Reliance Communications spends Rs 424 crore as Capex in second quarter of 2012-13

Telecom Lead India: Reliance Communications has spent Rs 424 crore as Capex (capital expenditure) during the second quarter of 2012-13.

Out of this, Rs 118 crore was spent on wireless, Rs 279 crore on global enterprise business and Rs 270 crore on other businesses.

The company did not share updated forecast for the full year.

Earlier reported that Reliance Communications will spend Rs 1,500 crore on capital expenditure during FY13 and its future Capex requirements will be met through internal accruals.

The mobile operator had spent Rs 1,499 crore as Capex for FY12 and it was in line with their guidance of Rs 1,500 crore for FY12 and has been funded through internal accruals.

Meanwhile, Reliance Communications’ consolidated net profit fell to Rs 1021 crore in the second quarter from Rs 2520 crore a year earlier, Reuters reported.

Gurdeep Singh, chief executive of Reliance Communications’ wireless business

“A jump in finance charges including interest costs hurt the company’s net profit,” said Gurdeep Singh, chief executive of Reliance Communications’ wireless business.

Reliance Communications in September raised prices by a quarter in a bold move as it saw competition tapering off.

Finance costs more than doubled to Rs 5.93 billion in the September quarter from Rs 2.59 billion a year earlier.

Revenue rose 3.2 percent from a year earlier to Rs 5202 crore.

Out of this, wireless revenue was Rs 4422 crore and enterprise business income was Rs 2433 crore.

At present, Reliance Communications has around 4.8 million 3G users across the country.

The number of data users is around 26 million.

Non-voice revenue to total revenue is around 20.8 percent.

Monthly average revenue per user rose to Rs 102 for the September quarter from Rs 98 in the previous three months. Average usage per user grew to 236 minutes from 228 minutes in the previous quarter, while average realization per minute was stable at 43 paisa.

[email protected]