Release Date: April 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Jio Financial Services Ltd (BOM:543940, Financial) reported a significant year-on-year income growth of 101%, reaching INR349 crores from core business operations.
- The company achieved a healthy pre-provision operating profit of INR1,594 crores for FY 2025, indicating strong operational performance.
- JioFinance app has gained substantial traction with 8 million monthly active users, showcasing successful digital engagement.
- Assets under management for Jio Finance Limited grew significantly to INR10,053 crores as of March 31, 2025, reflecting robust expansion in lending operations.
- The company has strategically expanded its distribution network, both digitally and physically, to enhance customer reach and service delivery.
Negative Points
- The company's total expenses, including provisions, increased significantly, impacting overall profitability.
- Provisions on account of expected credit losses (ECL) rose to INR24 crores in Q4 FY25, indicating potential credit risk concerns.
- Share of associates and joint ventures declined, affecting overall income contribution from these entities.
- The acquisition of State Bank of India's remaining stake in Jio Payment Bank is pending regulatory approval, which could delay strategic plans.
- Higher employee and operational costs were noted, driven by the scaling of business operations, which may pressure margins.
Q & A Highlights
Q: Can you elaborate on the significant growth in Jio Finance Limited's assets under management (AUM) over the past year?
A: Hitesh Sethia, CEO: Jio Finance Limited's AUM grew to INR10,053 crores as of March 31, 2025, from INR173 crores a year earlier. This growth is attributed to our strategic focus on both retail and wholesale lending, targeting prime and near-prime retail customers and high credit-rated companies. Our disciplined approach ensures a high-quality, diversified loan portfolio.
Q: What are the key drivers behind the increase in Jio Payment Bank Limited's customer base and deposits?
A: Hitesh Sethia, CEO: Jio Payment Bank Limited's customer base tripled to 2.31 million, and deposits reached INR295 crores. This growth is driven by our comprehensive suite of banking products and the expansion of our business correspondent network, which grew sixfold to over 14,000, extending our reach into underserved areas.
Q: How is Jio Financial Services leveraging technology to enhance its operations?
A: Hitesh Sethia, CEO: We have focused on building a lean and efficient infrastructure, implementing new systems in our lending business, re-platforming our payment solutions, and creating a unified tech stack. These initiatives enhance operational efficiency and position us for future growth and innovation.
Q: Could you provide more details on the joint venture with BlackRock for asset management and wealth management?
A: Abhishek Pathak, CFO: Our joint venture with BlackRock aims to bring world-class investment solutions to India. We have filed for regulatory approvals and onboarded senior leadership. The asset management business is ready for launch with a defined product roadmap and go-to-market strategy.
Q: What are the financial highlights for Jio Financial Services for the fiscal year 2025?
A: Abhishek Pathak, CFO: For FY25, Jio Financial Services reported a consolidated total income of INR2,079 crores, up from INR1,855 crores last year. The consolidated profit after tax stood at INR1,613 crores. Our strong financial performance reflects robust growth across our business segments and effective cost management.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
