Reliance Jio made a profit more than year-on-year in the fourth quarter of this fiscal. Tariff hikes in December and incremental subscriber addition helped Ambani to bag profit.
This help will help picking up parent Reliance Industries from the slum of loss as the demand of oil and gas has shrunk due to COVID-19 lockdown.
Reliance Jio Infocomm Ltd had raised tariffs by 14-54% last December. One would have expected this to boost its average revenue per user (Arpu) in the March quarter. Besides, it had started charging subscribers a fee for outgoing calls outside its network, which tilted its outgoing-incoming call ratio. As a result, from being a net payer of interconnect usage charges (IUC), Jio has become a net receiver of IUC, with off-net incoming calls now exceeding off-net outgoing calls.
A higher share of lower-Arpu JioPhone users may have weighed on the numbers. And then, of course, the March quarter has one less working day, which also impacted growth.