Reliance Jio reports a 1.7% higher revenue and an all-time high Rs 178.20

Revenue growth at Reliance Jio Infocomm Ltd. moderated in the March quarter, even as its earnings from each user reached a record high albeit without a significant jump.

India’s largest telecom operator by subscriber base saw its revenue rise 1.72% over the previous three months to Rs 23,394 crore in the quarter ended March 31, according to its exchange filing on Friday. Net profit increased 1.68% sequentially to Rs 4,716 crore.

Reliance Jio Q4 results: Key highlights (QoQ)

• Revenue up 1.72% at Rs 23,394 crore
• Ebitda up 1.67% to Rs 12,210 crore
• Ebitda margin stood at 52.19% vs 52.21%
• Net profit up 1.68% at Rs 4,716 crore

For the fiscal ended March 31, 2023, Reliance Jio’s net profit rose 22.87% over the year-ago period to Rs 24,429 crore, on the back of revenue that increased 17.93% to Rs 90,786 crore. Operational profit rose 24.02% year-on-year to Rs 46,672 crore, while margin improved 252 basis points to 51.40%.

Revenue of the holding company, Jio Platforms Ltd., rose 14.4% year-on-year to Rs 25,465 crore in Q4 FY23, on the back of consistent subscriber gains and rise in ARPU. Ebitda grew 17%—with 110 basis points increase in margins—to Rs 12,767 crore. Net profit increased 15.6% over the year-ago period to Rs 4,984 crore.

Brass Tacks
The company’s average revenue per user, or ARPU, rose Rs 0.60 over the previous three months to an all-time high of Rs 178.80 from a total user base of 439.3 million as on March 31. The previous record high was at Rs 178.20 in Q3.

The company’s data traffic increased 4.5% sequentially to 30.3 billion GB. The voice traffic rose 3.14% to 1.31 trillion minutes.

For the fiscal ended March 31, 2023, Reliance Jio added 29.2 million users, with a monthly churn of 2%. The ARPU increased 6-7% due to tariff hikes, better subscriber mix and data add-ons within select customer cohorts, according to a press statement.

Today, a Reliance Jio user consumes 23.1 GB per month versus 13.3 GB per month two years ago, the company claimed in a post-earnings presentation.

5G Play
As on March 31, Reliance Jio has extended its 5G services to more than 2,300 urban centres across India. The company has already deployed 60,000 sites across 700 MHz and 3,500 MHz spectrum bands and is on track to complete pan-India rollout by December 2023.

“5G has led to a significant improvement in customer experience, reflected in the higher engagement levels among Reliance Jio users,” Reliance Jio Chairman Akash Ambani said in a media release.

“Jio remains committed to build a robust digital society with tailor-made tech platforms, which will drive sustained growth in earning and value for all stakeholders.”

New products
Reliance Jio Fiber, the company’s broadband offering has introduced a Rs 198 backup plan to ensure round-the-clock connectivity, thus making up for the sporadic drops in network.

“The plan is aimed at increasing the customer base by providing an entry at a lower price point, and winning customers away from other operators,” Reliance Industries’ President Kiran Thomas said in a post-earnings online presentation.

Jio AirFiber—which will provide 5G speeds to homes wirelessly—will launch in the coming few months. The offering is aimed at accelerating the company’s connected homes strategy, providing speed, capacity and indoor coverage due to differentiated spectrum holding.

On Friday, shares of the parent Reliance Industries Ltd. rose 0.14% to Rs 2,348.90 apiece on the BSE, even as the benchmark Sensex ended 0.04% higher at 59,655.06 points.
CT Bureau