RCom drops after weak Q4 earnings

Reliance Communications lost 1.35% to Rs 120.35 at 10:13 IST on BSE after consolidated net profit fell 48.51% to Rs 156 crore on 4.78% decline in total income to Rs 5671 crore in Q4 March 2014 over Q4 March 2013.

The Q4 result was announced after market hours on Friday, 2 May 2014.

Meanwhile, the S&P BSE Sensex was up 89.58 points or 0.4% at 22,493.47.

On BSE, so far 2.38 lakh shares were traded in the counter as against average daily volume of 12.78 lakh shares in the past one quarter.

The stock hit a high of Rs 121.30 and a low of Rs 118.90 so far during the day. The stock had hit a 52-week low of Rs 96.40 on 2 May 2013. The stock had hit a 52-week high of Rs 164.45 on 20 September 2013.

The stock had underperformed the market over the past one month till 2 May 2014, sliding 6.51% compared with the Sensex's 0.65% fall. The scrip had also underperformed the market in past one quarter, declining 1.17% as against Sensex's 9.21% rise.

The large-cap company has equity capital of Rs 1032.01 crore. Face value per share is Rs 5.

Reliance Communications (RCom)'s consolidated net profit rose 55.8% to Rs 1047 crore on 2.5% growth in revenue to Rs 22321 crore in the year ended 31 March 2014 (FY 2014) over FY 2013.

The company's consolidated net profit rose 43.9% to Rs 156 crore on 5% growth in revenue to Rs 5671 crore in Q4 March 2014 over Q3 December 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) gained 0.4% to Rs 1852 crore in Q4 March 2014 over Q3 December 2013. EBITDA margin stood at 32.7% in Q4 March 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 0.3% to Rs 4649 crore in Q4 March 2014 over Q3 December 2013. EBITDA of India operations rose 3.2% to Rs 1659 crore in Q4 March 2014 over Q3 December 2013

Revenue from global operations rose 15.7% to Rs 1261 crore in Q4 March 2014 over Q3 December 2013. EBIDTA of global operations stood at Rs 193 crore in Q4 March 2014, EBIDTA margin stood at 15.3% in Q4 March 2014.

RCom generated operational cash flow (EBITDA) of Rs 1852 crore in Q4 March 2014, paid net finance charges of Rs 907 crore and invested Rs 467 crore on capex during the quarter. It remains free cash flow (FCF) positive and this is expected to continue, the company said.

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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