In Short:
Jio Platforms Ltd (JPL) reported a 23.4% increase in net profit for the fiscal second quarter, reaching Rs 6,539 crore, driven by recent tariff hikes and strong data usage. However, the price increase led to a drop in users, down to 478.8 million. Revenue also grew by 17.7% to Rs 37,119 crore as JPL continues to expand its 5G services.
Financial Results of Jio Platforms Ltd
Jio Platforms Ltd (JPL), which oversees the telecommunications and digital assets of Reliance Industries, has announced a 23.4% year-on-year increase in net profit for the fiscal second quarter, primarily driven by recent tariff hikes and a significant growth in data usage.
According to a statement released on Monday, JPL’s consolidated net profit rose to Rs 6,539 crore for the September quarter, compared to Rs 5,299 crore a year earlier and Rs 5,698 crore in the previous quarter. This profit exceeded the average analyst estimate of Rs 6,111.33 crore compiled by ET.
User Base Impact
Despite these promising financial results, the tariff increase implemented in early July has led to a decline in user numbers. As of the end of September, Jio’s customer base was recorded at 478.8 million, down from 489.7 million in the previous quarter. The company was the first to raise tariffs by 12-25% for most of its customers, aiming to improve the average revenue per user (ARPU) amid substantial investments in acquiring airwaves and expanding its nationwide 5G network.
ARPU and Revenue Growth
The rate hikes have positively impacted Jio’s ARPU, which increased sequentially to Rs 195.1 in the fiscal second quarter, up from Rs 181.7 in the prior quarter. Nonetheless, revenue growth may experience some delays as the market leader still has a substantial number of customers on longer-validity plans.
During the quarter, JPL also reported a 17.7% year-on-year growth in revenue from operations, amounting to Rs 37,119 crore. This increase reflects a steady demand for data services and the expansion of 5G-based wireline services.
