Reliance Commn net up 42%

Reliance Communications Ventures (RCoVL), a Reliance-Anil Dhirubhai Ambani Group company, has recorded a 42 per cent rise in net profit (before extraordinary items) at Rs 440 crore in the quarter ended on 31 March 2006 compared with Rs 310 crore in the previous quarter.

Total revenue for the quarter under review declined to Rs 2,970 crore from Rs 2,991 crore for quarter ended December 31, 2005. The deferment of revenue provision during the quarter under review was Rs 119 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 23 per cent to Rs 1,042 crore during the last quarter from Rs 848 crore of the third quarter. Significantly, the operating profit margin has risen to 35 per cent for the last quarter from 28 per cent during third quarter.

The company had not announced its financial performance for the fourth quarter last year since it was an unlisted entity then. The company was listed in March this year.

The market capitalisation of RCoVL, as on 29 April, 2006, based on equity capital post reorganisation, was Rs 65,000 crore. RCoVL will be included in the benchmark index of BSE from 12 June 2006. The net worth of the company was at Rs 11,742 crore and net debt stands at Rs 3,293 crore.

Anil Ambani, chairman said, "RCoVL maintained its market leadership, with product offerings best suited to the requirements of millions of customers across all segments and in each and every service area. Our wireless business achieved the highest ever acquisitions of 3.2 million customers in a single quarter, with our total base crossing a record 20 million customers as on March 31, 2006."

RCoVL, the country's major CDMA-based mobile services firm, has total assets worth of nearly Rs 26,000 crore as users surged in the world's fastest growing wireless services market.

On net debt, a company executive said, "The net debt stood at Rs 3,293 crore, reflecting a net debt to equity ratio of 0.28:1, and providing a strong platform for leveraging our balance sheet to raise resources for the future growth plans. At a conservative net debt to equity ratio of 1:1, we have capacity to add over Rs 8,000 crore of leverage on our balance sheet."

RCoVL has increased its CDMA and GSM mobile user base by 62 per cent to 17.3 million customers at the end of March. Total customers "" including fixed-line users "" grew 74 per cent to 20.44 million. RCoVL has raised Rs 2,224 crore through foreign currency convertible bonds (FCCBs) during the quarter.