Guess who is showing off their money? Mukesh Ambani created JIO Financial Services, and the company just released its first earnings report, and it’s a good one. The finance arm doubled its quarterly profit in its first set of financials since it split off from Reliance Industries. Yes, that’s a cool 100% jump. Let’s get into the specifics.
Ambani get profits jump and sales go up
It made a net income of 6.68 billion rupees for the quarter ending September 30. That’s about S$109.8 million, to put it another way. Now compare that to the 3.32 billion rupees they made in the previous quarter. That’s right, they doubled their money. Also, sales went up, by a huge 47% compared to the June quarter, reaching 6.08 billion rupees.
Check the Cost
They were making money, but don’t forget what it cost them. The whole thing cost 714.3 million rupees. Still, their huge gains make it look like they have their money plan figured out.
The Big Plans of Mukesh Ambani
Who is in charge of this money show? That would be Mukesh Ambani, the powerful owner and founder of Reliance Industries. He’s been doing a great job of moving the company away from its oil and chemicals roots and towards businesses that focus on customers. The thought? Do well not only in retail and telecommunications, but also in the big game of banking.
The Big Goal of Ambani: Jio Financial
The main thing Ambani wants to do with Jio Financial. He wants to change things in India’s huge, $1.8-trillion financial industry. He wants to reach out to people who aren’t treated well or don’t have bank accounts in a country with over 1.4 billion people, just like he did with telecom and retail.
Trouble on the Road
But let’s not fool ourselves. It’s not easy to play the money game. Many banks and non-bank lenders are vying for the same small piece of the pie. Also, there’s a small problem: Jio Financial doesn’t have the necessary banking licence to use low-cost deposits from savings accounts.
The story of stocks and how the market moves
Jio Financial may be making a lot of money, but what about its stock? Not really. The shares have gone down 9.7% since their lukewarm listing in August. On Monday, they were worth 224.80 rupees each.
The Big Picture for Ambani
This isn’t the end for Ambani. He has big plans. The man dreams of a “super-app” that will be a financial hub like WeChat in China. Imagine being able to shop online, watch videos online, send messages, and get financial services like insurance, stock buying, and easy loan access all in one package. Ready to go? Sure thing. History, on the other hand, shows that Ambani is good at making big dreams come true. Watch this space for the next part of Ambani’s business story.