Mukesh Ambani-led Reliance Industries' telecom arm Reliance Jio on Friday posted over 12 per cent rise in net profit to Rs 4,863 crore in the June 2023 quarter, the company said in a regulatory filing. Jio had clocked a net profit of Rs 4,335 crore in the same period a year ago. The total income of Reliance Jio during the reported quarter rose to Rs 24,127 crore from Rs 21,995 crore a year ago.
Jio's revenue from operations increased by 9.9 per cent to Rs 24,042 crore during the reported quarter from Rs 21,873 crore in the June 2022 quarter. Sequentially, it rose 2.76 per cent from Rs 23,394 crore in the previous quarter, the telecom major said in release.
The company said its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter came in at Rs 12,278 crore, rising 0.55 per cent QoQ from Rs 12,210 crore. EBITDA margin was steady at 52.3 per cent.
Debt equity ratio of the company stood at 0.21 times compared to 0.16 times a year ago. Operating margin was steady at 26.2 per cent while net profit margin increased 30 basis points to 17.2 per cent.
The telco has been investing heavily in network infrastructure to grab a bigger market share. It launched a cheap 4G feature phone to tap the country's vast remote markets, which are still on slower mobile networks earlier this month. The launch of the phone is seen as a way to avoid any hit to its overall subscriber base from a likely tariff hike in September, according to Ambit Capital.
As per the latest telecom data from April 2023, Jio maintains its dominant position in the Indian telecom market with a market share of 37.9 per cent. During that month, Reliance Jio added 30.4 lakh subscribers, demonstrating steady growth that aligns with its consistent performance in subscriber additions over the past year.
Meanwhile, Reliance Strategic Investments Ltd (RSIL) was demerged from Reliance on Thursday, and was renamed Jio Financial Services (JFS). It got listed on the bourses later on Thursday. On NSE, JSFL was listed at Rs 273 per share. JFS is valued at Rs 261.85 per share after the special pre-opening session. Charanjit Singh Attra, who recently resigned as chief financial officer of SBI, has taken up the position of Chief Operating Officer at Jio Financial Services.
Stock of Reliance Industries closed at Rs 2,535.20 apiece, down 3.19 per cent, on the BSE on Friday.