RCom drops amid volatility

Reliance Communications lost 0.23% to Rs 154 at 11:13 IST on BSE after the company announced the launch of its Next-Gen 3G services in 5 more telecom circles thereby expanding its 3G footprint to 18 circles across the country.

The announcement was made during market hours today, 11 June 2014.

Meanwhile, the S&P BSE Sensex was up 90.70 points or 0.35% at 25,674.39.

On BSE, so far 8.17 lakh shares were traded in the counter as against average daily volume of 13.85 lakh shares in the past one quarter.

The stock was volatile. The stock lost as much as 0.8% at the day's low of Rs 153.10 so far during the day. The stock rose as much as 0.97% at the day's high of Rs 155.85 so far during the day. The stock hit a 52-week high of Rs 164.45 on 20 September 2013. The stock hit a 52-week low of Rs 100.55 on 23 May 2013.

The stock had outperformed the market over the past one month till 10 June 2014, surging 31.25% compared with the Sensex's 11.26% rise. The scrip had also outperformed the market in past one quarter, jumping 27.56% as against Sensex's 16.64% rise.

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

Reliance Communications (RCom) today, 11 June 2014 announced the launch of its Next-Gen 3G services in 5 more telecom circles - Karnataka, Andhra Pradesh, Tamil Nadu, Kerala and UP-East telecom circles - thereby expanding its 3G footprint to 18 circles across the country. With this move, RCom will now offer best-in-class, high-speed 3G services in the entire southern part of the country and UP-East as well. Customers will be able to enjoy RCom's 3G services in the 5 new circles from 20 June 2014, RCom said in a statement.

Mr Gurdeep Singh, CEO, Consumer Business, RCom said, "We are delighted to expand our 3G footprint to 18 circles across India, which makes our service available in all metros and major metros in the country, enabling us to target the fast-growing data market in these circles. Together, these circles account for 80% of incremental smartphone sales in the country. As India's youngest pan-India GSM operator, we are committed to improving the quality of our customer mix, and our extended 3G presence will help us attract a disproportionate share of customers in the high-value corporate and SME segments. This will also help us further consolidate RCom's position as the leading Indian data operator".

On a consolidated basis, RCom's net profit fell 48.5% to Rs 156 crore on 7.7% growth in net sales to Rs 5371 crore in Q4 March 2014 over Q4 March 2013.

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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