Reliance Jio has just released unaudited standalone financial results for Q3 FY23. The telco said that its net profit for the quarter was Rs 4,881 crore. It was marginally higher than Rs 4729 crore net profit posted during the preceding quarter. For the nine months of FY23, Jio’s net profit stood at Rs 14,140 crore. It is much higher than Rs 11,174 crore posted for the nine months ending December 31, 2021. Reliance Jio should post strong figures at the end of FY23 as the telco’s total net profit for FY22 was Rs 14,817 crore. Given that Jio has already reported a net profit of Rs 14,140 crore in the first nine months, the last quarter should drive the telco’s net profits even higher as the 5G rollout happens at a rapid pace.
Read More – Reliance Jio Net Profit for Q1 FY23 Stood at Rs 4335 Crore
Total expenses jumped from Rs 14,655 crore for Q3 FY22 to Rs 16,839 crore for Q3 FY23. It is worth noting that the finance costs were lower compared to the same quarter the previous year. License fees and spectrum charges also dropped YoY because of the no SUC (spectrum usage charge) implemented on the 5G spectrum purchased during the 2022 auctions.
Read More – Reliance Jio Network Cost Affected Profits in Q2 FY23
The telco’s quarterly profits have been growing at a very marginal pace. For Q1 FY23, Jio reported a net profit of Rs 4,335 crore. In Q2, the net profit was Rs 4729 crore, and in Q3, the net profit was Rs 4,881 crore. Without a boost in average revenue per user (ARPU), the telco’s not going to be able to increase its revenues fast. To boost the ARPU, a prepaid tariff hike would be required.
Reliance Jio ARPU for Q3 FY23
Jio said that its ARPU for Q3 FY23 was Rs 178.2, which is not much higher than the previous quarter’s ARPU of Rs 177.2. Data traffic saw growth from 28.2 billion GB in Q2 to 29 billion GB in Q3. Voice traffic also grew from 1.23 trillion minutes to 1.27 trillion minutes. The customer base of the telco went from 427.6 million to 432.9 million.
Akash Ambani, Chairman of Reliance Jio Infocomm Limited, said, “Jio is undertaking the most ambitious and fastest ever 5G rollout plan for any country of our size. Within three months of launch, Jio True5G is now available across 134 cities and would be available across India by December 2023. In addition, Jio will connect over 100 million premises with JioFiber and JioAirFiber offering unparalleled digital experiences. We will also empower small merchants and businesses with cutting-edge, plug-and-play solutions delivered from the cloud.”
Mukesh Ambani, Chairman of Reliance Industries Limited, said, “Jio delivered record revenues and EBITDA driven by strong momentum in customer growth and data consumption. This quarter we launched True 5G services. It is now available in 134 cities and towns in India, enhancing customer experience while enabling next generation services. It is heartening that customers recognise the great value and world class connectivity that Jio offers on its 4G and 5G networks.”