, shared brand name, and management control.
