Reliance Jio Q3 Results: Net Profit Jumps 12% YoY To Rs 5,208 Crore, Margin Remains Almost Flat

Reliance Jio Infocomm, the telecom unit of Reliance Industries Ltd, on Friday, reported its results for the quarter ended December 31, 2023. The company reported a 12.3% year-on-year (YoY) growth in net profit for the quarter ended December to Rs 5,208 crore. Sequentially, the company's net profit during this period grew 3%.

The company's net profit stood at Rs 5,058 crore in the prior quarter. Jio broke a four-quarter streak of slowing profit growth on Friday, supported by subscriber additions partly following the recent launch of its 4G budget-friendly phone.

The telco's revenue from operations rose 10.3% on year to Rs 25,368 crore. Sequentially, the bottom line rose nearly 3%, and the topline increased 2.5%.

The operating margin for the quarter contracted slightly to 26.3% from 26.6% a year ago, and 26.4% a quarter ago. The debt-to-equity ratio as of December end was 0.19 times, compared to 0.17 times a year ago.

Total expenses for the quarter increased to Rs 18,518 crore from Rs 16,839 crore a year ago, and 18,063 crore a quarter ago. Cost towards license fees/spectrum charges rose to Rs 2,330 crore compared to Rs 2,120 crore a year ago, and Rs 2,290 crore a quarter ago. For the nine months ended December, the telecom operator's profit grew 12% YoY to Rs 15,129 crore, and revenue jumped by 10% to Rs 74,160 crore.

Key takeaways:

Reliance Jio reported an improvement in operating numbers in both QoQ & YoY

• Q3 FY24 Revenue at Rs 25,368 crore Vs Rs 24,750 crore in Q2FY24
• Q3 FY24 EBITDA at Rs 13,277 crore Vs Rs 12,953 crore in Q2FY24
• Q3 FY24 EBITDA margin at 52.3% Vs 52.3% in Q2FY24.

Ahead of the results, shares of parent Reliance Industries closed almost flat at Rs 2735.05 on BSE.