Here's why Mukesh Ambani's first Jio profit is 'too good to believe'

Morgan Stanley estimates Jio will turn cash-flow positive in the 12 months through March 2020

Reliance Jio Infocomm Ltd.’s first-ever net income is “a bit too good to believe” for Sanford C. Bernstein analysts, who examined how the phone carrier accounts for some costs.

Jio’s “unique approach” results in a slower pace of recognising depreciation and amortisation, which led to a Rs 12 billion ($187 million) charge in the December quarter, according to a February 2 Bernstein report. Using a rate similar to local rivals would have quadrupled that number and turned Jio’s reported profit into a loss of Rs 24.1 billion, analysts led by Hong Kong-based Chris Lane estimated.

The carrier, controlled by India’s richest man