homemarket Newsstocks NewsReliance Jio likely to gain subscribers from Vodafone Idea, expect 10 15% tariff hike: Fitch Ratings
Reliance Jio likely to gain subscribers from Vodafone Idea, expect 10-15% tariff hike: Fitch Ratings
Nitin Soni, Senior Director, Corporates at Fitch Ratings, expects Reliance Jio to undertake 10-15 percent of tariff hike. According to him, Jio will continue to gain some subscribers from Vodafone Idea. Meanwhile, Naveen Kulkarni, CIO at Axis Securities, said that he sees an improvement in average revenue per user (ARPU) for the company and expects the overall subscriber addition pace to be moderate.
Reliance Industries Ltd (RIL) on Friday reported a net profit of Rs 13,680 crore for the quarter ended September, up 11.5 percent sequentially when compared to net profit of Rs 9,567 crore in the year-ago period. Revenue increased to Rs 1,78,328 crore in the September quarter from Rs 1,20,444 crore a year back. Meanwhile, Reliance Jio reported a standalone net profit of Rs 3,528 crore in the second quarter of FY22, meeting street expectations. Reliance Jio’s standalone revenue has slightly missed estimates, coming in at Rs 18,735 crore. However, compared to the previous quarter, there is a rise of 4.1 percent in revenue numbers.
Nitin Soni, Senior Director, Corporates at Fitch Ratings, is forecasting about 10-15 percent of tariff hike.
“We are forecasting about 10-15 percent of tariff hike,” he said.
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According to him, the loss of subscribers is a bit of a clean-up of subscribers and a focus on profitable subscribers.
“Going forward, Jio will focus more on profitable users and on high ARPU customers,” he said.
“Jio will continue to gain some subscribers from Vodafone Idea and tariff hike is imminent in my view,” he said.
There will be ups and downs as far as the subscriber numbers are concerned, said Naveen Kulkarni, CIO at Axis Securities.
He believes the overall subscriber addition pace would be moderate.
“Some bit of clean up activity will keep happening at various points of time. We also see an improvement in average revenue per user (ARPU). I would not be worried too much about it. The overall subscriber addition pace should be moderate,” he said.
According to him too, tariff hikes are inevitable.
Also Read: Reliance Jio Q2FY22: Profit at Rs 3,528 crore meets poll expectation; ARPU beats estimates
The Q2FY22 earnings numbers were pretty good as far as the other businesses are concerned, he noted.
“Overall, RIL numbers were in-line or marginally ahead of estimates,” he stated.
For the entire discussion, watch the accompanying video.
Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.
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(Edited by : Dipikka Ghosh)
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