The country's third-largest telecom company, Reliance Communications, posted a net profit of Rs 1,220 crore for the quarter ended March 31, 2010 — a decline of 16 per cent from the Rs 1,454 crore posted in the same quarter in the previous financial year. The revenues of the company stood at Rs 5,093 crore, down 17 per cent from the Rs 6,124 crore posted in the same period of the previous financial year.
Minutes of usage increased 26 per cent to 349 billion as opposed to 276 billion earlier. In the quarter under review, Reliance Communications crossed the 100-million wireless customer mark, making it the second company to achieve this milestone after Bharti Airtel.
“The financial year 2010 was one of the most challenging years for the telecom industry. Reliance Communications has undertaken several path-breaking initiatives, both in GSM and CDMA services, and we are confident that in spite of the highly-competitive environment, we will be able to sustain profitable growth in the coming quarters,” Anil Ambani, chairman, Reliance Communications, said in a statement to the press. The company, like many other incumbent telecom players, is facing reducing margins due to the price war triggered by new entrants.