Reliance Jio Q4 profit rises 13% to ₹5,337 cr

Net profit of Reliance Jio Infocomm jumped 13% year-on-year to ₹5,337 crore for the quarter ended March 31, 2024. The Mukesh Ambani-led company reported ₹4,716 crore profit in the corresponding quarter last year.

The telecom operator's revenue from operations rose 11% year-on-year to ₹25,959 crore in the fourth quarter compared with ₹23,394 crore in Q4 FY23.

Average revenue per user (ARPU) was ₹181.7 with a better subscriber mix partially offset by an increasing mix of promotional 5G traffic, offered unlimited to subscribers and not yet charged separately, the telecom operator says.

The operating margin was flat at 26.3% for the quarter ended March 31, 2024, while net profit margin stood at 17.5%, up 10 basis points sequentially and 40 basis points year on year.

Total expenses for the quarter rose to ₹18,917 crore from ₹17,172 crore a year ago, and ₹18,518 crore a quarter ago. Network operating expenses rose to ₹7,866 crore from ₹7,224 crore a year ago and ₹7,706 crore a quarter ago.

Expenses for licence fees and spectrum charges rose marginally to ₹2,389 crore in the third quarter from ₹2,330 crore in Q3 FY24 and ₹2,120 crore in the corresponding period of the previous year.

For the full financial year 2023-24, profit rose 12.4% year-on-year to ₹20,466 crore compared with ₹18,207 crore in the same period a year ago.

"Performance of the digital services segment has been boosted by accelerated expansion of subscriber base, supported by both mobility and fixed wireless services. With over 108 million True 5G customers, Jio truly leads the 5G transformation in India. From upgrading the hitherto 2G users to smartphones, to leading the effort of producing AI-driven solutions, Jio has proved its capability in strengthening the nation’s digital infrastructure," says Mukesh Ambani, chairman and managing director, Reliance Industries.

Engagement levels continued to remain strong with total data and voice traffic increasing by 35.2% and 9.7% YoY, respectively.

Jio outpaced rivals to add 10.9 million net subscribers during Q4 FY24 while monthly churn stood at 1.5%.

Around 108 million subscribers migrated to Jio's 5G network. The Jio True 5G network now carries around 28% of Jio's wireless data traffic. JioAirFiber services are now being offered across 5,900 cities and towns, with further ramp-up towards pan India coverage soon. Average daily data usage for AirFiber subscribers is at around 13 GB, which is 30% higher than JioFiber subscribers.

"Jio continues to maintain its network leadership and offer innovative digital solutions to multiple customer cohorts. This is driving consistent outperformance in terms of subscriber additions and engagement levels. Continued acceleration in growth of JioAirFiber subscriber base and ramp-up of digital services will sustain industry-leading growth for Jio," says Akash M Ambani, chairman of Reliance Jio Infocomm.