Jio Financial Services, the financial services arm of Reliance Industries, reported a net profit of Rs 668 crore for the July-September period in its first quarterly result after it listed on bourses in August, a jump of 101 percent from the previous quarter.
However, the company’s lending interest income declined from Rs 200 crore in the previous quarter to Rs 186 crore in the current quarter.
The company’s profit growth was driven by a strong performance on the investment income front, which increased by 136 percent to Rs 480 crore in the current quarter.
Jio Financial Services also saw a strong growth in its customer base, which increased by 20 percent to 3.5 crore customers in the current quarter.
The company’s assets under management (AUM) also increased by 15 percent to Rs 1.8 lakh crore in the current quarter.
Lending Interest Income Down
Despite the company’s overall strong performance, its lending interest income declined in the current quarter. This was likely due to a number of factors, including the rising interest rates and the slowdown in economic growth.
The rising interest rates have made it more expensive for the company to borrow money, which has squeezed its margins. The slowdown in economic growth has also led to a decrease in demand for loans.
The outlook for Jio Financial Services is positive. The company is well-positioned to benefit from the long-term growth of the Indian economy. It also has a strong balance sheet and a loyal customer base.
However, the company is facing some challenges in the short term, such as the rising interest rates and the slowdown in economic growth. Investors should carefully consider all of the factors involved before making any investment decisions.
Jio Financial Services’ first quarterly results were mixed. The company reported a strong growth in profit and customer base, but its lending interest income declined. The company is facing some challenges in the short term, but the outlook is positive in the long term.