Business News: Reliance Jio profit up 47% to €3.508 billion in March quarter.
Reliance Jio, the telecommunications arm of Reliance Industries, owned by Mukesh Ambani, recorded a 47% increase in net profit to ₹ 3,508 crore on a consolidated basis in the January-March quarter of fiscal year 2020-21, compared to ₹ 2,379 crore in the corresponding period last year. According to a regulatory filing from the company to BSE on Friday, April 30, the Jio platform’s revenue from transactions stood at ₹ 18,278 crore in the March quarter, marking an increase of 18%, compared to ₹ 15,373 crore in the same period last year.
On a sequential basis, however, Jio’s performance was weak as the interruption of interconnection cost of use (IUC) resulted in a 6.1% drop in revenues. from operations and near-flat profit growth.
The telecommunications companies paid a IUC of six paise per minute for the calls made from their network to other service providers. The IUC was discontinued from January 1 on orders from the telecom industry regulator and this led to a sequential decline in both revenue and average revenue per user (ARPU). ARPU dropped to Rs 138.2 in Q4 FY 21 from Rs 151 from the third quarter. Another factor for the decline in ARPU was the fewer days in the fourth quarter, the company said.
Jio had blamed the maliciously motivated campaigns against the company for slower customer growth in the third quarter. The company’s total customer base increased to 426.2 million at the end of the March quarter, the company said. In February, Jio launched a new bundled offering that gives customers the phone, up to two years of unlimited free calling and 2GB of data per month, and this is believed to have led to the addition of subscribers.
The churn rate decreased during the quarter to 1.26% thanks to targeted sales initiatives and the reduction of the impact of Covid-19 in parts of the country during the quarter. During Q4 FY21, the average data consumption per user per month was strong at 13.3GB and the average voice consumption was 823 minutes per user per month.
“Jio has a base of 426 million highly engaged customers and remains committed to improving digital experiences not just for our existing customers but, for all individuals, families and businesses across the country. With its journey it has Having defined the partnerships over the past two years, Jio will continue to strive to make India a premier digital company, “Reliance Industries President Mukesh Ambani said in a statement.
“Covid has brought new challenges to the country. Jio’s field teams are working tirelessly to address all issues to ensure uninterrupted customer service. Jio’s goal remains to make life easy for all citizens through our digital solutions, while ensuring the safety of our employees and partners, “he added.