You are here: Home » Companies » News
Business Standard

Jio Platforms' net profit up 8.8% to Rs 3,795 crore in third quarter

Clocks Rs 3,795 cr but sees fall in customers for 2nd quarter

Reliance Jio | Telecom

Aneesh Phadnis  |  Mumbai 

reliance jio, RIL

Reliance Jio’s net profit rose 8.8 per cent to Rs 3,795 crore in the third quarter of FY22 on a year-on-year (YoY) basis, driven by revenue growth and increase in data consumption.

Jio, however, reported a fall in customers for the second consecutive quarter amid the launch of its affordable smartphone JioPhone Next.

The company’s customer base fell sequentially by 8.5 million due to SIM consolidation and what the company described as “repurposing of customer retention efforts.” In the second quarter, the company had reported a decline of 11 million subscribers.

Revenue from operations for the quarter grew 5.7 per cent to Rs 20,597 crore, partly aided by the 20 per cent tariff hike taken by mobile service providers in November 2021. Average revenue per user (ARPU) in Q3 stood at Rs 151.

The company’s management said it expects the impact of tariff hike to play out in the next few months.

Earnings before interest, tax depreciation and amortisation (EBITDA) grew 18 per cent YoY to Rs 10,008 crore. This was the first time that the EBITDA crossed the Rs 10,000-mark in a quarter, the company said.

It said that the quality of its customers continues to improve and that is reflected in the 42 per cent YoY rise in monthly per capita data consumption to 18.4 GB.

Reliance Jio's net profit rises 8.8% to Rs 3,795 crore in third quarter

The rationalisation of its subscriber base would also bring in cost and network efficiencies, it said.

“Both our consumer businesses, retail and digital services have recorded the highest-ever revenues and EBITDA. During the quarter, we continued to focus on strategic investments and partnerships across our businesses to drive future growth,” Reliance Industries chairman Mukesh Ambani said in a statement.

Last week, Jio announced payment of Rs 30,791 crore towards spectrum acquired prior to March 2021. This will result in annual interest savings of around Rs 1,200 crore. The company said the high cost spectrum liabilities were financed through market borrowings. Jio is also putting in place plans for service, which is expected to roll out later this year.

“Data-driven network planning for Jio’s network is under way based on targeted customer consumption and revenue using Heat maps, 3D maps and ray-tracing technology for precise coverage planning to target high-consumption and high-perception locations. coverage planning has been completed for 1,000 top cities across the country. Jio has been doing trials on advanced use cases across healthcare and industrial automation on its 5G network,” it said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, January 21 2022. 21:55 IST