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Dolat Capital: Reliance Jio Logs Healthy Quarter, Backed By ARPU Growth

Dolat Capital: Reliance Jio Logs Healthy Quarter; Backed By ARPU Growth

Sim card packets for Reliance Jio, are displayed in Mumbai, on Jan. 19, 2020. (Photographer: Dhiraj Singh/Bloomberg)
Sim card packets for Reliance Jio, are displayed in Mumbai, on Jan. 19, 2020. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Reliance Jio’s Q1 FY21 was healthy subscriber addition of 10.8 million in a quarter impacted by Covid-19, average revenue per user (ARPU) growth of 7.6% QoQ to Rs 140.6, revenue/Ebitda/Adjusted profit after tax growth of 11.6/13.4/8.1% QoQ.

Steep increase in network costs and depreciation (up15.4/26.3% QoQ) were key negatives.

RJio’s holding company Jio Platforms Ltd.’s deal with various strategic/financial investors in Q1 (raised Rs 1.52 trillion for approximately one third dilution) is positive from multiple perspective viz. sets the valuation benchmark for future deals/initial public offering, strategic and technological benefits along with reduction in debt for parent.

Similar to Bharti airtel Ltd., Jio too is best-positioned to capitalize from improving industry scenario of mutually exclusive event of steep increase in industry ARPU or collapse of Vodafone Idea Ltd.

Click on the attachment to read the full report:

Dolat Capital Reliance Jio Q1FY21 Result Update.pdf

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