RCom Q2 net down 43.5%; bullish on non-voice serviceshttps://indianexpress.com/article/news-archive/web/rcom-q2-net-down-43-5-bullish-on-nonvoice-services/

RCom Q2 net down 43.5%; bullish on non-voice services

Anil Ambani-led Reliance Communications posted a 43.49 per cent decline in net profit

Anil Ambani-led Reliance Communications (RCom) today posted a 43.49 per cent decline in net profit at Rs 252 crore for the second quarter this fiscal,but gave a bullish outlook on non-voice services which includes high speed mobile Internet through 3G.

The company had posted a net profit (after adjustment of share of minority interest and associates) of Rs 446 crore in the same period last year.

The total income from operations for the quarter under review decreased 4.59 per cent to Rs 4,792 crore from Rs 5,023 crore for the corresponding quarter last year,according to a company filing with the BSE.

Sequentially,RCom’s revenue and profit were up from Rs 4,940 crore and Rs 157 crore,respectively,the company said in a statement.

“In this industry,we track growth on quarterly basis which is a better criteria to look. This was a robust quarter for us,” RCom’s Head for Wireless Business Syed Safawi said.

“Data and non-voice revenue contribute around 20 per cent to the overall revenue. We see data and non-voice firming up to 35 to 40 per cent in the next two years. We have rolled out 3G services in around 1,300 towns and have 2.1 million 3G users which is the highest in the industry,” he added.

He said ‘minutes of usage’ in the industry has declined,while the same on RCom network grew by 1.6 per cent from the previous quarter.

“This is driving growth in revenue. Our revenue per minute grew to 45 paise per minute which is among the highest in the industry,” Safawi said.

He said the hike in tariff during the first quarter of the current fiscal had started showing results. The company will start evaluating tariff only when the hike becomes applicable across the board.

Advertising

“RPM (revenue per minute) will grow once the old (customer) base comes into the new tariff rate. We expect old base to come into new tariff in next four to six months…then we will look to evaluate tariff,” Safawi said.