Reliance Communication - 4QFY2013 Result Review - Angel Broking

Reliance Communication (RCom) reported modest set of numbers for 4QFY2012, aided mainly by a jump in data usage and GSM connections and other income from reversal of an earlier provision. The company registered top-line (including other income) of Rs. 5,956, up 12.3% qoq. Revenues from wireless business came in at Rs. 4,626cr, up 2.5% qoq. The better-than-expected result was also in part due to a one-time reversal from money provisioned towards write-down of assets in the course of a subsidiary restructuring exercise. RCom had earlier provisioned Rs. 3,000cr in anticipation of required write-downs during a court-approved plan to restructure its subsidiaries, but credited Rs. 550cr from it back during the quarter. Adjusting for that, revenues grew by 2.0% qoq. ARPM came in at Rs. 0.44/min, almost flat qoq. Total minutes in the network grew by 2.3% qoq to 105.4bn. Adjusted EBITDA margin came in at 30.9%, down 30bp qoq. PAT came in at Rs. 303cr, up 187% qoq.

The stock is currently under review.

Source : Equity Bulls

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