Jio Platforms' net profit up y-o-y by 12% in March quarter

23 Apr 2024 , 10:56 AM

Jio Platforms Ltd (JPL), the parent company of Reliance Jio, reported a remarkable 12% year-on-year (YoY) increase in net profit for the fourth quarter (January-March) of FY24, reaching ₹5,583 Crore. This growth was primarily fueled by a robust expansion in its subscriber base.

The company has demonstrated consistent growth in quarterly net profit over the past year, with successive increases of 11.6%, 12%, and 12.53% in the previous three quarters, respectively. Furthermore, JPL experienced a modest 2.53% sequential rise in net profit from the previous quarter, showcasing sustained financial performance.

In FY24, Jio witnessed a substantial 12% annual growth in net profit, reaching ₹21,423 Crore, compared to ₹19,124 Crore in FY23.

Despite the consistent net profit growth, Jio’s Average Revenue Per User (ARPU) remained stable at ₹181.7 for the fourth quarter, marking the third consecutive month of steadiness. However, on a yearly basis, ARPU showed a 2% increase from ₹178.2 in the previous fiscal year’s fourth quarter.

Jio attributed the stability in ARPU to a favorable subscriber mix, including a growing adoption of promotional 5G services, currently provided to subscribers at no additional cost.

The company’s revenue from operations recorded a significant YoY growth of 13.37% in the fourth quarter, totaling ₹28,871 Crore. This growth trajectory was consistent with previous quarters, which witnessed increases of 11.3%, 10.7%, and 11.2%, respectively.

The impressive operating revenue performance was driven by robust subscriber growth across both mobility and home segments, alongside improvements in ARPU.

Jio Platforms achieved a record Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of ₹14,360 Crore for the quarter, marking a YoY increase of 12.5%.

Despite a slight decline in the number of new subscribers added in the latest quarter, Jio gained 10.9 million new subscribers, maintaining its growth trajectory. Notably, the total number of subscribers migrated to Jio’s 5G network reached 108 million, representing 28% of Jio’s wireless data traffic, positioning Jio as the telecom operator with the largest 5G subscriber base outside China.

As of March, Jio’s total subscriber base reached 481.8 million, reflecting a 9.7% annual increase of 42.4 million new subscribers.

Jio’s network engagement remained robust, with total data and voice traffic increasing by 35.2% and 9.7% annually, respectively.

JioAirFiber, the company’s home broadband service, expanded its coverage to over 5,900 towns from an initial launch in eight cities. The service aims to penetrate over 100 million homes, significantly enhancing Jio’s home connectivity.

Akash M Ambani, Chairman of Reliance Jio Infocomm, expressed confidence in Jio’s network leadership and its ability to deliver innovative digital solutions. He highlighted the continued growth of JioAirFiber’s subscriber base and the expansion of digital services as key drivers of Jio’s industry-leading growth.

Of note, the average daily data usage for JioAirFiber subscribers reached 13 GB, indicating strong consumer uptake of the service compared to JioFiber subscribers, with a 30% increase.

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