Profit rose to Rs 2,844 crore in the quarter from Rs 990 crore a year ago and Rs 2,520 crore in the preceding quarter, Jio said in a statement Friday. The market had estimated Jio’s quarterly profit at roughly Rs 2,850 crore.
Quarterly revenue climbed over 33% to Rs 17,481 crore from a year back for the country’s largest telecom operator, which is playing a key role in helping parent Reliance Industries (RIL) transform into a technology platform company from an oil-and-retail conglomerate.
Jio added a net 7.3 million customers as Covid-19 curbs eased, ending the quarter with 405.6 million users, becoming the first telco outside China to cross the 400 million users-mark in a single country market, the company said.
Net finance costs fell over 45% to Rs 1,022 crore from Rs 1,871 crore a year ago amid debt reduction steps by the telecom market leader. Selling & distribution expenses also fell to Rs 294 crore from Rs 349 crore a year ago.
Jio’s average revenue per user (ARPU) – a key performance metric -- rose sequentially to Rs 145 from Rs 140.3 in the previous quarter, helped by a combination of last December’s tariff hikes and customer adds.
Shares of Reliance Industries (RIL), Jio’s parent, closed nearly 1.4% higher at Rs 2,054.35 on BSE Friday. Results were announced after market hours.
Consolidated net profit of Jio Platforms -- Jio’s parent and RIL’s digital and telecom unit -- in the second quarter of this fiscal was at Rs 3,020 crore on a revenue of Rs 18,496 crore.
“We delivered strong overall operational and financial performance compared to previous quarter with recovery in petrochemicals and retail segment, and sustained growth in digital services business,”Reliance Industries chairman Mukesh Ambani said in a statement Friday.
Digital arm, JPL has raised Rs 1,52,056 crore from 13 global investors, including Facebook, Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, Public Investment Fund, Intel Capital and Qualcomm Ventures for a cumulative equity stake of 32.96%.
It added that “all of these investments, excluding Google,” had been completed, post fulfilling of applicable conditions and Rs1,18,319 crore had been received by the company.
“Data consumption has gone up on the back of the impact of tariff increase late last year and also people upgrading their plans,” Jio strategy head Anshuman Thakur said.
A key trend, he said, is people shifting to data networks for voice, especially those (operating) in very good network conditions or in the Jio-WiFi zones of Jio’s home broadband operations.
Jio said customer engagement “continued to be robust” with average wireless data consumption per user per month at 12 GB. Average voice consumption rose to 776 minutes per user per month from 756 minutes with increased usage of application-based voice on data networks. Monthly churn rate for wireless subscribers, though, rose to 1.69% -- from 0.46% in the June quarter -- with follow-through impact of Covid on SIM consolidation and the recharge cycle of migrant population.
Earlier this week, nearest rival, Bharti Airtel narrowed consolidated net loss to Rs 763 crore in the second quarter, posting record consolidated revenue boosted by continued recovery of its India business. Its key India parameters continued to outgun Jio, with ARPU of Rs 162, data usage per customer at 16.4 GBand voice minutes of usage at 1,005. Airtel, though, added fewer customers in the just-ended quarter, compared with Jio’s robust additions.
Operationally, Vodafone Idea (Vi) also narrowed net loss to Rs 7,203.4 crore in the September quarter, but it continued to lose subscribers – 8 million in the three-month period - and yet again flagged risks to its viability.
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