In Q3, Reliance Jio Infocomm reported a 3% quarter-on-quarter increase in standalone net profit, reaching ₹5,208 crore compared to ₹5,058 in Q2FY24. Mukesh Ambani’s Reliance Industries’ telecom operations saw revenue from operations rise to ₹25,368 crore, a 2.5% increase from ₹24,750 crore in Q2FY24. Jio’s average revenue per user (ARPU) reached ₹181.7, marking a 1.96% year-on-year increase from ₹178.2, with no sequential change. On Friday, Reliance Industries’ share price closed flat at ₹2,735.05 per share on the BSE.
The company reported a 2.0% year-on-year increase in ARPU to ₹181.7, attributed to a better subscriber mix, partially offset by unlimited data allowance on the 5G network,” stated the company in its exchange filing.
Comparing year-on-year figures, the telecom company revealed a substantial 12.3% rise in standalone net profit for the quarter ending December 2023, climbing from ₹4,638 crore in Q3FY23. Revenue from operations also witnessed a notable 10.3% increase from ₹22,998 crore in the corresponding quarter a year ago.
The company’s gross revenue for the quarter ending December reached a record high of ₹32,510 crore, marking an 11.4% year-on-year increase, as indicated in the company’s filing.
“Operating revenue (net of GST) growth persisted, driven by robust subscriber growth in both mobility and homes, along with the benefits of an improved mix in ARPU,” noted the company in its release.
Jio’s Profitability Holds Steady Despite Margin Dip:
While operating margin edged down slightly to 26.3% compared to both the previous quarter and year, Jio’s financials in Q3 remained promising. The telecom giant saw an 11.5% year-on-year jump in EBITDA to ₹13,955 crore, highlighting continued profitability.
Expenses on the Rise: Total expenses increased 2.5% sequentially and 10% year-on-year to ₹18,518 crore, driven primarily by a 10% rise in licensing and spectrum costs.
Debt and Growth: Jio’s debt-to-equity ratio climbed slightly to 0.19, reflecting ongoing investments in network expansion and services.
Overall: Despite the margin dip, Jio’s Q3 results point to positive momentum, fueled by strong EBITDA growth and a focus on subscriber acquisition.
Jio’s EBITDA margin demonstrated a 10 basis points improvement year-on-year, reaching 50.4% in the December quarter.
As per the company’s exchange filing, the introduction of 5G has heightened the pace of new subscriber additions, enabling Jio to outperform competitors with a notable 11.2 million net additions in the third quarter of FY24, while maintaining a monthly churn rate of 1.7%.
The Jio network sustained high levels of engagement, witnessing a 31.5% year-over-year increase in overall internet traffic and a 7.9% rise in voice traffic.
The company proudly highlighted that Jio has achieved the fastest rollout of a 5G network globally, now covering all of India. JioAirFiber has experienced robust initial demand and customer engagement, particularly in underserved tier 3/4 towns and rural areas.
Jio Ramps Up Offerings and Network:
- JioTV Premium for Mobile: Catering to entertainment enthusiasts, Jio launched prepaid mobile plans with access to premium content from up to 14 OTT platforms alongside phone and internet benefits.
- Innovation Hub Takes Shape: Partnering with global telecom leader TM Forum, Jio established an Innovation Hub in Mumbai, fostering collaboration and technology development.
- Smart Homes Made Simple: Partnering with Plume, Jio brought industry-leading smart home and small business services to users, further enriching their digital lives.
- Nationwide 5G: A Record Achieved: Jio proudly accomplished the fastest global rollout of True 5G services, providing high-speed internet access to every corner of India. As Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Ltd., stated, “This marks a new era of unprecedented digital accessibility and tech-driven growth.”