RCom net soars to Rs 675 crore in Q2, smashes estimates

Reliance Communications, India's fourth-biggest cellular carrier, reported a surge in quarterly net profit, smashing analysts' estimates, lifted by higher call tariffs and reduced competition.

The Mumbai-based company, controlled by billionaire Anil Ambani, said consolidated net profit was Rs 675 crore for its fiscal second quarter to September 30, helped by a provision write-back of Rs 441 crore.

Excluding the write-back, net profit was Rs 234 crore, higher than analysts' estimate of Rs 146 crore on average. Profit rose for the first time in five quarters.

The company had posted a net profit of Rs 102 crore in the year-earlier period.

Reliance Communications is the most-leveraged listed phone carrier in India and profits had fallen in 14 of the 16 quarters to end-June, mainly due to high financing costs.
 

Copyright Thomson Reuters 2013