Reliance Communications posts Rs 1,210 crore loss in June quarter

Reliance Communications posts Rs 1,210 crore loss in June quarter thumbnail
KOLKATA: Reliance Communications (RCom) posted a consolidated net loss of Rs 1,221 crore in the fiscal first quarter to June compared with a year earlier net profit of Rs 54 crore amid hyper competition and disruptive pricing triggered by Reliance Jio Infocomm’s dirt cheap offerings.

Consolidated net loss for the Anil Ambani-owned telco was also higher than the Rs 966 crore net loss suffered in the previous quarter ended March 31.

Revenue at Rs 3,591 crore was down 33% on-year from Rs 5,361 crore in the previous corresponding quarter.

RCom said the grim earnings numbers in the June quarter were triggered by “disruptive pricing” and “unprecedented competitive intensity” in the industry.

“The Indian telecom sector continues to be severely impacted in the first quarter of FY18 owing to disruptive pricing and hyper-competition,” RCom said in a media release issued late Saturday evening.

The company’s earnings before interest, tax, depreciation & amortisation (Ebitda) crashed over 65% on-year to Rs 543 crore from Rs 1,560 crore last year.

Quarterly earnings before interest, tax, depreciation & amortisation (Ebitda) margin plunged to 15.1% from 29.1% in the previous corresponding quarter.



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