Jio loss at Rs 15k cr loss if standard a/c followed, subsidies included: Bernstein

Billionaire Mukesh Ambani’s Reliance Jio would post a loss of Rs 15,000 crore in the current fiscal year ending March 31 if the cost of subsidised mobile phones it sells is included and accounts are prepared using standard depreciation metrics, brokerage Bernstein said on Tuesday.

The loss would be larger than rivals Bharti Airtel and Vodafone Idea, it said.
“Jio’s disclosed income statements show a positive, albeit small, return on invested capital (about 3.1 per cent), but as we have pointed out in the past this relies on ‘non-standard’ depreciation metrics and all the handset subsidies being booked through Reliance Retail,” Bernstein said in a report.

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