Reliance Communications cuts quarterly net loss by 95%

Helped by the planned closure of its consumer business, Reliance Communications (RCom) has pared its quarterly net loss by more than 95 per cent to Rs130 crore, down from a net loss of Rs2,712 crore recorded during the trailing quarter.

''RCom's planned exit from the consumer business has achieved more than the desired results. Rcom has reduced its net loss by over 95 per cent. RCom expects to deliver even better financial performance in the coming quarters,'' RCom chairman Anil D Ambani said in a statement.

RCom's new business portfolio reported consolidated revenues of Rs1,176 crore and EBITDA of Rs252 crore. The EBITDA margin was at 21.4 per cent. Indian operations' revenues and EBITDA stood at Rs596 crore and Rs95 crore, respectively, while global business contributed revenue and EBITDA of Rs709 crore and Rs157 crore, respectively.

In December last year, RCom exited its wireless business by selling the assets to new entrant Reliance Jio Infocomm for an undisclosed sum. These included spectrum, optical fibre and telecom towers. 

Now RCom's new business portfolio comprises the business to business (B2B) segment such as global and Indian enterprise, internet data centres (IDC), global submarine cable network and international long-distance voice with about 40,000 Global and Indian customers.

The asset monetisation process of the company, controlled by billionaire Anil Ambani, is on track to close by March 2018, subject to lenders' consents and other regulatory approvals, it added.

The strategic transformation of RCOM is well underway. During the quarter, RCOM announced to exit from RBI's SDR Framework, it said in the statement.

Earlier in January, China Development Bank (CDB) – one of RCom's major lenders - withdrew an insolvency petition against the company, after the Indian telecom company announced a Rs39,000-crore asset monetisation plan to pare its debt.

Senior counsel Darius Khambatta, who represented China Development Bank and Swedish equipment manufacturer Ericssson, said that since RCom's plans to sell wireless and real estate assets in order to generate funds to repay lenders is up to March 2018, CDB is "accommodating" for the benefit of all creditors (See: Chinese bank withdraws case against RCom; Ericsson battles on).