Reliance Communications (RCOM) reported, on a consolidated basis, net income of Rs. 21496.38 crores of revenue for the fiscal year ended 31st March 2010, down 3.39% from Rs. 22250.54 crores reported for the corresponding period the previous year. Expenses for the company grew 5.45% to Rs. 18058.31 crores, up from Rs. 17124.82 reported for the previous year. Thus, the net profit for Reliance communications in FY10 decreased 23.54% to Rs. 4655 crores from Rs. 6044.93 crores for FY09. RCOM reported a basic Earnings Per Share of Rs. 22.55, down 23% from Rs. 29.29 for the previous year, on a consolidated basis. The RCOM Board has approved a 17% dividend, with a payout of Rs. 205 Crores.
RCOM hasn’t released data yet for Q4, but its press release states that profit for Q4 was at Rs. 1220 Crores, up 10.1% quarter on quarter. However, this is down 16.01 percent from Rs 1454 crores reported for Q4 last year.
The company also added that minutes of usage on its network increased from Rs. 276 billion to Rs. 349 Billion, up 26%. During the year, RCOM claimed to have reached 100 million customers.
Segment Results
EBITDA for Reliance Communications was Rs. 7821 crores, down 16% from Rs. 9305 crores, what what is noticeable is a decline in EBITDA margin to 35.3% from 40.5% the previous year. Remember that several new telecom operators launched services at lower tariffs, or differentiated plans, which has forced incumbent telecom operators to also offer similar plans to consumers.
RCOM’s results were hit primarily by a decline in their wireless revenues, the largest contributor in terms of revenues. Wireless Revenues for the year were Rs. 16639.61 crores, down 4.2% from Rs. 17367.63 the previous year. EBITDA profit from the wireless segment declined 16.3% to Rs. 5586 crores from Rs. 6674 crores in 2009-10.
Broadband revenues were Rs. 2838.55 crores, up 12.5% from Rs. 2524.27 crores the previous year. The segment reported an EBITDA profit of Rs. 1147 crores, down 0.9% from Rs. 1158 crores.
Reliance’s Globalcom and Enterprise business reported an increase in revenues, up 22.5% to Rs. 8318.68 crores from Rs. 6790.94 crores the previous year. The Global business reported a 4.4% increase in EBITDA profit, at Rs. 1696 crores. The segment had reported an EBITDA profit of Rs. 1625 crores the previous year. The Globalcom and enterprise business EBITDA represents 36% of consolidated EBITDA.
More from RCOM’s financial results once their Q4 Quarterly report is released, and from their earnings conference call tomorrow.
Details: Press Release | Consolidated Results | Standalone Results
