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Reliance Communications today said its consolidated net profit declined by 19.34 per cent to Rs 1,164.82 crore for the third quarter of 2009-10. The company had a consolidated net profit of Rs 1,444.17 crore for the same quarter last fiscal. Consolidated net income from operations decreased to Rs 5,283.67 crore for the quarter under review from Rs 5,671.82 crore for the same period previous fiscal.

Reliance Communications’ net profit halved to Rs 740 crore for the second quarter ended September against Rs 1,531 crore for the same period a year ago. The company said that revenue and margins were impacted by high competition, aggressive industry-wide tariff restructuring, as well as higher network and operational costs owing to its nationwide GSM rollout. Its net income marginally declined to Rs 5,496 crore from Rs 5,536 crore for the corresponding quarter last year despite the customer base growing 53 per cent to 92 million, as average revenue per user fell to Rs 161 from Rs 210 a year ago.

Reliance Communications Ltd has informed the BSE that the board of directors of the company at its meeting held on September 22 has approved the proposal by Reliance Infratel Ltd, a subsidiary of Reliance Communications Ltd, to undertake an Initi al Public Offering of equity shares of the company. The net issue will constitute 10.0% of the post-Issue paid-up equity capital of the company. The draft red herring prospectus for the IPO will be filed by Reliance Infratel Ltd with SEBI shortly.

Reliance Communications Ltd posted a net profit of Rs 6,044.93 crore for the year ended March 31, 2009 as compared with Rs 5,401.14 crore for the year ended March 31, 2008. Total income for the year ended March 31, 2009 has increased to Rs Rs 22,948.45 crore from Rs 19,067.76 crore for the year ended March 31, 2008.

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...

In an unprecedented move, the Communications and IT Ministry has agreed to refund about Rs 112 crore to Reliance Communications (RCom), which the company had paid as part of the entry fee at the time of taking the approval for offering dual technology in 2007. The refund is on account of the company surrendering the permission for dual technology in six circles where it already has GSM services. However, in earlier instances, the Government had refused to give back the entry fee when operators had surrendered their licences. The Unified Access Service Licence terms and conditions also stipulate that the entry fee is non-refundable. While RCom had paid Rs 1,651 crore for rolling out dual technology (both CDMA and GSMs mobile services) in 20 telecom circles (each circle is equivalent to a State), the company already has GSM-based cellular services in six circles in the eastern part of the country. RCom was asked by the Government to surrender the newly acquired dual technology approval i...

Reliance Communications Ltd (RCom) on Thursday posted a first quarter profit of Rs 1,512 crore, up 23.9 per cent from the same period last fiscal. The company's revenue rose 23.7 per cent to Rs 5,322 crore

Reliance Communications (RCom) has added 1.63 million new subscribers on both its CDMA and GSM networks in May 2008. The addition has increased the company's total of subscribers to 49 million. This, however, is lower than the net additions of 1.7 million the company recorded during the comparable period of April.

(The Hindu Business Line 27th May 2008) The acquisition of Vanco Group by Reliance Globalcom, a subsidiary of Reliance Communications’ (RCom), gives the company access to lucrative markets and a good roster of enterprise clients, at a relatively modest acquisition price. The acquisition (100 per cent) would cost Reliance Globalcom $76.9 million (Rs 327 crore), free of debt. This suggests that the company may not takeover the debt component of Vanco. Vanco did carry net debt of about £35 million in its balance sheet as of July 31 2007. Vanco is a virtual network operator in the UK. Virtual network operators do not own network infrastructure, but buy it from telecom operators and resell voice, data and video services. For Reliance Globalcom, this acquisition holds several possible benefits. Market access One, it gives access to Western European and the US markets as Vanco derives 90 per cent of its revenues from the UK, the US, Germany and France. These regions offer superior margins. Se...

(The Hindu Business Line 27th May 2008) Reliance Globalcom, a subsidiary of Reliance Communications (RCom), has acquired London-based managed network services provider, Vanco Group, for about $77 million (Rs 324 crore). The acquisition of Vanco would add $365 million (Rs 1,550 crore) to the annual revenues of Reliance Globalcom through secure long-term contracts with large enterprise customers, RCom informed the stock exchanges in a statement issued on Monday. Vanco is considered to be amongst the world’s top five managed global network players with over 220 multinational customers, according to research firm Gartner Inc. Vanco managed network services are available in over 40,000 locations across 163 countries with 90 per cent of its revenue from developed markets of the UK, the US, France and Germany. The Vanco acquisition will increase Reliance Globalcom’s tally of enterprise customers to over 1,400, the company statement said. “The combination of Reliance Globalcom’s extensive capa...

(The Hindu Business Line 27th May 2008) Reliance Communications which has initiated talks with South Africa-based MTN is believed to be open to the idea of establishing a special purpose vehicle which would act as a holding company for all joint investments in emerging telecom markets. The second largest domestic telecom operator swiftly moved in where Bharti Airtel left off, announcing a 45-day commitment with MTN for what it called “a potential combination of their businesses.” During this period, neither company will talk to any other suitor. Sources in RComm said the company was open to accepting a holding structure, including the possibility of MTN picking up a sizeable stake. If RComm does not get the stake in MTN that it desires, it is also open to forging an alliance with MTN and leveraging each other’s strengths, sources said. But what this would be they would not elaborate. Both RComm and Bharti are looking to expand their operations overseas, especially in the emerging marke...

(The Hindu Business Line 1st May 2008) In a blow to Tata Teleservices and Reliance Communications, the Supreme Court has asked the two companies to pay up Rs 700 crore to Bharat Sanchar Nigam Ltd as access deficit charges on limited mobile phones. The two companies had argued that since limited mobile phones were being provided under the fixed line telephone licence, they were not liable to pay the charges to BSNL. However, the apex court has upheld the order given by the telecom tribunal in 2005 that limited mobile phones could not be treated as fixed line phones and is a wireless mobile service and, therefore, the companies will have to pay the charges. Though ADC has been abolished now, in 2005 the Government had said that fixed line service providers need not pay the charges. Following the court’s order, the two companies have to pay the outstanding charges to BSNL for the past few years. ADC was a levy imposed on private operators for funding BSNL’s rural telephone schemes. A benc...

Healthy growth across business segments, coupled with an expanded subscriber base, has propelled Reliance Communications to record a 46.8 per cent rise in net profit for the quarter ended March 2008. The after-tax profit increased to Rs 1,503 crore from Rs 1,024 crore in the year-ago period. Net revenues for the quarter were up by 35 per cent at Rs 5,311 crore (Rs 3,937). The company reported the maximum growth in its broadband business, which grew by 54.5 per cent to Rs 510 crore from Rs 330 crore. “RCom had a record year and we are confident of improved performance in the future,” said Mr Anil Ambani, Chairman, RCom. Responding to reporters query, Mr Ambani said the company incurred a mark-to-market loss of only Rs 18 crore in foreign exchange derivative transactions for the quarter. “We have disappointed many experts who thought that our forex losses could be anywhere upward of Rs 300 crore, Mr Ambani said. RCom imports equipment for its telecom business and hence it employs a proac...

(The Hindu Business Line 25th April 2008) The Anil Ambani-controlled Reliance Communications has acquired 90 per cent stake in a UK-based WiMax operator, ‘eWave World’. RCom intends to invest $500 million in eWave to build and acquire WiMax networks in the emerging markets of Asia, Europe, Latin America and Africa, Mr Punit Garg, CEO of Reliance Globalcom, the global arm of RCom, said at a news conference today. RCom will also use this acquisition as a springboard to extend WiMax services to 50 countries by 2012, he said. Though the companies refused to disclose the financial details of the acquisition citing a non-disclosure agreement, it is learnt that RCom will pay $110 million for the 90 per cent stake. eWave World is a telecom operator focused on wireless telephony services using the WiMax technology standard, especially in emerging geographies. The company has already won WiMax licences in 18-20 countries. As an immediate benefit, Reliance will be able to launch WiMax services in...

Vijay Bhambwani, technical analyst, on CNBC Awaaz expressed that he thinks Reliance Communications although is volatilen but still in a upward trend. He thinks that Reliance Communications has support at Rs. 585. He adds that in a year the stock can reach 4 figure mark. He thinks the invester should remain invested in the stock. Hormuz Maloo, technical analyst with Geojit Financial Services, on NDTV Profit thinks that one should think of exiting Ramsarup Industries close to Rs 250 . He thinks the stock can still give a 10-15% return from the current level of Rs. 205.