Jio Platforms: Reliance’s digital services company paid Mukesh Ambani Rs

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Jio Platform Results: Reliance Group’s digital services arm Jio Platforms reported a 12.5 percent year-on-year rise in net profit to Rs 5,098 crore in the April-June quarter on the back of a growing customer base and improved average revenue. In the same quarter a year ago, Jio Platform’s net profit was Rs 4,530 crore. The Jio platform includes Reliance’s telecom arm Jio Infocomm, some startups, and music and video streaming apps.

According to quarterly results announced on Friday, its operating income rose 11.3 percent to Rs 26,115 crore in the April-June period from Rs 23,467 crore in the year-ago period. During the quarter, 9 million net subscribers were added and total data traffic grew 28 percent to 33.2 billion gigabytes. Average revenue per customer (ARPU) rose 2.8 percent to Rs 180.5 in the June quarter. Reliance Jio Infocomm chairman Akash Ambani said Jio is making rapid progress in expanding its True5G network. Jio is on track to roll out 5G network across the country before December this year.

Net profit of dependent industries

Reliance Industries Ltd (RIL) reported an 11 percent decline in net profit at Rs 16,011 crore in the April-June quarter of the current financial year due to poor performance in its oil-petrochemical business. RIL gave this information in the stock market on Friday. In the same quarter a year ago, the company had a net profit of Rs 17,955 crore. The company’s net profit also fell on a quarterly basis. The company had a record net profit of Rs 19,299 crore in January-March 2023.

Reliance Industries’ operating income also fell to Rs 2.1 lakh crore in the April-June quarter of the current financial year. It was Rs 2.22 lakh crore in the same quarter last financial year, while it was Rs 2.16 crore in January-March 2023. The earnings were impacted by a 31 percent drop in crude oil prices. The main reasons behind the decline in Reliance Industries’ earnings are lower crude oil prices and lower margins on fuels such as diesel. Refinement margins for diesel, petrol and aviation fuel (ATF) declined in the June quarter this year compared to last year.

However, RIL’s retail and telecom divisions performed well last quarter. Reliance Jio’s revenue grew on the back of strong average revenue per subscriber (ARPU) coupled with addition of new telecom subscribers and adoption of 5G technology. Similarly, Reliance Retail also performed well despite lack of festive demand. Finance expenses rose 46 percent to Rs 5,837 crore in the last quarter due to higher interest rates and outstanding loans. Depreciation/amortization expense increased by 31.7 percent to Rs 11,775 crore due to expanded asset base across all businesses and increased use of network in digital services business. On an operational level, the company’s earnings before tax (EBITDA) rose five percent to Rs 41,982 crore in the June quarter. RIL’s core business of oil refining and petrochemicals (petrochemicals business) saw pre-tax earnings decline 23.2 percent to Rs 15,271 crore.

Reliance said apart from fears related to recession and higher interest rates, destocking trend due to slower growth in China has affected demand. Due to this, exports fell by 28 percent in the quarter. Digital services business Reliance Jio Infocomm’s net profit rose 12.5 percent to Rs 5,098 crore in the first quarter. Subscriber count rose to 44.85 crore and ARPU (average revenue per user) increased to Rs 180.5 from Rs 178.8 in the March quarter. Revenues also increased as consumers turned to 5G services and IPL streaming.

During the same period, profit from the retail business rose 19 percent to Rs 2,448 crore. During this period, Reliance Retail’s store count increased from 18,040 to 18,446. The company said its net debt stood at Rs 1.26 lakh crore. Commenting on the results, RIL Chairman and Managing Director Mukesh Ambani said, “Reliance’s strong operating and financial performance this quarter reflects the strength of our diversified portfolio of businesses serving demand across industrial and consumer sectors.

According to Mukesh Ambani, the rapid launch of Jio’s ‘True 5G’ service is driving a rapid digital transformation in the country. The retail business posted strong growth with faster store additions and steady footfall growth, while the oil and chemicals business posted a strong performance despite global headwinds. He said the demerger process of financial services unit Jio Financial Services Limited (JFSL) is on track. He said, I am confident that JFSL is in a unique position to promote financial inclusion in India. (Courtesy of Input Language)

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