Reliance Jio Q4 Results Review - Inline; Modest, Steep Capex And Trivial FCF: Dolat Capital

Dolat Capital Report

Reliance Jio Infocomm Ltd.’s Q4 FY24 results were largely in-line and modest with revenue/Ebitda/adjusted profit after tax growth of 11/ 11.5/13.2% YoY and 2.5/2.5/2.4% QoQ.

Sub adds were healthy for eighth quarter at 10.9 million and average revenue per user was flat.

Vodafone Idea’s fund raise is a potential risk not just to growth but also quasi-duopoly market structure. However, Jio’s lead on 4G/5G networks and impending payout of Vodafone Idea implies significant steep tariff hikes for industry and shall benefit jio more.

Key triggers are-

1. steep tariff hikes,

2. 5G pickup,

3. peak investments behind and

4. potential listing of Jio.

Our enterprise/equity for Jio is Rs 1,350/1,090 at 11 times FY26E EV/E (versus Rs 1,190/935 at 10 times). Not rated.

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