Operational costs pull down RCom FY11 net

Reliance Communication, part of the ADA Group on Monday posted a net profit of Rs 1,346.0 crore for 2010-11, 71.1% lower than the Rs 4,655.0 crore profit it made a year ago.

Reliance Communication, part of the ADA Group on Monday posted a net profit of Rs 1,346.0 crore for 2010-11, 71.1% lower than the Rs 4,655.0 crore profit it made a year ago.

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The net profit plummeted due to an increase in operational costs, the company said. EBITDA (earnings before interest, taxes, depreciation and amortisation) margin, however, increased to 39.3% from 35.3% last year.

The company said it has drawn the final tranche of Rs 1,200 crore from China Development Bank (CDB) towards refinancing of 3G spectrum fees. With this it has drawn a total of Rs 6,000 crore from CDB, which had underwritten Rs 8,700 crore.