Reliance Jio Infocomm's Q1 results show a 12% growth in net profit, reaching ₹4,863 crore

Reliance Jio Infocomm recently released its Q1 results, showing a 12% year-on-year (YoY) increase in net consolidated profits to ₹4,863 crore, compared to ₹4,335 crore in the corresponding quarter of the previous fiscal year. The company's revenue also grew by 10% YoY to ₹24,042 crore, up from ₹21,873 crore in Q1FY23. The results were in line with the estimated figures.

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Reliance Jio surged by 15% to ₹12,578 crore, from ₹10,964 crore during the same quarter last fiscal year. Additionally, the company's margin improved from 50.1% to 52.3%.

Reliance Jio continues to dominate the Indian telecom market, holding a significant market share of 37.9% as per the latest telecom data of April 2023. The company added 30.4 lakh subscribers during that month, maintaining consistent growth in overall additions throughout the previous year.

In an effort to strengthen its market position, Reliance Jio recently launched the 'Jio Bharat V2 4G smartphone for just ₹999. The company aims to target the substantial segment of 250 million mobile phone users still in the 2G era, providing them access to basic internet features amidst the impending 5G revolution.

Notably, Reliance Jio is taking a novel approach by focusing on both the consumer and enterprise sectors for its 5G services. The company intends to make 5G services affordable for consumers, promoting widespread adoption, while also catering to 35-50 million small and medium-scale businesses and at least 100 million households to promote broadband usage. This expanded broadband usage will serve as an additional revenue source for the company.

Reliance Jio's executive emphasized that their business approach prioritizes adoption, creating value that can be extracted, rather than solely focusing on tariffs. This strategic approach contributes to the company's monetization efforts and further enhances its position in the telecom market.