Reliance Jio Platforms: Q2 Financial Performance Overview

Reliance Jio Platforms witnessed a 3.9% sequential increase in its consolidated net profit for the second quarter, reaching ₹5,297 crore compared to ₹5,098 crore in the preceding quarter. Let’s delve into the key financial highlights and operational developments of Reliance Jio Platforms during this period.

Revenue and Subscriber Growth

The company’s revenue from operations rose by 2.9% quarter-on-quarter (QoQ), amounting to ₹26,895 crore as opposed to ₹26,115 crore in the first quarter of FY24. Notably, Reliance Jio Platforms added 11.1 million subscribers during the quarter, reflecting strong growth momentum.

EBITDA and Margin Improvement

Reliance Jio Platforms also witnessed a 3% QoQ increase in its earnings before interest, depreciation, tax, and amortization (EBITDA), reaching ₹13,528 crore. The EBITDA margin showed a one basis point sequential rise to 50.3% in the second quarter. This improvement in operating performance was supported by a revenue increase and an 80 basis points jump in margins.

ARPU Expansion and Analyst Expectations

The average revenue per user (ARPU) widened to ₹181.7 from ₹180.5 in Q1. This growth in ARPU was driven by a better subscriber mix across mobility and wireline services, partially offset by the commencement of 5G services. Analysts’ expectations regarding EBITDA growth and ARPU uptick were largely in line with the reported results.

Year-on-Year Comparison and Future Outlook

On a year-on-year basis, Reliance Jio Platforms observed a 12% increase in Q2 net profit and a 10.6% growth in revenue from operations. The company’s leadership, including Mukesh D Ambani, expressed confidence in Jio’s commitment to digital India through innovative offerings like JioAirFiber and JioBharat phone, alongside the impending pan-India rollout of 5G services.

Continued Growth Initiatives

The company’s strategic focus remains on driving market share gains and profitability through initiatives like JioSpaceFiber, India’s first satellite-based gigabit broadband service, showcased recently at the ‘India Mobile Congress 2023.’ With growth engines like Ubiquitous 5G, JioBharat, and JioAirFiber, Reliance Jio Infocomm anticipates accelerated growth and enhanced market positioning.

Reliance Jio Platforms continues to navigate the dynamic telecommunications landscape in India, leveraging technological innovations and strategic expansions to drive value for its stakeholders and contribute to India’s digital transformation journey.