Reliance Communications Q3 net profit up 7.7 percent
By IANSMonday, February 14, 2011
MUMBAI - Leading telecom service provider Reliance Communications Monday reported a 7.7 percent rise in its net profit at Rs.480 crore ($107 million) for the quarter ended Dec 31 as compared to the previous quarter.
The company, part of the Anil Dhirubhai Ambani Group, also saw its customer base soar by a whopping 34 percent to 126 million, against 94 million in the corresponding quarter of previous fiscal.
The earnings before interest, tax, depreciation and amortisation rose to Rs.1,668 crore ($373 million) in the quarter under review, compared to Rs.1,660 crore ($369 million) in the sequential quarter.
During the quarter, Reliance Communications launched its third generation (3G) services in Delhi, Mumbai, Kolkata and Chandigarh and plans to extend such services to all 13 telecom circles where it holds 3G licenses by end of the current fiscal.
The company also signed a memorandum of understanding with China Development Bank Corporation for syndicated loan financing of $1.93 billion, covering a loan of $1.33 billion for refinancing 3G spectrum fees.
This agreement also covers financing of up to $600 million towards 85 percent of equipment and services to be procured from Chinese telecom equipment manufacturers Huawei and ZTE. This is over and above the existing $750 million facility already utilised by Reliance Communications for procurement of equipment from these companies.
