Stock in Action - Jio Financial

Jio Financial Movement of the Day

Probable Rationale Behind JioFinancial surge? 

According to Arihant Capital Markets, Jio Financial Services had a strong performance in FY24, driven by increases in interest income, dividends, and fees and commission income. It is encouraging for the company's prospects going forward.In response to its March quarter earnings, Jio Financial Services Ltd. (JFS) saw a 4% increase in its shares on Monday. Analysts, who appear to be optimistic about the NBFC's new initiatives, stated that JFS' measured approach to developing an unsecured loan portfolio is a wise move from the standpoint of leverage build-up at the system level. marketplace The company's strong performance in FY24 was primarily driven by increases in dividends, interest income, and fees and commissions. We continue to be optimistic about the company's potential," stated Arihant Capital. 

Experts stated that JFS is gaining traction in the insurance distribution and vendor financing spaces.
This brokerage mentioned that Jio Financial has announced an expansion of its cooperation with BlackRock to offer wealth management and broking services, and that new businesses, AMC and Leasing, have also been conceptualized. The Jio Financial Unified app is still under development and will be made available to users shortly.
For every business line, the required framework and rule engines have been set up. Jio's three main advantages—its brand, its cash, and the proximity of its customers to its ecosystem—will enable the company's sustainable growth going forward, according to JFS Concall highlights.
 

Jio Financial Q4 of FY24 Analysis 

1. In the fourth quarter of FY24, Jio Financial Services Ltd. posted a consolidated net profit of Rs 310.63 crore, up 5.72 percent sequentially from Rs 293.82 crore in the December quarter (Q3 FY24).
2. The consolidated profit after tax (PAT) of non-banking financial services companies (NBFCs) for FY24 (2023–2024) was Rs 1,605 crore.PAT, measured separately, was Rs 78 crore in Q4 FY24 as opposed to Rs 71 crore the previous quarter. FY24's standalone PAT was Rs 383 crore.
3. From Rs 414.33 crore in Q4 FY24 to Rs 418.18 crore in Q4 FY24, Jio Financial's total income increased by 0.93 percent (quarter over quarter).
4. The quarterly results were announced today after market hours. Jio Financial's shares ended the day 2.17 percent lower at Rs 370.

What's Jio Financial's Recent Deal 

The NBFC and BlackRock just signed an agreement. Jio Financial announced that it has formed a 50:50 joint venture (JV) with BlackRock Inc. and BlackRock Advisors Singapore Pte Ltd to establish a wealth management and brokerage company in India. This is BlackRock and Jio's second joint venture. A partnership for asset management was started by the two last year.

What's Agenda Behind Jiofin JV? 

With Blackrock, with which Jio had announced a 50:50 joint venture on July 26, 2023 to transform India's asset management industry through a digital-first offering and democratize access to investment solutions for investors in India, this JV further solidifies the company's relationship with Blackrock, according to the NBFC.

Conclusion 

With support from BlackRock, we anticipate Jio to develop cutting-edge products. The business is expected to cause significant changes in the industry. Additionally, Jio Financial intends to launch Device as a Service (DaaS) leasing offerings. AirFiber, phones, laptops, solar panels, EV batteries, IT equipment, and ship leash are the gadgets that might be targeted.