Riding high on a sharp growth in subscriber base, Anil Ambani group's telecom arm RCOM on Thursday reported a 23.9 per cent jump in its first quarter net profit at Rs 1,512 crore (Rs 15.12 billion) and announced plans to invest over Rs 25,000 crore (Rs 250 billion) in the current fiscal.The company expects "a significant acceleration in earnings from next year," RCOM chairman Anil Ambani said, adding that its plans to launch pan-India GSM operations were on track. The company's mobile business is predominantly CDMA technology based at present.
The company's pan-India launch of GSM based mobile services is slated for roll out by the end of this fiscal.
The first quarter revenue rose 23.7 per cent to Rs 5,322 crore (Rs 53.22 billion) from Rs 4,303.7 crore (Rs 43.03 billion) in the corresponding quarter last fiscal. Its shares were down marginally at close of trade at Rs 500.05.
The company said it remains "the most profitable telecom company in India" and witnessed a significant growth in its wireless as well as enterprise business segments.
The company, which recently became the fifth Asian telecom firm to attain over 50 million subscribers, said its customer base has now crossed 53 million.
Of its plan to invest Rs 40,000-50,000 crore (Rs 400-500 billion) in FY'08 and FY'09, RCOM said close to $6 billion (about Rs 25,000 crore) would be invested in the current fiscal.
RCOM's rival Bharti Airtel [Get Quote] posted a 34 per cent jump in Q1 net to Rs 2,025 crore (Rs 20.25 billion).
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