Reliance Communications Q3 income up 1% to Rs 5,052 crore

By Telecom
Lead Team
: Reliance Communications has posted 1 percent
increase in Q3 2011-12 income to Rs 5,052 crore against Rs 5,004 crore in the same quarter previous fiscal.

The net
profit of the second largest telecom operator –
based on mobile user base – fell 61
percent to Rs 186 crore in Q3 2011-12 from Rs 480 crore in Q3 2010-11.

revenue grew by 9 percent to Rs 4,447 crore in Q3, while income from global
enterprise business fell to Rs 2,351 crore from Rs 2,542 crore. Wireless
business contributes 63 percent of its total revenue.

ARPU was 100.

minutes of usage increased by 1.0 percent from 98.9 billion to 99.9 billion as
compared to the previous quarter customer base at 150.1 million, up 2.0 percent
against 147.1 million in the previous quarter 3G
active customers grew to 2.8 million, the highest in the industry.

per minute 45 paise/min, amongst highest in the industry and stable for the
last eight consecutive quarters.

Communications continues to be free cash flow positive. RCOM generated
operational cash flow (EBITDA) of Rs. 1,611 crore in this quarter. Post payment
of 3G auction fees and with peak
capex behind the company, this is the first full year of positive free cash
flow (FCF) for the company
and this trend will continue in succeeding years.

Communications Limited (RCOM) has tied up refinancing for maturity value of its
outstanding FCCBs (Foreign Currency Convertible Bonds) of $1,182 million.

refinancing is being funded by ICBC, CDB and EXIM and other banks. RCOM will benefit
from extended Loan Maturity of 7 years and attractive interest cost of about 5
percent. The loan proceeds would be used for refinancing the entire redemption
amount of Foreign Currency Convertible Bonds (FCCB) which are due for
redemption on March 01, 2012. This is the largest refinancing in the history of
FCCBs by any indian corporate.

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