Reliance Industries Ltd’s telecom arm Reliance Jio reported its fiscal fourth quarter net profit nearly tripled on-year to Rs 2,331 crore in January-March 2020, from Rs 840 crore in the same period a year ago.
Reliance Industries Ltd’s telecom arm Reliance Jio reported its fiscal fourth quarter net profit nearly tripled on-year to Rs 2,331 crore in January-March 2020, from Rs 840 crore in the same period a year ago. Further, with the company signing a deal with Facebook for sale of 9.99% equity stake in Reliance Jio for Rs 43,574 crore, one-third of the money received will be retained for Jio itself, and will be invested in taking Jio operations further, the company said. “Of the total investment, Rs 14,976 crore will be retained at Jio Platforms to drive future growth,” it said.
Further, RIL plans to integrate its homegrown e-commerce kirana platform JioMart with Facebook offering WhatsApp. This will ensure consumers’ ability to access the nearest kirana stores and grocers who can provide products and services to their homes.
Key takeaways from Q4 results
- Reliance Jio’s standalone revenue from operations stands at 14,835 crore.
- The telecom arm of RIL reported standalone EBITDA of Rs 6,201 crore and EBITDA margin of 41.8%
- Reliance Jio’s Net Profit stands at Rs 2,331 crore, nearly triple from previous year’s Rs 840 crore.
- Jio’s subscriber base as on 31 March 2020 was at 38.75 crore, which is 26.3% on-year growth.
“Jio is embarking on the next leg of growth with a path-defining partnership with one of the world’s largest digital companies, Facebook,” RIL chairman Mukesh Ambani said. The company now has focus on the country’s 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector.
Social media platform Facebook had recently made a deal with RIL to get a 9.99% equity stake in the company’s telecom arm Reliance Jio for Rs 43,574 crore. Facebook looks to further its commerce plan with the deal as the country has about 6 crore small businesses and a huge digital customer base of 1.3 billion users. As per the deal, Reliance Jio’s worth is pegged at 4.62 lakh crore, the company said in a statement. For Reliance, the deal means it is closer to fulfil its retail plan as it looks to get a strong foothold in a country which is one of the biggest retail markets in the world. Reliance looks to leverage Facebook’s technology and reach the target audience with its apps such as Whatsapp and Facebook.
Meanwhile, RIL shares were up by 2.60% today and closed at Rs 1,464 ahead of the company’s annual results.