RCom narrows down Q1 standalone loss
Mumbai: Reliance Communications on Saturday said it has narrowed net loss to Rs 252 crore on a standalone basis for April-June quarter compared to a loss of Rs 272 crore in the corresponding period a year ago.
However, on a consolidated basis the Anil Ambani-led telecom firm reported a 3.1 percent increase in its net profit at Rs 162 crore for the first quarter ended on June 30.
The company had reported a net profit of Rs 157 crore for the same period a year ago.
The Indian telecom sector is going through a period of stiff competition and changes in regulatory environment, which are putting pressure on margins and profitability.
RCom said it continues to be free cash flow positive.
"RCom generated operational cash flow of Rs 1,650 crore in the first quarter. This is the second full year of positive free cash flow for the company and this trend will continue in succeeding years," RCom said in a statement.
On a standalone basis, the total income dropped to Rs 2,794 crore in the first quarter compared to Rs 3,002 crore in the April-June quarter in 2011, Rcom on Saturday informed the BSE in a filing.
On a consolidated basis, its total income during April-June, 2012 grew by 8.5 percent to Rs 5,264 crore compared to Rs 4,849 crore posted in the same period in the previous financial year.
"We are happy to share a satisfying quarterly performance in a very tough competitive environment...We have been able to report very stable EBITDA margin of 31 percent, which is the highest in industry," RCom President and CEO Gurdeep Singh said.
"We want to express that we have been successful in achieving revenue per minute stability now consecutively for 9 quarters, inspite of intense competition and over supply of minutes in the industry. We continue to lead data growth in the industry," he added.