Jio Financial's Q2 FY25 Financials Show Positive Growth, But Some Areas Need Improvement

This is not a good sign.

Net Profit Margin (PAT) – Quarterly: Lowest at 99.2 % in the last five quarters.The company’s profitability has decreased as compared to the previous quarter.

Return on Equity (ROE) – Quarterly: Lowest at 0.2 % in the last five quarters.The company’s return on equity has decreased as compared to the previous quarter.

Jio Financial Services, a largecap finance company, has recently announced its financial results for the quarter ending September 2024. The company has shown positive growth in its financial performance, with a score of 17 compared to -3 in the previous quarter.

According to the financials, Jio Financial’s net sales for the quarter were Rs 693.50 crore, showing a growth of 49.3% compared to the average net sales of the previous four quarters. The company’s profit before tax (PBT) also saw a significant increase of 60.4% at Rs 773.14 crore, compared to the average PBT of the previous four quarters. The profit after tax (PAT) also showed a positive trend, with a growth of 73.9% at Rs 689.07 crore.

Jio Financial’s net sales for the quarter were the highest in the last five quarters, indicating a positive sales trend. The company’s operating profit (PBDIT) for the quarter was also the highest in the last five quarters at Rs 553.04 crore. The PBT and PAT for the quarter were also the highest in the last five quarters, showing a positive trend in the company’s profitability. The earnings per share (EPS) for the quarter were also the highest in the last five quarters, indicating an increase in profitability and higher earnings for shareholders.

However, there are some areas that need improvement for Jio Financial. The company’s operating cash flow for the year was the lowest in the last three years at Rs -283.44 crore, indicating a decrease in cash revenues from business operations. The net profit margin (PAT) for the quarter was also the lowest in the last five quarters at 99.2%, showing a decrease in profitability compared to the previous quarter. The return on equity (ROE) for the quarter was also the lowest in the last five quarters at 0.2%, indicating a decrease in the company’s return on equity.

Overall, Jio Financial has shown positive growth in its financial performance for the quarter ending September 2024. However, there are some areas that need improvement for the company to maintain its positive trend in the future. Based on these financials, MarketsMOJO has given a ‘Hold’ call for Jio Financial’s stock.