India's RCom shares slump after fourth straight quarterly loss

Mindy Sparks
November 14, 2017

The Anil Ambani controlled Reliance Capital (RCap) said it has reported strong improvement in profitability across all businesses in the second quarter of 2017-18.

The company has reported a net loss of Rs 2,709 crore versus net profit of Rs 62 crore in Q2FY17.

Reliance Communications Ltd's (RLCM.NS) shares plummeted on Monday, after the company posted a fourth straight quarterly loss as it struggles with a heavy debt load and a price war started by an upstart rival that has eaten into margins.

RCom and Reliance Nippon Life Asset Management have hit their respective new lows on the BSE in intra-day trade.

The total income rose 7% to Rs 5,254 crore for the quarter ended September 30, the company said in a release. Its consolidated revenue for the quarter came in at Rs 2,615 crore, registering 53.3% decline as compared to corresponding quarter in previous year.

The finance cost of the company, which is reeling under a debt of around Rs45,000 crore, increased to Rs1,149 crore during July-September 2017, as compared to Rs825 crore a year ago.

Reliance Nippon Life Asset Management, Reliance Commercial Finance (or Reliance Money), Reliance Home Finance, Reliance General Insurance, Reliance Nippon Life Insurance are the group firms of the company and it is also engaged in broking and distribution business.

Shares in the company, widely known as RCom, fell as much as 12.1 percent and were down 10.3 pct at 0424 GMT.

This is published unedited from the PTI feed.

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