Reliance Jio Reports 11 point 7 percent Growth in Net Profit for Q1 FY25

Reliance Jio Platforms, the telecom arm of Reliance Industries chaired by Asia’s wealthiest industrialist Mukesh Ambani, has reported a notable growth of 11.7 percent in its net profit for the first quarter (Q1) of the financial year 2024-25, ending in June. The company’s net profit surged to Rs 5,698 crore in Q1 FY25, a reflection of its robust performance in the telecom sector. Additionally, Reliance Jio’s customer base has now reached a staggering 49 crore, with 13 crore being 5G subscribers. Despite the revenue growth, the average revenue per user (ARPU) has remained stable during this period.

Reliance Jio: Dominating 5G Outside China

On Friday, Reliance Jio announced its financial results for the April-June quarter, revealing that its total customer count has soared to approximately 49 crore. This includes 13 crore users of its 5G services, establishing Reliance Jio as the largest operator of 5G services outside China. This milestone underscores Jio’s significant footprint in the global telecom landscape.

Revenue and Operational Growth

Reliance Jio Platforms, which oversees the telecom and digital operations of Reliance Industries, reported a gross revenue of Rs 34,548 crore for the first quarter, marking a 12.8 percent increase from the same period last year. The company’s operational revenue for Q1 stood at Rs 29,449 crore, reflecting a similar 12.8 percent year-on-year growth. The surge in operational revenue is primarily attributed to the strong customer growth in both mobile and home segments. The earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw an 11.6 percent rise, driven by revenue growth and operational efficiencies.

Leading in Data Traffic

Reliance Jio has also emerged as the largest operator globally in terms of data traffic. The company’s ARPU in the first quarter remained stable compared to the March quarter and saw a slight increase of 0.7 percent from the first quarter of the previous year. The impact of the mobile recharge tariff hike on July 3, 2024, will be reflected in the September quarter results. With a solid customer base, the ARPU stood at Rs 181.7, and the per capita data consumption rose to 30.3 GB per month, indicating an average daily usage of over one GB. This data consumption metric underscores Jio’s dominance in the data traffic arena.

Enhancements in Digital Services

Reliance Industries Chairman and Managing Director Mukesh Ambani highlighted the impressive financial performance of Jio’s digital services business on a year-on-year basis, noting the sustained positive growth momentum. He stated that Jio’s True 5G network, which covers nearly 85 percent of India’s 5G capacity, continues to attract a growing user base. Additionally, there is increasing consumer traction for Jio’s fixed broadband offerings in both homes and enterprises. The attractive value proposition offered by Jio is facilitating more Indians’ transition to next-generation data networks.

The first quarter results of Reliance Jio Platforms for FY25 highlight the company’s strong financial health and its leading position in the telecom sector. With substantial growth in net profit, revenue, and customer base, particularly in the 5G segment, Reliance Jio continues to set benchmarks in the industry. As the company progresses, its focus on expanding digital services and maintaining operational excellence will likely drive further growth and innovation.