Jio Financial up 4% post Q4; RIL shares edge higher ahead of earnings

Shares of Jio Financial Services, a subsidiary of Reliance Industries (RIL), gained up to 4% in opening trade, in sync with the broader market, on Monday as investors cheered its March quarter earnings. On the other hand, RIL shares trade flat, with negative bias ahead of its fourth-quarter results slated to be released post-market hours today. Meanwhile, the BSE Sensex rose 185 points to 73,274 level, and the NSE Nifty was at 22,252, up 105 points.

Reacting to Q4 numbers, Jio Financial shares rose as much as 3.7% to ₹383.75 on the BSE, while the market capitalisation climbed to ₹2.43 lakh crore. Early today, the stock opened higher at ₹377.80 after falling 2.2% in the previous session to close at ₹370 on the BSE.

Last week, the share price of Jio Financial touched its all-time high level of ₹384.35 on April 18, rebounding nearly 88% from its 52-week low of ₹204.65 hit on October 23, 2023. In the calendar year 2024, the Reliance Group stock has risen 63%, while it added 85% in the past six months, and 11% in a month.

On the other hand, Jio Financial parent RIL shares opened marginally higher at ₹2,950 against Friday’s closing price of ₹2,941.60 on the BSE. In the first hour of trade so far, the country’s most valued stock moved in a narrow range, hitting a high and low of ₹2,952.05 and ₹2,936.60, respectively, while the market capitalisation stood at ₹19.94 lakh crore.

RIL shares touched its 52-week high of ₹3,024.80 on March 4, 2024, while it slipped to its 52-week low of ₹2,157.97 on April 21, 2023. The Sensex heavyweight has surged 25% in the last year; 30% in six months; 14% in the calendar year 2024; and over 1% in a month.

For the fourth quarter ended March 31, 2024, Jio Financial Services (JFSL) reported a consolidated net profit of ₹311 crore as compared to ₹294 crore in the December quarter of FY24 and ₹31 crore in the same period last year. For the full financial year 2024, the consolidated profit stood at ₹1,605 crore.  

In a similar trend, consolidated total income climbed to ₹418 crore in Q4 FY24 versus ₹414 crore in Q3 FY24 and ₹44 crore in Q4 FY23. The total income for the fiscal 2024 rose to ₹1,855 crore.  

The company’s net interest income (NII) stood at ₹281 crore for the quarter as compared to ₹269 crore in the December quarter of FY24 and ₹38 crore in the March quarter of FY23. For the full FY24, the NII was at ₹938 crore.

Earlier this month, JFSL and BlackRock announced a 50:50 JV to enter the wealth management and broking business. The company is setting up infrastructure and tech platforms and crafting a go-to-market strategy for its AMC business. The hiring for its asset management company is also underway, reflecting JFSL's dedication to diversification and seizing opportunities in finance. It has also submitted an application to the RBI for the conversion from a Non-Banking Financial Company (NBFC) to a Core Investment Company (CIC).

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