RCom Q2 net dips 40% on forex provisioning

ADAG firm Reliance Communications today reported nearly 40 per cent decline in consolidated net profit at Rs 445 crore for the July-September quarter this year due to high foreign exchange provisioning.

"Net profit would have been higher by 165 per cent at Rs 1,181 crore but for mark-to-market gain of Rs 735 crore, used to set-off earlier notional forex loss etc," Reliance Communications (Rcom) said in a statement.

The company had a net profit of Rs 740 crore in the same quarter previous year.

Total income from operations declined to Rs 5,022.99 crore in the second quarter ended September 30, from Rs 5,496.25 crore in the same quarter previous year.

The company during the quarter had a financial charges of Rs 279 crore.

Meanwhile, minutes of usage increased to 94.6 billion in the July-September quarter current fiscal, 12 per cent from 84.5 billion in the same quarter last year.

Customer base of the company rose by 36.3 per cent to 117 million in the September quarter against 86 million in the same quarter last year, the company said.

During the quarter, RCom and Universal Music sign exclusive strategic partnership in its preparation for 3G launch.

Further, RCom & Nokia join hands for a first-of-its-kind multi-faceted business partnership. The alliance aims to foster more use of mobile services, giving consumers an opportunity to get rich experiences and do more with their phones.