The Hindu Business Line : RCom net up 8.3%

Mumbai, July 31 Reliance Communications, an Anil Ambani group company, has posted an 8.3-per cent rise in net profit to Rs 1,637 crore for the June quarter from Rs 1,512 crore in the same period last year.

Revenues were higher by 15.5 per cent at Rs 6,145 crore (Rs 5,322 crore) while EBITDA (earnings before, interest, tax, depreciation and amortisation) margin remained stable at 40 per cent. The management said that the current infrastructure utilisation rate is 40 per cent and it has the ability to further lease out infrastructure services similar to the recent Etisalat deal valued at Rs 10,000 crore over 10 years.

RCom’s market share increased from 18 per cent to 23 per cent post its GSM launch while ARPU (average revenue per user) fell as a result of more customers in rural areas with lower usage pattern. Going forward, the management expects this to continue till mobile penetration reaches a critical mass.

The recent introduction of the CDMA wireless broadband facilities has received a favourable response from users and the company remains bullish here. As for a possible 3G spectrum auction, it is favourably placed with sufficient cash on its balance sheet.

On the recent joint venture with Alcatel Lucent, the management has said that it is a network management contract whose objective is to improve coverage.

The board declared an interim dividend of 80 paise per share.

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