Reliance Jio, the tech/telecom arm of the biggest company in India, has recorded record profits in the March quarter, witnessing an unprecedented 47.5 percent year-on-year growth (in profits) over the 4 month period. The company was able to secure ₹3,508 crore ($480 million) in sheer profits, showing the growth of the tech industry in India, as well as the promise of Jio Platforms as a whole.
Overall, the value of services for the quarter was ₹21,650 crore ($ 3.0 billion), while the consolidated revenue from operations stood at ₹18,278 crore. This, according to the company, was a “sequential decline led by transition from Interconnect Usage Charges (IUC) to Bill & Keep regime and lower number of working days during the quarter.”
However, that does not mean that the quarter was bad for the tech giant. Not at all. The company’s EBITDA margin increased 600bps Y-o-Y to 46.9% with EBITDA at ₹ 8,573 crore.
Moreover, the total data traffic during the quarter was 16.7 billion GB, a 5.2% growth as compared to last quarter. If that’s not enough, voice traffic during the quarter stood at a massive 1.03 trillion minutes; 5.9% growth quarter on quarter. All of this was supported by the company adding 15.4 million new customers, meaning that Reliance Jio’s total Customer base as on 31st March 2021 was 426.2 million.
The company also reiterated the massive win it got when it scored spectrum in 800MHz, 1800MHz and 2300MHz bands, the cost of which stands at ₹ 57,123 crore.
With all of this said, the company’s ARPU declined over the quarter, coming in at ₹138.2 per subscriber per month as against ₹ 151.0 per subscriber per month in the trailing quarter. This too was credited to “sequential decline driven by transition from Interconnect Usage Charges (IUC) to Bill & Keep regime effective 1st January 2021, and lower number of days during the quarter.”
Overall, it was a ‘win some lose some’ quarter, where despite the growing demand, COVID related challenges did come in the way of the biggest telecom operator in the quarter.
“Jio has a highly engaged 426 million customer base and remains committed to enhancing digital experiences not only for our existing customers but, for all individuals, households, and enterprises across the country. With its path defining partnerships over the last couple of years, Jio will continue to strive towards making India a premier digital society,” RIL Chairman and Managing Director Mukesh Ambani said.