Reliance Jio Q2 result: Profit jumps over 3-fold to Rs 2,844 crore, revenue up 33%

Reliance Industries telecom unit Jio on Friday reported over three-fold jump in its net profit at Rs 2840 crore for the second quarter ended September 30, 2020, as compared to Rs 998 crore in the same quarter last year. On the sequential basis, the profit rose 12.9 per cent from Rs 2,513 crore in June quarter of this fiscal,

Revenue from operations increased by 33 per cent to Rs 17,481 crore, from Rs 13,130 crore in the year ago period, Mukesh Ambani-led telecom company said in a filing to the Bombay Stock Exchange.

On the consolidated basis, the net profit rose 19.8 per cent QoQ to Rs 3,020 crore in Q2 FY21, while revenue was up 7.2 per cent at Rs 18,496 crore. On the operational front, EBITDA was up 8.7 per cent YoY at Rs 7,971 crore, while EBITDA margin improved to 43.1 per cent from 42.5 per cent in the previous quarter. 

Also Read: Reliance Industries Q2 results: Net profit falls 15% to Rs 9,567 crore

Average revenue per user (ARPU) rose to Rs 145 in the September quarter of 2020, from Rs 140.3 during the previous quarter and Rs 120 in the year ago period, supported by higher tariffs and increase in data usage during coronavirus lockdown.

The September quarter saw Reliance Jio subscriber base reaching to 40.56 crore from 39.83 crore during June quarter of FY21. With this, Jio become the only operator (outside China) to have reached the milestone of 40 crore subscribers in a single country market. "Wireless gross addition showed a strong sequential increase to 2.72 crore as lockdown restrictions began to ease during the quarter," RIL said in a press release.

Also Read: Bharti Airtel Q2 results: Telco posts net loss of Rs 763 crore, revenue jumps 22%

Total wireless data traffic during the quarter of 1,442 crore GB, while voice traffic was 93,223 crore minutes. 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.

"Customer engagement continued to be robust with average wireless data consumption per user per month at 12.0GB and average voice consumption at 776 minutes per user per month, with an increasing usage of application-based voice on data networks," it said.

Meanwhile, parent company, Reliance Industries, reported consolidated profit at Rs 9,567 crore in Q2 FY21, against adjusted profit at Rs 8,380 crore in the June quarter. Consolidated revenue from operations for the quarter came in at Rs 1,16,195 crore.

Ahead of earnings announcement, shares of Reliance Industries closed trade at Rs 2,054.35 apiece, up 1.37 per cent, against previous closing price of Rs 2,026.55 on the Bombay Stock Exchange.