RJio Q4 Review – Net debt continues to rise on higher CapEx investment

Reliance Jio Infocomm Ltd.’s revenue grew 11% YoY, helped by rise in mobile subscriber base, faster growth in fibre-to-the-home and rise in enterprise business. However, it appears that mobile revenue has grown slower due to the unlimited free 5G data offer.

In FY24, RJio’s free cash flow (after finance cost) generation remain in negative territory, at Rs 108 billion. The aggressive 5G rollout saw completion within stipulated timelines; we expect capex intensity to slow sharply in FY25.

We would track FCF generation closely for value creation.

We tweak our Ebitda estimates by 1–2% for FY25E/FY26E.

Key factors to watch – growth in FWA subs, mobility 5G commercialisation and impact on average revenue per user and FCF generation. ICICI Securities