Release Date: April 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Successful demerger from Reliance Industries Limited and listing on BSE and NSE.
- Robust governance, risk, and compliance framework established across the group.
- Strategic partnerships, including a 50-50 JV with BlackRock for asset management, wealth management, and broking business.
- Digital-first business model and unified app development for enhanced customer experience.
- Significant increase in consolidated profit after tax to INR1,605 crore for FY24 from INR31 crore in FY23.
Negative Points
- Technical difficulties during the earnings call, causing interruptions.
- Increase in total expenses, including staff costs and operating overheads, reflecting the setup of business operations.
- Dependency on regulatory and statutory approvals for the launch of new business lines.
- Challenges in ramping up business correspondent touchpoints for further growth in the payment bank segment.
- Potential risks associated with the rapid market developments and evolving business dynamics.
Q & A Highlights
Q: Can you provide an update on the progress of the joint venture with BlackRock?
A: Hitesh Sethia, CEO: The operationalization of the joint venture with BlackRock, announced in July 2023, is progressing well. We are setting up systems, infrastructure, and recruiting the leadership team. The regulatory process for requisite approvals is also underway. Recently, we expanded the JV to include wealth management and broking business, subject to regulatory and statutory approvals.
Q: What are the key financial highlights for FY24?
A: Charanjit Attra, Group COO: For FY24, our consolidated profit after tax stood at INR1,605 crore, up from INR31 crore in FY23. This increase is due to higher total income and increased share of net profit from associates. Total income rose to INR1,855 crore, driven by interest income, dividend income, and realized gains on investments.
Q: How is Jio Financial Services leveraging technology in its operations?
A: Hitesh Sethia, CEO: We are leveraging best-in-class, cost-effective, modern technology stacks for both back-end and front-end operations. Our distribution approach is digital-first, and we use data from credit bureaus, account aggregators, and alternate sources to contextualize offers and provide early warning signals. We are also investing in AI and ML to drive innovation and optimize internal processes.
Q: What are the new business lines being conceptualized?
A: Hitesh Sethia, CEO: In addition to our existing businesses, we are conceptualizing an asset management company and a leasing business. We announced a 50-50 JV with BlackRock for asset management and recently expanded it to include wealth management and broking. Our leasing business will offer operating lease solutions for home digital devices, enhancing affordability for consumers.
Q: Can you elaborate on the performance of the NBFC and leasing subsidiary?
A: Hitesh Sethia, CEO: Jio Finance Limited, our NBFC, is well-positioned to capture the lending market with a digital-first business model. We have launched supply chain financing solutions and have products like loans against mutual funds, home loans, and loans against property in the pipeline. Jio's Leasing Services Limited offers operating lease solutions under a "device as a service" model, enhancing affordability and operational efficiency.
Q: What are the key drivers for the growth of the payment bank and payment solutions subsidiaries?
A: Hitesh Sethia, CEO: Jio Payment Bank Limited focuses on digital banking solutions for consumers and small businesses, with services like savings accounts, UPI, and domestic money remittances. Growth is driven by customer deposits and a digital-native approach. Jio Payment Solutions Limited, our payment aggregator, helps merchants accept payments across various touchpoints, driven by strategic and technology tie-ups with banks and enterprises.
Q: How is the insurance subsidiary performing?
A: Hitesh Sethia, CEO: Jio Insurance Broking Limited distributes a wide range of insurance products digitally. Growth is driven by strategic partnerships, embedded insurance, and direct digital approaches. We have expanded partnerships to 29 insurance companies and launched embedded insurance for white goods and bespoke sachet products.
Q: What are the core principles guiding Jio Financial Services' business strategy?
A: Hitesh Sethia, CEO: Our core principles are reputation above all, regulatory adherence, return of capital, and return on capital. We leverage the Jio brand, capital, and customer adjacency from our ecosystem to build a robust business at scale. Our focus is on enhancing accessibility, affordability, and prosperity for our customers through simplified financial services.
Q: What are the financial highlights for the quarter ended March 31, 2024?
A: Charanjit Attra, Group COO: The consolidated profit after tax for the quarter was INR311 crore, up from INR294 crore in the previous quarter. This increase is due to higher total income, represented by interest income, dividends, and realized gains on investments, offset by marginal increases in staff and operating expenses.
Q: What is the company's consolidated net worth as of March 31, 2024?
A: Charanjit Attra, Group COO: The company's consolidated net worth stood at INR1,39,148 crore. This includes significant equity investments in Reliance Industries Limited and other subsidiaries, reflecting our strong financial position and strategic investments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
