This decline is attributed to the absence of dividend income...
Shares of Jio Financial Services (JFSL), the financial arm that demerged from Reliance Industries (RIL) last year, experienced a decline of 6.25% on Tuesday, reaching a low of Rs 250.10 on the Bombay Stock Exchange. This drop followed the non-banking financial company's (NBFC) report of a 56% decrease in consolidated profit in the third quarter (Q3).
The profit after tax fell to Rs 294 crore during Q3. This decline is attributed to the absence of dividend income from shares held in RIL and an increase in operating expenses due to employee additions, capacity building, and corporate social responsibility (CSR) expenses, according to the ET.
JFSL's management told investors that they are now more focused on secured lending, following current market trends and regulatory shifts. They also have plans to start a leasing business and explore supply chain financing.
In the insurance broking sector, the company expanded its client base to 27 and is actively expanding its payments bank and payments platforms
JFSL has filed for conversion from an NBFC to a Core Investment Company (CIC) and established a separate 100% subsidiary, JIASL, to handle leasing operations.
Despite a 32% rally in the stock over the last three months, JFSL currently lacks significant analyst ratings.
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