Jio's potential loss for the financial year 2018-19 will be Rs.15,000 crores - says US research firm Bernstein.

As per the report of the Economic Times, the US research and brokerage firm Bernstein has stated that the potential loss of Jio, for the financial year 2018-19 will be Rs.15,000 crores. This loss of Jio, is far worse than the losses being incurred by Vodafone Idea and Airtel. Bernstein has also stated that Jio is "managing" it's accounts to show a profit. For example, Jio has incurred Rs.7,500 crore as Handset Subsidies" to it's customers. Had this expenditure been shown in Jio's profit and loss account, the Company would have incurred a loss of Rs.3,800 crore, in the October to December quarter of 2018-19. But, this expenditure was shown in the accounts of Reliance Retail. As a result this, Jio is shown to have made a profit of Rs.831 crore net profit in the October to December quarter of 2018-19. The Economic Times reports that Reliance Jio did not respond to it's query, on the report of Bernstein. Economic Times has also stated, quoting market analysts, that Jio will start increasing it's tariffs, once it reaches the market share of 30%.

[ Source: Economic Times dt. 27-02-2019 ]