Reliance Jio Q2 Results: Profit Rises 13% On A Larger Subscriber Base
Reliance Jio Infocomm Ltd.’s quarterly profit rose on the back of a dominating market share that rose despite a pandemic that has hurt most sectors across the world.
Net profit rose 13.2% sequentially to Rs 2,844 crore in the quarter ended September, according to an exchange filing. Analysts’ estimates compiled by BloombergQuint had pegged the bottom line at Rs 2,670 crore.
- Revenue rose 5.5% over the previous quarter to Rs 17,481 crore— in line with the Rs 17,628-crore estimate.
- Operating profit rose 10% to Rs 7,701 crore.
- Margin expanded to 43.6% from 42.30%.
- Average revenue per user rose for the fourth straight quarter to Rs 145 per month. The delayed impact of tariff hikes announced in December was expected to aid ARPU.
“The company has evaluated the implications of the Covid-19 pandemic and has determined that there is no significant impact on its financial position and performance,” the company said in its filing.
Reliance Jio became the first mobile service provider to cross 40-crore customer mark in India, in July, with net addition of over 35 lakh subscribers, according to data released by Telecom Regulatory Authority of India. It dominates India’s mobile market with 35.03% market share. This aided the company total earnings for the quarter.