Home >Companies >Company Results >Jio Q1 FY21: Net profit up 182% YoY, ARPU up 7% on lockdown usage

Reliance Jio Infocomm Ltd (Jio), the telecom arm of Reliance Industries posted a net profit of 2520 crore in the June quarter, up 11% on a sequential basis and up 182.8% year on year. Its operating revenue was up 8% sequentially at 16567 crore and up 33.7% YoY.

Analysts had estimated revenue growth of around 5-6% sequentially.

Standalone EBITDA was reported at of 7281 crore and EBITDA margin of 44% above analyst estimates of around 41%.

Average revenue per user (ARPU) increased to 140.3 during the quarter realising the full impact of Q3 FY20 tariff hikes. Last quarter (Q4 FY20), ARPU was 130.6.

Jio Platforms Limited (JPL), the technology subsidiary of Reliance Industries, which also comprises Reliance Jio Infocomm, reported operating revenue of 17,254 crores and the same net profit as Reliance Jio, as profits from other subsidiaries within JPL are yet to be consolidated .

Data consumption continued to grow exponentially to 12.1 GB per user per month from 11.3 GB in the March quarter and average voice consumption of 756 minutes per user per month.

" Revenue and EBITDA growth reflect the demand for our high quality services," said Anshuman Thakur, Head of strategy, Reliance Jio. "It shows that the automation and AI/ML tools we are using across the network which also helped to optimise costs have helped us achieve this performance."

Subscriber base grew to 398.3 million in June as compared to Q4 when it was 387.5 million. Subscriber addition during the quarter was 9.9 million, ahead of analyst estimates but lower compared to to 17.5 million added last quarter. The operator reported strong wireless gross addition of 15.1 million during the quarter despite Covid related restrictions across the country. Customer additions were impacted due to the lockdown said the management. ARPU improved due to digital recharge facilities during the lockdown as well as increased professional, academic and healthcare usage. Data traffic patterns were significantly affected during the quarter, said the management.

Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said, “ Jio started with a vision of connecting everything by building a robust and secure wireless and digital network and extending the benefits of digital connectivity to everyone in India. Thirteen investors, which include the largest technology companies and investors globally, now share a common vision with us."

The management said the process of converting initial test users to paid-plans is largely complete with more than 1 million home users connected with JioFiber FTTH services. The management said JioFiber usage was also up significantly during the quarter.

Jio’s telecom rival Airtel, which reported Q1 results yesterday, posted flat numbers with a surprise ARPU growth and 16 GB data usage per customer per month.

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