A REPORT ON RELIANCE JIO

CREATED BY – VIHAS.A.TRIVEDI

COURSE – BBA (HONS)

UNDER THE GUIDANCE OF

PROF. DR. CHARMI SHAH

Table of contents
1. Company Profile and Information

2. Overall Financial Position of the Company

3. Profit and loss statement of RELIANCE JIO 

4. Profit margin of RELIANCE JIO

5. Analysis of profit margin

6. Balance Sheet

7. Comparative study of income statement

8. Comparative study of balance sheet

9 References

1.COMPANY PROFILE AND INTRODUCTION

INTRODUCTION
Reliance Jio InfoCom Limited, often referred to as Reliance Jio, stands
out as a prominent telecommunications provider in India and operates as
a subsidiary of Reliance Industries Limited (RIL). Since its launch in
2016, Jio has transformed the Indian telecom landscape by offering
affordable 4G services, free voice calls, and a wide range of data plans,
significantly contributing to the country's digital evolution. This project
seeks to assess the financial performance of Reliance Jio from an
accounting viewpoint, concentrating on its financial statements, key
ratios, and accounting methodologies. By analyzing the company's
financial stability and operational strategies, this report underscores Jio's
role in the Indian economy and its potential for future growth.
Additionally, the analysis delves into the challenges Jio encounters in a
fiercely competitive telecom market and assesses its capacity to maintain
strong financial performance through sound accounting practices and
strategic choices.

Jio, a key component of Reliance Industries, stands as India’s foremost

digital services provider, connecting people, places, and things all over
the country! They proudly serve more than 500 million subscribers,
offering cutting-edge connectivity and digital solutions tailored for
individuals, communities, and businesses. Their offerings span various
sectors, including entertainment, commerce, communication, financial
services, and education. By harnessing India's expansive market and the
Reliance ecosystem, they have accelerated these innovations, generating
significant growth opportunities not only for themselves but also for us,
whether we're in India or elsewhere.
2.FINANCIAL OVERVIEW
Reliance Jio Infocomm Limited (Jio), a part of Reliance Industries
Limited (RIL), has consistently demonstrated strong financial
performance, driven by its innovative business model and strategic
investments. As a leading player in India’s telecom and digital services
sector, Jio has seen impressive financial growth since it started
operations in 2016. 1. Revenue Growth Jio has witnessed remarkable
revenue growth, fueled by its competitive pricing strategy and large
subscriber base: FY 2023 Revenue: ₹92,000 crore, showing an 11.8%
increase compared to the previous year. This revenue boost is linked to
rising data consumption, an expanding subscriber base, and a growing
demand for digital services. 2. Profitability Despite substantial
infrastructure investments and competitive challenges, Jio has
maintained steady profitability: Net Profit: ₹4,881 crore in FY 2023,
indicating a consistent rise in profit margins. This profitability is
bolstered by effective cost management, economies of scale, and the
monetization of its digital platforms. 3. Subscriber Base and ARPU
Subscriber Base: Jio serves over 500 million subscribers, making it the
largest telecom operator in India with a market share of around 35%.
Average Revenue Per User (ARPU): ₹178.8 per subscriber (as of Q1 FY
2024). The ARPU has increased due to a higher uptake of premium
plans and greater data usage. 4. Investments and Debt Jio has invested
heavily in expanding its 4G and 5G infrastructure, including acquiring
spectrum. Debt Position: Reliance Jio’s capital expenditure for FY 2023
surpassed ₹50,000 crore, primarily supported by Reliance Industries’
robust balance sheet. The company maintains a manageable debt-to-
equity ratio of approximately 1.5:1, reflecting its use of borrowed capital
for growth. 5. Key Financial Ratios Liquidity: Current Ratio around
1.3:1, indicating a solid capacity to meet short-term obligations.
Profitability: Net Profit Margin: approximately 5.3% Return on Equity
(ROE): about 10% Solvency: Debt-to-Equity Ratio around 1.5,
highlighting its strategic borrowing approach.

3.PROFIT AND LOSS STATEMENT OF

RELIANCE JIO (LAST 4 YEARS)
PROFIT & MAR MAR MAR MAR MAR
LOSS 24 23 22 21 20
ACCOUNT
OF
RELIANCE
INDUSTRIES
(in Rs. Cr.)

12 12 12 12 12
mths mths mths mths mths

INCOME

REVENUE 574,9 565,3 466,4 278,9 366,1

FROM 56.00 47.00 25.00 40.00 77.00
OPERATION
S [GROSS]

Less: 40,42 37,03 42,72 33,27 29,22

Excise/Sevice 2.00 2.00 2.00 3.00 4.00
Tax/Other
Levies

REVENUE 534,5 528,3 423,7 245,6 336,9

FROM 34.00 15.00 03.00 67.00 53.00
OPERATION
S [NET]

TOTAL 534,5 528,3 423,7 245,6 336,9

OPERATING 34.00 15.00 03.00 67.00 53.00
REVENUES
Other Income 12,12 11,22 13,87 14,81 13,56
8.00 9.00 2.00 8.00 6.00

TOTAL 546,6 539,5 437,5 260,4 350,5

REVENUE 62.00 44.00 75.00 85.00 19.00

EXPENSES

Cost Of 376,4 391,5 320,8 168,2 237,3

Materials 18.00 08.00 52.00 62.00 42.00
Consumed

Purchase Of 13,45 9,974. 10,69 7,301. 7,292.

Stock-In 3.00 00 1.00 00 00
Trade

Operating 40,02 44,39 27,15 18,37 21,42

And Direct 7.00 6.00 5.00 5.00 4.00
Expenses

Changes In 2,700. - - 610.0 77.00

Inventories Of 00 6,487. 7,962. 0
FG,WIP And 00 00
Stock-In
Trade

Employee 7,807. 5,691. 5,426. 5,024. 6,067.

Benefit 00 00 00 00 00
Expenses
Finance Costs 13,43 12,62 9,123. 16,21 12,10
0.00 6.00 00 1.00 5.00

Depreciation 17,69 10,11 10,27 9,199. 9,728.

And 0.00 8.00 6.00 00 00
Amortisation
Expenses

Other 21,52 18,66 15,95 13,56 14,30

Expenses 3.00 5.00 1.00 5.00 6.00

TOTAL 491,3 485,4 390,7 237,5 305,9

EXPENSES 89.00 11.00 89.00 77.00 58.00

PROFIT/ 55,27 54,13 46,78 22,90 44,56

LOSS 3.00 3.00 6.00 8.00 1.00
BEFORE
EXCEPTIONA
L,
EXTRAORDI
NARY ITEMS
AND TAX

Exceptional 0.00 0.00 0.00 4,304. -

Items 00 4,245.
00

PROFIT/ 55,27 54,13 46,78 27,21 40,31

LOSS 3.00 3.00 6.00 2.00 6.00
BEFORE TAX
TAX
EXPENSES-
CONTINUED
OPERATION
S

Current Tax 10,92 6,186. 787.0 0.00 7,200.

2.00 00 0 00

Less: MAT 0.00 0.00 0.00 0.00 0.00

Credit
Entitlement

Deferred Tax 2,309. 4,930. 6,915. - 2,213.

00 00 00 4,732. 00
00

Tax For 0.00 0.00 0.00 0.00 0.00

Earlier Years

TOTAL TAX 13,23 11,11 7,702 - 9,413

EXPENSES 1.00 6.00 .00 4,732 .00
.00

PROFIT/ 42,04 43,01 39,08 31,94 30,90

LOSS AFTER 2.00 7.00 4.00 4.00 3.00
TAX AND
BEFORE
EXTRAORDI
NARY ITEMS
PROFIT/ 42,04 43,01 39,08 31,94 30,90
LOSS FROM 2.00 7.00 4.00 4.00 3.00
CONTINUING
OPERATION
S

PROFIT/ 42,04 44,20 39,08 31,94 30,90

LOSS FOR 2.00 5.00 4.00 4.00 3.00
THE PERIOD

OTHER
ADDITIONAL
INFORMATIO
N

EARNINGS
PER SHARE

Basic EPS 62.14 65.34 59.24 49.66 48.42

(Rs.)

Diluted EPS 62.14 65.34 58.49 48.90 48.72

(Rs.)

VALUE OF
IMPORTED
AND
INDIGENIOU
S RAW
MATERIALS
STORES,
SPARES AND
LOOSE
TOOLS

Imported Raw 0.00 0.00 0.00 0.00 0.00

Materials

Indigenous 0.00 0.00 0.00 0.00 0.00

Raw Materials

STORES,
SPARES AND
LOOSE
TOOLS

Imported 0.00 0.00 0.00 0.00 0.00

Stores And
Spares

Indigenous 0.00 0.00 0.00 0.00 0.00

Stores And
Spares

DIVIDEND
AND
DIVIDEND
PERCENTAG
E
Equity Share 6,089. 5,083. 4,297. 3,921. 3,852.
Dividend 00 00 00 00 00

Tax On 0.00 0.00 0.00 0.00 732.0

Dividend 0

Equity 100.0 90.00 80.00 70.00 65.00

Dividend Rate 0
(%)

4.PROFIT MARGIN OF JIO

The profit margin of Reliance Jio can be determined by
examining its net profit in relation to its revenue.
According to the most recent data for FY2024 (Q1): Key
Figures: Revenue: ₹26,478 crore (₹264.78 billion) Net
Profit: ₹5,445 crore (₹54.45 billion) Profit Margin
Calculation: Profit Margin = (Net Profit / Revenue) × 100
Profit Margin = (5,445 / 26,478) × 100 = 20.56%
Conclusion: For Q1 FY2024, Reliance Jio's profit margin
stands at approximately 20.56%, indicating its strong
capacity to generate profits compared to its revenue. This
impressive profit margin underscores Jio’s effectiveness
in controlling costs and enhancing profitability.
5.ANALYSIS OF PROFIT MARGIN
Analysis of Reliance Jio’s Profit Margin (20.56%) The profit

margin of 20.56% for Reliance Jio (as of Q1 FY2024) highlights

its operational efficiency, market strength, and profitability in

the competitive telecommunications industry. Here’s a closer

look: Industry Comparison Telecom Sector Norms: Telecom

operators generally work with narrow margins due to high

operational costs, significant capital investments in

infrastructure, and competitive pricing strategies. Achieving a

profit margin above 20% is impressive, particularly in India,

where consumers are very price sensitive. Peers: When

compared to other Indian telecom companies like Bharti Airtel

and Vodafone Idea, Reliance Jio stands out with significantly

higher profit margins, primarily due to its scale, cost efficiency,

and a wide range of digital services.

6.BALANCE SHEET OF JIO
7.COMPARATIVE PROFIT AND LOSS
STATEMENT
Profit and Loss Statement

(Values in ₹ Crores)
FY Q1 FY
Particulars
2023 2024
Revenue from 92,11
26,478
Operations 5
Other Income 1,250 410
93,36
Total Revenue 26,888
5
Expenses
- Network Operating 12,50
3,300
Expenses 0
- Employee Benefit
4,200 1,050
Expenses
- License Fees & 15,60
4,120
Spectrum Charges 0
- Depreciation & 18,75
5,000
Amortization 0
- Finance Costs 5,800 1,450
- Other Expenses 8,500 2,300
 65,35
Total Expenses 17,220
0
Profit Before Tax 28,01
9,668
(PBT) 5
Tax Expense 7,500 2,500
20,51
Net Profit 7,168
5
8.COMPARATIVE STUDY
OF BALANCE SHEET OF JIO
BALANCE SHEET MAR 24 MAR 23 MAR 22 MAR 21 MAR 20
OF JIO FINANCIAL
SERVICES (in Rs.
Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 6,353.28 2.02 2.02 2.02 2.02

TOTAL SHARE 6,353.28 2.02 2.02 2.02 2.02

CAPITAL

Reserves and Surplus 18,083.53 17,698.64 2,225.70 2,057.97 1,934.91

TOTAL RESERVES 18,083.53 17,698.6 2,225.70 2,057.97 1,934.91

AND SURPLUS 4

TOTAL 24,436.81 17,700.6 2,227.72 2,059.99 1,936.93

SHAREHOLDERS 6
FUNDS

NON-CURRENT
LIABILITIES

Long Term 0.00 0.00 0.00 0.00 0.00

Borrowings
Deferred Tax 17.18 4.08 0.00 0.00 4.77
Liabilities [Net]

Other Long Term 3.71 0.10 0.02 0.07 344.84

Liabilities

Long Term Provisions 12.93 1.81 0.00 0.00 17.65

TOTAL NON- 33.82 5.99 0.02 0.07 367.26

CURRENT
LIABILITIES

CURRENT
LIABILITIES

Short Term 0.00 742.77 0.00 0.00 2,420.25

Borrowings

Trade Payables 2.39 0.00 0.00 0.00 0.04

Other Current 1.18 0.09 0.07 0.17 58.96

Liabilities

Short Term 0.00 0.00 0.00 0.00 0.00

Provisions

TOTAL CURRENT 3.57 742.86 0.07 0.17 2,479.25

LIABILITIES

TOTAL CAPITAL 24,474.20 24,803.1 2,228.12 2,060.23 4,783.44

AND LIABILITIES 0

ASSETS

NON-CURRENT
ASSETS

Tangible Assets 29.95 38.93 0.00 0.00 0.00

Intangible Assets 6.58 9.87 0.00 0.00 0.00

Capital Work-In- 0.00 0.00 0.00 0.00 0.00

Progress

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 36.53 48.80 0.00 0.00 0.00

Non-Current 0.00 0.00 0.00 0.00 0.00

Investments

Deferred Tax Assets 0.00 0.00 5.31 3.94 0.00

[Net]

Long Term Loans And 0.00 0.00 0.00 0.00 0.00

Advances

Other Non-Current 29.25 23.99 40.39 47.34 0.00

Assets

TOTAL NON- 65.78 72.79 45.70 51.28 0.00

CURRENT ASSETS

CURRENT ASSETS

Current Investments 19,719.97 19,400.57 180.90 57.49 206.09

Inventories 0.00 0.00 0.00 0.00 0.00

Trade Receivables 0.00 0.00 0.00 0.00 7.65

Cash And Cash 4,590.20 5,000.17 0.51 0.36 0.49

Equivalents

Short Term Loans 92.00 0.00 2,001.00 1,951.09 4,400.15

And Advances
OtherCurrentAssets 6.25 329.57 0.01 0.01 169.06

TOTAL CURRENT 24,408.42 24,730.3 2,182.42 2,008.95 4,783.44

ASSETS 1

TOTAL ASSETS 24,474.20 24,803.1 2,228.12 2,060.23 4,783.44

0

OTHER
ADDITIONAL
INFORMATION

CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent Liabilities 2.94 3.19 18.77 6.67 7.12

CIF VALUE OF
IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares And 0.00 0.00 0.00 0.00 0.00

Loose Tools

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE IN
FOREIGN
EXCHANGE

Expenditure In 0.00 0.00 0.00 0.00 0.00

Foreign Currency

REMITTANCES IN
FOREIGN
CURRENCIES FOR
DIVIDENDS

Dividend Remittance -- -- -- -- --
In Foreign Currency

EARNINGS IN
FOREIGN
EXCHANGE

FOB Value Of Goods -- -- -- -- --

Other Earnings -- -- -- -- --

BONUS DETAILS

Bonus Equity Share -- -- -- -- --

Capital

NON-CURRENT
INVESTMENTS

Non-Current -- -- -- -- --
Investments Quoted
Market Value

Non-Current -- -- -- -- --
Investments
Unquoted Book Value

CURRENT
INVESTMENTS

Current Investments 14.57 5,520.39 -- -- --

Quoted Market Value

Current Investments 19,705.40 13,880.18 -- 57.49 --

Unquoted Book Value
 REFRENCES
1.www.moneycontrol.com
2. www.jio.com
3. www.wikipedia.com