Jio Financial Services shares drop 2.5% ahead of Q4 earnings announcement

Shares of Reliance Group company Jio Financial Services Ltd fell as much as 2.5% in trade on Friday, April 19, ahead of the announcement of earnings for the quarter ended March 2024 (Q4 FY24) later in the day.

Jio Financial Services had informed earlier that it will make a presentation to analysts on Q4 financial results at 7pm on April 19 after the board meeting.

In the run-up to the results, the stock fell over 2.5% to hit an intra-day low of ₹368.65 apiece on the NSE on Friday. In the previous session, the Jio Financial Services stock had closed nearly 5% higher after hitting an all-time high of ₹384.4 apiece during the day.

Shares of the NBFC arm of the Reliance Group have been in focus this week after the company announced an equal joint venture with BlackRock Inc to launch a wealth management business.

Under the JV deal, both the financial services providers will join hands in a 50:50 joint venture to incorporate a wealth management company and another brokerage firm in India. The launch of these businesses would be subject to approval from the statutory regulators.

Jio Financial Services and BlackRock had previously announced a 50:50 joint venture with a $150 million investment each to venture into the asset management business in India. Jio Financial Services had filed for approval from market regulator Securities and Exchange Board of India (SEBI) in October. An official update on the same is still awaited.

Jio Financial Services was demerged from Reliance Industries Ltd last year, making its debut on the exchanges in August 2023. Since then, the Jio Financial stock price has rallied by nearly 73% on exchanges.

In the previous quarter ended December 2023 (Q3 FY24), Jio Financial Services had reported a 56% drop in its consolidated net profit to ₹294 crore compared with the previous quarter ended September 2023. Revenue during Q3 FY24 had also declined 32% sequentially to ₹413.61 crore.

Shares of Jio Financial Services were trading 1.59% lower at ₹372.35 apiece on the NSE at 13:50 pm.