Reliance Jio Reports 3% Rise in Q3 Net Profit, ARPU Remains Unchanged

Reliance Jio Infocomm, the telecom arm of Reliance Industries, has announced its financial results for the third quarter of the fiscal year. The company reported a 3% quarter-on-quarter rise in standalone net profit, reaching INR 5,208 crore. The revenue from operations stood at INR 25,368 crore, representing a 2.5% increase compared to the previous quarter.

During the quarter, Jio’s average revenue per user (ARPU) came in at INR 181.7, reflecting a slight increase of 1.96% on a yearly basis. However, the ARPU remained unchanged sequentially. The company attributed the growth in ARPU to a better subscriber mix, which partially offset the unlimited data allowance on the 5G network.

On a year-on-year basis, Reliance Jio witnessed a significant 12.3% jump in standalone net profit for the same quarter. The revenue from operations also reported an impressive 10.3% increase compared to the previous year.

Reliance Jio’s gross revenue for the quarter reached a record high of INR 32,510 crore, representing an 11.4% year-on-year growth. The operating revenue, net of GST, continued to be driven by robust subscriber growth across mobility and homes, along with the benefit of an improved ARPU.

The company’s operating margin slightly decreased to 26.3% during the quarter, compared to 26.6% in the previous year. Total expenses rose by 2.5% sequentially and 10% on a yearly basis. Licencing and spectrum costs also increased by 10% and 1.7% on a yearly and quarterly basis, respectively.

Reliance Jio’s debt-to-equity ratio as of the end of the quarter was 0.19 times, indicating a slight increase from the previous year. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 11.5% to INR 13,955 crore, with an EBITDA margin improvement of 10 bps to 50.4%.

Reliance Jio continues to attract new subscribers, boasting 11.2 million net additions in the third quarter of FY24, with a monthly churn of 1.7%. The company’s network witnessed high levels of engagement, as internet and voice traffic rose by 31.5% and 7.9% year over year, respectively.

Akash M Ambani, Chairman of Reliance Jio, said that the company has accomplished the fastest rollout of 5G network in India. JioAirFiber, the company’s broadband service, has seen strong demand and engagement, particularly in underserved areas. With their investments in next-generation network and digital technologies, Reliance Jio aims to achieve sustainable industry-leading growth in the coming years.