Reliance Communications Q3 net profit at Rs 310 crore

Our Corporate Bureau
22 February 2006

Reliance Communication Ventures Limited (RCVL), the holding company of Reliance Infocomm and Reliance Telecom, said net profits for the quarter ended 31 December 2005 were at Rs 310 crore. The company said, for the quarter ended June 2005 it had incurred a loss of Rs 250 crore which came down to a loss of Rs 18 crore for the September 2005 quarter.

Total revenues for the December quarter have been reported at Rs 3,327 crore. The numbers include the financial results of all the operating companies under the RCVL fold.

Reliance Communication Ventures has the CDMA operator Reliance Infocomm and GSM operator Reliance Telecom under its fold. The group had acquired international sub-sea cable network Flag Telecom in 2003. RCVL also has a controlling stake in Reliance Communication Infrastructure.

RCVL is expected to get listed on the exchanges by early March. The valuation of RCVL has been a major issue even before the de-merger of ADAG group from parent company, Reliance Industries. Most analysts are still figuring out the right valuation of the company even after the de-merger.

The telecom business of the ADAG group reportedly has a very complicated holding structure. Reliance Infocomm is said to have more then 200 private companies controlled by the Ambani family as promoters. It is not yet clear if these holdings have been consolidated under a few entities.

The financial performance of the ADAG telecom companies has always been a mystery. It is the first time the group is revealing the pro-forma financial results.