Reliance Communications Chairman Anil Ambani speaks to shareholders in 2009. India's second-biggest mobile phone firm Reliance Communications on Friday posted a 61 percent slide in quarterly profit -- its tenth straight fall -- as the debt-laden firm faces stiff competition. © AFP/File Sajjad Hussain
MUMBAI – India’s second-biggest mobile phone firm Reliance Communications on Friday posted a 61 percent slide in quarterly profit — its tenth straight fall — as the debt-laden firm faces stiff competition.
Reliance Communications (RCom), controlled by billionaire Anil Ambani, said consolidated net profit fell to 1.86 billion rupees ($37 million) for the three months to December from 4.8 billion rupees a year earlier.
Revenues were largely flat at 50.2 billion rupees, according to a company statement.
Analysts had expected RCom to report a profit of about 2.5 billion rupees, according to a Dow Jones Newswires poll.
The flagship of the Reliance group is in a cut-throat price war with 14 other players in the fast-growing mobile sector where tariffs are often less than one US cent a minute.
The company, which now has a 150.1 million customers, has so far been unsuccessful in its fund-raising plans to reduce its hefty debt burden of $6.92 billion.
The results come as India’s telecom market was in turmoil after the Supreme Court last week cancelled 122 second-generation (2G) mobile licences issued in 2008 on grounds the distribution process was corrupt and under-priced.
The court ruling could reduce the number of players as some mobile companies affected by the ruling may not re-bid for their licences.
RCom is not affected by the court ruling but some of its group executives face police charges in the telecoms fraud case.
The company, which last month secured $1.18 billion in loans from Chinese state banks to repay maturing foreign bonds, is trying to sell assets and reduce its debt.
Ambani is also looking for an investor to pick up a 26 percent stake in RCom as part of his efforts to cut the company’s debt load.
