RCoVL profit up 42%

Wireless telephony services firm Reliance Communications Ventures Ltd reported a 42 per cent rise in net profit for quarter-ended March 2006 as compared to third quarter of fiscal 2005.

Wireless telephony services firm Reliance Communications Ventures Ltd (RCoVL) reported a 42 per cent rise in net profit for quarter-ended March 2006 as compared to third quarter of fiscal 2005. Anil Ambani-owned Reliance Communications, ranked second in terms of mobile users, said its net profit jumped to Rs 440 crore for the fiscal fourth quarter from Rs 310 crore in the third quarter.

Said RCoVL Chairman Anil Ambani: ‘‘Our wireless business achieved the highest ever acquisitions of 3.2 million customers in a single quarter, with our total base crossing a record 20 million customers as at March 31, 2006 – India’s largest wireless customer base.’’

The company said its broadband experienced the highest percentage revenue growth among all three operating divisions. Broadband achieved revenue growth of 54 per cent sequentially, and a profit margin expansion from 20 per cent to 31 per cent.

As of March 31, 2006, the net worth of the company stood at Rs 11,742 crore, the highest net worth of any private sector telecom services company in India. The market capitalization of RCoVL as at April 29, 2006, based on equity capital post reorganisation, was Rs 65,000 crore.

RCoVL closed 6.4 per cent higher at Rs 320 in a firm BSE on Saturday. At this price, the stock is up 10 per cent since its listing on March 6 compared with the 12.2 per cent rise on the main index. Earlier in the day the BSE announced that RCoVL would be included in the Sensex from June 12, 2006, replacing Tata Power.