- Reliance Jio posts a net profit of Rs 5,693 crore in Q1 FY25.
- Jio adds over 40 million customers, reaching nearly 490 million users.
- Jio becomes the largest 5G operator outside China with 130 million subscribers.
Reliance Jio, a major player in India’s telecom industry, has once again demonstrated its market dominance by posting impressive financial results for the first quarter of FY25. With substantial growth in revenue and a remarkable increase in its subscriber base, Jio continues to lead the way in the telecom sector. Jio’s recent financial performance, its expanding customer base, and the strategic advancements that have cemented its position as a global leader in the 5G arena.
Reliance Industries Limited (RIL) announced its Q1 FY25 results, revealing a net profit for Jio of Rs 5,693 crore, a 2% growth compared to the previous quarter. This performance is indicative of Jio’s robust business model and its ability to attract and retain millions of customers, even amid intense market competition.
Jio’s Financial Performance
Reliance Jio’s net profit of Rs 5,693 crore in Q1 FY25 marks an 11.7% increase from Rs 5,809 crore in the same quarter last year. The company’s gross revenue rose by 12.8% year-over-year to Rs 34,548 crore. Despite a rise in finance costs and tax expenses, the EBITDA percentage remained stable, highlighting efficient cost management.
Jio, the largest 5G operator outside China, reported having 130 million 5G subscribers. This accounts for 31% of its total wireless traffic. The per capita data consumption for Jio users increased to 30.3GB per month, reflecting a growing reliance on data services.
Jio Profit
Jio’s ARPU (average revenue per user) remained flat at Rs 181.7. However, future quarters are expected to see an increase in ARPU and overall revenue with the implementation of tariff hikes. Jio added over 40 million customers in a year, bringing its total customer base to 489.7 million, just 10.3 million short of the 500 million milestone.
The company witnessed its highest-ever quarterly home connections at over 1.1 million, thanks to the success of Jio AirFiber. Akash Ambani, Chairman of Reliance Jio Infocomm, emphasized the importance of providing affordable internet to support India’s digital growth. Jio’s new prepaid plans aim to foster innovation in 5G and AI, driving sustainable growth.
Jio Q1 FY25
For Q1 FY25, Jio Platforms reported a 2% quarter-on-quarter growth in net profit to Rs 5,693 crore. Revenue from operations rose 2% to Rs 29,449 crore, driven by subscriber additions and increased data and voice consumption. The ARPU remained flat sequentially at Rs 181.7, primarily due to the free unlimited 5G offer. The impact of recent tariff hikes will be reflected in the next quarter.
Reliance Jio added 7.9 million subscribers during the quarter, bringing the total to 489.7 million. The growth was driven by demand from 2G users transitioning to JioBharat 4G phones and the churn in Vodafone Idea’s subscriber base. Jio’s 5G user base grew to 130 million, with 31% of its wireless data traffic now carried on its 5G+4G combo core.
Strategic Growth and Future Prospects
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, highlighted Jio’s role in India’s digital revolution. Jio’s True 5G network covers 85% of India’s 5G capacity, attracting a large user base. The company is also seeing increased traction in its fixed broadband offerings, both for homes and enterprises.
Jio’s consolidated operating profit or EBITDA rose 2% to Rs 14,638 crore, with the EBITDA margin remaining flat at 49.7%. The increase in operating expenses, including network, selling, distribution, and license fees, was balanced by higher revenue. The company’s finance cost rose by 9.5% to Rs 1,115 crore due to increased leverage.
Jio recorded its highest-ever quarterly home connections at over 1.1 million, driven by the strong demand for bundled entertainment and connectivity solutions. The average data consumption per user per month rose to 30.3 GB, a 5.6% sequential increase. However, total voice consumption fell by 1.4% to 1.42 trillion minutes, with average voice consumption per user decreasing to 977 minutes.
Jio’s performance in Q1 FY25 underscores its position as a leader in the telecom industry. With a strong financial performance, a growing customer base, and significant advancements in 5G technology, Jio is well-positioned to continue its growth trajectory. The company’s commitment to providing high-quality, affordable internet will further drive India’s digital transformation.
As Jio continues to innovate and expand its services, it remains a key player in shaping the future of telecommunications in India and beyond. The strategic focus on enhancing customer experience and driving technological advancements will ensure Jio’s continued success in the competitive telecom sector.
