Reliance Communications (RCom) reported a 61 per cent fall in its net profit for the third quarter ended December 31, 2011 at Rs. 186 crore against Rs. 480 crore in the corresponding period in the previous year. The company's net sales stood at Rs. 4,824 crore (Rs. 4,865 crore) and operating profit at Rs. 1,611 crore (Rs. 1,671 crore).
RCom's operating profit margin, at 31.9 per cent, even though among the highest in the industry has declined from the year-ago figure of 33.3 per cent. During the quarter, finance charges almost tripled to Rs. 378 crore. The company said its clear focus on profitable businesses was now delivering consistent margins. Reliance, the country's second largest mobile operator after Bharti, said it had 150 million subscribers at the end of December 2011. Also, in the largest refinancing in the history of foreign currency convertible bonds (FCCBs) by any Indian corporate, RCom said it would refinance about $1.182 billion of foreign-currency debt due on March 1, 2012.
The company has tied up refinancing for maturity value of the outstanding FCCBs and it is being funded by Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB), Exim Bank and other banks. The refinancing will help it to extend the maturity of the loans by seven years at a 5 per cent rate of interest.
Sun TV pays third interim
Sun TV Network reported a lower net profit of Rs.167.88 crore for the quarter ended December 31, 2011, against Rs.225.49 crore for the quarter ended December 31, 2010. Income from operations was lower at Rs.425.11 crore against Rs.597.99 crore.
The company declared an interim dividend of Rs.2.50 per share for the year ending March 31, 2012.
This is in addition to the interim dividends of Rs.3.75 per share and Rs.2.50 per share declared on November 3, 2011, and August 1, 2011, respectively, the company said in a statement.
Sundaram-Clayton registered a net profit of Rs.15.83 crore for the quarter ended December 31, 2011 against Rs.9.78 crore in the corresponding period in the previous year, a growth of 62 per cent Net sales were higher at Rs.252.85 crore against Rs.197.82 crore. Earnings per share improved to Rs.4.17 from Rs. 2.58 per cent.
Shriram Transport Finance has reported a net interest income of Rs. 803.77 crore for the third quarter ended December 31, 2011 against Rs. 769.36 crore in the corresponding period in the previous year, a growth of 4.47 per cent. The profit after tax stood at Rs. 302.68 crore against Rs. 301.36 crore. Earnings per share stood at Rs. 13.38 against Rs. 13.35 recorded in the same period earlier year. Total assets under management as on December 31, 2011 stood at Rs. 39,259.59 crore against Rs. 38,076.39 crore.
India Motor Parts and Accessories registered a net profit of Rs. 8.21 crore for the three months ended December 31, 2011 against Rs. 8.27 crore in the three months ended December 31, 2010. Net sales stood at Rs. 126.83 crore against Rs.111.70 crore.
Keywords: Reliance Communications