Reliance Industries telecom unit Jio on Thursday posted a 87.65 per cent rise in standalone net profit at Rs 5,562 crore for the financial year ended March 31, 2020, as compared to Rs 2,964 crore in FY19, driven by continued subscriber additions and partial impact of tariff hike undertaken in 3QFY20.
Standalone total income was up 33.47 per cent at Rs 63,983 crore ($8.52 billion, assuming a conversion rate of Rs 75.1 to a US dollar) in FY20 as compared to Rs 47,935 crore ($6.38 billion) in FY19, Mukesh Ambani-led telecom company said in a filing to the Bombay Stock Exchange.
For the fourth quarter ended March 31, 2020, net profit jumped 177.5 per cent to Rs 2,331 crore as compared to Rs 840 crore in the same quarter a year ago. Revenue from operations, including access revenues, jumped 26.6 per cent to Rs 14,835 crore versus Rs 11,715 crore in the same quarter last year.
Average revenue per user (ARPU) rose to Rs 130.6 in the March quarter of 2020, from Rs 128.4 during the previous quarter.
The March quarter saw Reliance Jio subscriber base reaching 38.75 crore, up 26.3 per cent year-on-year, with gross addition of 2.4 crore during Q4 FY20.
The operating profit or EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew 43.2 per cent YoY to Rs 6,201 crore in January-March period, Reliance Jio said in a statement.
During the March quarter, the total wireless data traffic stood at 1,284 crore GB, reporting a 34.3 per cent year-over-year growth. The total voice traffic during the quarter was at 87,634 crore minutes, up 21.1 per cent on yearly basis. The average data consumption per user per month was 11.3 GB and average voice consumption of 771 minutes per user per month.
On the current situation, Reliance Jio said that during these tough times of COVID-19, Jio's world-class broadband connectivity solutions along with Microsoft's collaboration platforms have enabled work from home, learn from home and health at home for Indians.
"Aggressive sales initiative and customer focused approach have been launched to help recoup slowdown in subscriber addition momentum, as we return to normalcy," the company said.
Commenting on results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries said: "We are glad that we have made connectivity and operations easier for our customers in these difficult times. Every Jio employee is trained to think Customer First and that has resulted in overwhelming customer response as we are serving close to 40 crore Indians now. Jio continues to lead the digital revolution in India and the whole-hearted acceptance of our services motivates us to keep improving every day."
On Jio-Facebook deal, he 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. 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."
On April 22, Jio and Facebook signed binding agreements for an investment of Rs 43,574 crore by Facebook into Jio platforms. Facebook's investment will translate into a 9.99 per cent equity stake in Jio on a fully diluted basis. Of the total investment, Rs 14,976 crore will be retained at Jio to drive future growth.
Ahead of earnings announcement, shares of Reliance Industries closed Thursday's trade at Rs 1,467.05 apiece, up 2.86 per cent, against previous closing price of Rs 1,426.20 on the Bombay Stock Exchange.