Jio likely to post strong 4Q on tariff hike, user addition; to support RIL

New Delhi: Reliance Jio’s profit for fourth quarter this fiscal is expected to more than double on-year, aided by tariff hike in December and incremental subscriber addition. Jio’s strong performance will also support parent Reliance Industries (RIL) from what analysts believe could have been ‘the weakest quarter in years’ as its oil and gas segment is facing collapse in demand due to COVID-19 lockdown.

“While RIL’s cyclical business earnings could post a steep decline in Q4, earnings expansion in the telecom (RJio) and retail businesses could save the day,” brokerage firm BOBCAPS said in a report. “RJio earnings could improve further in Q1FY21 as data usage surges post the enforced economic lockdown.”