Companies

RCom Q2 net dips 40 % at Rs. 445 cr

ADAG firm Reliance Communications on Saturday reported a nearly 40 per cent decline in consolidated net profit at Rs.445 crore for the quarter ended September 30, due to high foreign exchange provisioning.

All the telecom players have posted weak numbers during the July-September quarter due to stiff competition and tariff war.

“The July-September quarter results are not good for any of the domestic telecom operators because of high tariff war and stiff competitions among the players,” RCom President and CEO (Wireless Business) Syed Safawi told PTI.

“The net profit would have been higher by 165 per cent at Rs.1,181 crore but for mark-to-market gain of Rs.735 crore, used to set-off earlier notional forex loss,” Reliance Communications (Rcom) said in a statement.

Earlier this month, largest private telecom player Bharti Airtel had posted nearly 27 per cent dip in net profit at Rs.1,661.20 crore in the second quarter mainly due to stiff domestic competition and high tax outgo in Africa.

RCom's total income from operations declined to Rs.5,022.99 crore in the second quarter, from Rs.5,496.25 crore in the same quarter previous year.

Asking when the company is coming out with 3G services for the customers, Mr. Safawi said, “In the next 60 to 90 days we will be launching our services too.”

The company during the quarter had financial charges of Rs.279 crore.

Meanwhile, minutes of usage increased to 94.6 billion in the July-September quarter current fiscal against 84.5 billion in the same quarter last year.

Data services

The customer base of the company rose by 36.3 per cent to 117 million in the September quarter against 86 million in the same quarter last year, the company said.

As on September 30, the company had a cash and bank balances of Rs.680.05 crore, down 15.45 per cent in the same quarter previous fiscal.

“The company is now mainly focussing on providing the data services and by the end of this month we will be reaching to more than 100 areas and in next three months our services will reach over 600 service areas,” Mr. Safawi said.

Other telecom players, which reported decline, were MTNL (loss at Rs.604.89 crore) and Tata Comm (loss at Rs.213.50 crore) for the quarter ended September 30, 2010.

During the quarter, RCom and Universal Music sign exclusive strategic partnership in its preparation for the 3G launch.

RCom and Nokia joined hands for a multi-faceted business partnership.

The alliance aims to foster more use of mobile services, giving consumers an opportunity to get rich experiences and do more with their phones.


Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Nov 28, 2021 12:33:35 PM | https://www.thehindu.com/business/companies/RCom-Q2-net-dips-40-at-Rs.-445-cr/article15685572.ece

Next Story