Reliance Jio Reports Substantial Profit Growth in Q3, Boosted by Subscriber Additions

Reliance Jio, a unit of the conglomerate Reliance Industries, demonstrated a noteworthy recovery in its profit growth for the third quarter ending December 31, 2023. The net profit ascended by 12.3% to reach ₹5,208 crore (about $627 million), ending a previous trend of slowing profit growth over four quarters​​​​.

The company’s revenue from operations similarly exhibited a 10.3% increase compared to the previous year, totaling ₹25,368 crore. This improvement marks a break from five consecutive quarters of slowing growth. Despite this, the operating margin in Q3 slightly contracted to 26.3% from 26.6% a year ago​​.

A significant factor in this performance was the increase in ARPU, which rose by about 2% year-on-year to ₹181.7. This increase was led by a better subscriber mix, although it was partially offset by the unlimited data allowance on the 5G network. Notably, about 90 million subscribers migrated to Jio’s 5G network during this period​​.

Total expenses for the quarter also rose, reflecting increased network operating expenses and license fees. For the first nine months of the financial year 2023-24, Reliance Jio’s profit rose by 12% year-on-year to ₹15,129 crore. The company’s focus on expanding its subscriber base through products like the JioBharat phone and JioAirFiber services contributed significantly to these growth numbers​​.

Investments in Jio’s 5G network are noteworthy, with an estimated investment of $13-14 billion planned for the rollout of its 5G standalone network. The company’s future strategies, including tariff structure adjustments and cost recovery plans, are anticipated to come into focus post-2024​