In Focus: Talking Numbers | Value Research Reliance Communications is generating a lot interest from fund houses
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In Focus: Talking Numbers

Reliance Communications is generating a lot interest from fund houses

Reliance Communication (Idirect Code: RELCOM) is among the country's premier integrated telecom companies. The company has over 2.6 crore subscribers. In addition to telephony services, the company also provides host of value-added services, which include broadband, national and international long-distance services and data services. The company recently announced its second quarter (September 2006) results. The company posted a net profit of Rs 702.34 crore on a consolidated basis. This is no mean achievement considering the fact that the company had posted a net loss of Rs 19 crore during the corresponding period last year. Total revenues during the quarter under review rose 39.80 per cent to Rs 3,526 crore compared with Rs 2,522 crore in the corresponding period last year.

The total assets of the company stood at Rs 32,281 crore as on September 30, 2006.

The company claims to have added 3.5 million wireless customers during the second quarter of the current financial year.

In the ILD (international long-distance) segment, it has over 40 per cent market share in the US to India retail customer calls segment. Of late the company has been in talks with another telecom giant Bharti Airtel (Idirect Code: BHATE) to share around 2,000 cell sites across the country to cut down on infrastructure costs. If this happens, it may result in further cut in call tariffs, which in turn may get more customers to the company.

Mutual funds have been showing considerable interest in the stock. The company, which figured in the portfolio of 88 fund schemes in July, became part of 97 schemes in August. Further, as many 26 schemes added the stock in the succeeding month i.e., the company figured in the portfolio of 123 funds in September.

Source: Idirect

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