Reliance Jio may book profit next fiscal year, Bernstein says

The telecommunications upstart backed by Asia’s richest man will book its first profit at “normal” depreciation in the year starting April, analysts at Sanford C. Bernstein & Co. predict.

Reliance Jio Infocomm Ltd. has elbowed its way into the No. 1 spot among India’s wireless carriers by offering free voice calling and cheap data services, undercutting incumbents Bharti Airtel Ltd. and Vodafone Idea Ltd. Jio, as the company is called, has already reported quarterly profit, but the figures do not reflect normal depreciation levels, according to a Bernstein report on billionaire Mukesh Ambani’s Reliance Industries Ltd. conglomerate.

“Indeed, by FY23, we expect telco will overtake energy to become the largest Ebitda (earnings before interest, tax, depreciation and amortization) contributor,” wrote analysts including Neil Beveridge and Chris Lane in the report.