Reliance Communications net loss falls to Rs 130 crore in Q3FY18

Reliance Communication (RCom) on Monday, stated that the company’s consolidated net loss reduced to Rs 130 crore in third quarter ended December 2017 (Q3FY18).

RCom had reported net loss of Rs 2,712 crore in the preceding quarter (Q2FY18) and net loss of Rs 484 crore in the corresponding quarter of the previous year (Q3FY17).

On the other hand, consolidated total income came in at Rs 1,176 crore in Q3FY18, which declined by 30.74% from Rs 1,698 crore a year ago same period, but was up by 2.08% versus Rs 1,152 crore in Q2FY18.

It may be noted that RCom’s consolidated net loss for nine months period of FY18 (9MFY18), widened over thirteen-times to Rs 4,154 crore compared to net loss of Rs 312 crore a year ago same period.

While consolidated total income witnessed a decline of 26.02% to Rs 3,708 crore in 9MFY18, from Rs 5,012 crore in the similar period of the previous year.

On standalone basis, net loss of RCom also narrowed to Rs 192 crore in Q3, from net loss of Rs 1,919 crore in Q2FY18 and net loss of Rs 333 crore in Q3FY17. While total income stood at Rs 497 crore, declining by 13.26% quarter-on-quarter (QoQ) and 46.73% year-on-year (YoY) basis.

Anil D Ambani, Chairman, Reliance Communications Limited, says “RCom’s planned exit from the consumer business has achieved more than the desired results. RCOM has reduced its net loss by over 95%. RCOM expects to deliver even better financial performance in the coming quarters”.

According to RCom’s financial audit report, the company’s new business portfolio clocked growth of 28.6% qoq to Rs 27 crore in net profit, while operating profit was at Rs 252 crore up 5.9% qoq.

RCom’s new business portfolio comprises Business to Business (B2B) businesses namely Global and Indian enterprise, internet data centres (IDC), global submarine cable network and international long distance voice with ~40,000 Global and Indian customers.

The operating profit margin of new business was at 21.4%.

RCom said, “The strategic transformation of RCOM is well underway. During the quarter, RCOM announced to exit from RBI’s SDR Framework.”

RCom signed the definitive binding agreements for sale of Wireless, Spectrum(excluding 4G spectrum under sharing), Tower, Fiber and Media Convergence Node (MCN) assets.

RCom’s asset monetisation is on track to close by March 2018, subject to lenders’ consents and other regulatory approvals.

On the BSE, RCom share price closed at Rs 27.25 per share down by 3.88%.