 "Reliance Jio's Q4 net profit soars to whopping 177.5% at Rs 2,331 cr, revenue jumps 27% to Rs 14,835 cr")
Reliance Jio, the telecom arm of Reliance Industries Limited (RIL), on Thursday reported a rise of 177.5 percent in standalone net profit at Rs 2,331 crore on an year-on-year basis for the January-March quarter of the financial year 2019-20. The rise in net profit, up from Rs 840 crore reported during the corresponding period of FY 2018-19, was fuelled by rising subscriber base and recent tariff hike.
“Standalone Net Profit of Rs 2,331 crore; exceptional item (income) during the quarter of Rs 31 crore related to reversal of provision on AGR dues,” the company said in a statement. Seen sequentially, the net profit grew 72.7 percent when compared to Rs 1,350 crore in December quarter (Q3FY20). Jio’s standalone revenue from operations for the fourth quarter stood at Rs 14,835 crore, which translates into year-on-year growth of 26.6 percent. Average Revenue Per User (or earning per subscriber) was sequentially higher at Rs 130.6 per month, the company said, adding that further impact of December 2019 tariff hike will flow through in coming months. Jio’s net profit increased to Rs 5,562 crore for the full year FY20 from Rs 2,964 crore in the previous fiscal, an annual increase of 88 percent, the statement said. The revenue from operation stood at Rs 54,316 crore for FY20, up from Rs 40,663 crore in FY19. Commenting on the Q4 results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said, “Jio is embarking on the next leg of growth with a path-defining partnership with one of the world’’s largest digital companies, Facebook”.
“We are together determined to make India a truly digital society with best-in-class connectivity network complemented with disruptive digital technology platforms for entertainment, commerce, communication, finance, education and health harnessing world’’s best tech capabilities. Our focus will be India’s 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector,” Ambani said.
Reliance Jio’s subscriber base stood at 387.5 million as on 31 March, 2020, a 26.3 percent YoY growth. The average revenue per user (ARPU) was at Rs 130.6 per subscriber per month for the said quarter. Jio Platforms will launch a nationwide video platform called ‘‘JioMeet’’, the company said. (Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)