Reliance Jio Q1 profit rises over 180% to Rs 2,520 crore, ARPU up 7.4% at Rs 140.3

Jio Platforms helped the company to deleverage balance sheet and became net debt free in June, which was well ahead of targeted date of March 31, 2020.

Reliance Jio reported a net profit of Rs 2,520 crore for the June quarter 2020 against a profit of Rs 891 crore in same quarter of last year registering a growth of 183 percent.

The average revenue per user (ARPU) grew a significant 7.4 percent sequentially to Rs 140.3 per subscriber per month. This was much higher than the expected 3.5 percent growth. Work from home boosted data consumption for the wholly-owned subsidiary of billionaire Mukesh Ambani-owned Reliance Industries.

"Consumer facing businesses became the life-line for individuals and businesses with our Retail and Jio teams working hard to ensure millions got essential goods and services through the lockdown," Mukesh Dhirubhai Ambani, Chairman and Managing Director said.

Revenue for the June quarter was at Rs 16,557 crore, increasing 33.7 percent compared to Rs 12,383 crore in same period last year. It was far ahead of CNBC-TV18 poll estimates of Rs 15,800 crore for the quarter.

Work from home (WHF) boosts Jio’s data consumption and despite lockdown restrictions, the subscriber base grew robustly to 398.3 million at the end of June quarter (compared to 388 million in March quarter) as both voice and data traffic surged.

"There has been strong wireless gross addition of 15.1 million during the quarter despite COVID related restrictions across the country. Monthly churn rate for wireless subscribers at only 0.46 percent during the quarter," said Reliance in its BSE filing.

Customer engagement has increased during the quarter with national lockdown driving average wireless data consumption per user per month to 12.1 GB and average voice consumption to 756 minutes per user per month, it added.

Total wireless data traffic during the quarter was at 1,420 crore GB (30.2 percent YoY growth) with strong customer engagement and best-in-class network performance, company said.

Jio's earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 7,281 crore grew by 55.4 percent year-on-year and margin expanded 613 bps YoY to 44 percent for the quarter ended June 2020.

Jio Platform Limited has raised Rs 1,52,056 crore across 13 investors which includes Facebook, Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, Public Investment Fund of Saudi Arabia, Intel Capital and Qualcomm.

Of the total investment, company said Jio Platform Limited has already received Rs 1,15,694 crore as subscription amount from ten investors. "Rs 22,981 crore will be retained at Jio Platform to drive future growth."

Reliance Industries, post completion of these investments, would hold 66.48 percent equity stake in Jio Platform on a fully diluted basis, company said.

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