Although user growth increased significantly this quarter, the company faced challenges due to the pandemic and subsequent economic disruption to the supply chain.

The central theses

  • Jio customers consumed over 2 exabytes of data in Q1FY22, a significant increase over the previous quarter (QoQ) of 1.6 EB at least partially due to the second wave of the COVID-19 pandemic; the increase in data consumption compared to the previous year (YoY) was around 38%. This is equivalent to over 2 million terabytes consumed by Jio users in the past three months.
  • Data usage per user was 15.6 GB per month, compared to 13.3 GB per month in the previous quarter.
  • The average revenue per user was Rs 138.4, hardly moving from the previous quarter when it was was standing at Rs 138.

Source: Reliance Industries Limited

Sales flat, but healthy users are added

Operating income barely increased last year and was even depressed a little in the quarter up to March. In front the second wave. Reliance attributed the lackluster surge in QoQ growth to the elimination of the interconnect usage fee, a system whereby telcos paid each other a fee for calls made on each other’s network. Like-for-like growth without this impact, Jio said, was 19.3%.

Source: Reliance Industries Limited

User growth, on the other hand, grew significantly, likely outperforming rivals Vi and Airtel:

Source: Reliance Industries Limited

COVID-19 challenges

The company said it struggled to scale landline broadband and TV subscriptions during the second wave, even though telecommunications was a significant activity – this could possibly be due to problems with supply chain management and affiliate shutdowns

The COVID-19 pandemic and the associated economic disruptions have delayed the implementation of the following measures:

  • Challenges in ramping up customer access for Homes & Enterprises
  • Delay in Incremental Monetization of Connectivity and Digital Platforms – Reliance Presentation

Fixed line broadband growth: While business as a whole suffered from some of the impact of COVID-19, home broadband consumption flourished. “The average home uses nearly 300 GB of data per month and it’s growing,” the company said. It is also said that the company now has over 3 million JioFiber customers. This equates to a market share of 13% less than five years after its launch in an Internet service provider market that is far more competitive than the telecommunications market.

Financial Snapshot – Q1FY22

  • Revenue: Rs 18,952 crore (approximately 19% YoY)
  • EBITDA: Rs 8,892 crore (up 21.3% YoY)
  • Net profit: Rs 3,651 crore (from Rs 2,520 crore YoY)

Source: Reliance Industries Limited

Press release and results | presentation

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