Jio Platforms Q4 net profit zooms 47.5% to Rs 3,508 cr; APRU hit by IUC removal

Jio Platforms on Friday posted a net profit of Rs 3,508 crore for the fourth quarter ended March 2021, up 47.5 per cent over the year-ago period as it logged healthy customer adds, although IUC-regime transition pushed down average revenue per user to Rs 138.2.Jio Platforms - the unit that holds telecom and digital businesses - saw revenue from operations rising to Rs 18,278 crore, up almost 19 per cent compared to the corresponding period previous year.

Jio Platforms on Friday posted a net profit of Rs 3,508 crore for the fourth quarter ended March 2021, up 47.5 per cent over the year-ago period as it logged ''healthy'' customer adds, although IUC-regime transition pushed down average revenue per user to Rs 138.2.

Jio Platforms - the unit that holds telecom and digital businesses - saw revenue from operations rising to Rs 18,278 crore, up almost 19 per cent compared to the corresponding period previous year. Jio, which is India's youngest but largest telecom operator, said it now has a strong spectrum footprint, spruced up by recent buys, to address the next 30 crore subscribers.

Jio's total customer base as on March 31, 2021 stood at 42.62 crore. Total data traffic during the quarter rose 26.7 per cent on the year ago period, while voice traffic logged 17.9 per cent year on year growth.

It witnessed strong customer gross addition at 3.12 crore (net addition of 1.54 crore) in the quarter with improved traction across mobility and homes. The gross subscriber addition was at 9.93 crore during FY21, despite Covid related challenges, the company said.

Jio, however, posted sequential decline in average monthly realisation per user or ARPU - a key metrics for all telcos. The ARPU during the quarter fell to Rs 138.2, from Rs 151 clocked in December quarter, on the back of scrapping of call connect charges or IUC, from January, 2021. ''ARPU for Q4FY21 was Rs 138.2, with sequential decline driven by transition from Interconnect Usage Charges (IUC) to Bill and Keep regime effective 1st January 2021, and lower number of days during the quarter,'' the company statement said.

During 4Q FY21, average data consumption per user per month was strong at 13.3 GB and average voice consumption was at 823 minutes per user per month.

The company statement further said that Jio is conducting field trials for fine-tuning network performance and configurations for its 5G network. Work is also ongoing on standardising 5G device configurations by collaborating with Original Equipment Manufacturers (OEMs).

''Despite Covid related challenges, JPL closed its first full year of operations with revenue and EBITDA (Earnings before interest tax depreciation and amortisation) of Rs 73,503 crore and Rs 32,359 crore, respectively. This has been driven by strong 45 per cent year on year EBITDA growth at Reliance Jio Infocomm on the back of continued subscriber traction and higher ARPU,'' it said. For the full year FY21, the net profit stood at Rs 12,537 crore.

Quarterly JPL operating revenue at Rs 18,278 crore, marked a sequential decline led by transition to 'Bill and Keep regime' and lower number of days during the quarter. The operating revenue for Reliance Jio, the telecom unit, was Rs 17,358 crore for March 2021 quarter, lower than Rs 18,492 crore in the December quarter, with the transition to 'Bill and Keep regime' causing the the quarter-on-quarter decline in its topline. Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said: ''Jio has a highly engaged 426 million customer base and remains committed to enhancing digital experiences not only for our existing customers but, for all individuals, households, and enterprises across the country. With its path defining partnerships over the last couple of years, Jio will continue to strive towards making India a premier digital society.'' Ambani noted that Covid has brought forth new challenges for the country, and added that Jio's on-the-ground teams are working tirelessly to address all issues for ensuring seamless customer service. The company said that the recent spectrum buys had armed it with airwaves to serve the next 30 crore subscribers.

It is pertinent to mention here that Reliance Jio spent the most in the recently concluded spectrum auction, picking up 488.35 MHz radiowaves in bands such as 800 MHz, 1800 MHz and 2300 MHz for over Rs 57,100 crore. All the spectrum is suitable to deploy 5G tech and narrowband Internet of Things, the company said.

Reliance Jio also topped up its spectrum footprint further when it announced, on April 6, an agreement with Bharti Airtel for the acquisition of some airwaves in 800 MHz band in Andhra Pradesh, Delhi and Mumbai circles at an aggregate deal value of about Rs 1,497 crore.

''With this, we believe we have the spectrum to now address the next 300 million subscribers,'' Anshuman Thakur, head of strategy, Reliance Jio, said during earnings call.