Reliance Communications' net profit for the fourth quarter (January to March) slipped 71% to a four-year low of Rs 1,346 crore. And, experts are of the view that unless the company does something to reduce debt, profits are likely to remain under pressure. Its debt currently stands at Rs 32,000 crore.
The company has drawn down Rs 6,000 crore from China Development Bank (CDB) to refinance this debt, said its chief executive officer of the wireless division Syed Safawi. "PAT was hit due to finance charges and higher tax payouts. We paid a total of Rs 171 crore as tax this quarter. Going forward, we expect this to remain stable in the coming quarters," he said. The telecom major reported a 7% surge in its consolidated revenues to Rs 22,089 crore versus Rs 20,685 crore. "We have seen the best revenue growth on a quarterly basis. Growth in the wireless business was led by consumption growth. Moreover, the revenue per minute (RPM) was constant at Rs 0.44," Safawi said. While speaking to CNBC-TV18, he acknowledged it had received bids for the sale of Reliance Infratel. While the valuation of the tower arm has not been revealed, he said the sale will help the company reduce its debt burden. "We have taken the process to the next stage of detailed due diligence and we aim to complete a potential transaction at the earliest." Below is the verbatim transcript. Also watch the accompanying video. Q: Can take us through the debt reduction plans because thatDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
