Reliance Communications net profit plunges by 80% to Rs 39 cr in Q2
NEW DELHI: Telecom operator Reliance Communications on Monday posted a slide of 80 per cent in its consolidated net profit at Rs 39 crore in the second quarter ended September 30 as against Rs 195 crore in a year ago period, due to pressure on margin and higher finance cost.
“Results for quarter impacted by increase in competitive intensity, migration of CDMA customers to 4G LTE and seasonality factors,” Reliance Communications said in its statement.
Finance cost of the company increased by 15 per cent to Rs 825 crore from Rs 717 crore during the period under review.
Total income of Reliance Communications declined by 4.33 per cent to Rs 5,100 crore in the reported quarter from Rs 5,331 in the corresponding period of 2015-16.
The comapny’s India operations revenue declined by 4.7 per cent to Rs 4,488 crore from Rs 4,711 crore during the period under review.
Revenues from global operations, however, increased marginally to Rs 1,089 crore from Rs 1,060 crore a year ago. RCom’s revenue per minute during the quarter declined by one per cent to 44.6 paisa compared to previous quarter.
Reliance Communications also reported a decline in minutes of usage of its network by two per cent to 97.9 billion but five per cent increase in average revenue per user at Rs 155 compared to April-June 2016 period.
At the end of the reported quarter, Reliance Communications’s data customer base stood at 3.5 crore which include 2.45 crore 3G and 4G customers, Reliance Communications said, adding that the total data traffic on its network increased by 8 per cent to 10,480 crore megabyte on year-on-year basis.
Reliance Communications has been one of the worst performers on the BSE Telecom index. The company’s stock price has fallen 53 percent during the year-to-date, while BSE Telecom index slipped only 21 percent in the same period.