The net profit of India's fourth-biggest mobile service provider, Reliance Communications (RCom) has fallen by 77%, to Rs 153 crore for the quarter ending September. The company’s revenue fell 7.4% from last year to Rs 5,403 crore.
The company has added fewer new customers.
RCom, controlled by Anil Ambani, said consolidated net profit for the quarter ended Sept. 30 was Rs 153 crore compared to Rs 675 crore a year ago. Sales came in at Rs 5,090 crore, compared with Rs 5,266 crore a year earlier, a decline of 3.3%.
Interestingly, the company's revenue fell 2.2%, which was "in line with industry trends due to seasonal factors,” the company said. “Its operating margin at 33.8% expanded from 33.7% in the previous quarter on the back of non-voice revenue, driven largely by data.The focus on dongles and postpaid customers is beginning to pay off," said Gurdeep Singh, chief executive of its wireless business.
The company's net debt has reduced by Rs 3,900 crore. It was earlier expected to fall by about Rs 4,500 crore.