User Additions Help Reliance Jio Report 16% Rise In Q4 Net Profit

The country’s largest mobile network operator, Reliance Jio, saw its net profit rise 15.6 per cent to Rs 4,984 crore year-on-year (YoY) in the fourth quarter of FY23.

The profit surge was owing to strong subscriber additions, increased data consumption and revenue growth.

Jio Platform’s revenue from operations grew 14.4 per cent annually to Rs 25,465 crore during Q4.

The average revenue per user (ARPU) during Q4 stood at Rs 178.8. This was 6.7 per cent higher, YoY.

ARPU growth was led by better subscriber mix. The ramp up of 5G network coverage is also resulting in increased consumer engagement and data consumption. This, too, is lifting its ARPU, the company said.

However, on a sequential basis, ARPU growth remained flat due to two lesser days in the quarter and in the absence of a significant tariff hike.

Earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 16.9 per cent YoY to Rs 12,767 crore. Ebitda margin went up by 120 basis points to 50.2 per cent YoY. 

The company said Ebitda growth was led by higher revenue and steady improvement in margins.

The company’s finance cost declined 16.9 per cent to Rs 1,014 crore due to repayment of high-cost deferred payment liabilities.

Jio, which launched commercial 5G services last October, gained 6.4 million new users on a quarterly basis. The company’s total subscriber count stood at 439.3 million at the end of Q4.

The company is ploughing its profit for network expansion. Its 5G network now extends to 2,300 cities and towns. Jio has deployed around 60,000 5G sites across 700 MHz and 3,500 MHz bands. Jio said it remains on track to complete pan-Indian roll out by December end.

“This is the fastest 5G roll out of the scale globally,” said Reliance Jio president Kiran Thomas, in a post-results investor presentation.

5G and fixed broadband will be the key focus areas for FY24.

The company will strengthen its coverage in mobility, home broadband and enterprise solutions.

The average data consumption per user per month in Q4 increased to 23.1 GB, up from 22.4 GB in the third quarter of FY23.

“Jio continues to digitally empower millions of citizens across the nation, extending True 5G reach to over 2,300 cities and towns in a short span of six months. With steady growth in mobility and FTTH (fibre to the home) subscriber base, and an expanding bouquet of content and digital services, the Jio business continues to deliver impressive growth in operating profits,” said Reliance Industries chairman Mukesh Ambani.