RCom Q4 net profit plunges 86% to Rs 168.6 cr | business | Hindustan Times
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RCom Q4 net profit plunges 86% to Rs 168.6 cr

business Updated: May 30, 2011 20:45 IST

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Anil Ambani Group firm RCom on Monday reported 86% decline in consolidated net profit at Rs 168.6 crore for the fourth quarter ended March 31 due to foreign exchange losses and increase in interest outgo.

The company had a net profit of Rs 1,219.5 crore in the January-March quarter 2010, Reliance Communications (RCom) said in a statement.

"During the period, company reported mark-to-market net loss of over Rs 1,100 crore due to currency fluctuations," RCom President and CEO (Wireless Business) Syed Safawi said.

Its revenue rose to Rs 7,876 crore during the fourth quarter FY'11, against Rs 5,092.8 crore in the same period 2010.

During last fiscal, the company saw cash outflow of over Rs 1,000 crore on 3G services roll out.

For the full year, the company has reported a net profit of Rs 1,505.82 crore, down 68% from Rs 4,777.44 crore in the FY'10.

Revenues during the period grew to Rs 23,107.6 crore, against Rs 22,132.3 crore in the previous fiscal.

The board has approved a dividend of Rs 0.50 a piece, subject to the shareholders approval.

As of March 31, RCom's net debt was Rs 32,048.5 crore.

Cash and cash equivalents of the company at the end of March quarter stood at Rs 5,327 crore.

The company has projected capital expenditure of Rs 1,500 crore for this fiscal which it expects to use on new services.

Its customer base rose by 33% at 136 million during the year to March 31, from 102 million in 2009-10.

Company's wireless Average Revenue Per User (Arpu) stood at Rs 107, against Rs 139 in the same quarter previous year.

RCom offers mobile service on both CDMA and GSM platforms along other telecom services like internet, broadband, long distance communication services across the country.

The company had also bagged spectrum for 3G mobile telephony in several circles including two metros of Delhi and Mumbai in the auction held last year. It has launched its high-end 3G services in some areas.

Meanwhile, minutes of usage increased to 94.4 billion in the January-March quarter, 0.96% higher from 93.5 billion in the same quarter last year.

RCom shares settled at Rs 87.50 on the BSE, up 2.94% from the previous close.