The Hindu Business Line : Reliance Comm Q4 net nearly triples

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Mumbai Jan. 31 Reliance Communications' consolidated net profit for the fourth quarter of the fiscal nearly tripled from a year ago, on the back of increased revenues and strong EDITDA growth across all segments.

(The current fiscal of RCom started on January 1, 2006 and will close on March 31, 2007).

The figures for the quarter are not strictly comparably year-on-year because the scheme of amalgamation for Rcom, as it currently exists, had not become applicable during the year-ago period.

The board of RCom approved the global listing of FLAG Telecom, said a statement from the company which did not supply further details. The board also approved the demerger of Reliance Telecom Infrastructure to examine options for unlocking the value of its assets.

The stock gained by 1.21 per cent on BSE, to end the day at Rs 461. Net profit for the quarter amounted to Rs 924 crore, against Rs 310 crore in the corresponding year-ago quarter.

Net revenue rose 26 per cent, to Rs 3755 crore (Rs 2991 crore) as the company added 40 lakh customers during the quarter. Total expenditure rose by only 5 per cent, to Rs 2,228 crore (Rs 2,128 crore).

EBITDA, at Rs 1527 crore, grew 76 per cent, while EBITDA margin rose to 41 per cent, from 29 per cent.

Revenues from the wireless business rose 39 per cent to Rs 2,752 crore and EBITDA 62 per cent to Rs 1,029 crore; FLAG's EBITDA increased by 68 per cent, to Rs 355 crore while the RCom's enterprise business revenue rose 149 per cent to Rs 316 crore, with EBITDA margin at 47 per cent.

On a standalone basis the company reported a net profit of Rs 771 crore (Rs 5.6 crore) and total revenue of Rs 3,044 crore (Rs 6.4 crore).

The company said its expected capital expenditure for the current fiscal is Rs 7,700 crore.

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