September 22, 2009 3:20:26 pm
Anil Dhirubhai Ambani Group (ADAG) company Reliance Communications said its capex would decline sharply starting this year and continue on a downward trend in the future,primarily due to completion of the GSM network rollout.
In the 2008-09,the company’s capex stood at Rs 19,000 crore,while for this fiscal the capex guidance is at Rs 10,000 crore.
“We expect our capex to decline significantly starting this year and continue on a downward trend in the future,particularly in relation to the scale of our expanding operations,” Reliance Communications Chairman Anil Ambani said at its annual general meeting in Mumbai.
“Our capex intensity peaked over FY’08-09 — that scale of mega-expenditure is now behind us,” Ambani said.
“We have also more than doubled our asset base to over Rs 1.02 lakh crore in this period,” he said adding through this expansion,we have maintained the stability of our margins and expects the margin to remain higher in the longer term.
Ambani said despite a substantial capex commitment of about Rs 40,000 crore in two years,the company’s balance sheet is very strong as it has a very conservative debt-equity ratio of 0:53.
He said the company currently has a subscriber base of 85 million and hopes to have 100 million subscribers by March 2010.
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