RComm net declines 19%

Written by fe Bureau | Mumbai | Updated: Jan 31 2010, 06:20am hrs
Reliance Communications (RComm) has reported a 19.34% decline in its consolidated net profit to Rs 1,164.82 crore for the third quarter of 2009-10, against Rs 1,444.17 crore for the same quarter last fiscal.

The countrys second largest mobile services provider by sales has also reported a decline in its December quarter revenues to the tune of 7% to Rs 5,283 crore. As an integrated and converged telecommunications service provider, we are better placed to withstand the present highly competitive environment, said RComm chairman Anil Ambani in a release. Despite the sharp fall in tariffs, we have demonstrated stability in wireless revenues and margins and are confident to emerge even stronger in the future, he added.

During this quarter, the company reported stability in wireless revenues with 31% wireless margins. Also despite a competitive tariff environment, its minutes of use (MoU) is up 23.4%, compared to corresponding quarter last year.

During the quarter the company resorted to various tariff cuts due to the prevailing tariff war in the sector. It rolled out its plan called Simply Reliance, which is available under three variants, enabling subscribers to make calls at 50 paise per minute, 1 paise per second and Rupee 1 per 3 minutes for standard duration callers, short duration callers and long duration callers respectively.

Companys shares on the BSE on Friday closed at Rs 169.85, down 0.88%.