Mukesh Ambani's ambitious telecom venture Reliance Jio reported a loss of Rs 270.59 crore in its first quarterly financial performance for the period ended September 30.
Mukesh Ambani’s ambitious telecom venture Reliance Jio reported a loss of Rs 270.59 crore in its first quarterly financial performance for the period ended September 30. However, Reliance Industries Ltd’s fiscal second-quarter net profit at Rs 8,097 crore just about met the expectations despite the Jio loss, on the back of healthy refining margins.
Reliance Jio Infocomm Ltd (Jio), a wholly owned subsidiary of Reliance Industries Limited (RIL), which commenced its business in September last year reported its revenue at Rs 6,147 crore and EBITDA at Rs 1,443 crore posting a margin of 23.5%. The company
said that it had recorded a positive EBIT due to strong user additions and cost efficiencies, which made a positive contribution to RIL’s Q2 results.
According to the company, the subscriber base of Jio grew to 138.6 million by the end of September. The company said that at 138.6 million, Reliance Jio has country’s largest wireless data subscriber base. “The positive EBIT in the first quarter of commercial operations, customer growth and revenues reflect customer acceptance of Jio’s services,” Reliance Jio said in a statement. Reliance Jio says that the company is on track to reach 95% population coverage by next year.
“India is ready to go digital, move from voice to data and Jio is creating the foundation of data for the next generation business. The rapid uptake of Jio services reflects the latent need of the society. We are confident that Jio will bring significant benefits to the Indian economy and the Indian customers and will take India to a much higher pedestal,” Mukesh Ambani said in a statement. Ahead of the results, shares in Reliance had hit a record high of Rs 890.7, rising as much as 2.1%.
Here are the highlights from Reliance Jio’s first quarterly financial performance for the period ended September 30:
- Reliance Jio’s net loss: Rs 271 crore
- Consolidated EBIT: Rs 261 crore
- Standalone EBITDA: Rs 1,443 crore and EBITDA margin: 23.5%
- Revenue operations: Rs 6,147 crore
- Consolidated value of services: Rs 7,213 crore
- ARPU: Rs 156.4/sub per month