Reliance Communication - Q1FY2014 Result Review - Angel Broking

For 1QFY2014, Reliance Communication (RCom) results came in marginally below expectations on all fronts. The company registered top-line (including other income) of Rs. 5,315, down ~1.5% qoq. Revenues from wireless business came in at Rs. 4,816cr, up 4% qoq. In tandem with its peer companies, RCom also reported increase in realization rate per minute (RPM) by 4% qoq to 45.7paise, aided by tariff hikes and strong focus on paid and profitable minutes. EBITDA margin came in at 30.2%, down ~70bp qoq. PAT came in at Rs. 108cr, down ~65% qoq, as RCom last quarter had one time gain of Rs. 550cr (provision reversal).

The stock is currently under review.

Source : Equity Bulls

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