On Sun, Nov 1, 2009 at 9:48 AM, alok agarwal <alok.gro...@gmail.com> wrote:
> RCOM posts 51% decline in profits due to forex losses

> The forex loss of Rs 283 crore forced the company to post a sharp decline
> in profit

> RELIANCE Communications, the nation’s second largest wireless telephony
> company, on Saturday announced 51% decline in quarterly profit due to forex
> loss.
>    RCOM, part of the Reliance Anil Dhirubhai Ambani group, has posted net
> profit of Rs 740 crore in the September quarter, compared to Rs 1,531 crore
> in the yearago period. The forex loss of Rs 283 crore forced the company,
> which posted a marginal 1% rise in revenue to Rs 5,703 crore, to post a
> sharp decline in profit.
>    The results were worse than the expectation. A survey of ETIG and four
> brokerage houses estimated RCOM’s net sales at Rs 6,356 crore and net profit
> at Rs 1,171 crore. However, the company would have posted a net profit of Rs
> 1023 crore, had there been no forex loss. Bharti Airtel, the nation’s
> largest, on Friday posted a 13% rise in net profit and 9% revenue growth.
>    RCOM chairman Anil Ambani said: “ In the near term, the wireless sector
> in India is undergoing a challenging phase, with increased competitive
> intensity and continuing aggressive rebalancing of mobile tariffs by all
> leading players.” The wireless revenues, main money spinner for the telco,
> dropped 7.5% to Rs 4010 crore while EBIDTA margin fell 540 basis points to
> 35.4%. In a statement, the company said higher competitive intensity,
> aggressive tariff restructuring by the telecom operators and higher
> network and operational costs owing to a nationwide GSM rollout have
> impacted wireless segment and EBIDTA margin.
>    Mr Ambani said : “We believe a forward-looking and conducive regulatory
> framework by TRAI and DOT, which is already under consideration, to
> facilitate market driven industry consolidation will be a strong enable to
> protect and create long term value for all stakeholders.”
>    The domestic telecom sector is witnessing steeper fall in valuations
> after the operators reduced tariffs significantly to gain market share. The
> valuations of Bharti and RCOM slipped 27% and 36%, respectively, in one
> month. Analysts have downgraded future revenue expectations of the top
> players citing the sharp fall in average revenue per user due to the recent
> tariff revision.

> --
> Association of Indian Individual Investor
> www.groups.google.com/group/Aiii

> Ultimate Technical Analysis Handbook (Download FREE 50-Page)

> http://www.elliottwave.com/r.asp?rcn=affblurb&url=/club/ultimate-tech...

> Conquer The Crash

> http://www.elliottwave.com/r.asp?rcn=jsgrphc&url=http://www.elliottwa...

> guys, it's time to decide what should be the market price of RCOM share
> after its results announcement ? how much downfall can be expected right
> from here ???

> On Sun, Nov 1, 2009 at 9:48 AM, alok agarwal <alok.gro...@gmail.com>wrote:

>> RCOM posts 51% decline in profits due to forex losses

>> The forex loss of Rs 283 crore forced the company to post a sharp decline
>> in profit

>> RELIANCE Communications, the nation’s second largest wireless telephony
>> company, on Saturday announced 51% decline in quarterly profit due to forex
>> loss.
>>    RCOM, part of the Reliance Anil Dhirubhai Ambani group, has posted net
>> profit of Rs 740 crore in the September quarter, compared to Rs 1,531 crore
>> in the yearago period. The forex loss of Rs 283 crore forced the company,
>> which posted a marginal 1% rise in revenue to Rs 5,703 crore, to post a
>> sharp decline in profit.
>>    The results were worse than the expectation. A survey of ETIG and four
>> brokerage houses estimated RCOM’s net sales at Rs 6,356 crore and net profit
>> at Rs 1,171 crore. However, the company would have posted a net profit of Rs
>> 1023 crore, had there been no forex loss. Bharti Airtel, the nation’s
>> largest, on Friday posted a 13% rise in net profit and 9% revenue growth.
>>    RCOM chairman Anil Ambani said: “ In the near term, the wireless sector
>> in India is undergoing a challenging phase, with increased competitive
>> intensity and continuing aggressive rebalancing of mobile tariffs by all
>> leading players.” The wireless revenues, main money spinner for the telco,
>> dropped 7.5% to Rs 4010 crore while EBIDTA margin fell 540 basis points to
>> 35.4%. In a statement, the company said higher competitive intensity,
>> aggressive tariff restructuring by the telecom operators and higher
>> network and operational costs owing to a nationwide GSM rollout have
>> impacted wireless segment and EBIDTA margin.
>>    Mr Ambani said : “We believe a forward-looking and conducive regulatory
>> framework by TRAI and DOT, which is already under consideration, to
>> facilitate market driven industry consolidation will be a strong enable to
>> protect and create long term value for all stakeholders.”
>>    The domestic telecom sector is witnessing steeper fall in valuations
>> after the operators reduced tariffs significantly to gain market share. The
>> valuations of Bharti and RCOM slipped 27% and 36%, respectively, in one
>> month. Analysts have downgraded future revenue expectations of the top
>> players citing the sharp fall in average revenue per user due to the recent
>> tariff revision.

>> --
>> Association of Indian Individual Investor
>> www.groups.google.com/group/Aiii

>> Ultimate Technical Analysis Handbook (Download FREE 50-Page)

>> http://www.elliottwave.com/r.asp?rcn=affblurb&url=/club/ultimate-tech...

>> Conquer The Crash

>> http://www.elliottwave.com/r.asp?rcn=jsgrphc&url=http://www.elliottwa...

>  --
> Association of Indian Individual Investor
> www.groups.google.com/group/Aiii

> Ultimate Technical Analysis Handbook (Download FREE 50-Page)

> http://www.elliottwave.com/r.asp?rcn=affblurb&url=/club/ultimate-tech...

> Conquer The Crash

> http://www.elliottwave.com/r.asp?rcn=jsgrphc&url=http://www.elliottwa...