Reliance Communications Q1 PAT seen down 55% to Rs 150 cr

Revenues are seen going up by 1.6% to Rs 5,395 crore from Rs 5,310 crore during the same period. But wireless revenues are expected to increase just 0.7-0.8% in the quarter, which is quite lower as compared to a growth of 2.7% and 2.5% reported by Bharti Airtel and Idea Cellular in wireless revenues, respectively.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to grow by 2.33% QoQ to Rs 1,670 crore and EBITDA margin is seen rising by 22 basis points to 30.95% in the June quarter as against 30.73% in previous quarter.

Operational parameters

Average revenue per user (ARPU) is expected to be flat at Rs 99 while revenue per minute (RPM) is likely to fall by 1.8% to 43.2 paise QoQ. Overall the RPM of all telecom companies declined during the quarter; Idea Cellular's RPM fell by 2.3% to 41.2 paise and Bharti Airtel's by 2.6% to 42.7 paise.

Minutes of usage is expected to be at 228 as against 227 QoQ.

Investors should watch out for updates on company's debt (which is around Rs 37,000 crore); FLAG Telecom IPO (which shelved due to poor market conditions) and Reliance Infratel (reports that the company is going to consider dilution of stake in the subsidiary in second half of the year).