New Delhi: Jio Platforms (JPL), which houses Reliance Industries' telecom and digital businesses, posted a 26% on-year rise in net profit in the fiscal third quarter, on the back of the tariff hikes of July 2024, subscriber additions and strong data usage growth.
The rate hikes partly helped Jio grow average revenue per user(ARPU) 4.2% on-quarter to ₹203.3. But the full beneficial impact of the price hikes will be staggered, and likely to come through Q4FY25 and Q1FY26, since Jio has a higher share of subscribers on longer-validity plans compared to Bharti Airtel or Vodafone Idea, said analysts.
JPL's consolidated net profit climbed to ₹6,861 crore in the December quarter from ₹5,447 crore a year earlier, and ₹6,539 crore in the previous three months, it said in a statement Thursday.
JPL reported a 19.41% on-year growth in revenue from operations at ₹33,074 crore during the quarter, reflecting continued data usage and ramp-up of 5G-based fixed wireless access (FWA) services.
"Robust growth in digital services business was led by sustained subscriber addition and consistent improvement in customer engagement metrics," said Mukesh Ambani, chairman and managing director, Reliance Industries, the parent of JPL.
He added this was supported by 5G upgrades and gain in home broadband market share. Jio marked a record quarter for home connects with 2 million new additions, the results showed.
Jio, though, reversed customer losses suffered in the fiscal second quarter as many price-sensitive users who had initially ported out in droves to state-run BSNL - which did not raise rates last July - have rapidly returned amid the state-run carrier's network quality challenges and absence of a comparable 4G operation.
Jio had taken the lead in raising tariffs by 12-25% for most of its users with an aim of shoring up the average revenue per user (ARPU) in the absence of monetisation of 5G services as it has made huge investments in buying airwaves and rolling out a pan-India 5G network.
JPL's earnings before interest, tax, depreciation and amortisation (Ebitda) rose 19% from a year earlier to ₹16,585 crore in the December quarter backed by revenue growth. But Ebitda margin shrunk 30 basis points to 50.1% from a year earlier, owing to higher costs, said analysts.
Reliance Jio Infocomm, the country's top telecom operator, comprises the bulk of JPL's operations. Set up in October 2019, JPL also houses digital properties and investments of the group.
Reliance Jio, the telecom unit under JPL, reported 24% on-year growth in net profit for the December quarter at ₹6,447 crore, on a 16% growth in revenue from operations at ₹29,307 crore. Profit though was lower than the ₹6,718.5 crore average of analyst estimates compiled by ET.
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JPL's consolidated net profit climbed to ₹6,861 crore in the December quarter from ₹5,447 crore a year earlier, and ₹6,539 crore in the previous three months, it said in a statement Thursday.
JPL reported a 19.41% on-year growth in revenue from operations at ₹33,074 crore during the quarter, reflecting continued data usage and ramp-up of 5G-based fixed wireless access (FWA) services.
"Robust growth in digital services business was led by sustained subscriber addition and consistent improvement in customer engagement metrics," said Mukesh Ambani, chairman and managing director, Reliance Industries, the parent of JPL.
He added this was supported by 5G upgrades and gain in home broadband market share. Jio marked a record quarter for home connects with 2 million new additions, the results showed.
Jio, though, reversed customer losses suffered in the fiscal second quarter as many price-sensitive users who had initially ported out in droves to state-run BSNL - which did not raise rates last July - have rapidly returned amid the state-run carrier's network quality challenges and absence of a comparable 4G operation.
Jio had taken the lead in raising tariffs by 12-25% for most of its users with an aim of shoring up the average revenue per user (ARPU) in the absence of monetisation of 5G services as it has made huge investments in buying airwaves and rolling out a pan-India 5G network.
JPL's earnings before interest, tax, depreciation and amortisation (Ebitda) rose 19% from a year earlier to ₹16,585 crore in the December quarter backed by revenue growth. But Ebitda margin shrunk 30 basis points to 50.1% from a year earlier, owing to higher costs, said analysts.
Reliance Jio Infocomm, the country's top telecom operator, comprises the bulk of JPL's operations. Set up in October 2019, JPL also houses digital properties and investments of the group.
Reliance Jio, the telecom unit under JPL, reported 24% on-year growth in net profit for the December quarter at ₹6,447 crore, on a 16% growth in revenue from operations at ₹29,307 crore. Profit though was lower than the ₹6,718.5 crore average of analyst estimates compiled by ET.
