RCom drops after Q1 earnings

Reliance Communications lost 1.41% to Rs 119 at 9:18 IST on BSE after consolidated net profit rose 21.4% to Rs 132 crore on 2.1% growth in revenue to Rs 5523 crore in Q1 June 2014 over Q1 June 2013.

The Q1 result was announced after market hours on Thursday, 14 August 2014. The stock market was closed on Friday, 15 August 2014, on account of Independence Day.

Meanwhile, the S&P BSE Sensex was almost flat at 26,102.64.

On BSE, so far 65,000 shares were traded in the counter as against average daily volume of 9.04 lakh shares in the past two weeks.

The stock hit a high of Rs 120.70 and a low of Rs 118.70 so far during the day.

Reliance Communications (RCom)'s total EBITDA rose 9.5% to Rs 1863 crore in Q1 June 2014 over Q1 June 2013. EBITDA margin stood at 33.7% in Q1 June 2014, amongst the highest in the industry, with strong contribution from both India and Global businesses, RCom said in a statement.

Revenue from India operations rose 1.3% to Rs 4718 crore in Q1 June 2014 over Q1 June 2013. EBITDA of India operations rose 16% to Rs 1693 crore in Q1 June 2014 over Q1 June 2013.

Revenue from Global operations declined 5.1% to Rs 1073 crore in Q1 June 2014 over Q1 June 2013.

RCom generated operational cash flow (EBITDA) of Rs 1863 crore in Q1 June 2014, paid net finance charges of Rs 767 crore and invested Rs 415 crore on capex during the quarter. It remains free cash flow (FCF) positive and this is expected to continue, RCom said in a statement.

RCom is an integrated telecommunications service provider. The company has customer base of about 120 million including over 2.5 million individual overseas retail customers. RCom's corporate clientele includes over 39,000 Indian and multinational corporations including small and medium enterprises and over 830 global, regional and domestic carriers.

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