The Mint Report for 04 September 2012

The Mint Report for 04 September 2012

Anil Ambani has stressed the need for his company Reliance Communications to reduce its debt. He was speaking at the R-Com’s annual general meeting in Mumbai on Tuesday. Ambani said he planned to cut debt levels to three times the operating profit by 2015. They are currently about five times the operating profit.

Anil Ambani laid out a four-part strategy to cut debt. The first part is increase productivity to increase cash flow. The second is monetising assets. Part three of the strategy is selling off stake in R-Com’s towers business, Reliance Infratel.

Tech Mahindra has made a major acquisition in the telecom solutions segment. On Monday it bought the telecom BPO of Hutchison Global Services. It was an all-cash deal worth $87.1 million. Tech Mahindra said it raised the money from its own earnings as well as loans.

The acquisition could help Tech Mahindra bag some steady business. As part of the agreement, Hutchison Global’s customers will buy $845 million dollars of services from the company over five years.

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Anil Ambani lays out strategy to cut R-Com’s debt; Tech Mahindra acquires a telecom BPO; markets rebound, ending Tuesday with gains.

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And finally, Indian markets ended Tuesday with gains after recovering from losses in early trade. The Sensex was up 56 points to 17,441. And the Nifty climbed 20 to 5,274.

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