Reliance Jio Q2 result: Profit rises 4% to ₹5,058 crore, revenue at ₹24,750 crore
Reliance Industries’ telecom arm Reliance Jio on October 27 reported its quarterly results for the July to September quarter in which its net profit rose 4% sequentially to ₹5,058 crore, almost in line with the CNBC-TV18 poll expectation of ₹5,010 crore.
Reliance Industries’ telecom arm Reliance Jio on October 27 reported its quarterly results for the July to September quarter in which its net profit rose 4% sequentially to ₹5,058 crore, almost in line with the CNBC-TV18 poll expectation of ₹5,010 crore.
The firm’s revenue and EBITDA, or earnings before interest, taxes, depreciation, and amortisation (EBITDA) 3% each increased by 3% on a quarter on quarter basis to ₹24,750 crore and ₹12,953 crore, respectively. The CNBC-TV18 poll of analysts had expected Jio to see a 3.4% rise in revenue to ₹24,850 and EBITDA at ₹13,115 crore for the quarter under review.
Jio’s EBITDA margin for the second quarter of the fiscal was flat at 52.3%.
The company reported a total subscriber base of 459.7 million, up from 448.5 million; the company added 11.2 million subscribers (net), as against 9.2 million in the first quarter of the fiscal. The average revenue per user (ARPU) came in at ₹181.70, up from ₹180.50 reported in the previous quarter.
Prakash Diwan, market expert, said Jio managed to maintain a semblance of nominal growth because of efficient operations.
“While you have about the same EBITDA margins, the profitability is a tad higher than the commensurate 3% increase in revenue and EBITDA, so that means that they have made their operations more efficient, whether it is from interest cost or other items," Diwan said.
As per the current data available with the Telecom Regulatory Authority of India (TRAI), released last month, Reliance Jio gained about 4 million subscribers, beating Airtel, which garnered about 1.5 million subscribers during the same period.
Also last month, Reliance Jio launched JioAirFiber services, its integrated end-to-end solution for home entertainment, smart home services and high-speed broadband, across eight metro cities — Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.
But more interestingly, on the opening day of the India Mobile Congress on Friday, October 27, Reliance Jio announced Jio SpaceFiber, a satellite-based broadband service. The objective of the Jio SpaceFiber service is to deliver high-speed broadband connectivity to previously underserved regions throughout India. This service is set to be accessible throughout the country at highly competitive rates.
"I am happy that Jio remains committed to the vision of a digital India through the launch of two innovative and transformative offerings, JioAirFiber and JioBharat phone," Reliance Industries Chairman & Managing Director Mukesh D. Ambani was quoted as saying.
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First Published: Oct 27, 2023 5:38 PM IST
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Disclosure: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust that controls Network18, the parent company of CNBCTV18.com.
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