Release Date: July 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Launch of the JioFinance app in beta version, consolidating offerings and providing a unified platform for consumers.
- Approximately 0.5 million downloads of the JioFinance app, indicating strong initial consumer interest.
- Launch of loan against mutual funds and home loans in beta mode, expanding secured lending propositions.
- Over 1 million CASA accounts in Jio Payments Bank, showcasing successful digital revamp and customer acquisition.
- Final approval from the Reserve Bank of India for conversion to a core investment company, enhancing regulatory compliance and strategic oversight.
Negative Points
- Reduction in treasury income due to reinvestment in money market liquid mutual funds, impacting overall income.
- Standalone profit after tax decreased to INR72 crore from INR78 crore in the previous quarter.
- Total income for the quarter remained flat at INR418 crore, indicating no significant growth.
- Expenses related to setting up new businesses in the previous quarter, leading to higher costs.
- Provision recognized on standard asset on intergroup loans, contributing to total expenses.
Q & A Highlights
Q: Can you provide more details on the JioFinance app launch and its current status?
A: (Hitesh Sethia, CEO) The JioFinance app was launched in beta on May 30, 2024, on both iOS and Play Store. It consolidates the offerings of the JFS group into a digital, simple, and unified platform. As of now, the app has approximately 0.5 million downloads. The app includes features like UPI, digital bank accounts, auto insurance, and loans against mutual funds. We plan to expand the product suite in the coming quarters.
Q: What are the recent developments in your secured lending propositions?
A: (Hitesh Sethia, CEO) We have launched loans against mutual funds and home loans in beta mode. The home loans will be generally available to consumers soon. We are also focusing on expanding secured lending products such as loans against securities and property.
Q: Can you elaborate on the operating lease business and its progress?
A: (Hitesh Sethia, CEO) Following shareholder approval, we commenced our operating lease business with AirFiber devices. This integrated offering enhances convenience and affordability for customers. Jio Leasing Services Limited (JLSL) has also initiated operations in GIFT City with ship leasing transactions.
Q: What are the key financial highlights for Q1 FY25?
A: (Abhishek Pathak, CFO) Our consolidated profit after tax for Q1 FY25 was INR313 crore, similar to INR311 crore in Q4 FY24. Total income for the quarter was INR418 crore. The reduction in treasury income was offset by an increase in insurance brokerage commission. Total expenses decreased to INR79 crore from INR101 crore in Q4 FY24.
Q: How is the Jio Payment Bank performing, and what are its future plans?
A: (Hitesh Sethia, CEO) The Jio Payment Bank has over 1 million CASA accounts, thanks to a digital revamp. We received RBI approval to expand our network by 16,000 business correspondent outlets. These outlets will facilitate account opening, Aadhaar-enabled payment services, and domestic money transfers. We plan to introduce more savings account variants and physical debit cards soon.
Q: What progress has been made in the insurance broking business?
A: (Hitesh Sethia, CEO) Jio Insurance Broking Limited has obtained necessary regulatory approvals to sell insurance policies online. We have established a modern technology stack to offer a wide range of insurance products. Our first offering is auto insurance, and we plan to expand this to include more products and insurance companies.
Q: Can you provide an update on the asset management partnership with BlackRock?
A: (Hitesh Sethia, CEO) We have identified top talent and are integrating advanced technology platforms to deliver superior asset management services. The process with the regulator for necessary approvals is well underway.
Q: What are the strategic focuses for Jio Financial Services moving forward?
A: (Abhishek Pathak, CFO) Our strategic focus is on building a comprehensive product portfolio across promising financial services segments. We aim to leverage the group's internal ecosystem to drive low acquisition costs and expand our digital footprint. Our commitment to regulatory compliance, return of capital, and return on capital remains unwavering.
Q: How is the company leveraging technology to optimize costs and improve efficiency?
A: (Abhishek Pathak, CFO) We are optimizing cost-to-income ratios across entities by leveraging technology and efficient resource use. Our digital infrastructure aims to enhance accessibility, affordability, financial literacy, and prosperity for all customers.
Q: What are the future plans for Jio Payment Solutions Limited?
A: (Hitesh Sethia, CEO) Jio Payment Solutions Limited aims to specialize in comprehensive solutions for enterprise and delivery merchants. We offer QR codes, point-of-sale devices, and integrated payment gateways. Key innovations include embedded payments and tailored point-of-sale solutions for home delivery service merchants.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
