Reliance Jio Q4 net profit rises 16% to Rs 4,984 cr, revenue up 14.4%

Reliance Jio, the country’s largest mobile network operator, saw its net profit rise by 15.6% to Rs.4,984 crore on a year-on-year basis in the fourth quarter of FY23.

The higher earnings were driven by strong subscriber additions, higher data consumption and revenue growth.

Jio Platform’s revenue from operations grew 14.4 percent annually to Rs. 25,465 crore during the fourth quarter.

Average Revenue Per User (ARPU) during the fourth quarter was Rs 178.8. This was 6.7 percent higher year on year.

A better mix of subscribers has resulted in growth in average revenue per users (ARPU). Intensifying 5G network coverage also increases consumer participation and data consumption. This, too, raises average revenue per user (ARPU), the company said.

However, on a sequential basis, the ARPU growth rate remained flat due to a two-day decrease in the quarter and the absence of a significant tariff increase.

EBITDA grew by 16.9 per cent year-on-year to Rs.12,767 crore. Ebitda’s margin increased by 120 basis points to 50.2% year-over-year.

The company said Ebitda’s growth was driven by higher revenue and steady improvement in margins.

The company’s financing cost decreased by 16.9 per cent to Rs. 1,014 crore due to repayment of high cost deferred payment obligations.

Jio, which launched commercial 5G services last October, gained 6.4 million new users on a quarterly basis. The company had a total of 439.3 million subscribers at the end of the fourth quarter.

The company plows its profits to expand the network. Its 5G network now extends to 2,300 cities and towns. Jio has deployed around 60,000 5G sites across the 700MHz and 3500MHz bands. Geo said it remains on track to complete the India deployment by the end of December.

“This is the fastest rollout of 5G networks on a global scale,” Kieran Thomas, President of Reliance Jio, said in an investor presentation after the results.

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

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

Average data consumption per user per month in Q4 increased to 23.1GB, compared to 22.4GB in Q3FY23.

“Jio continues to digitally empower millions of citizens across the country, expanding True 5G reach to more than 2,300 cities and towns in the short period of six months. With the steady growth in mobility and FTTH subscriber base, Jio continues to digitally empower millions of citizens across the country. (fiber to the home), and a growing suite of digital content and services, Jio’s business continues to deliver impressive growth in operating profit.”