RCom drops on profit booking

Reliance Communications fell 1.97% to Rs 64.55 at 15:11 IST on BSE, after gaining 5.02% in prior two trading days.

Meanwhile, the BSE Sensex was down 177.96 points, or 0.97%, to 18,259.82

On BSE, 41.45 lakh shares were traded in the counter as against an average daily volume of 31.84 lakh shares in the past one quarter.

The stock hit a high of Rs 67.80 and a low of Rs 64.25 so far during the day. The stock had hit a 52-week high of Rs 91.85 on 22 January 2013. The stock had hit a record low of Rs 46.60 on 30 August 2012.

The stock had outperformed the market over the past one month till 8 April 2013, rising 1.46% compared with the Sensex's 6.33% fall. The scrip, however, underperformed the market in past one quarter, sliding 21.65% as against Sensex's 6.61% fall.

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

Shares Reliance Communications (RCom) had gained 5.02% in two trading days to Rs 65.85 on 8 April 2013 from a recent low of Rs 62.70 on 4 April 2013. During trading hours on 2 April 2013, RCom had announced a fibre optic network sharing deal with Mukesh Ambani-controlled Reliance Jio Infocomm.

RCom and Reliance Jio Infocomm on Tuesday, 2 April 2013, announced the signing of a definitive agreement for approximately Rs 1200 crore as one time indefeasible right to use (IRU) fees for sharing RCom's nationwide inter-city fiber optic network infrastructure.

Reliance Jio Infocomm will utilize multiple fiber pairs across RCom's 1.2 lakh kilometres inter-city fiber optic network to provide a robust and future proof backbone for rolling out its state-of-the-art 4G services. As per the agreement, RCom will in turn have reciprocal access to optic fiber infrastructure to be built by Reliance Jio Infocomm in the future.

The agreement provides for joint working arrangements to be put in place immediately for upgradation of the optic fiber network, to ensure seamless delivery of next generation services.

This agreement is the first in an intended comprehensive framework of business co-operation between Reliance Jio Infocomm and RCom to provide for optimal utilization of the existing and future infrastructure of both companies on reciprocal basis, including inter alia, inter-city fiber, intra-city fiber, towers and related assets, RCom said in a statement.

RCom's consolidated net profit dropped 43.5% to Rs 105 crore on 1.3% growth in net sales to Rs 4797 crore in Q3 December 2012 over Q3 December 2011.

RCom is the flagship company of the Anil Dhirubhai Ambani-controlled Reliance Group. The company, with a customer base of over 130 million including over 2.5 million individual overseas retail customers, ranks among the Top 4 Telecom companies in the world by number of customers in a single country. RCom corporate clientele includes 35,000 Indian and multinational corporations, and over 800 global, regional and domestic carriers.

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