Reliance Jio Q2 net profit jumps 3-fold to Rs 2,844 crore; revenue up 34%

ADIA, PIF to invest Rs 7,558 cr for 51 per cent stake in Jio's fibre network

Reliance Jio on Friday announced that Abu Dhabi Investment Authority and the Public Investment Fund of Saudi Arabia would invest Rs 7,558 crore to purchase a 51 per cent stake in its digital fibre network.
 

The fibre optic unit has a debt of Rs 87,296 crore, which includes suppliers’ credit. The company said induction of strong partners will help it manage critical asset base.
 

The stake purchase was announced along with the company’s July-September quarter results.
 

Jio’s net profit almost tripled on a year-on-year (YoY) basis to Rs 2,844 crore. Revenue increased 34.4 per cent YoY to Rs 17,678 crore. The average revenue per user was up 3 per cent to Rs 144.

 

Wireless gross addition showed a strong sequential increase to 27.2 million as lockdown restrictions began to ease during the quarter.
 

“Monthly churn rate for wireless subscribers increased to 1.69 per cent with follow through impact of Covid on SIM consolidation and recharge cycle of migrant population,” the company said.
 

“Jio has become the only operator (outside China) to have reached the milestone of 400 million subscribers in a single country market,” the company said in an exchange filing.
 

Reliance Industries had earlier raised funds through similar structures for Jio’s telecom tower assets and for its promoter Mukesh Ambani-owned gas pipeline company.