Reliance Communication up 6% on strong Q2 earnings

Moneycontrol Bureau

Shares of Reliance Communication jumped around 6 percent in intraday trade on Wednesday after its September quarter earnings beat street estimates.

The telecom operator's second quarter consolidated net profit jumped over six-fold quarter-on-quarter to Rs 675 crore, driven by provision write back. The company, during the quarter, reassessed the requirement of maintaining balance of Rs 441 crore of provision of business restructuring created pursuant to the schemes of amalgamation approved by High Court in financial year 2006-07.

Consolidated revenues declined nearly a percent on sequential basis to Rs 5,361 crore in the quarter gone by. Voice revenue stood at Rs 3,384 crore and non-voice revenue at Rs 1,018 crore during the quarter.

According to a CNBC-TV18 poll, analysts had estimated net profit at Rs 108 crore on revenues of Rs 5,475 crore for the quarter.

At 12:44 hrs, the stock was quoting at Rs 138.40, up Rs 9.25, or 7.16 percent on the BSE.