Jio Financial Services shares remain in focus ahead of Q4 results tomorrow
Upstox
2 min read • Updated: April 18, 2024, 8:40 PM
Summary
The NBFC arm of the Mukesh Ambani-led Reliance Group has been in the spotlight this week following the announcement of JSFL's joint venture deal with Blackrock Inc.
Shares of Jio Financial Services Limited closed trade 5% higher at ₹378.4 apiece on the NSE on Thursday, April 18, as the stock is under radar ahead of the March quarter results.
Jio Financial Services shares gained as much as over 6% to hit an intraday high of ₹384.4 apiece on the NSE before settling after some corrections.
The spike in shares of the Reliance Group company was seen ahead of the much-awaited Q4FY24 results scheduled on Friday, April 19. A presentation to analysts will be held following the release of the March quarter results.
Jio Financial Services Limited was demerged from the Mukesh Ambani-led Reliance Industries Limited last year, making its debut on the exchanges in August 2023.
JSFL witnessed a drop in its financial performance in the second quarter following its demerger from Reliance Industries. The non-banking financial company (NBFC) reported a 56% sequential drop to ₹294 crore in its consolidated net profit for the December 2023 quarter.
Its revenue also dropped as much as 32% from the previous quarter. JSFL's revenue stood at ₹413.61 crore in Q3FY24.
The NBFC arm of the Mukesh Ambni-led Reliance Group has been in the spotlight this week following the announcement of JSFL's joint venture deal with Blackrock Inc.
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 the new wealth management company and brokerage firm is subject to approval from the statutory regulators, JSFL said in an exchange filing on April 15.
The announcement led to strong consolidation in JSFL's stock prices, which gained as much as over 5% on the new deal.
The two companies 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 filed for approvals from market regulator Securities and Exchange Board of India (SEBI) in October. An official update on the approval is still awaited from the parties.