Reliance Industries Ltd has just announced the results for Q3 FY2019-20. A record quarterly consolidated net profit of Rs 11,640 crore ($1.6 billion), up 13.5% Y-o-Y, with strong performance across Refining, Jio and Retail has been reported by the company. Reliance Jio EBITDA for the quarter stands at Rs 5,601 crore, up 38.2% Y-o-Y and the quarterly net profit increased 62.5% YoY to Rs 1,350 crore.
“Jio has continued on its unprecedented growth journey receiving overwhelming customer response for best in class mobile connectivity services. We are delivering on our promise to be the driver of digital revolution in the country. Jio is also determined to redefine the wireline infrastructure, home entertainment and enterprise market in India with its FTTx services which bundle best-in-class connectivity with bouquet of digital content and services,” said Mukesh D. Ambani, chairman and managing director, Reliance Industries Limited.
“To drive the next leg of growth, a truly transformational and disruptive digital services company has been set-up which will bring together India’s No.1 connectivity platform, leading digital app ecosystem and world’s best tech capabilities, for creating a truly Digital Society for each Indian,” he added.
Some of the other highlights from the results are as follows:
Jio Platforms Limited – Largest Digital Services Platform company in India
- Jio has been developing and fostering a vibrant digital ecosystem through various digital applications, tools and platforms spanning self-care, information, entertainment, chat, utility tools etc.
- Jio continues to focus on technology enabled Emerging Digital Platforms that enable and accelerate Digital Society – Healthcare, Education, Agriculture, Commerce, Gaming, Government to Citizen services, and many more. These platforms are also backed by investment in next-gen technologies like Blockchain, AI/ ML, AR/ MR, Edge Computing.
- Jio Platforms Limited will hold all digital platforms including the connectivity platform i.e. Reliance Jio Infocomm Limited (“RJIL”).
- Total capitalisation of Jio Platforms Limited is Rs 1,70,000 crore.
- The Capital and organisation structure of Jio Platforms Limited has been benchmarked with global technology players.
Jio continues to drive 4G transition in the country
- Subscriber base as of 31st December 2019 was 370 million with net addition of 14.8 million during 3QFY20.
- Strong gross addition of 37.1 million during the quarter and 135.7 million during the previous twelve months with wider 4G network presence and attractive bundling of Jio digital services as key differentiators. Jio is committed to drive 2G to 4G transition across the country making affordable data services available to all Indians.
- Elimination of 22 million subscribers during the quarter, primarily excessively heavy voice users, owing to implementation of IUC tariffs due to regulatory uncertainty.
- Customer engagement continues to be robust with average data consumption per user per month of 11.1 GB and average consumption of 760 minutes per user per month.
Revision in tariff structure
- During the quarter, Reliance Jio introduced IUC tariffs for recovery of termination charges owing to regulatory uncertainties. For recharges done by Jio customers effective 10th October, calls made to other mobile operators are charged at the prevailing IUC rate (6 paise per minute) through top-up vouchers.
- Jio became a net recipient of access charges within 2 months of implementation of IUC tariffs, with outgoing traffic in overall offnet traffic reducing to 48% by end of quarter.
- This was combined with associated elimination of excessively heavy voice users, with underlying churn remaining stable.
- Continuing customer centric approach, Jio introduced new all-in-one plans with unlimited voice and data effective 6 December 2019. These new plans had fair usage policy for calls to other mobile networks.
Update on InvIT controlled Fibre and Tower SPVs
- Fiber and Tower undertakings were transferred to Jio Digital Fibre Private Limited (“JDFPL”) and Reliance Jio Infratel Private Limited (“RJIPL”) respectively, effective 31 March 2019.
- JDFPL and RJIPL are operating as independent entities with transfer of control to respective SEBI registered Infrastructure Investment Trusts.
- Binding agreements entered into with Brookfield Infrastructure Partners LP and its institutional partners for investment in the units to be issued by the Tower InvIT. Brookfield and affiliates will invest Rs 25,215 crore in Tower InvIT.
- At closing of the transaction expected shortly, Tower InvIT will own 100% of the issued and paid up equity share capital of RJIPL.
FTTH and Enterprise Services starting to ramp-up with strong customer interest
- The process of converting the initial test users to paid-plans and ramping up sales across 1,600 cities is underway.
- India enterprise connectivity market is expected to grow multi-fold over the next few years with our extensive fibre backbone and long-term partnership with Microsoft enabling the company to reach the large and underserved SMB and Micro enterprises market.