INDIA BUSINESS WORLD - OCTOBER 2006
THE MONTH THAT WAS...

RELIANCE COMM POSTS RS 702-CRORE PROFIT IN Q2

  Reliance Communications (RCL), the largest CDMA-based telecom company, on Monday reported a net profit of Rs 702 crore during the September 30 quarter against a loss of Rs 19 crore in the year-ago period. The Anil Dhirubhai Ambani Group (ADAG) telco saw 40% revenue growth at Rs 3,526 crore on the back of rising mobile and broadband subscribers.

   EBITDA, at Rs. 1,353 crore, marks a growth of 216% over the corresponding quarter last year while EBITDA margin expanded to 38% from 17% during the period.

   Following the results, RCL scrip touched Rs 398.25 before ending at an all-time high of Rs 398.25, up 2.30% over previous close. The company's market capitalisation has reached over Rs 80,000 crore while that of its nearest rival, Bharti Airtel, stood at nearly Rs 102700 crore on October 30. During the July-September quarter, Bharti's net profit surged 79% at Rs 934 crore while its revenues were Rs 4357 crore.

   RCL's total assets were Rs 32,281 crore as on September 30, 2006. Its net debt declined sequentially by 16% to Rs 2,057 crore. “RCL growth engine is poised to deliver accelerated profitability and even greater momentum in the years ahead. Our unique fully integrated telecom operations, differentiate us from mainly mobile operators, and will deliver unmatched value to our over 2m shareholders,” Mr Ambani, chairman, RCL, said in a statement in Mumbai.