Jio Financial Services Ltd has informed the stock exchanges that "we attach the Unaudited Financial Results (Consolidated and Standalone) for the quarter and nine months ended December 31, 2024, along with Independent Auditor’s Review Report. The said Financial Results were duly reviewed and recommended by the Audit Committee and approved by the Board of Directors of the Company, at their respective meetings held today. manner in which it is to be disclosed, or that it contains any material misstatement.
some of the key highlights are provided below for Jio Financial Services Ltd's 6 SUBSIDIARIES, 5 JOINT VENTURES AND 2 ASSOCIATES.
The independent auditors have stated that nothing came to their attention that makes them believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforementioned Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
If we talk about the results, the total income has decreased on a QOQ (quarter-on-quarter) basis, from 693.85 crores to 448.89 crores. This was expected as the dividend income of 240 crores received in the previous quarters was not received in this quarter.
If we look at the results on a YOY (year-on-year) basis, there is a marginal increase from 414.33 crores to 448.89 crores.
It is notable that on a YOY basis, the company's expenses on employee benefits have increased by approximately 20 crores. This indicates an increase in the number of employees in the company.
The company's net profit shows no growth on a YOY basis and the EPS (Earnings Per Share) also remains the same at 0.46 on a YOY basis.
The approval from SEBI to start the mutual fund business is still pending as of the publication of these results.
The company has stated that the application for final approval of registration with SEBI was made on December 12, 2024.which is under consideration till date.
Jio Financial Services Ltd has announced that the company has opened 9 offices in 7 different cities and their NBFC's AUM has also increased to Rs. 4,199 Cr vs Rs. 1,206 Cr in Q2 FY25.
Jio Financial Services Ltd asserts that their company operates on four principals:
1. Reputation
2. Regulation
3. Return of Capital
4. Return on Capital
Invariably, there is growth in the business's AUM, but the results are silent.
At present, the company is trading on PE around 110 and the current price is 279. The market price to book value ratio is 1.29 which is lower than the industry price to BV (1.75).
ROE & ROCE respectively are 1.27 & 1.55 which are quite low. Currently, the promoter's holding in the company is 47.12%.
Excluding AUM growth , there is no surprising growth or fall in the company's income, therefore chances of any sudden miracle are unlikely.
The company's valuation is much higher compared to its peers.
And some approvals are still pending or some business is still haven't been able to reach scale, which is why the company seems to have ample time to discover its value.
But it is necessary to monitor financial outcomes every quarter.
Make sure to consult with your financial advisor as this is not financial advice, these are just personal opinions.