Reliance Communications (Rcomm) on Friday reported an increase of 8.22% in its net profit for the quarter ended June 30, 2009 to Rs 1636.61 crore, as against Rs 1512.16 crore in the same quarter last year. Its net sales grew 11.72% in fiscal Q1 to Rs 5842.96 crore as compared to Rs 5229.60 crore in the corresponding quarter last year. EBITDA for the company in the current quarter stood at Rs 2,453 crore (US$ 512 million), registering a growth of 9%. “Successful commercial launch of nationwide GSM services and other new initiatives across all our businesses have driven profitability and sustainable growth at Rcomm,” said Anil Dhirubhai Ambani, chairman, Rcomm, in a statement on Friday.

The company mentioned that during the quarter non-voice revenues have contributed massively to its overall revenues from wireless data cards and value added services. Post its GSM launch, the market share for the company increased from 18% to 23%. During the period Rcomm’s total subscriber base stood at 80.3 million subscribers. The cut in mobile termination charges (MTC) impacted average revenue per user (ARPU) for the company to contract by Rs 11.

The company has a capex guidance of Rs 10,000 crore for the year, which it said is subject to modification. Rcomm has over Rs 9,000 crore as cash and is adequately funded to bid for 3G auctions, if at all they happen on a short notice. It is also seeking shareholders approvals to raise funds through qualified institutional placements (QIP). The company shares on Monday declined 2.11% to close on Rs 275.65, on the Bombay Stock Exchange

During the quarter, the company signed a long-term agreement with Etisalat DB, for sharing its telecom infrastructure. The agreement will enhance RCOM’s revenue by Rs. 10,000 crores (US$ 2.2 bn) that includes revenue from sharing of end-to-end tower and transmission infrastructure over the next 10 years. Rcomm also formed a JV with Krishak Bharati Cooperative Ltd (KRIBHCO) to forge rural marketing. The JV will market telecom and non-telecom products and services in rural India.

source: yahoo finance

Tags: rcom, rcom gsm, rcom profit, rcom q1 result, rcom resistance, rcom results, rcom support, reliance communciation

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