Jio Platforms’ Q2 Profit Jumps 23% YoY To INR 6,539 Cr
by Akshit Pushkarna · Inc42SUMMARY
- Jio Platforms posted a 23.4% year-on-year (YoY) increase in its consolidated net profit to INR 6,539 Cr in Q2 FY25
- Revenue from operations jumped 18% YoY to INR 31,709 Cr in Q2 FY25
- Jio’s customer base stood at 47.88 Cr at the end of the September quarter, an increase of 4.2% from 45.97 Cr a year ago
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Reliance Industries Ltd’s (RIL’s) digital giant Jio Platforms posted a 23.4% year-on-year (YoY) increase in its consolidated net profit to INR 6,539 Cr in the second quarter of the financial year 2024-25 (Q2 FY25).
On a sequential basis, net profit grew about 15% from INR 5,698 Cr in Q1 FY25.
Revenue from operations jumped 18% YoY to INR 31,709 Cr in Q2 FY25. On a sequential basis, operating revenue grew 7.6% from INR 29,449 Cr.
Jio Platforms, which houses telecom operator Reliance Jio, saw its Average Revenue Per User (ARPU) increase 7.4% YoY to INR 195.1 per month. On a sequential basis, the number went up more than 7% from the INR 181.7.
The company, in a statement, said that the ARPU increase was a result of a partial follow through of tariff hike and a better subscriber mix. It expects the full impact of the tariff hike to flow through in the next 2-3 quarters.
It is pertinent to note that Jio hiked tariffs for prepaid and postpaid plans by 12% to 25% on July 3. With the increase in tariffs, the cost of its lowest plan increased 21% to INR 189 from INR 155 earlier.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 17.8% YoY to INR 15,931 Cr during the quarter, while EBITDA margin stood at 50.2%. The company said that the EBITDA growth was a derivative of the healthy increase in its revenue
Jio’s customer base stood at 47.88 Cr at the end of the September quarter, an increase of 4.2% from 45.97 Cr a year ago. However, the number declined over 2% on a sequential basis. Jio Platform’s total customers stood at 48.97 Cr at the end of Q1 FY25.
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“Limited amount of SIM consolidation observed after the tariff hike, offsetting continued strength in gross addition in 2Q FY25; monthly churn increased to 2.8%,” the company said.
Giving an update on the rollout of its 5G network, the telecom operator said that it has reached 14.8 Cr subscribers for its True5G network. This translates to onboarding of 4 Cr new customers to its high-speed internet network during the quarter. It said that the 5G network contributed about 34% of its wireless data traffic.
For its high-speed internet, home entertainment, and digital services offering JioAirFiber, the company said that it set up the highest number of home connections in Q2 FY25. The number of JioAirFiber connections in India as of September 24 stood at about 2.8 Mn.
“Scaling up distribution, continuous optimisation of the onboarding process, and technology edge would enable Jio to achieve the target of connecting 100 Mn homes in India at record speed,” it said.
Commenting on the quarterly performance, RIL’s chairman and managing director Mukesh Ambani said, “Growth in digital services was led by increased ARPU and improving customer engagement metrics reflecting the strong value proposition of our services. The home broadband segment is witnessing accelerated momentum on the back of our unique industry-leading JioAirFiber offering… The digital services business continues to focus on innovative deep-tech solutions on a national scale and is on track to deliver the path-breaking benefits of Artificial Intelligence (AI) to all Indians.”
The quarter saw Jio expand into the growing AI industry in India with the introduction of an AI service platform called Jio Brain.
Under Jio Brain, the company plans to offer a comprehensive suite of AI platforms and tools, currently being tested within all Reliance Group companies.
In its quarterly result announcement, the company said that JioBrain is helping RIL embed AI into several processes and offerings, creating end-to-end workflows with real-time, data-driven insights and automation.
It is pertinent to mention that during RIL’s 47th annual general meeting, Mukesh Ambani also announced the launch of the Jio AI-Cloud Welcome Offer under which Jio users would get up to 100 GB of free cloud storage space to securely store and access documents by Diwali this year.
At a group level, RIL witnessed a 3.6% decline in net profit to INR 19,101 Cr from INR 19,820 Cr in the year-ago quarter. Its revenue from operations, however, rose 0.2% YoY to INR 2.35 Lakh Cr Cr from INR 2.34 Lakh Cr in Q2 FY24.