Anil Ambani group firm Reliance Communications on Monday said its consolidated net profit rose by 11.91 per cent to Rs 6,044.93 crore (Rs 60.44 billion) for the year ended March 31, 2009, over the same period last year.
With many new players waiting to launch their operations and Mobile Number Portability to be implemented shortly, the competition will intensify further.
The company will invest Rs 16,000 crore (Rs 160 billion) for network expansion in FY08, said ADAG chairman Anil Ambani on Tuesday in Mumbai.
The telecom services provider had a net profit of Rs 1,395.14 crore (Rs 13.95 billion) in the third quarter of FY'08, RCom said in a filing to the Bombay Stock Exchange. RCom's total income rose by 18.75 per cent to Rs 5,671.82 crore (Rs 56.71 billion) for the quarter under review from Rs 4,776.26 crore (rs 47.76 billion) in the corresponding period last fiscal.
Resignations of Anil Ambani and four other directors were conveyed to the CoC of RCom in its meeting on November 20 and were unanimously rejected.
UV Asset Reconstruction Company Ltd has made the highest bid of Rs 16,000 crore to buy Anil Ambani group's Reliance Communications and Reliance Telecom, which are in the National Company Law Tribunal (NCLT). Last year it was the highest bidder for taking over Aircel's assets for an upfront payment of Rs 150 crore. Surajeet Das Gupta and Dev Chatterjee dig deeper to find out more about this little known company.
In the capital goods space, Punj Lloyd and KEC International could be in limelight for the expected turnround
The staggering Rs 35,000-crore (Rs 350-billion) debt of RCom makes it the most indebted telco in the country, and constitutes nearly 10 per cent of the industry's debt of Rs 3.5 trillion.
If raters get away by moving from AAA to D overnight after companies default, as happened with DHFL, YES Bank, RCom, and IL&FS, it shows a complete breakdown in the rating system. It calls for exemplary punishment, not kid glove treatment, says Debashis Basu.
Bulk of these customers use 2G phones and are still focused on voice services and might prove useful for both Bharti Airtel and the Idea-Vodafone combine.
More asset sales may be only way out, though most of the group companies' ratings have been downgraded and their combined market value is now a fraction of their combined debt.
Need for much more investment; sector would like govt help
Reliance has around 90,000 telecom towers now, half of which are operational and owned by the RIL and rest on lease.
In effect, companies which put their money in telecom in India would have done much better to keep the cash in bank and earn interest.
India's telecom sector has been through dizzying peaks, troughs, policy U-turns, court battles, brutal competition, and daily controversies. India could go back to a private sector duopoly with just Reliance Jio and Bharti Airtel surviving the mayhem. The third player, Vodafone Idea, could be history.
Bank of America Merrill Lynch and JP Morgan are bankers for the bonds
The S&P BSE Sensex ended 80 points up at 23,789 while the Nifty50 closed at 7,235, up 24 points.
Several high profile companies are burdened with losses, mounting debt and have a huge load of operational costs.
Investors brace up ahead of the key macrodata- IIP and CPI numbers due to be unveiled tomorrow.
The broader markets were also in top gear, with the BSE midcap index surging by 2.1% at 11,431 and the smallcap index gaining 1.4% at 11,735.
In an hour-long chat on rediff.com on Thursday, A K Prabhakar, senior VP and Head - Equity Research (Retail), Anand Rathi Financial Services Ltd, answered some important questions on the market.
Markets in green tracking firm global cues.
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