Anil Ambani-led Reliance Communications (RCom) reported a 86% decline in its net profit on a consolidated basis for sevent consecutive quarter, weighed down by a lower-than-expected performance in its major businesses?wireless, global and broadband, and high interest cost.

RCom?s net profit is at R 168.6 crore for the March quarter against R1,210 crore in the previous year. Sequentially, profit for the fourth quarter is down 65% and revenues 57%.

Revenues increased to R7,876 crore compared with R 5,092.8 crore in Q4 FY10.

RCom’s profit after tax for the year ended March 31 stood at R1,505.82 crore compared with R4,777.44 crore for the year ended March 31, 2010, down 68%. The company’s income, however, increased from R21,496.38 crore for the year ended March 31, 2010 to R22,430.35 crore for the year ended March 31, 2011, up 4.3%.

The firm?s net debt stood at R32,048.5 crore in FY11, with a net debt to funded equity ratio of 0.9%. The company has initiated “strategic initiatives” to deleverage its balance sheet, Syed Safawi, head of RCom’s wireless business, said, but did not give details.

During the year, the company employed about R80,761.84 crore as capital.

Rcom’s shares on the BSE closed at R87.5, up 2.94% on Monday. The results came in after market hours.

During the quarter the company acquired 1.7 million 3Gcustomers and contribution of non-voice revenues to its total revenue increased to 20%. ?We had been investing heavily in 2G and now in 3G. The mass rollout of sites and projects are now behind us. We will now focus on quality, reduce capacity congestion and drive data growth,? said Syed Safawi, president, wireless business, RCom. The company will capitalise its 3G spectrum fee next year and has a capex commitment of R1,500 crore for FY12.

RCom added over 10 million subscribers during the quarter and has a subscriber base of 135.7 million.

While its revenue per minute stabilised at 44 paise, its average revenue per user per month slipped from R111 in December 2011 quarter to R107 in March 2011 quarter. The company’s MoU per sub per month also declined to 241 minutes.

“Sheer MoU (minutes of usage) won’t be sufficient and the industry would need Mou and RPM to drive profitability. We have been looking at portfolio realignment for a few quarters now which will eventually lead to phasing out of unpaid minutes from out netwrok. Two more quarters, and we would be done with it,? added Safawi.