RCom Reports Rs 1,210 Crore Consolidated Loss, Says Aircel Merger on Track

Anil Ambani-led Reliance Communications has reported a third straight quarter consolidated loss of Rs 1,210 crore in the three-month period ended June 30, 2017, as compared to net profit of Rs 54 crore in a year earlier period, impacted by disruptive pricing and unprecedented competitive intensity in the country. The debt-laden company said that the telecom sector in India continues to be very adversely impacted during the financial year 2017-18 by competitive intensity on a scale never witnessed before in the country.

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The company also attributed the loss to equity holders of the company during the reported quarter.

RCom posted Rs 3,591 crore revenue which was down 33% on-year from Rs 5,361 crore in the previous corresponding quarter. Its earnings before interest, tax, depreciation & amortisation (Ebitda) crashed over 65% on-year to Rs 543 crore from Rs 1,560 crore last year.

“For the first time in over 20 years, the telecom sector registered de-growth in revenues, leading to a reduction in the government’s share in revenues, sharp drop in operating margins, accompanied by increased interest costs arising from a staggering industry debt burden, and higher depreciation and amortisation charges as a result of higher spectrum purchase costs,” RCom said in a statement.

RCom had earlier reported debt of about Rs 45,000 crore, and it has been given time till December by the lenders to service dues. However, it didn’t reveal its debt status this time.

RCom is currently in a process to merger Sistema Shyam Teleservices and expects to complete merger with Sistema Shyam by end of this month. The merger will add 30 MHZ of 850 band spectrum in eight telecom circles. The validity of spectrum in these circles will remain till 2033.

The Anil Ambani-led telco is also in a process of merger and said that the merger of its mobile business with Aircel is on track. The merger, upon completion, will reduce its debt to the tune of around Rs 14,000 crore. In addition, it expects to further reduce the debt of Rs 11,000 crore by sale of its tower business to Brookfield Asset Management.

The National Company Law Tribunal (NCLT) may take a call on August 14 whether to admit the RCom-Aircel merger petition for consideration amid stiff opposition from lenders including China Development Bank, vendors such as Ericsson and Bharti Infratel, besides the DoT, according to reports.

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26 Comments on "RCom Reports Rs 1,210 Crore Consolidated Loss, Says Aircel Merger on Track"

 

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[…] the moment, RCom is under several financial issues. The company recently revealed that its debt has extended to Rs. 45,700, and is shelling out Rs. 3,600 as…. To be precise, RCom’s debt is currently over 4.6 times its earnings, along with an EBITDA of […]

Sudharsan
August 14, 2017 2:34 pm 2:34 PM

The cheating /fraud practices while migration from CDMA to 4G migration is the effect people lost hope on RCOM

Rajat
August 13, 2017 4:33 pm 4:33 PM

RCom has worst network, unfair balance deducting practice, so it is their inevitable consequences to make loss.

Rinu
August 13, 2017 9:21 pm 9:21 PM

Yes, facing unfair balance deduction since launch and still continuing. Can only be used for incoming because they won’t let us keep balance for outgoing. Worst company in India.

Ankit Jain
August 13, 2017 5:38 pm 5:38 PM

Using it since gsm launched, never found any problem

DUANE
August 13, 2017 9:34 pm 9:34 PM

Yes so recall RELIANCE GSM across WB (excluding Kolkata) and Bihar : patchy coverage and heavy call drops.

M S
August 14, 2017 3:46 pm 3:46 PM

Their 2G spectrum in Bihar, West Bangal, NE and Orrisa expired in 2015 and they did not bid for it, The only got 1800 Mhz in Orrisa circle so they have poor coverage.

Sanjit Roy, Thakurnagar, wb
August 14, 2017 3:09 pm 3:09 PM

Yeah Rcom is the worst, but what about your airtel’s voice cracking issues? Listen you bo#####da just come in our locality and airtel users will make sure to send you back in a ambulance.

Kaushik
August 14, 2017 5:09 pm 5:09 PM

You seriously need to work on your language Mr. Sanjit.

Kaushik
August 14, 2017 5:22 am 5:22 AM

Well, airtel gave me a rude disappointment in Mumbai…..so yeah, region dependent.

Idea88
August 14, 2017 5:58 pm 5:58 PM

Now they upgrading towers by 4g …that’s good .

Nikhil
August 13, 2017 11:05 pm 11:05 PM

Hahahahahahahahahahahahahahahaha

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