You are here: Home » Companies » Results
Business Standard

Reliance Comm posts consolidated loss of Rs 1,210 cr in June quarter

The company attributed a loss of Rs 1,221 crore to equity holders of the company

Press Trust of India  |  New Delhi 

Reliance Communications clears barrier in Sistema merger
The company had registered a profit of Rs 90 crore in the same period a year ago

company today posted a consolidated loss of Rs 1,210 crore in the three-month period ended June 30, 2017.

This is the third straight quarter loss for the debt- ladden firm, besides, it has not been able to recover from the pressure of aggressive tariff war triggered after the entry of the Mukesh Ambani-led Infocomm.


The company had registered a profit of Rs 90 crore in the same period a year ago.

"The sector in India continues to be very adversely impacted during the financial year 2017-18 by competitive intensity on a scale never witnessed before in the country," said in a statement.

The company attributed a loss of Rs 1,221 crore to equity holders of the company during the reported quarter compared to a profit of Rs 54 crore in the corresponding quarter of last fiscal.

Its consolidated dipped 33 per cent to Rs 3,591 crore in April-June 2017 from Rs 5,361 crore recorded in the same quarter of 2016.

"For the first time in over 20 years, the sector registered de-growth in revenues, leading to a reduction in the government's share in revenues, sharp drop in operating margins, accompanied by increased interest costs arising from a staggering industry debt burden, and higher depreciation and amortisation charges as a result of higher purchase costs," the statement said.

The debt status of the company at the end of reported quarter could not be ascertained. It has been given time till December by the lenders to service dues.

had earlier reported debt of about Rs 45,000 crore.

The company expects to complete merger of Sistema Shyam by end of this month that will add highly 30 megahertz of premium 850 band in eight circles. The validity of in these circles will remain till 2033.

reiterated that merger of its mobile business with Aircel is on track which will reduce its debt to the tune of around Rs 14,000 crore.

The company expects to further reduce debt of Rs 11,000 crore by sale of its tower business to Brookfield Asset Management, which it said is in final stage.

Shares of yesterday closed at Rs 20.75 a unit, down by 2.12 per cent compared to the previous close on the BSE.

First Published: Sat, August 12 2017. 20:08 IST
RECOMMENDED FOR YOU