Reliance Communications' net profit more than halved to Rs 480.27 crore for the third quarter ended December 31, 2010, from Rs 1,180.01 crore for the same period a year ago.
The company said that revenues were impacted by the company deliberately moving away from low-margin business. The company will be focussing on data and VAS services, said a statement from the company.
Its net income declined by 8 per cent to Rs 4,864.98 crore from Rs 5,283.57 crore year ago period despite the customer base growing 34 per cent to 126 million from 94 million.
Revenue from the wireless segment amounted to Rs 4,064.4 crore (Rs 4,022.50 crore); but revenue from the other segments — global, and broadband — were down. The global segment reported revenues of Rs 1,923.32 crore (Rs 1,981.82 crore), the broadband segment at Rs 618.39 crore (Rs 704.53 crore) and income from investments at Rs 10.81 crore (Rs 26.49 crore).
On Monday, its scrip was down by 0.26 per cent to close at Rs 97.40 on the BSE.
To exit PCO, fixed wireless phone biz
PTI reports: RCom has decided to exit from PCO and fixed wireless phone business.
“Revenues are down this quarter as a result of rebalancing of our product portfolio. We are doing away with low-margin business even if it provides high volume as it puts pressure on our resources, including scarce resources like spectrum. We are deliberately moving away from the wholesale segment of PCO and FWP business,” said RCom over analyst call today.