Reliance Jio Infocomm reported a 23.8 per cent uptick in year-on-year profits at ₹4,342 crore for the first quarter of fiscal 2023. During the same quarter last year, Reliance Jio reported a net profit of ₹3,502 crore. Revenue from operations too increased by 21.5 per cent to ₹21,873 crore (₹17,994 crore).
The company reported stable operating margins quarter on quarter, at 26.2 per cent for Q1FY23, versus 26 per cent of Q1FY22. Sequentially, however, the operating margins shrank for 27.5 per cent reported by the company for the concluding quarter for the 2022 fiscal.
As per the results briefing, Jio saw a subscriber rebound of 9.7 million subscribers and strong growth in average revenue per user, up by 27 per cent year on year to ₹175.2. A RIL spokesperson said the benefits of December hikes as well as subscriber culling have improved ARPUs and some ripple effects of the tariff hikes are still continuing with customers upgrading to higher tariff packs.
Subscriber quality
Overall, the telco reported higher subscriber quality and increased subscriber engagement with the network, with per capita data usage crossing 20.8 GB per month. Jio also captures 60 per cent of the data market share overall.
Kiran Thomas, President at Reliance Industries Ltd, said that Reliance Jio’s fibre to home business is also seeing significant acceleration, with 78 per cent of the new subscribers opting for the higher ARPU post paid plans.
Reliance Jio will also be debuting its 5G network soon, especially as 5G auctions are going to commence and conclude next week. With 5G frequencies, soon to be in their hand, Thomas said detailed test cases have been shown to regulatory teams and DoT covering Jio’s 5G radios and 5G core network. Speaking about Jio’s own indigenous network 5G network based on O-RAN, Thomas said,”We have developed an indigenous design of 5G radios which will give us extensive advantage and price advantage.”
For Jio Platforms, operating revenue grew at 24 per cent year on year, with EBITDA growing at 29 per cent year on year.
Published on
July 22, 2022
