Tariff hike boost helps Reliance Jio log 24% jump in net profit

Firm clocks revenue of Rs 21,873 cr in first quarter

Reliance Jio’s net profit rose 24.1 per cent to Rs 4,530 crore year-on-year (YoY) in the first quarter of FY23, led by an increase in revenue and data volumes.

Jio (Jio Platforms), gained 9.7 million mobile subscribers in the June quarter, after witnessing a decline for three consecutive quarters. At the end of Q1, its subscriber count stood at 419.9 million.

The company had earlier blamed SIM consolidation for the decline in its customer base.

The revenue from operations for the quarter grew 23.8 per cent to Rs 23,467 crore. The quarterly gross revenue of Rs 27,527 crore was its best ever.

The average revenue per user (ARPU) in Q1 stood at Rs 175.7, which was 27 per cent higher YoY and 4.8 per cent higher sequentially. The rise in APRU was led by greater customer engagement, the company said.

Last November, mobile service providers increased their tariff by around 20 per cent. This helped companies grow their ARPU but resulted in a slowdown in customer growth.

Analysts earlier had said that the full impact of tariff increases should be visible from Q1FY23.

Earnings before interest, tax depreciation, and amortisation (Ebitda) grew 28.5 per cent YoY to Rs 11,424 crore. The margin increased by 176 bps to 48.7 per cent, led by a rise in ARPU in the connectivity business  but partly offset by inflationary pressure on operating costs. Sequentially, the Ebitd margin was down 30 basis points, from 49 per cent.

Cash profit for the quarter was Rs 10,405 crore, up 29 per cent YoY. 

The average data consumption per user per month increased to 20.8 GB, up from 19.7 GB in the fourth quarter of FY22.

“Customer engagement on our digital services platform remains high. Jio is working towards expanding data availability for all Indians and I am pleased to see the positive trends in mobility and FTTH (fiber to the home) subscriber additions,” Reliance Industries Chairman Mukesh Ambani said in a statement.