Reliance Communications profit falls 60%
Anil Ambani-led Reliance Communications Ltd reported a sharper-than-expected 60 percent decline in quarterly profit as the country's No.3 mobile phone carrier by customers struggles with its heavy debt load.
Consolidated net profit fell to 1.02 billion rupees ($19 million) for its fiscal second quarter ended September, from 2.52 billion rupees reported a year earlier, Reliance Communications, controlled by billionaire Ambani, said in a statement on Thursday.
Analysts had expected the company to report a net profit of 1.64 billion rupees.
Shares in Reliance Communications, valued at $2.2 billion, closed 1.4 percent higher ahead of the earnings announcement. The stock is down 16 percent this year, underperforming the benchmark Mumbai index that is up 22 percent.
($1 = 54.0650 Indian rupees)
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RCom Q2 net dips by 59.5 per cent at Rs 102 crore
(PTI) Reliance Communications today reported a 60 per cent drop in its consolidated net profit at Rs 102 crore for the second quarter ended September 30.
The company had posted a net profit of Rs 252 crore in the corresponding period last fiscal.
RCom President and Chief Executive Officer for Wireless Business Gurdeep Singh said that profit after tax of the company is mainly down due to interest outgo on money the firm had borrowed to buy 3G spectrum two years ago.
The total income from operations increased by 4.98 per cent at Rs 5,031 crore for the July-September 2012 quarter compared to Rs 4,792 crore it
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