While Incumbents Bleed, Reliance Jio Posts 20% Net Profit In Q1

Reliance Jio, the newest telecom operator that forced the incumbent telecom operators like Bharti airtel, Vodafone and Idea Cellular, to go red in their balance sheets, however, is reaping the benefits of the competition in the industry.

While the incumbents are reporting negative growth and consistent decline in net sales as well as profit, Jio has been reporting profit for the last two quarter. In the Q1 ended June 30, 2018, Reliance Jio posted net profit of Rs 612 crore as against Rs 510 crore in the previous or March quarter showing an impressive growth of 19.9%.

In contrast, country’s largest telecom operator Airtel posted a net profit of Rs 97 crore in its Q1, 2018.

In terms of revenue, Jio posted a consolidated revenue of Rs 8110 crore in the reported quarter as against Rs 7128 crore in the previous quarter, showing a growth of 13.8%. Its standalone EBITDA is at Rs 3147 crore, an increase of 16.8% on a quarter on quarter basis with an EBITDA margin of over 38%.

“Jio continues on its path to drive digital revolution in India.We doubled our customer base and most user metrics in the last 12 months. 215 million customers within 22 months of start is a record that no technology company has been able to achieve anywhere in the world. Jio has built an ecosystem for digital services and its affordable and simplified pricing strategy offers every Indian a chance to experience the “power of data”. FTTH and Enterprise services with strong fibre backbone across the country would further establish Jio’s leadership as a digital services provider,” said Mukesh Ambani, Chairman, Reliance Jio.

The company has been showing impressive growth in all aspects. Within 21 months of its launch, the company acquired more than 215 million customers. In the reported quarter Jio added 28.7 million customers, and in the previous quarter it had added 26.5 million.

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