InvestorQ : How were the Reliance Jio results announced for the Sep-20 quarter and I am largely interested only in the telecom and digital business performance?
Lavanya Subramanian made post

How were the Reliance Jio results announced for the Sep-20 quarter and I am largely interested only in the telecom and digital business performance?

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Anamika Sodhani answered.
2 months ago
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Overall Reliance results for the quarter were not too great due to the weak crude prices. However, the telecom and digital division did pretty well in the quarter aided by continuous additions in customers and also better ARPUs or the average revenue per user.

For the second quarter of FY21, Reliance Jio reported net profits of Rs.2844 crore, reporting an annual yoy increase of 185% on the back of better sales traction. Even on sequential basis, the profits of Reliance Jio were higher by 13%, on good telecom sector traction. It may be recollected that Reliance Jio had posted net profits of Rs.2520 crore Jun-20 quarter.

Even top line revenues were quite impressive for Reliance Jio. For example, the yoy growth in revenues was 19.8% at Rs.17,481 crore. Even on a sequential basis, the revenues were up by nearly 6% in the Sep-20 quarter on higher numbers and better realization..

One of the most popular metrics for a telecom company is the average revenue per user or ARPU. For the quarter, ARPU rose to Rs.145, as against being closer to Rs.140 in the previous quarter. The business got a boost from the WFH model.

Wireless data traffic increased to 27.2 million as lockdown restrictions began to ease during the quarter. The impact of the lockdown has actually been salutary on the telecom sector in India with mobile and data revenues sharply going up. In fact, average wireless data consumption per user per month stood at 12.0 GB, an all-time record.

Interestingly, Jio crossed the 400 million subscriber mark during the quarter and it now remains the only service provider outside of China to have a base in excess of 400 million, in fact it is 405 million to be precise.

In the meanwhile, fund raising and monetization has also been aggressive. Jio Platform has already raised Rs.152,056 crores from 13 global investors including Facebook, Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR, ADIA and TPG; a delectable mix of PE investors, sovereign funds and strategic investors.

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