Business Daily from THE HINDU group of publications
Sunday, Nov 01, 2009
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Business Daily from THE HINDU group of publications Sunday, Nov 01, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Financial Performance Corporate Results - Telecommunications
Mr Anil D. Ambani Our Bureau Mumbai, Oct. 31 Anil Ambani-led Reliance Communications’ net profit halved to Rs 740 crore for the second quarter ended September against Rs 1,531 crore for the same period a year ago. The company said that revenue and margins were impacted by high competition, aggressive industry-wide tariff restructuring, as well as higher network and operational costs owing to its nationwide GSM rollout. Its net income marginally declined to Rs 5,496 crore from Rs 5,536 crore for the corresponding quarter last year despite the customer base growing 53 per cent to 92 million, as average revenue per user fell to Rs 161 from Rs 210 a year ago. “In the near term, the wireless sector in India is undergoing a challenging phase, with increased competitive intensity and continuing aggressive rebalancing of mobile tariffs by all leading players,” said Mr Anil Dhirubhai Ambani, Chairman, Reliance Communications, in a statement. 
“We believe a forward-looking and conducive regulatory framework by TRAI and the DoT, which is already under consideration, to facilitate market driven industry consolidation will be a strong enabler to protect and create long term value for all stakeholders,” he said. Profit-after-tax would have been higher at Rs 1,023 crore but for provisioning for foreign exchange/derivatives mark-to-market losses of Rs 283 crore, said a company release. However, in October 2009, after the close of the second quarter, these losses stand fully recovered based on subsequent favourable exchange rate movements, the release added. New tariff planThe company rolled out a new tariff plan during the quarter that enables subscribers to make calls at 50 paise a minute from any Reliance phone to any phone in India at anytime from anywhere in the country without any hidden monthly charges. Reliance Infratel (RITL), the infrastructure subsidiary of RCom, signed long-term agreements with Etisalat DB, S Tel, Shyam Sistema (MTS), Aircel and Tata Teleservices for sharing of its telecom infrastructure. RITL filed Draft Red Hearing Prospectus with SEBI on September 24, for an initial public offering of 10.05 per cent of the post-issue paid-up equity capital of the company. RCom launches 50 paise tariff across-the-board RCom net up 8.3% Reliance Comm prepays Rs 5,000 cr term loans RCom signs Rs 10,000-cr deal with Etisalat to share facilities More Stories on : Financial Performance | Telecommunications | Reliance Communications Ltd
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