Reliance Comm Q2 PAT seen flat Rs 108cr, volume may fall 2%

Anil Dhirubhai Ambani Group-owned company Reliance Communications will declare its second quarter (July-September) results on Tuesday. Second quarter is a seasonally weak quarter for telecom company, hence analysts expect around 2 percent degrowth in volumes. Its peers Bharti Airtel and Idea Cellular reported a 3 percent decline and 5.8 percent fall in volumes for the quarter, respectively.

Seasonality will also result in muted revenue growth for the company. According to a CNBC-TV18 poll, total revenues are expected to go up 1.2 percent sequentially to Rs 5,475 crore and profit after tax is likely to be flat at Rs 108 crore in the quarter gone by, compared to Rs 108.4 crore in June quarter.

Also Read - Bharti Airtel Q2 net falls 26% to Rs 512cr on forex loss

Earnings before interest, tax, depreciation and amortisation may increase 3.75 percent Q-o-Q to Rs 1,765 crore and operating profit margin is seen expanding 83 basis points on sequential basis to 32.23 percent in three-month period ended September 2013.

Key point indicators

Average revenue per user is expected to decline 3.1 percent Q-o-Q to Rs 125 and revenue per minute is likely to maintain at 46 paise for September quarter.

During the same period, minutes of usage may slip 4 percent sequentially to 272 and total minutes are seen falling 1.8 percent to 103.5 billion units.

Watch out for interest cost, which was Rs 687 crore in June quarter.