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RCom jumps after robust Q2 outcome

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Capital Market
Last Updated : Nov 13 2013 | 11:58 PM IST

Reliance Communications rose 3.60% to Rs 133.80 at 9:30 IST on BSE after consolidated net profit spurted 562% to Rs 675 crore on 3.7% growth in operating revenue to Rs 5394 crore in Q2 September 2013 over Q2 September 2012.

The result was announced after market hours on Tuesday, 12 November 2013.

Meanwhile, the BSE Sensex was up 6.54 points, or 0.03%, to 20,288.45.

On BSE, 3.20 lakh shares were traded in the counter compared with average volume of 24.11 lakh shares in the past one quarter.

The stock hit a high of Rs 134.40 and a low of Rs 131.90 so far during the day. The stock hit a 52-week high of Rs 164.45 on 20 September 2013. The stock hit a 52-week low of Rs 50.25 on 26 March 2013.

The stock had underperformed the market over the past one month till 12 November 2013, falling 14.21% compared with the Sensex's 1.20% fall. The scrip had, however, outperformed the market in past one quarter, rising 2.26% as against Sensex's 7.05% rise.

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The large-cap company has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5.

Reliance Communications' (RCom) said there was a provision write-back of Rs 441 crore in Q2 September 2013. RCom's consolidated profit after tax (PAT) excluding provision write-back surged 129.4% to Rs 234 crore in Q2 September 2013 over Q2 September 2012.

RCom's operating EBITDA (earnings before interest, taxation, depreciation and amortization) rose 15.2% to Rs 1887 crore in Q2 September 2013 over Q2 September 2012. Total EBITDA rose 42.1% to Rs 2328 crore.

RCom's revenue from India operations grew 5.4% to Rs 4624 crore in Q2 September 2013 over Q2 September 2012. EBITDA rose 15.1% to Rs 1640 crore.

The company's revenue from global operations declined 0.3% to Rs 1139 crore in Q2 September 2013 over Q2 September 2012. EBITDA grew 15.5% to Rs 246 crore.

RCom said it has generated operational cash flow (EBITDA) of Rs 2328 crore in Q2 September 2013, paid net finance charges of Rs 676 crore and invested Rs 364 crore on capex during the quarter. It remains free cash flow (FCF) positive and this is expected to continue, the company said in a statement.

RCom is an integrated telecommunications service provider. The company, with a customer base of about 125 million including over 2.5 million individual overseas retail customers, ranks among the Top 7 Telecom companies in the world by number of customers in a single country. RCom's corporate clientele includes over 39,000 Indian and multinational corporations including small and medium enterprises and over 830 global, regional and domestic carriers.

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First Published: Nov 13 2013 | 9:29 AM IST

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