Reliance Jio Shines in Q3: Big Jump! Net Profit Grows 3% to ₹5,208 Crore, ARPU Hits ₹181.7 High!

In the latest financial report for the third quarter, Reliance Jio’s individual profit went up by 3% compared to the previous quarter, reaching ₹5,208 crore. The revenue generated from its operations also saw a 2.5% increase, totaling ₹25,368 crore. Jio’s Average Revenue Per User (ARPU) is now ₹181.7, showing a 1.96% rise from the previous year. Notably, Reliance Jio’s overall revenue hit a new high at ₹32,510 crore, marking an 11.4% increase compared to the same period last year.

Reliance Jio Infocomm, part of Mukesh Ambani’s Reliance Industries, saw a 3% increase in its standalone net profit from October to December 2023, reaching ₹5,208 crore. The revenue from its telecom operations also went up by 2.5% during this period, hitting ₹25,368 crore. Jio’s average revenue per user (ARPU) is now ₹181.7, showing a 1.96% increase from last year. Interestingly, the share price of Reliance Industries remained unchanged at ₹2,735.05 on the stock exchange.

The company mentioned in its official statement that the Average Revenue Per User (ARPU) increased by 2.0% compared to the previous year, reaching ₹181.7. This improvement was attributed to a better mix of subscribers, although it was partially offset by the allowance of unlimited data usage on the 5G network.

On a yearly basis, the telecom company reported a significant 12.3% increase in its standalone net profit for the quarter ending December 2023, rising from ₹4,638 crore in Q3FY23. The revenue from operations also saw a notable 10.3% growth compared to the same quarter the previous year, reaching ₹22,998 crore.

The company set a new record with a gross revenue of ₹32,510 crore for the quarter ending December, marking an 11.4% increase compared to the same period last year.

The company attributed this growth to a robust increase in subscribers for both mobile and home services and the positive impact of an improved mix in Average Revenue Per User (ARPU), according to the official release.

During the quarter, the operating margin slightly decreased to 26.3%, compared to 26.6% the previous year and 26.4% in the previous quarter.

The total expenses of the telecom operator went up by 2.5% sequentially to ₹18,518 crore from ₹18,063 crore in the second quarter of the fiscal year and increased by 10% compared to ₹16,839 crore in the same period the previous year. Costs related to licensing and spectrum rose by 10% to ₹2,330 crore from ₹2,120 crore in the previous year and by 1.7% from ₹2,290 crore in the previous quarter.

As of the end of December, the debt-to-equity ratio was 0.19 times, up from 0.17 times in the same quarter a year ago.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) of Reliance Jio increased by 11.5% to ₹13,955 crore from ₹12,519 crore during the corresponding quarter in the last fiscal year.

Jio’s EBITDA margin improved by 10 basis points (bps) compared to the same time last year, reaching 50.4% in the December quarter.

According to the company’s filing, the introduction of 5G has boosted the addition of new subscribers. Jio outpaced competitors with 11.2 million net additions in the third quarter of the fiscal year 2024, with a monthly churn rate of 1.7%.

The Jio network experienced strong engagement, witnessing a 31.5% increase in overall internet traffic and a 7.9% rise in voice traffic compared to the previous year.

Jio successfully deployed 5G across India, achieving the fastest rollout globally. The JioAirFiber service, especially in underserved tier 3/4 towns and rural areas, showed robust demand and customer engagement.

Akash M Ambani, Chairman of Reliance Jio Infocomm, highlighted that Jio’s forward-looking investments in next-generation networks, digital technologies, and customer-tailored products position them for sustained industry-leading growth in the coming years.

Significant Advancements in Strategy Achieved in Q3FY24:

Jio surprised everyone by launching its Jio True 5G network across India earlier than expected in the quarter. Almost 90 million users have already been shifted to this advanced 5G network.

On the JioBharat platform, users now have three different options, with prices ranging from ₹999 to ₹2,599. In the sub-₹1,000 category, Jio Bharat has captured a market share of over 45%. JioAir Fiber is available in more than 4,000 cities and towns, and it’s expected to provide nationwide coverage by the first half of 2024.

Jio introduced JioTV Premium plans for prepaid mobile customers during the quarter, offering benefits for phone and internet usage along with access to premium content from 14 OTT platforms. Additionally, a new Innovation Hub was established in Mumbai by Jio and TM Forum, a global coalition of telecom and tech companies.

In collaboration with Plume, a leader in consumer experience, Jio is now providing industry-leading smart home and small business services to its users in India.

Mukesh D Ambani, CMD RIL, expressed his happiness, stating, “I am pleased to announce that Jio has successfully rolled out True 5G services in India faster than anywhere else in the world. Every city, town, and village in the country now has high-speed digital connectivity, marking the beginning of a new era of unmatched digital access and technology-driven growth.”

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