Jio Financial Services Limited — Q2 FY25 earnings call

Call held 18 Oct 2024

Management summary

Q2 FY25 was boosted by Rs 241 crore dividend from RIIHL and Rs 225 crore share of associate profits (RSHL dividend). Underlying business showed early traction with NBFC loan book at Rs 1,206 crores and Payments Bank crossing 1.5 million customers. JioBlackRock JVs received in-principle approval. JioFinance app integrated with MyJio to leverage 500 million+ customer base.

Highlights

  • Consolidated total income Rs 694 crores (incl Rs 241 cr RIIHL dividend); PAT Rs 689 crores

  • NBFC (JFL) loan book at Rs 1,206 crores as of September 2024

  • Consolidated net worth Rs 1,37,144 crores; H1 FY25 income Rs 1,112 crores, PAT Rs 1,002 crores

  • JioFinance app launched in Q1, integrated with MyJio in Q2 FY25

  • Payments Bank CASA customers reached 1.5 million; BC network expanding

  • Insurance broking: products across health, auto, two-wheeler, life insurance

  • BlackRock AMC and Wealth JVs received in-principle SEBI approval in September 2024

  • Jio Leasing Services established; home loans in sandbox testing

Key financials

  1. Consolidated Total Income ₹694 Cr +14.1%YoY
  2. Consolidated PAT ₹689 Cr +120%QoQ
  3. NBFC Loan Book ₹1,206 Cr
  4. Interest Income ₹205 Cr
  5. Dividend Income ₹241 Cr
  6. Fees & Commission ₹41 Cr
  7. Total Expenses ₹146 Cr +105.6%YoY
  8. Consolidated Net Worth ₹1.37L Cr
  9. JPBL CASA Customers 15,00,000

What they filed

Q1 FY27: revenue up 227.5%, net profit up 155.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue694 438 493 612 981 +41%901 +106%1,019 +107%2,004 +227%
EBITDA553 313 338 457 688 +24%555 +77%605 +79%1,397 +206%
Net profit689 295 316 325 695 +1%269 −9%272 −14%830 +155%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • NBFC (JFL)
    ₹1,206 Cr Loan Book
  • Payments Bank
    15,00,000 Customers
  • Treasury/Investments
    ₹207 Cr Treasury Income₹241 Cr Dividend

Risks & concerns

  • PAT boosted by one-time items (Rs 241 cr dividend, Rs 225 cr associate share)

    medium

    Underlying operational PAT much lower than reported Rs 689 crores.

    Both acknowledged

  • NBFC loan book small at Rs 1,206 cr relative to Rs 1.37 lakh cr net worth

    medium

    Capital deployment in core lending business remains negligible.

    Both acknowledged

  • No Q&A limits transparency

    medium

    Presentation-only format.

    Analyst not addressed

Areas of evasion (3)

  • No Q&A
  • No lending yields
  • No asset quality data

Q&A highlights

3 direct
No Q&A Session Direct
All participants will be in a listen-only mode.

No analyst Q&A.

Home Loans in Sandbox Direct
We are progressing with home loans, which is currently in a sandbox.

Home loans not yet live, still in testing phase.

BlackRock JV In-Principle Approval Direct
Jio BlackRock Asset Management... received in-principle approval for its sponsors.

Key milestone enabling AMC establishment; wealth management JV also incorporated.

1 min read 3 chapters

Detailed narrative

NBFC Building Loan Book

JFL loan book reached Rs 1,206 crores with products including LAMF (live), home loans (sandbox), LAP, and corporate lending. Distribution via JioFinance app and ecosystem. Leveraging data analytics for customer targeting.

Platform and Distribution Milestones

JioFinance app launched Q1, integrated with MyJio Q2 reaching 500M+ customer base. Payments Bank crossed 1.5M CASA customers. Insurance broking live across health, auto, life categories. BlackRock JVs received in-principle approval.

Financial Profile Still Treasury-Dominated

Of Rs 694 cr income, Rs 241 cr was RIIHL dividend and Rs 207 cr MF fair value gains. Core business fees Rs 41 cr and lending interest income minimal. Expenses rising to Rs 146 cr as business scales. PAT of Rs 689 cr heavily flattered by one-time items.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Financial Services earnings calls