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| RCom net drops 52 per cent |
| BS Reporter / Mumbai Nov 01, 2009, 01:18 IST |
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Hit by foreign exchange and mark-to-market losses, the Anil Ambani group’s telecom service company, Reliance Communications (RCom), posted a 51.63 per cent fall in net profit to Rs 740.30 crore on a consolidated basis for the second quarter ended September 30. RCom, which made a provision of Rs 283 crore for MTM losses, had recorded a net profit of Rs 1,530.78 crore in the same period of the previous financial year.
In comparison, the country’s leading telecom operator, Bharti Airtel, has posted a 13.44 per cent rise in net profit at Rs 2,321 crore, while Idea Cellular has recorded a 52.80 per cent rise in net to Rs 220.15 crore during the quarter.
  In a separate release, RCom said its net profit would have been higher at Rs 1,023 crore but for a provision of Rs 283 crore on account of forex, derivative and MTM losses. These losses stood fully recovered based on subsequent favourable exchange rate movements, it said. “In the near term, the wireless sector in India is undergoing a challenging phase, with increased competitive intensity and continuing aggressive rebalancing of mobile tariffs by all leading players. We believe a forward-looking and conducive regulatory framework by the Telecom Regulatory Authority of India and the Department of Telecommunications, which is already under consideration, will be a strong enabler to protect and create long-term value for all stakeholders,” said RCom Chairman Anil Ambani.
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