This is the first time the Mukesh Ambani-owned company has declared earnings since starting operations in September previous year.
The latest entrant into the competitive telecom space said its average revenue per user or Arpu at Rs 156.4 is the highest in the industry, even though it's offering 84 days of discounted validity on an 28 days recharge. The country's top wireless carrier Bharti Airtel's ARPU was 154 rupees, while smaller rival Idea Cellular's APRU stood at 141 rupees in the April-June quarter. "Also, I don't see any reason that these present run-rates will decelerate or has already peaked", RIL group deputy chief financial officer V Srikant told reporters when asked whether Jio will report profit in the December quarter. A lower IUC benefits Jio.
Consolidated profit was estimated at Rs 8,169 crore and EBITDA at Rs 13,178 crore with margin of 15.4 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18. The company said it recorded the "highest per capita data consumption at 9.62 GB/user/month" and "the highest per capita voice consumption at 626 minutes per month" along with 1.78 billion hours of high-speed video consumption a month.More news: Kenya police shoot dead 2 opposition protesters
RIL chairman and MD Mukesh D Ambani said: "Our company reported another quarter of robust performance".
Operational performance was far better than analysts' expectations, with the EBITDA (earnings before interest, tax, depreciation and amortisation) growing 24% sequentially to Rs 15,565 crore and margin rising 300 basis points quarter-on-quarter to 16.4% in the quarter ended September 2017. Ambani said Reliance had "reported robust performance", with strong margins from its petrochemical and refining businesses, and a "positive contribution" from its 4G telecom services Reliance Jio - despite the recently formed division making a loss. The telecom business reported a net loss of Rs 271 crore, but was profitable on the EBIT level at Rs 260 crore.
The company's debt swelled to Rs 2,14,145 crore at the end of September as compared to Rs 1,96,601 crore as on March 31, 2017. The firm's shares have rallied 62 percent this year. The company alongside had several Reliance Jio statistics to share from the quarter, including how it has added 15.3 million subscribers in the quarter, taking its total subscriber base to 136.8 million. Cash in hand was marginally lower at Rs 77,014 crore.More news: Iman Shumpert to start for LeBron James in 2017 National Basketball Association preseason finale
To woo customers to Jio's network, Reliance in July launched a $23 phone that blurs the lines between a smartphone and a basic feature phone. It also has Rs 22,000 crore of deferred payments pending with government. "The numbers are baffling", he said.
The PAT for the quarter came in at Rs. 8097 crore, yoy increase of 12.8%.
Reliance Industries Ltd, India's biggest company by market capitalisation, announced its fiscal second quarter financial results today. Reliance Jio and Reliance Retail did not comment for the story at the time of writing. Thakur added that a new tariff plan was around the corner to push subscriber additions.More news: Court rules that unsent text message is man's last will and testament
- DMA for First Horizon National Corporation (FHN) moves above 13-week high
- Blake Lively's Terrifying Sexual Harassment Experience: Filmed While Sleeping
- Linkin Park's 'Carpool Karaoke' will be bittersweet for fans
- Missouri Politician Who Hoped For Trump's Assassination Now Compares Him to Hitler
- Nene's Nightmare: Nemesis Kim Zolciak Lawyers Up Over Leakes' 'Racist' Claims
- 'Crazy' Florida Cop Captures 9-Foot Anaconda With Bare Hands
- Trent Reznor x Atticus Ross Re-Work John Carpenter's 'Halloween' Theme
- Three skydivers killed in 'mid-air collision' over tourist beach
- "Diet Avocados" Have Just Been Discovered
- United States retail sales and CPI higher in September