RCOM Q1 profit up 24% at Rs 1,512 cr

Written by Agencies | Mumbai, July 31: | Updated: Jul 31 2008, 21:59pm hrs
Riding high on a sharp growth in subscriber base, Anil Ambani group's telecom arm RCOM on Thursday reported a 23.9 per cent jump in its first quarter net profit at Rs 1,512 crore and announced plans to invest over Rs 25,000 crore in the current fiscal.

The company expects "a significant acceleration in earnings from next year," RCOM Chairman Anil Ambani said, adding that its plans to launch pan-India GSM operations were on track. The company's mobile business is predominantly CDMA technology based at present.

The company's pan-India launch of GSM based mobile services is slated for roll out by the end of this fiscal.

The first quarter revenue rose 23.7 per cent to Rs 5,322 crore from Rs 4,303.7 crore in the corresponding quarter last fiscal. Its shares were down marginally at close of trade at Rs 500.05.

The company said it remains "the most profitable telecom company in India" and witnessed a significant growth in its wireless as well as enterprise business segments.

The company, which recently became the fifth Asian telecom firm to attain over 50 million subscribers, said its customer base has now crossed 53 million.

Of its plan to invest Rs 40,000-50,000 crore in FY'08 and FY'09, RCOM said close to six billion dollars (about Rs 25,000 crore) would be invested in the current fiscal.

RCOM's rival Bharti Airtel posted a 34 per cent jump in Q1 net to Rs 2025 crore.