Jio Platforms' Q1 profit gets a 24% boost from tariff hikes

Mumbai: Jio Platforms' (JPL) net profit rose 24% year-on-year in the first quarter, driven by higher data and voice consumption and increased average revenue per user (ARPU) on tariff hikes.

Jio also stemmed subscriber losses after three quarters, reporting 9.7 million net additions, taking its subscriber base to 419.9 million by the end of the quarter.

Analysts said this signalled an end to the SIM consolidation it witnessed since the increase in tariffs late last year.


For the April-June quarter, JPL's consolidated net profit stood at ₹4,530 crore from ₹4,313 crore in the January-March quarter and ₹3,651 crore in the year-ago period, the company said on Friday.

"Customer engagement on our digital services platform remains high. Jio is working towards expanding data availability for all Indians and I am pleased to see the positive trends in mobility and FTTH subscriber additions," said Mukesh Ambani, chairman, Reliance Industries (RIL), in the statement.

RIL is the parent entity of JPL.

FTTH, or fibre-to-the-home, refers to home broadband connections based on fibre connectivity.

As per industry data published by the telecom regulator, Jio has over 80% market share of new customer additions in the wireline segment, JPL said.

JPL's quarterly gross revenue rose nearly 24% year-on-year and over 5% sequentially to ₹27,527 crore driven by the residual impact of tariff hikes and acceleration in home broadband connections, the company said.

The company, established in October 2019 as a wholly-owned unit of RIL, houses the Mukesh Ambani-owned group's telecom business Reliance Jio Infocomm, the largest in the country, and other digital properties and investments. Reliance Jio though makes up the bulk of JPL's numbers.

Reliance Jio reported a nearly 24% on-year rise in net profit in the first quarter of FY23.

The telco's business net profit for the quarter was ₹4,335 crore, compared to ₹4,173 crore in the previous quarter, and ₹3,501 crore a yer ago.

Revenue stood at ₹21,955 crore, up nearly 5% from ₹20,945 crore in the March quarter, and 22% higher than ₹18,008 crore the year before.

ARPU, a key performance metric for the telecom business, grew sequentially to ₹175.7, up 4.8% from ₹167.6 in the previous quarter and 27% year-on-year.

Average wireless data consumption per user per month rose to 20.8 GB from 19.7 GB in the March quarter. Average voice consumption rose to 1,001 minutes from 901 minutes a month.