Reliance Jio’s Q2 net profit nearly triples to Rs 2,844 crore; ARPU rises to Rs 145

Reliance Jio’s net profit almost tripled in the July-September period thanks to improved mobile recharge volumes, higher customer additions and lower finance costs post reduction in debt.

Profit increased to Rs 2,844 crore in the quarter from Rs 990 crore a year ago, the company said in a statement.

Quarterly revenue climbed to nearly Rs 17,480 crore from a year back for the country’s largest telecom operator, which is playing a crucial role in helping Reliance Industries’ (RIL) transformation.

The telecommunications arm of Jio Platforms added a net 7.3 million customers as COVID-19 restrictions were gradually eased.

It must be noted that net finance costs fell over 45% amid debt reduction steps by the telecom operator. Selling & distribution expenses also decreased to Rs 294 crore.

Jio’s average revenue per user (ARPU) – a key measure of profitability — rose sequentially to Rs 145.

While the consolidated net profit of Jio Platforms in the second quarter of this fiscal was at Rs 3,020 crore.

“We delivered strong overall operational and financial performance compared to the previous quarter with recovery in petrochemicals and retail segment, and sustained growth in digital services business,” Reliance Industries Chairman Mukesh Ambani said.

Reliance Jio, a subsidiary of Reliance Industries led by India’s billionaire Mukesh Ambani, stated customer engagement “continued to be robust” with average wireless monthly data consumption per user at 12 GB. Average voice consumption witnessed a steady increase and reached to 776 minutes per user per month with more usage of app-based voice on data networks.