Reliance Communications Q2 net drops 40 per cent to Rs446 crore
13 Nov 2010
Reliance Communications reported a 40 per cent year-on-year drop in its fiscal second quarter (July-September 2010-11) profit to Rs446 crore ($100 million), from Rs740 crore in the year-ago quarter.
Profit for the quarter, however, was higher than the Rs251 crore reported in the June quarter this year. This is also the fifth-straight quarter of profit fall for the company.
Reliance Communications said the squeeze on revenues and margins stemmed from the continuing price war in the world's fastest-growing mobile market.
The Anil Ambani-led firm said its consolidated revenue fell to Rs5,118 crore during the quarter from Rs5,703 crore reported a year earlier.
The company said profit for the quarter ended 30 September 2010 would have been higher by Rs735.07 crore at Rs1,181.00 crore except for adjustment of foreign exchange losses of Rs779.95 crore pertaining to the previous quarter.
Losses, if any, would be adjusted by withdrawal from general reserve at the end of the year in terms of schemes of arrangement approved by the Bombay High Court on 19 June 2009 and 18 July 2009, respectively.
The company is operating in the wireless, broadband, global, investments and other unallocated segments.