RCom Q3 net falls 19% to Rs 1,165 cr

Anil Ambani Group company Reliance Communications today said its consolidated net profit declined by 19.34 per cent to Rs 1,164.82 crore for the third quarter of 2009-10.

The company had a consolidated net profit of Rs 1,444.17 crore for the same quarter last fiscal.

"As an integrated and converged telecommunications service provider, we are better placed to withstand the present highly competitive environment," RCom Chairman Anil Ambani said in a filing to the Bombay Stock Exchange.

"Despite the sharp fall in tariffs, we have demonstrated stability in wireless revenues and margins and are confident to emerge even stronger in the future," he said.

Consolidated net income from operations decreased to Rs 5,283.67 crore for the quarter under review from Rs 5,671.82 crore for the same period previous fiscal.

The company said that it decided not to recognise any marked-to-market gains in respect of any outstanding derivative contracts related to loans, liabilities and assets expressed in foreign currency.

However, the company provided for marked-to-market losses in respect of derivative contracts, as required by the Institute of Chartered Accountants of India, it said.

"The company has not recognised a gain of Rs 19,524 lakh on mark-to-market valuation of derivative contracts outstanding as at the end of the quarter.

"If the company had not made this change in the policy, net profit would have been higher by the amount of Rs 19,524 lakh for the quarter," it added.