RCom's net loss widens to Rs 238 crore in December quarter

RCom saw its total income move up marginally to Rs 1,083 crore during the quarter under review as opposed to Rs 1,014 crore in the preceding quarter.

By BusinessToday.In  
Wednesday, January 23, 2019

Reliance Communications (RCom) saw its net loss widen in the third quarter of the current fiscal as the Anil Ambani-led company prepares to sell its consumer telecommunications and DTH business to Mukesh Ambani's Reliance Jio . The embattled telco posted a loss of Rs 238 crore on consolidated basis during the quarter ended on December 31, 2018, as opposed to a loss of Rs 130 crore in the corresponding quarter of FY18. The company posted a profit of Rs 1,141 crore during the September quarter of this fiscal.

Out of this, the loss after tax from discontinued operations measured Rs 132 crore during the quarter under review, as opposed to a loss of Rs 140 crore seen during December quarter of FY18. After the previous quarter, the company had posted Rs 165 crore as loss after tax from discontinued operations.

The total income on consolidated basis came to be Rs 1,083 crore during the December quarter for the third quarter, in comparison to Rs 1,014 crore during the quarter ended September 30, 2018, and Rs 1,176 crore during the December quarter of the past fiscal.

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The company posted a net loss of Rs 136 crore on standalone basis as opposed to a net profit of Rs 6,707 crore during the previous quarter of the same fiscal. On year-on-year basis, RCom had registered a loss of Rs 144 crore during the corresponding quarter in the year ago.

On a standalone basis, RCom saw its total income decline marginally during the quarter under review to Rs 341 crore, as opposed to Rs 359 crore during the previous quarter of this fiscal, and Rs 497 crore during the December quarter in the previous fiscal.

The loss after tax from discontinued operations weighed down the third quarter numbers for RCom with the loss of Rs 58 crore in the December quarter of this fiscal, as opposed to a loss of Rs 91 crore in the September quarter and Rs 192 crore in the December quarter of the last financial year.

Notably, RCom performed better abroad than it did in India, according to a regulatory filing by the company. During Q3 FY19, the company posted revenue collection to the tune of Rs 779 crore from global operations, as opposed to Rs 415 crore from India operations.

"The company is confident that it will fulfil its commitments in respect with the operational creditor and the minority shareholders as well as finalise and implement a suitable comprehensive Monetisation and Resolution Plan (MRP), also incorporating strategic transformation programme," RCom said in its statement to the bourses.

After finalising and implementing the MRP, RCom said that it will carry out a comprehensive impairment review of its fixed assets, investments and other assets.

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