Reliance Jio Q4 Review - Tariff Hike Absorption Better; High Capex Restricts Free Cash Flow: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Reliance Jio Infocomm's revenues grew by a strong 8% QoQ despite Q4 FY22 being shorter by two days, which shows that the latest tariff hike (in December 2021) was absorbed much better than the previous one (in Dec-19). However, the number of subscribers continues to decline on clean-up of inactive subs and SIM consolidation. RJio may see some more benefit of tariff hike in Q1 FY23 – of about 3-4%. Negative surprise was in free-cash-flow generation, which was impacted from higher working capital due to rise in receivables, and capex. FY22 capex stood at Rs 257 billion (adjusted for spectrum payment), significantly higher versus our estimates. We reckon the capex also includes opex capitalisation as the company’s fibre based businesses are yet to be fully rolled out. RJio remains confident of acceleration in fibre-to-the-home sub-base, and enterprise business..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Reliance Jio Q4 Review - Tariff Hike Absorption Better; High Capex Restricts Free Cash Flow: ICICI Securities

Reliance Jio Q4 Review - Tariff Hike Absorption Better; High Capex Restricts Free Cash Flow: ICICI Securities

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