RCOM Q2 net down 52% to Rs 740 cr

Last Updated: Saturday, October 31, 2009 - 21:05

New Delhi: Anil Ambani Group firm Reliance
Communications Ltd on Saturday reported 51.66 percent decline in
its consolidated profit at Rs 740 crore for the second quarter
of the fiscal due to provisions for foreign exchange
fluctuation or derivative losses.

The company had consolidated net profit of Rs 1,531 crore
in the same quarter last fiscal.
"Profit after tax would have been higher at Rs 1,023
crore but for provision of foreign exchange or derivatives
mark-to-market losses of Rs 283 crore," the company said in a
statement.

"These losses stand fully recovered, based on subsequent
favourable exchange rate movements," it added.

"In the near-term, the wireless sector in India is
undergoing a challenging phase, with increased competitive
intensity and continuing aggressive re balancing of mobile
tariffs by all leading players," RCOM Chairman Anil Ambani
said.

"We believe a forward-looking and conducive regulatory
framework by TRAI and 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.

The company`s consolidated revenue increased to Rs 5,703
crore in the quarter under review from Rs 5,645 crore in the
year-ago period.

For the six-month period ended September, 2009, RCOM`s
consolidated net profit dropped to Rs 2,376.88 crore from Rs
3,042.93 crore, according to filing to the Bombay Stock
Exchange by the company.

Consolidated net income from operations rose to Rs
11,339.20 crore for the half-year from Rs 10,765.03 crore for
the same period last fiscal.

With a customer base of 92 million, including over 2.5
million individual overseas retail customers, the company
ranks among the top five telecom providers in the world by the
number of customers in a single country, it said.

Reliance Communications corporate clientele includes
2,100 Indian and multinational corporations apart from over
800 global, regional and domestic carriers.

Shares of the company closed at Rs 175.95, down 7.37 percent from the previous close on the BSE.

Bureau Report



First Published: Saturday, October 31, 2009 - 21:05
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