Net Profit Of Q4 For Reliance Jio Likely To Stay Flat

The net profit of fourth quarter for Reliance Jio Infocomm is anticipated to stay flat consecutively at almost Rs 504 Crore, on an almost 3% increment in revenue to Rs 7,100 Crore, on the rear of healthy enrollments from Prime (its ongoing loyalty program), claimed the analysts.

ICICI Securities expects revenue of Prime membership from Jio to increase from Rs 500 crore in the quarter from October–December to Rs 900 Crore by as much as 80% in the quarter of March. This comes even though it appears that the recharge incomes of the 4G newcomer are dropping by 3.2% as compared to previous quarter and costs increasing to some extent.

One more analyst at a top overseas brokerage expects fourth quarter income of Jio to increase to Rs 7,500 Crore by 8–9% successively.

ICICI Securities, on the other hand, hopes the telecom arm of RIL (Reliance Industries) to clock an 11.1% chronological drop in ARPU (average revenue per user) from Rs 154 in the quarter form October–December to Rs 137 in the quarter of March. This is activated by the sharp slash in its base schemes to JioPhone consumers at Rs 49 per month and consumers moving to lowered packed plans.

Analysts although anticipate Jio to smash older operators of India such as Idea Cellular and Bharti Airtel in the quarter from January–March as well. In that course, market ruler Airtel is anticipated to clock its first loss almost after more than decade— at almost Rs 58.5 Crore. The Bank of America-Merrill Lynch anticipates Idea to broaden its loss from Rs 1,284.5 Crore to Rs 1,494 Crore in the quarter of December.

ICICI Securities anticipates Jio to also pinch a ride over Idea and Bharti Airtel on user-adds, expecting a 15.6% chronological jump in the subscriber base of the 4G newcomer.

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