Dizzying Dive: Jio Financial Services Shares Tumble 6% on Earnings Miss

Jio Financial Services Earnings:

• Reported a net profit of Rs 293 crore for the October-December quarter, marking a 56% decline from the previous quarter.
• Revenue from operations also fell, by 32%, to Rs 413 crore.

Reason for Share Drop:

• Lower Profits: The significant drop in profits compared to the previous quarter was the primary reason for the share price plunge. Investors had anticipated stronger performance.
• Missing Dividend Income: Absence of dividend income from holding shares in Reliance Industries (RIL) further impacted the bottom line.
• Increased Operating Expenses: Rising operational costs due to employee additions, capacity building, and CSR expenses added to the pressure on earnings.

Overall, the weaker-than-expected earnings, coupled with missing dividend income and rising expenses, triggered the bearish sentiment and led to the drop in Jio Financial Services shares.