Shares of Jio Financial Services rose nearly 2% to Rs 355 in Monday’s intraday trade on BSE ahead of the company’s Q1 FY25 results due later in the day.
At 11:18 am, the stock was trading 0.6% higher at Rs 352.4 on the BSE. Year-to-date, the stock has surged over 50%, while it has delivered a negative 1% return in the past three months.
In Q4 FY24, Jio Financial Services reported a 6% sequential growth in consolidated net profit to Rs 311 crore. It was Rs 294 crore in the preceding December quarter. Its consolidated revenue from operations was flat at Rs 418 crore as against Rs 414 crore in the previous quarter.
For the full year ended March 2024, the financial services company’s net profit grew multi-fold to Rs 1,604 crore as against just Rs 31 crore in FY23. Revenues for FY24 also jumped many times to Rs 1,854 crore. The same was at Rs 42 crore in the preceding fiscal.
Interest income for the fourth quarter rose to Rs 281 crore, compared with Rs 269 crore in the third quarter. Meanwhile, the fee and commission income increased to Rs 41 crore.
Last week, the Reserve Bank of India approved the conversion of Jio Financial Services from a Non-Banking Financial Company (NBFC) to a Core Investment Company (CIC).
This approval came after the company submitted an application to the RBI in November 2023 to change its status.
The regulator had mandated the conversion while approving the change in shareholding pattern and control of the company following the demerger of the financial services business from Reliance Industries Limited (RIL).
A core investment company, as defined by the RBI, engages in the acquisition of shares and securities. It must have an asset size exceeding Rs 100 crore and maintain at least 90% of its net assets in investments in equity shares, preference shares, bonds, debentures, or loans in group companies. Additionally, its investments in equity shares of group companies must constitute no less than 60% of its net assets, as per RBI guidelines.
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In technical terms, the relative strength index (RSI) of the stock is currently at 46.8. An RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. The stock is trading higher than the 5-day, 10-day, 100-day, 150-day and 200-day simple moving averages (SMAs), while lower than 20-day, 30-day, and 50-day SMAs.
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