Reliance Jio marks its first profit at Rs 504 cr

Mukesh Ambani-run Reliance Jio posted its first-ever net profit on Friday, raking in Rs 504 crore for the third quarter, ending in December 2017. Revenue from operations came in at Rs 6,879 crore, 11.9 per cent growth over the previous quarter.

Though the company launched its 4G services in September 2016, commercial operations started from July 2017. The company had posted a loss of Rs 271 crore in the September quarter.

The earnings before interest, tax, depreciation and amortisation (EBITDA) — at Rs 2,628 crore — was 82.1 per cent, more than the sequential quarter. The operating profit margin improved quarter-over-quarter to 38.2 per cent.

Jio's subscriber base, as on December 31, 2017, stood at 160.1 million, according to a company statement. "Jio's strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives. Jio has demonstrated that it can sustain its strong financial performance," Mukesh Ambani, Chairman and MD, Reliance Industries, said.

With its entry with free voice calls, Reliance Jio rattled the telecom industry triggering a consolidation phase. It also forced incumbents to match its tariffs to retain subscribers.

Last year, Jio also launched a 4G feature phone priced at "effective" zero as buyers need to pay a refundable amount of Rs 1,500.

Jio's first-ever profit came a day after rival and India's largest telecom operator, Bharti Airtel, reported a decline in consolidated net profit for the seventh quarter.