New Delhi: Reliance Jio on Friday posted its first-ever net profit of Rs 504 crore for the three months period ended December 2017, the second quarter of commercial operations.
The company had incurred a loss of Rs 271 crore in the September quarter.
The revenue from operations came in at Rs 6,879 crore, 11.9 per cent growth over the previous 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, a company release 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," Mukesh Ambani, Chairman and MD, Reliance Industries, said.
The company is committed to push newer innovative products, which would radically transform customer lives and generate huge societal value, he added.
Reliance Jio entered the highly-competitive telecom sector in September 2016 with a six-month promotional offer of free voice and data, a strategy that helped it mobilise millions of users.
Jio threw an open challenge to the incumbent telecom operators with its disruptive tariffs, triggering a price war that saw severe bloodletting in the sector in following months.
Last year, Ambani announced the launch of a 4G-enabled feature phone priced at "effective" zero, that wooed low income users with life-long free voice calls and cheap data bundled with handset.
Interestingly, Jio's first ever profit came just a day after rival and India's largest telecom operator Bharti Airtel reported a decline in consolidated net profit for the seventh straight quarter. Airtel's net profit came in at Rs 305.8 crore for the three month period ended December 31, 2017 bruised by the tariff war in the industry and cut in call connect charges.
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