Reliance Jio Q1 result: Profit jumps 183% to Rs 2,520 crore, revenue up 34%
Chitranjan Kumar July 30, 2020
Reliance Industries telecom unit Jio on Thursday reported a significant jump of 182.8 per cent in its standalone net profit at Rs 2,520 crore for the first quarter ended June 30, 2020. The company had posted net profit of Rs 891 crore in June quarter of 2019 and Rs 2,331 crore in the previous quarter.
Revenue from Operations surged by 33.7 per cent to Rs 16,557 crore in June quarter of current fiscal compared to Rs 12,383 crore in the year ago period, Mukesh Ambani-led telecom company said in a filing to the Bombay Stock Exchange.
The June quarter saw Reliance Jio subscriber base reaching to 39.83 crore from 38.75 crore during March quarter.
Average revenue per user (ARPU) rose to Rs 140.3 in the June quarter of 2020, from Rs 130.6 during the previous quarter. The total voice traffic during the quarter was at 88,944 crore minutes, up 13.2 per cent on yearly basis. The average data consumption per user per month increased to 12.1 GB and average voice consumption of 756 minutes per user per month on the back of increase in customer engagement amid national lockdown.
Commenting on the results, Mukesh 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."
"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. 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.
The operating profit or EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew by 55.4 per cent to Rs 7,281 crore as compared to Rs 4,686 crore in April-June period of the last fiscal. EBITDA margin stood at 44 per cent, up from 37.8 per cent in 1Q FY20.
During the June quarter, the total wireless data traffic stood at 1,420 crore GB, reporting a 30.2 per cent year-over-year growth. The company said that there has been wireless gross addition of 15.1 million during the quarter despite COVID related restrictions across the country. Monthly churn rate for wireless subscribers was at only 0.46 per cent during the quarter.
During the April-June quarter, Jio Platform raised Rs 152,056 crore from thirteen marquee investors which includes Facebook, Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, Public Investment Fund of Saudi Arabia, Intel Capital and Qualcomm. Following the completion of these investments, Reliance Industries would hold 66.48 per cent equity stake in Jio Platform on a fully diluted basis, it said.
"Of the total investment, Jio Platform Limited has already received Rs 115,694 crore as subscription amount from ten investors. Rs 22,981 crore will be retained at Jio Platform to drive future growth," RIL said in the regulatory filing.
Ahead of earnings announcement, shares of Reliance Industries closed Thursday's trade at Rs 2,108.65 apiece, up 0.61 per cent, against previous closing price of Rs 2,095.85 on the Bombay Stock Exchange.