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RCom consolidated Q2 profit plunges 77%
Source: IRIS | 14 Nov, 2014, 06.05PM
Rating: NAN / 5 stars.
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Reliance Communications (RCom), one of the leading telecom operators in India, reported a fall of  77.33% in consolidated profit to Rs 1.53 billion for the quarter ended Sept. 30, 2014 as against Rs 6.75 billion in the last year period.
 
Total income for the quarter decreased 1.49% to Rs 5.28 billion from Rs 5.36 billion in the same period last year.

Q2 EBITDA at Rs 18.27 billion, down 1.9% from Rs 18.63 billion in Q1. This is in line with industry trends due to seasonal factors. EBITDA margin of 33.8% amongst the highest in the industry, with strong contribution from both India and Global businesses.

RCom generated operational cash flow (EBITDA) of Rs 18.27 billion in Q2, paid net finance charges of Rs 6.70 billion and invested Rs 3.02 billion on capex during the quarter. It remains free cash flow (FCF) positive and this is expected to continue.

RPM at 44.4 paisa, up 1.4% Q-o-Q. Voice RPM at 33.6 paisa, up 0.9% Q-o-Q. During the quarter, we have improved RPM with tariff hikes, strong focus on paid and profitable minutes and increase in data usage.

Total MOU at Rs 102.1 billion, down 1% Q-o-Q, in-line with industry trends due to seasonality factors. ARPU at Rs 137 in Q2, up 0.7% Q-o-Q.

The total data traffic at 65,778 million MB, up 19% Q-o-Q and 75% Y-o-Y. The traffic has increased due to increase in data subscribers and higher data usage per customer.

Shares of the company gained Rs 0.1, or 0.1%, to settle at Rs 102.90. The total volume of shares traded was 719,169 at the BSE (Friday).

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