Reliance MediaWorks Q1 net loss widens to Rs 92 cr

Film and entertainment firm Reliance MediaWorks posted a near three-fold increase in its net loss for the first quarter ended June 30, 2011 at Rs 92.21 crore.

During the three months ended June 30, 2010, the company's net loss was Rs 31.70 crore, it said in a filing to the Bombay Stock Exchange (BSE).

The company's net sales for the first quarter of the current fiscal declined 5% to Rs 118.04 crore, compared to Rs 124.24 crore in the same period of last year.

Reliance MediaWorks' scrips closed at Rs 98, down 1.51% from the previous close on the BSE.

The Anil Ambani-led Reliance group firm is expecting to become profitable on the back of decline in interest and debt in the next one year.

"The company's EBITDA is healthy at the moment but the bottom line has been impacted due to large capital expenditure on recently commissioned projects of BPO and studio that impacts through depreciation and interest," Reliance MediaWorks CEO Anil Arjun had told PTI last month.

He said in the current fiscal, the company is expecting a growth of 25-30% in sales.

"In the next four quarters we expect to become profitable as there will be a significant decline in interest and debt in the next one year," Arjun had said.