Reliance Jio Infocomm, the telecom arm of Reliance Industries, has reported a significant increase in its first-quarter profit, bolstered by a surge in subscriber additions. In the April-June quarter, Jio, India's largest telecom operator by subscriber base, saw its net profit rise by 12% year-on-year to Rs 5,445 crore (approximately $651 million). This growth underscores the company's robust performance amidst a competitive telecom landscape in India.
Revenue from operations for Jio also witnessed a healthy increase, climbing 10.1% to Rs 26,478 crore during the same period. The strong financial results reflect Jio's continued efforts to expand its subscriber base and enhance service offerings in the highly competitive telecom market in India.
Analysts had anticipated revenue figures ranging from Rs 2,650 crore to Rs 3,560 crore, highlighting the market's expectations and Jio's ability to surpass these estimates with its robust performance.
In terms of subscriber metrics, Jio is expected to have added between 8-9 million net subscribers in the quarter, as indicated by analysts. Additionally, Jio's Average Revenue Per User (ARPU), a crucial metric for telecom companies, is estimated to be between Rs 182 to Rs 184, according to analysts' projections. This ARPU range reflects Jio's ability to maintain a competitive position within the market, slightly exceeding its previous quarter's ARPU of Rs 181.7.
The telecom sector in India has recently witnessed tariff hikes across major operators, including Jio, Vodafone Idea, and Bharti Airtel. These price increases come after three years and are aimed at recovering the substantial investments made in 5G technology and infrastructure over the past few years.
As part of Reliance Industries, Jio continues to play a pivotal role in the conglomerate's digital and telecom strategy, leveraging its extensive network and technological capabilities to drive growth and innovation in India's digital landscape.
