BENGALURU: Anil Dhirubhai Ambani-led Reliance Communications Ltd (RCom) reported 95 percent lower loss for the third quarter ended 31 December 2017 (Q3 2018, the quarter under review) as compared with the immediate trailing quarter (Q2 2018). The company reported loss of Rs 130 crore in Q3 2018 as against a loss of Rs 2,712 crore in Q2 2018. It had reported loss of Rs 531 crore in Q3 2017.
After the planned exit from its consumer business that included wireless, direct-to-home (DTH – Reliance Big TV) and PCO, RCom is left with the B2B business. RCom’s B2B business comprises global and Indian enterprises, internet data centres (IDC), a global submarine cable network and international long-distance voice.
The company said in its media release that it had 40,000 B2B global and Indian customers. It reported a 2.1 percent quarter-on-quarter (qoq) revenue increase for its B2B business at Rs 1,176 crore for the quarter under review. Year on year, revenue in Q3 2018 declined by 30.7 percent from Rs 1698 crore.
EBIDTA for the B2B business increased by 5.9 percent qoq to Rs 252 crore. Net profit after tax (PAT) increased by 28.6 percent q-o-q to Rs 27 crore from Rs 21 crore and was 68.8 percent higher y-o-y that Rs 16 crore.
Revenue from Indian operations declined both qoq and yoy in Q3 2018 by 7.6 percent and 42.9 percent, respectively, to Rs 596 crore. The company had reported revenue from India operations of Rs 645 crore for Q2 2018 and Rs 1,043 crore for Q2 2017. RCom’s Indian operations’ operating profit reduced by 7.7 percent qoq to Rs 60 crore in Q3 2018 from Rs 65 crore but increased yoy from Rs 40 crore.
Global operations revenue grew by 4.1 percent qoq in Q3 2018 to Rs 709 crore from Rs 681 crore but reduced by 37.4 percent yoy from Rs 1,132 crore. RCom reported operating profit of Rs 20 crore from its global operations in Q3 2018 as against loss of Rs 3 crore in the immediate trailing quarter but 44.4 percent lower yoy than the Rs 36 crore reported for Q3 2017.
RCom chairman Anil Ambani said, “RCom’s planned exit from the consumer business has achieved more than the desired results. RCom has reduced its net loss by over 95 percent. RCom expects to deliver even better financial performance in the coming quarters.”
Also Read :
