Reliance Jio, the telecom arm of Mukesh Ambani-led conglomerate Reliance Industries Ltd, reported a 28.3% rise in third-quarter profit on Friday, as it added more users.
Jio, India’s biggest telecom carrier by subscribers, said net profit rose to Rs 4,638 crore in three months ended Dec. 31, from Rs 3,615 crore a year ago.
Its revenue from operations climbed nearly 19% to Rs 22,998 crore compared with Rs 19,502 crore in the same quarter last year.
Operating profit margin for the quarter improved to 26.6% in the December quarter compared with 26.3% in September and 26.1% in the year-ago quarter. Net profit margin came in at 17.1% against 17% in September and 26.1% in the corresponding quarter last year.
Reliance Jio is setting up 5G Network and continues augmenting its existing wireless and wireline network capacity, the company said in a BSE release. The Reliance Industries’ arm is mainly engaged in the business of providing digital services. As per the company, its net worth stood at Rs 2,11,281 crore at the end of December quarter against Rs 2,06,644 crore in September and Rs 1,93,616 crore in the year-ago quarter.
Total debt to total assets stood at 0.08%. Current liability ratio came in at 0.48% against 0.5% in September and 0.43% in the corresponding quarter last year.
Debt services coverage ratio stood at 6.33% against 5.39% in the September and 4.69% in the same quarter last year.
Reliance Industries will be announcing its quarterly results shortly. The oil-to-telecom major seen reporting a 5% drop in net profit on a double-digit basisdigit growth in sales. Nuvama Institutional Equities expects the oil-to-telecom major to log 4.8% drop in profit at Rs 14,965 crore on a 12.5% YoY rise in sales at Rs 2,08,132 crore.
“We anticipate 10% YoY growth in RIL Ebitda largely driven by strong ONG, retail and telco division offset by subdued O2C. While the benchmark Singapore GRMs remained flat YoY, it has plunged 16% QoQ. Moreover, imposition of windfall tax on HSD/MS/ATF shall weigh on margins further,” Nuvama said.
(More to come)