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Home / Companies / Reliance Communications net profit falls 22% in March quarter

Mumbai: Reliance Communications Ltd said fiscal fourth-quarter profit fell 22.4% as India’s fourth-biggest wireless telecom carrier paid a one-time spectrum liberalization charge to the government, allowing it to trade some of its spectrum holdings.

Net profit dropped to 177 crore for the quarter ended 31 March from 228 crore in the year earlier, the company said.

Net income from operations dropped 1.83% to 5,579 crore for the March quarter from 5,683 crore for the same quarter last year.

According to the consensus of 10 analyst estimates compiled by Bloomberg, Reliance Communications was expected to post a profit of 87.57 crore on net sales of 5,431.50 crore.

The company benefited from a tax write-back of 227 crore in the fourth quarter. In the year ago quarter it paid 306 crore in taxes. Total expenses rose 11.8% to 5,219 crore. Shares of R-Com were unchanged at 49 on BSE.

R-Com paid 5,383.84 crore as spectrum liberalization fee to the telecom department, allowing it to trade radiowaves in the 800/850MHz band held by it in 16 telecom circles. The average revenue per user (Arpu) in the January-March quarter rose to 157 a month, up 10.7% from year-ago period. The company’s data customer base grew 15.4% from a year ago to 38.9 million, including 24.2 million 3G customers in March quarter.

The total data traffic rose 20% to 104.7 billion MB, because of an increase in the number of data subscribers and higher usage per customer.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

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