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Journalism of Courage
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 company8217;s capex stood at Rs 19,000 crore,while for this fiscal the capex guidance is at Rs 10,000 crore.
8220;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,8221; Reliance Communications Chairman Anil Ambani said at its annual general meeting in Mumbai.
8220;Our capex intensity peaked over FY8217;08-09 8212; that scale of mega-expenditure is now behind us,8221; Ambani said.
8220;We have also more than doubled our asset base to over Rs 1.02 lakh crore in this period,8221; 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 company8217;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.
