New Delhi: On the strength of significant revenue growth, Jio Financial Services said on Monday that its consolidated net profit for the quarter ended on September 2023 doubled sequentially to Rs 668.18 crore. This is the company’s first financial report following its August 21 stock market listing. Jio Financial Services intends to join the consumer finance, asset management, and insurance markets after the following demerger of Reliance Industries’ financial services company.

The total income from operations climbed by 47% at Rs 608.04 crore compared to the June quarter.

The company’s revenue during the period was primarily driven by its dividend income, which amounted to INR 216.8 Cr. Additionally, Jio Financial Services generated INR 186.1 Cr in interest income.

In July of this year, Jio Financial Services separated from Reliance Industries Limited (RIL), and in August, it went public at a reduced price.

Effective on March 31, 2023, the financial services division of RIL was combined, moved, and fully owned by Jio Financials Services. The business stated, “Therefore, the corresponding quarter and half year for the previous period have no consolidated results and have not been disclosed.”

 The company’s overall expenses increased by 33% from the previous quarter to ₹71 crore, primarily because of increased labour costs. The business has begun assembling employees to manage the enterprise. During the company’s virtual annual general meeting in August, Reliance’s chairman and managing director, Mukesh Ambani, stated that a “highly motivated leadership team is being built with a combination of financial industry experts and young leaders who are eager to take on big challenges.” 

On Monday, AR Ganesh, a former executive at ICICI Bank, was appointed group chief technology officer by Jio Financial. Ganesh has spent the previous thirteen years working with ICICI Bank. He oversaw cybersecurity as the Chief Information Security Officer (CISO) in his previous position.

According to the firm, it is a non-banking financial corporation (NBFC) registered with the Reserve Bank of India (RBI) and has systemic importance; It does not accept deposits.

An NBFC that purchases shares and securities and has at least 90% of its net assets invested in bonds, debentures, equity shares, preference shares, debt, or loans in group firms is considered a core investment company, according to the RBI.

While many anticipate Jio Financial to upend the financial services industry, others think it would be difficult to replicate its prior success in the telecom sector. There is intense rivalry in the financial services industry because it is more strictly regulated and because well-established firms like banks, non-banks, and insurance companies have developed physical presence through time.

The business is pursuing low-cost acquisition by using a direct-to-customer (D2C) strategy. Additionally, it is creating a single application to meet all of its clients’ financial requirements.

Furthermore, the business intends to introduce debit cards after successfully launching savings accounts and bill payment systems.

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