'Reliance Jio Unlikely to Raise Tariffs in the Near Term’: JP Morgan

Mumbai: Reliance Jio is unlikely to raise tariffs in the near term which may not be good news for its peers, said brokerage firm, JP Morgan. Jio’s better-than-expected margins, reliable and strong consumption stats, accompanied by solid InvIT closure, are the key positives for the company, said the firm.

“Since all engagement and volume-related stats were quite robust as usual and with subscriber adds not showing any signs of slowing, it appears unlikely that RJio will be looking to raise pricing in the near term, thus, read-through implications for peers such as Vodafone-Idea and others for tariffs does not seem encouraging,” it said. Reliance Jio (RJio), a subsidiary of Reliance Industries Ltd., has ticked all the boxes that we would expect. Further, RJio’s parent (RIL) announced the signing of the first InvIT with Brookfield investing Rs 25,200 crore into the tower InvIT, said the firm.

RJio’s revenue growth stood at 5.3 % Q/Q with (expected) marginal ARPU decline of -3.3% Q/Q; consumption stats, subscriber acquisition, churn, market-share trends, geographic depth/breadth were all solid, the analyst firm stated while adding “what surprised us was the improvement in EBITDA margin to 40.1% despite the payment to the InvIT.” (IANS)

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