› Particulars Mar-2024 Mar-2023 Mar-2022 Mar-2021 Mar-2020
Jio ROA (%) 4.39 4.76 5.21 4.9 2.57
BSNL ROA (%) -3.41 -5.95 -5.38 -5.32 -10.93
Vodafone
Idea ROA (%) -15.93 -14.61 -14.22 -21.43 -32.29
Jio: -
Between 2020 and 2023, net revenue increased from Rs 2.46 lakh crore to Rs 5.28 lakh crore due
to a rise in the subscriber base, product pricing, high economy of scale, and high ARPU. Net
assets also grew as Jio initially invested heavily in 4G infrastructure and subsequently in 5G
infrastructure.
In FY 23 and 24, net revenue remained stagnant due to stagnant tariffs and mature subscriber
growth. Jio managed to maintain good margins through digital diversification.
Government digital initiatives, a leading position in 4G technology, competitive pricing
strategies, and substantial investments in network infrastructure and spectrum are the key drivers
behind Jio’s growth.
BSNL:-
They faced challenges due to outdated legacy infrastructures and the absence of a 4G network.
As a result, their Return on Assets (RoA) remained negative. From FY21 to FY23, revenue did
not grow, as there was no investment in infrastructure and the product offerings were not
competitive compared to Airtel and Jio Infocomm.
In FY 24, revenue increased due to the partial rollout of 4G, tariff hikes by private players, and
the introduction of enterprise solutions and FTTH services.
Delayed modernization, lack of spectrum readiness, overstaffing held BSNL back for many
years. Recent revival packages, VRS schemes for employees over 50, and asset monetization
have boosted BSNL's revenues. However, inefficiencies in bureaucracy have kept the company
uncompetitive.
Vodafone Idea
High AGR dues and debt liability left many assets unutilized, resulting in a negative ROA. The
provisioning for AGR dues shrank assets and weakened the balance sheet, prompting the
company to explore asset monetization options.
In FY 22, the company experienced significant pricing pressure and a substantial loss of
subscribers due to their product offerings lagging those of Airtel and Jio Infocomm. In FY 23, an
increase in ARPU resulted in higher revenue, and the company sold its assets in Indus Towers to
reduce its debt.
Massive AGR dues of approx. 58,000 crore) inability to raise capital, underinvestment in 5G,
and price competition from Jio and Airtel hurt Vodafone Idea’s financials. Asset monetization
helped slow deterioration, but fundamentals remain weak.
ROE
Company Particulars Mar-2024 Mar-2023 Mar-2022 Mar-2021 Mar-2020
Jio ROE (%) 17.48 18.62 18.23 17.71 10.89
BSNL ROE (%) -6.84 -15.16 -14.49 -13.43 -23.15
Vodafone
idea ROE (%) 0 0 0 0 -202.05
Reliance Jio Infocomm:
In FY 21, profit increased from FY 20 due to economies of scale and an increase in ARPU. In FY
22, profits were supported by rising ARPU and digital services. Equity increased because of
retained earnings.
In FY 23, growth decelerated and profits reached their highest point. Equity increased due to
retained earnings and the monetization of non-core assets.
In Fy 24, margins moderated to subscriber stagnancy and stagnancy in ARPU. But assets
remained highly productive.
Rapid expansion in 4G followed by aggressive expansion in 5G, high ARPU and synergy with
Jio platforms are the key reasons for healthy RoE.
BSNL:-
Between FY 20-22, net losses increased due to bureaucratic inefficiencies and strategic
challenges. BSNL faced difficulties in scaling up because of infrastructure issues and a lack of
presence in the 4G market. In FY 2023, losses decreased because of government intervention,
debt restructuring, and the VRS scheme. Bharat Net and Bharat Fiber also contributed to revenue
growth.
In FY 24, they acquired additional market share, particularly in rural areas, as subscribers
transitioned from private players due to increased tariffs and the deployment of 4G services.
The deployment of 4G, equity infusion by the government, debt restructuring, and voluntary
retirement scheme (VRS) are some of the key factors that have contributed to BSNL's improved
return on equity (RoE).
Vodafone idea
In FY 20, due to massive losses and AGR liabilities , equity of the company shranked. In FY 21,
losses marginally increased and equity deteriorated, which made Vodafone Idea to think upon
asset monetization.
Between FY 22-24, losses remained in the range of Rs 29000-30000 crore and comoany raised
equity through external markets . They also monetized their assets in Indus tower s and which
was used to reduce the debts. Govt converted some of the AGR dues into equity, even after this
conversion equity remained negative.
Huge AGR dues, inability to compete on pricing with market leaders like Airtel and Jio and
absence from 5g market lead to prolonged losses and negative equity.
Asset turnover :
company Particulars Mar-2024 Mar-2023 Mar-2022 Mar-2021 Mar-2020
Asset
Jio Turnover(x) 0.25 0.28 0.32 0.34 0.3
Asset
BSNL Turnover(x) 0.12 0.14 0.13 0.12 0.13
Vodafone Asset
idea Turnover(x) 0.22 0.21 0.19 0.19 0.2
Asset Turnover Ratio = Net Sales / Average Total Assets
Jio:-
Between Mar 20 and Mar 21 strong growth in ARPU was witnessed and in addition growth in
subscriber base boosted the turnover as capital investments hadn’t hit the base completely.
Post FY’21 there is decline in the turnover as aggressive capex strategy was employed on 5g
network. This led to increase in assets but there was no significant increase in revenue since
ARPU remained flat.
Jio is yet to monetize its Jio platforms (AI and fintech)and digital services and new users have
not contributed to much of the growth.
BSNL:-
They have massive ageing physical infrastructure (buildings, tower, fiver networks). Most of the
infrastructure is underutilized and has become obsolete. Despite their underutilization they are
continued to be recorded on balance sheet, and which further inflates the assets.
Their revenue has remained stagnant, there was gain in subscriber base because of tariff hike by
airtel and jio. Largely their asset has remained underutilized. In late 2023 they started rolling out
4g network which further increased the denominator.
Vodafone idea:-
After the merger between Vodafone India and Idea cellular in 2018, asset base increased
significantly due to tower, spectrum and network duplication. In FY 2020-22, Vodafone idea lost
significant market share to the Jio and Airtel as they provided better products at lower price.
From the late 2021, Vodafone raised the tariff moderately. Constrained by debt and spectrum
dues they didn’t spend much on assets which kept the overall base in check. They further wrote
the down the assets from pre-merger years .
They raised Rs 18000 crore through FPO in FY 24 and used the same for vendor payments and
capex for selective 5g roll out. This kept the turnover steady.
Trend Summary:
2020–2021: Improvement in asset utilization due to rising subscriber base, strong 4G
expansion.
2022–2024: Gradual decline — due to increased capital investments in 5G
infrastructure & slower revenue growth.
📈 Financial Implications:
Income Statement: Revenue grew but at a slower pace than asset base growth, reflecting
lower asset utilization.
Balance Sheet: Rising asset base from 5G spectrum acquisitions and infrastructure
investments.
Shareholder Equity: Likely increased due to retained earnings and equity infusions
from investors like Google and Facebook.
🌐 Market Forces:
2020–21: Jio's pricing advantage and subscriber growth.
2022–24: Market saturation, intense price competition, and high capital intensity from 5G
roll-out.
