Jio Financial Services reports Q1 profit decline, expands new offerings
Last month, Jio Financial Services launched the "JioFinance" app in beta mode, where users could instantly open and manage a bank account.
Jio Financial Services reported a 5.8% decline in consolidated net profit for Q1 FY25, with profits dropping to Rs 312.63 crore from Rs 331.92 crore in the same quarter of the previous year.
Despite this, the company saw a modest revenue increase of 0.8%, reaching Rs 417.82 crore compared to Rs 414.13 crore in Q1 FY24.
The company's total expenses decreased by 7.9%, amounting to Rs 87.76 crore in Q1 FY25, down from Rs 95.38 crore in the previous year.
This cost reduction comes even as Jio Financial Services continues to expand its offerings, having added over 1 million savings accounts since the beta version of its app launched on May 30, 2024.
Last month, Jio Financial Services launched the "JioFinance" app in beta mode, where users could instantly open and manage a bank account. The app integrated digital banking, UPI transactions, bill settlements, and insurance advisory features, offering a consolidated view of accounts and savings.
Jio Financial also introduced vendor financing in May 2024, enterprise solutions for device financing in June 2024, and loans against mutual funds in July 2024.
The Reserve Bank of India (RBI) recently approved the conversion of Jio Financial Services Ltd from a non-banking financial company (NBFC) to a core investment company (CIC). Jio Financial Services submitted an application to the RBI for this conversion in November 2023.
Edited by Jyoti Narayan
