Reliance Communication Posts Rs 531 Cr Net Profit On User Growth

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Reliance Communication posts Rs 531 cr net profit on user growth

Anil Ambani Group company and India` top CDMA-based mobile services provider Reliance Communications Ltd on Monday a net profit of Rs 531 crore for the first quarter of the current fiscal on increasing subscriber figures and networks expansion.

Incidentally, the company had posted a net loss of Rs 250 crore in the corresponding quarter a year ago.

The company was in pre-operative stage as on June 30, 2005 and the figures relating to the quarter ended June 30, 2006 are not comparable, the company informed the BSE.

RCL came into the fold of Anil Ambani as part of settlement between him and his elder brother Mukesh in June last year.

On the reports of good quarterly results, the company`s share price spurted 1.6 per cent to close at Rs 262.75.

In the previous quarter ended March 31, 2006, the company had posted a profit after tax of Rs 403 crore, an increase of 27.3 per cent sequentially.

In the latest quarter, the company`s total revenue rose to Rs 32,50 crore from Rs 22, 80 crore in the year-ago period posting an increase of 42 per cent.

RCL, which is the holding company of Reliance Infocomm (CDMA venture), Reliance Telecom (GSM venture) and Flag Telecom (the sub-marine cable) and Reliance Communication Infrastructure Ltd improved hugely on it ebidta earnings as well.

Its EBITDA (earnings before interest, tax and depreciation allowance) for the quarter increased a huge 658 per cent to Rs 1,206 crore against Rs 159 crore in the corresponding quarter last year. EBIDTA grew 15 per cent over the trailing quarter ended March 31.

In Q1, the EBIDTA margin increased to 37.1 per cent against 35.3 per cent in the corresponding quarter last fiscal.

With 22.52 million wireless subscribers on its network, revenues of the wireless business increased 15 per cent sequentially, from Rs 2,120 crore to Rs 2,432 crore.

Commenting on the results, Anil Dhirubhai Ambani, chairman, Reliance Communications Limited said, "I expect the strong business momentum to continue for the rest of the financial year".

RCL`s global business experienced strong margin expansion and growth in profitability. Broadband achieved revenue growth of 16.6 per cent sequentially.

RCL, which is already a part of the benchmark index - Sensex, will also be included in the Nifty and CNX-100 index from September 1.

RCL has 22.52 million wireless customers on its network, representing a market share of 20.6 per cent of the All India Wireless Market. Users of wireless multi media services increased 24 per cent to 7.9 million as on 30th June, from 6.4 million users as on 31st March, continuing the strong upward trend in usage of these services by our customers.

As at 30th June, the company had 22.52 million wireless customers on its network, representing a market share of 20.6 per cent of the All India Wireless Market.

Amidst the good result, RCL said as on 30th June, the net worth of the company stood at Rs 12,225 crore, the highest net worth of any private sector telecom services firm in India.

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