Skip to main content

RCom net dips

Reliance Communications has reported a 3.2 per cent dip in consolidated net profit for the fourth quarter ended March 2009, impacted by increased costs and several one-time charges.

Its wireless revenue showed a muted growth of eight per cent year-on-year as the company inducted some GSM subscribers under a promotional plan, which offered free minutes of usage for 90 days, Mr S.P. Shukla, President-Personal Business, said in a conference call with analysts.

Total expenditure for the quarter shot up by 29.7 per cent to Rs 4,883 crore, against Rs 3,764.3 crore reported in the year ago quarter.

Profit from operations, excluding financial charges, and one-time items, slumped by 38 per cent, to Rs 915 crore (Rs 1,486 crore).

Financial charges for the quarter rose from Rs 8 crore to Rs 168 crore. Amortisation of compensation under its ESOP programme cost the company Rs 157 crore during the quarter.

It has reported a 10.7 per cent dip in wireless average revenue per user to Rs 224 from Rs 251 reported in the previous sequential quarter.

The company had followed Schedule VI of the Companies Act instead of Accounting Standard 11 in the matter related to forex fluctuations with respect to liabilities and borrowings for acquisition of fixed assets, since it had funded its capex initiatives primarily by long-term borrowings in foreign currency convertible bonds.

Had the company followed AS-11, its net profit would have been lower by Rs 471.9 crore for realised and Rs 322.4 crore for unrealised currency fluctuations during the quarter, said the company’s notes to the accounts.

This could exclude an amount of Rs 319.03 crore on FCCBs if the bonds are converted on or before their due dates.

(Pursuant to the amendment of schedule 6 with effect from March 31, 2009, RCom has adopted the accounting restatement according to AS11.)

For the full year, the company has reported a 9.3 per cent rise in net profit to Rs 5,907. 5 crore (Rs 5,401.1 crore). Revenues went up by 18 per cent to Rs 22,234.6 crore (Rs 18,827.4 crore).
Labels:

Comments

Post a Comment

Popular posts from this blog

RBS picks up 0.60% stake in Gateway Distriparks

The Royal Bank of Scotland (RBS) has picked up 0.60% stake in logistic services provider -- Gateway Distriparks. The bank has bought 6.40 lakh shares in the company for a total consideration of Rs 8.32 crore. Gateway Distriparks, incorporated in 1994, is engaged in the business of warehousing, container freight stations, providing handling and clearance of sea borne export-import trade in containerized form.
Post a Comment
Read more

Day End Report

The Sensex opened with a huge downward gap of 250 points at 13,856, and soon touched a low of 13,731. Another rise in repo rate and Cash Reserve Ratio by the RBI sparked off heavy sell-off in opening trades. However, fresh buying at lower levels helped the index recover all its losses by mid noon trades. A fresh round of buying in late trades saw the index surge to a high of 14,249 - up 518 points from the days low. The Sensex finally settled with a gain of 113 points at 14,220. The NSE Nifty ended with a gain of 60 points at 4,251. The market breadth was marginally positive- out of 2707 stocks traded, 1,370 advanced, 1,264 declined and 73 were unchanged today. Reliance Communications (RCom) zoomed 7.2% at Rs 509. Tata Steel surged 4.5% at Rs 743. DLF and Reliance Infra gained 4.2% each at Rs 458 and Rs 945, respectively. TCS and Bharti Airtel advanced 4% each at Rs 877 and Rs 780, respectively. Ranbaxy was up 3.8% at Rs 545. BHEL gained 3.7% at Rs 1,442. Reliance advanced 3.4% to Rs 2...
Post a Comment
Read more

Auto industry records highest-ever sales in Jan

Riding on the back of economic growth, easy availability of finance and the continuing fiscal stimulus, the domestic auto industry has posted the highest ever monthly sales in January. The strong growth is both in terms of passenger car volumes and the total vehicle sales. According to Society of Automobile Manufacturers (SIAM) data, the passenger car segment has posted a 32 per cent growth in domestic sales at 145,905 units in January, over the same month last year. The last highest-ever monthly sales in the segment were in March 2009, when it sold 129,358 units. Meanwhile, overall sales across the industry grew 45 per cent at 1,114,157 units. The earlier record of highest ever monthly sales was in October 2006, when the industry had sold 1,017,198 units. Individually, the umbrella passenger vehicle segment posted a 37 per cent growth, while the commercial vehicle (CV) segment grew 131 per cent. Also, the two-wheeler and three-wheeler segments rose 43 and 47 per cent, respectively.
Post a Comment
Read more