Mukesh Ambani-led Reliance Jio has posted a net loss of Rs 22.5 crore for the six months ended March 31, 2017, compared to the net loss of Rs 7.46 crore in the previous financial year. Fiscal 2018 will be the first full year of operations of Reliance Jio as the company has started charging its customers from April after offering free voice and data for the past seven months.
Jio's total income dropped to Rs 54 lakh against Rs 2.25 crore for the six-month period, according to the filing with the exchanges.
Over 72 million of the 120 million users have signed up for the Jio Prime membership, an offer that marked the start of monetising the telecommunications business.
Credit Suisse believes that Reliance Industries Limited’s (RIL) ability to fund losses is higher than that of its peers, given the strength of its balance sheet.
Credit Suisse, in a report dated 21 April said, “Jio’s primary target is likely raising revenue market share as aggressively as possible. We highlight every 1% incremental market share (by FY25) could be worth $1.4 billion in net present value (higher eventual free cash flows) to a large telecom operator.”
Reliance Jio had total assets of Rs 2,00,888 crore, total equity of Rs 70,864 crore and total liabilities of Rs 1,30,024 crore.
RIL shares closed up 1.19% at Rs 1416.4 in a firm Mumbai market on Monday.
