Markets will remain closed on 20^th November, 2024 on account of Assembly Elections in Maharashtra.

JIO FINANCIAL SERVICES 2023-24 Annual Report Analysis

Fri, 9 Aug

JIO FINANCIAL SERVICES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

JIO FINANCIAL SERVICES Income Statement Analysis

• Interest income during the year rose 4353.2% on a year-on-year (YoY) basis.
• Interest expenses were up by 0.0% YoY during the same period.
• Operating expenses increased by 4283.8% YoY during the year.
• The company's net interest income (NII) increased by 4209.1% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 1.3% in FY24 as against 0.0% in FY23.
• Other income declined by 109.4% YoY during the year.
• Net profit for the year increased by 5034.6% YoY.
• Net profit margins during the year increased to 86.6% in FY24 from 75.1% in FY23.

JIO FINANCIAL SERVICES Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	416	18,539	4353.2%
Other Income	Rs m	133	-13	-109.4%
Interest Expense	Rs m	0	600	0.0%
Net Interest Income	Rs m	416	17,939	4209.1%
Operating Expense	Rs m	56	2,437	4283.8%
Pre-provision Operating Profit	Rs m	493	15,489	3039.2%
Provisions & Contingencies	Rs m	4	30	700.8%
Profit before tax	Rs m	493	19,559	3864.1%
Tax	Rs m	181	3,513	1842.2%
Profit after tax	Rs m	313	16,046	5034.6%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	0.0	1.3
Net profit margin	%	75.1	86.6

For Investors: Our Big Prediction

JIO FINANCIAL SERVICES Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY23, a rise of 0.0%.
• Cost of deposits for JIO FINANCIAL SERVICES rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 1,333.8 bn during the year from Rs 1,082.2 bn in FY23.
• Borrowing stood at Rs 0 m, a fall of 100.0% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 1,448.6 bn as against Rs 1,149.3 bn during FY23, thereby witnessing a rise of 26.0%.

JIO FINANCIAL SERVICES Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,077,671	1,391,477	29.1%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	1,082,249	1,333,773	23.2%
Borrowings	Rs m	7,428	0	-100.0%
Total Assets	Rs m	1,149,296	1,448,628	26.0%

Current Valuations for JIO FINANCIAL SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.5, an improvement from the EPS of Rs 154.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 330.6, stands at 114.7 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.5 times, while the price to income ratio stands at 99.2 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	206.1	2.9
Earnings per share (Unadj.)	Rs	154.7	2.5
Diluted earnings per share	Rs	0.0	2.5
Avg P/E ratio	Rs	0.0	114.7
Avg P/ABV ratio	Rs	0.0	1.5
Avg Market Cap	Rs	0	1,839,752
Dividends per share (Unadj.)	Rs	4,400.00	0.00

Ratio Analysis for JIO FINANCIAL SERVICES

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY24, from 0.0x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio decreased and stood at 0.00x during FY24, from 0.01x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): JIO FINANCIAL SERVICES's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2024 as compared to 195.0% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 1.2% during FY24, from 0.0% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 1.11% during FY24, from 0.03% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 1.59% during FY24, from 0.08% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. JIO FINANCIAL SERVICES's gross NPA ratio stood at 0.0% as of 31 March 2024 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of JIO FINANCIAL SERVICES was 0.0% in financial year 2024. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	195.0	0.0
Return on Equity	%	0.0	1.2
Return on Assets	%	0.0	1.1
Return on Capital Employed	%	0.1	1.6
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.0	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how JIO FINANCIAL SERVICES has performed over the last 5 years, please visit here.

JIO FINANCIAL SERVICES Share Price Performance

Over the last one year, JIO FINANCIAL SERVICES share price has moved up from Rs 0.0 to Rs 330.6, registering a gain of Rs 330.6 or around 0.0%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, you can check out historical annual results for JIO FINANCIAL SERVICES here and quarterly results for JIO FINANCIAL SERVICES here)