Reliance Jio Infocomm Reports Modest Profit Growth Amidst Rising Expenses

Reliance Jio Infocomm, India's largest telecom provider, reported a 12.10% YoY profit growth amid rising expenses. The firm's digital arm, Jio Platforms, also saw a 12% YoY net profit increase.

By Mason Carter Riley Stratton

Reliance Jio Infocomm, the telecom division of Mukesh Ambani’s Reliance Industries and India’s largest telecom carrier by subscribers, disclosed a year-on-year profit increase of 12.10% for the quarter ending September. The firm registered a net profit of Rs 5,058 crore ($608 million), marking its slowest profit growth in seven successive quarters.

The growth was underpinned by a 9.89% increase in revenue from operations to Rs 24,750 crore. Notably, however, the company saw a surge in expenses by 9%, totaling Rs 18,063 crore, a factor that likely tempered its profit uptick. In the absence of any recent tariff hikes, the stagnation in profit gain was further exacerbated.

The subsidiary Jio Platforms, encompassing Jio’s diverse digital enterprises, including telecom, also revealed its quarterly numbers. It reported a 12% year-over-year net profit growth, amounting to Rs 5,297 crore. The company’s revenue from operations was Rs 26,875 crore, a 10.7% annual boost. Jio Platforms also saw a noticeable improvement in its EBITDA margin by 80 basis points, reaching 50.3%.

An interesting metric, the Average Revenue Per User (ARPU) per month, advanced 2.5% year-over-year to Rs 181.7, compared to Rs 180.5 in the preceding quarter.

“Jio True5G will soon be available pan-India to usher in a new digital era for Indians. JioAirFiber has seen very strong customer interest and is set to transform broadband infrastructure in the country by offering fiber like digital experience to homes and small enterprises. Ubiquitous 5G, JioBharat, and JioAirFiber are three big growth engines for Jio which would accelerate market share gains and profitability,” said Akash M. Ambani, Chairman of Reliance Jio Infocomm, emphasizing the company’s commitment to India’s digital future.

Additionally, the telecom giant aims to bolster its user base with the introduction of a budget-friendly 4G handset and the wireless broadband service, Jio AirFiber.

Reliance Industries, the parent company, is set to disclose its earnings later today.

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