Reliance Jio loses steam, Q4 numbers below estimates

After posting an impressive set of numbers for the last five quarters, Reliance Jio on Thursday disappointed on almost all fronts by missing analysts’ estimates in its January-March earnings.

During the period, the company’s net profit at Rs 840 crore, was up by a mere 1.1% sequentially, far below a 25% growth estimated by brokerages.

Jio, which had been witnessing a decline in its average realisation per user due to tariff cuts, was able to check the downward slide with steady tariffs during the December quarter but lost steam during the March quarter by reporting an Arpu of `126 against `130 in the preceding quarter. Analysts had estimated an Arpu of `129. In fact, Jio’s Arpu during the end of March quarter last year stood at `137, which means in a span of a year it has come down by around `11.

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