Reliance Jio Q1 results: Net profit rises 12% to Rs 5,445 crore; operating margin at 26.7%

Reliance Jio Infocomm Ltd (Reliance Jio) on Friday reported an 11.97 per cent year-on-year (YoY) rise in net profit at Rs 5,445 crore for the June quarter compared with Rs 4,863 crore in the same quarter last year. Revenue from operations jumped 10.33 per cent YoY to Rs 26,478 crore compared with Rs 24,042 crore in the same quarter last year.

The digital service provider said its operating margin for the quarter stood at 26.70 per cent against 26.30 per cent in March quarter and 26.2 per cent in the same quarter last year. The telecom operator said it is setting up 5G Network and continues augmenting its existing wireless and wireline network capacity.

Debt-to-equity ratio for the quarter came in at 0.21 per cent against 0.22 per cent in March and 0.21 per cent in the year-ago quarter. Net worth stood at Rs 2,41,763 crore. Reliance Industries Ltd (RIL) will announce its Q1 results shortly.

RJio recently hiked its tariff for prepaid and postpaid plans by about 20 per cent but not for Jio phone users. The hike, the first in two years, should increase average revenue per user (ARPU) by 15 per cent to Rs 206, said Motilal Oswal Financial Services as it sees exit ARPU of Rs 223 for FY25.

The telecom business of RIL could command a value of $112 billion upon its public listing, Jefferies said recently. At an dollar-rupee exchange rate of 83.49, this translates to 9.35 lakh crore. The foreign brokerage talked about two scenarios: The one where IPO route is picked and the other where vertical spin-off route is selected for public listing. Jefferies said RIL investors prefer the latter route. Irrespective of routes, it sees a possible Jio public listing in 2025.