Reliance Jio June Quarter Profit Nearly Triples To Rs 2,520 Crore

Reliance Jio's average revenue per user (ARPU) - a measure of profitability - rose to Rs 140.3 per month, from Rs 130.6 per month in the previous quarter.

Reliance Jio June Quarter Profit Nearly Triples To Rs 2,520 Crore

Reliance Jio said its total customer base stood at 39.83 crore, as of June 30, 2020

Highlights

  • Reliance Jio's revenue from operations rose 33.71% to Rs 16,557 crore
  • Average revenue per user rises to Rs 140.3 per month from Rs 130.6
  • No significant impact on financial position, performance, says Jio
Billionaire Mukesh Ambani-led Reliance Industries' telecom arm, Reliance Jio Infocomm, on Thursday said its standalone net profit was at Rs 2,520 crore in the quarter ended June 30. That marked a nearly three-fold jump compared to its net profit of Rs 891 crore in the corresponding period a year ago. Reliance Jio's revenue from operations came in at Rs 16,557 crore in the April-June period, the telecom major said in a statement, up 33.71 per cent compared to the year-ago period.

Here are 10 things to know:

  1. The company said its earnings before interest, taxes, depreciation and amortization (EBITDA) margin rose to 44.0 per cent in the first quarter of financial year 2020-21, from 37.8 per cent in the quarter ended June 30, 2019.

  2. Reliance Jio said it has evaluated the implications of the coronavirus pandemic, and has determined that there is no significant impact on its financial position and performance.

  3. Its average revenue per user (ARPU) - a key measure of profitability for a telecommunications company - rose to Rs 140.3 per month in the three months to June 30, from Rs 130.6 per month in the previous quarter.

  4. Reliance Jio's total customer base grew to 39.83 crore as of June 30, 2020, from 38.75 crore at the end of the previous quarter.

  5. "Jio Platforms Limited with partnerships across promising Indian start-ups and globally renowned technology companies is set to drive the next leg of hyper growth for digital businesses," said Mukesh Ambani, chairman and managing director, Reliance Industries.

  6. "Our growth strategy is aimed at meeting the needs of all the 1.3 billion Indians. We remain focused on playing a leading role India's transformation into a Digital Society," he added.    

  7. Jio Platforms - which houses Reliance Jio Infocomm - raised Rs 1,52,056 crore through sale of stake to 13 investors during the quarter, including Facebook, Google, Intel Capital and Qualcomm. 

  8. Out of the total investment, Jio Platforms has already received Rs 115,694 crore as subscription amount from 10 investors, Reliance Jio said. 

  9. After the completion of these investments, Reliance Industries will hold a 66.48 per cent stake in Jio Platforms. "Thirteen investors, which include the largest technology companies and investors globally, now share a common vision with us," Mr Ambani said. 

  10. Reliance Industries reported a 31 per cent rise in net profit to Rs 13,233 crore in the June quarter, beating analysts' estimates.