Reliance Jio’s Q3 Performance Highlights

Reliance Jio, India’s leading telecom operator, reported a significant rise in its standalone net profit for the third quarter, marking continued growth in its financial performance.

Financial Results

• The net profit for the December quarter surged by 12.2% to ₹5,208 crore compared to ₹4,638 crore in the same period last year.
• Revenue from operations saw a notable increase of 10.3%, reaching ₹25,368 crore compared to ₹22,998 crore in the corresponding period.

Analyst Expectations

• Analysts had anticipated Reliance Jio Platforms to achieve a 2.6-3% growth in operating income and a 3% sequential revenue growth, with an 11% year-on-year increase.
• Expectations for average revenue per user (ARPU) were mostly flat, although slight upticks were predicted by some analysts.

Market Share and Subscriber Growth

• Reliance Jio has been steadily gaining market share in the wireless subscriber segment, reaching 40.4% by the end of the second quarter of FY24, surpassing competitors like Airtel.
• The company continued to expand its subscriber base, adding 11.1 million subscribers in the preceding quarter.

Operational Performance

• Earnings before interest, depreciation, tax, and amortization (EBITDA) witnessed a 3% quarter-on-quarter increase to ₹13,528 crore.
• The EBITDA margin rose by one basis point to 50.3%, attributed to revenue growth and improved margins.
• Operating income experienced a notable 12.6% year-on-year rise, supported by revenue growth and margin improvement.

Company Statement

• Reliance Jio attributed its robust performance to strong subscriber growth across mobility and wireline services, along with the expansion of its digital services platform.
• Despite challenges such as the commencement of 5G services, the company managed to widen its average revenue per user (ARPU) to ₹181.7 from ₹180.5 in the previous quarter.