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Reliance Jio Q1 net profit at 4,335 crore, up 23% on-year; misses expectations

Reliance Jio net profit in April-June quarter missed expectations.

Reliance Jio Q1 net profit at 4,335 crore, up 23% on-year; misses expectations
Reliance Jio

Reliance Jio today reported a net profit of Rs 4,335 crore for the April-June quarter of the current financial year, rising 23% from a year ago, but missing street estimates. The telecom and operator’s standalone revenue for the quarter under review stood at Rs 21,955 crore. Analysts had expected the telco to post a net profit of around Rs 4,500 crore, aided by strong subscriber addition and growth in Average Revenue Per User (APRU).

Jio’s revenue from operations was at Rs 21,873 crore, coupled with other income of Rs 82 crore the firm reported a revenue of Rs 21,955 crore. This was up 21.9% from the year-ago period when the company reported a total income of Rs 18,008 crore. Net profit in the corresponding quarter came in at Rs 3,502 crore. Ebitda margin came in at 48.7%, up 176 bps on-year, led by average revenue per user (ARPU) increase in connectivity business partly offset by inflationary pressure on operating costs. ARPU for the quarter of Rs 175.70 per month saw a healthy 27% growth on-year.

“The company continues to invest in augmentation of the wireless and wireline network capacity,” Reliance Jio said. For the full year FY22, Reliance Jio’s standalone PAT jumped to Rs 14,817 crore against Rs 12,015 crore in FY21. Revenue advanced to Rs 76,977 crore as of March 31, 2022, compared to Rs 69,888 crore as of March 31, 2021. For the quarter under review, the company’s value of services was at Rs 25,725 crore up by 21.41% from Rs 21,189 crore in the corresponding year-ago quarter. Total expenses jumped to Rs 16,137 crore against Rs 13,313 crore in Q1FY22. Jio’s margin improved to 50.1% compared to 47.9% in the corresponding period last year. However, margins edged lower from 50.3% Jan-Mar 2022 quarter.

Analysts at Motilal Oswal had projected a net profit of Rs 4,500 crore and net revenue of Rs 21,600 crore. Expenses, however, were projected to be lower than the Rs 16,137 crore that the telecom operator reported. ICICI Direct had estimated revenue of Rs 21,582 crore and a net profit of Rs 4,420 crore for Reliance Jio.

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