Mukesh Ambani's Reliance Jio has begun generating profits within 15 months of its launch, helped by a 15.8 per cent rise in subscribers and a sharp fall in interconnect charges. In a statement, Reliance Industries (RIL) said that its telecom unit posted a net profit of £50.4 million in the third quarter of fiscal 2018. It had recorded a loss of £27.1 million in the previous quarter. Chairman and MD, Ambani said, “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.”
Rising to the top, RIL with its refining, petrochemical and oil & gas ventures, reported a profit of £ 845.4 million in Q3FY18, 5 per cent over £802.2 million in Q3FY17. The company's standalone revenues expanded 14 per cent to £7.59 billion from £6.66 billion. Jio, which was launched in September 2016, earned an average of revenue of Rs 154 per subscriber in Q3FY18, compared to Rs 156 in the previous quarter. Operating profit rose 82 per cent to £262.8 million while operating margin expanded to 38.2 per cent. Expenses at Jio dropped about 7 per cent to £610.8 million in the October to December period.
RIL spent significant funds on network operating costs, interconnect charges, and depreciation charges. On a consolidated basis, the company operated a net profit of £942.3 million on revenues of £10.99 billion in the October-December period. “Our refining business has delivered 12 consecutive quarters of double-digit refining margins, demonstrating operating excellence and healthy industry fundamentals. Benefits of the large investments in petrochemical business are beginning to show with the segment reporting its highest ever earnings. We are excited about the prospects of both our energy and consumer businesses due to strong growth in Indian markets and constructive macro environment,” Ambani said.
