Reliance Jio Q2 net profit jumps 3-fold to Rs 2,844 crore; revenue up 34%

The fibre optic unit has a debt of Rs 87,296 crore, which includes suppliers’ credit
Reliance Jio on Friday announced that Abu Dhabi Investment Authority and the Public Investment Fund of Saudi Arabia would invest Rs 7,558 crore to purchase a 51 per cent stake in its digital fibre network.

The fibre optic unit has a debt of Rs 87,296 crore, which includes suppliers’ credit. The company said induction of strong partners will help it manage critical asset base.

The stake purchase was announced along with the company’s July-September quarter results.

Jio’s net profit almost tripled on a year-on-year (YoY) basis to Rs 2,844 crore. Revenue increased 34.4 per cent YoY to Rs 17,678 crore. The average revenue per user was up 3 per cent to Rs 144.

Wireless gross addition showed a strong sequential increase to 27.2 million as lockdown restrictions began to ease during the quarter.

“Monthly churn rate for wireless subscribers increased to 1.69 per cent with follow through impact of Covid on SIM consolidation and recharge cycle of migrant population,” the company said.

“Jio has become the only operator (outside China) to have reached the milestone of 400 million subscribers in a single country market,” the company said in an exchange filing.

Reliance Industries had earlier raised funds through similar structures for Jio’s telecom tower assets and for its promoter Mukesh Ambani-owned gas pipeline company.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel