RELIANCE COMMUNICATIONS (RCOM) ANNOUNCES ITS FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED MARCH 31, 2008
NET PROFIT UP BY 70.8% TO RS. 5,401 CRORE (US$ 1,350 MILLION)
REVENUES HIGHER BY 31.8% AT RS. 19,068 CRORE (US$ 4,765 MILLION)
EBITDA HIGHER BY 43.3% AT RS. 8,199 CRORE (US$ 2,049 MILLION)
RCOM IS THE MOST PROFITABLE INTEGRATED TELECOM COMPANY IN INDIA
EBITDA MARGIN EXPANDS FROM 39.5% TO 43.0%, HIGHEST IN INDIA
BOARD APPROVES 15% DIVIDEND – RCOM REMAINS THE ONLY LISTED TELECOM
COMPANY IN INDIA TO REWARD 2 MILLION SHAREHOLDERS
DIVIDEND PAYOUT OF RS. 181 CRORE
NET WORTH EXPANDS TO RS. 25,643 CRORE (US$ 6.4 BILLION)
AND NET DEBT-EQUITY RATIO PLACED AT A CONSERVATIVE 0.39 : 1
AGGRESSIVE NETWORK EXPANSION ACCELERATED WITH RS. 21,204 CRORE
(US$ 5.3 BILLION) CAPITAL EXPENDITURE DURING THE YEAR
FY 2008 CAPEX LARGEST IN INDIAN TELECOM SECTOR
ONLY COMPANY TO HAVE NATIONWIDE GSM & CDMA SERVICES IN INDIA
Mumbai, April 30, 2008: Reliance Communications Limited (RCOM) today announced its audited consolidated financial results for the year ended March 31, 2008.
Highlights of the financial performance for the year are:
- Net Profit of Rs. 5,401 crore (US$ 1,350 million), higher by 70.8% compared to Net Profit of Rs. 3,164 crore (US$ 717 million) in the last year.
- EBITDA at Rs. 8,199 crore (US$ 2,049 million), growth of 43.3%. EBITDA margin expands from 39.5% to 43.0% with strong contributions across all businesses – Wireless, Global and Enterprise
- Revenue growth of 31.8% at Rs. 19,068 crore (US$ 4,765 million) from Rs. 14,468 crore (US$ 3,280 million).
- Return on Net Worth for the year is 33.7% reflecting improved resource utilization. Shareholders Equity (Net Worth) increases to Rs. 25,643 crore (US$ 6.4 billion) – among the top three companies in India.
- Conservative capital structure - Net Debt to Equity Ratio maintained at a conservative level of 0.39:1, despite capex spend of Rs. 21,204 crore (US$ 5.3 billion) during the year.
Commenting on the results, Mr Anil Dhirubhai Ambani, Chairman, Reliance Communications Limited, said:
“Reliance Communications had a record year and we are confident of improved performance in the future.”
Financial Results summary :
|
12 months |
12 months ended |
Increase / |
Particulars |
ended 31/3/08 |
31/3/07 |
(Decrease) |
Turnover |
|
|
|
Wireless |
15,214 |
10,728 |
41.8% |
Global |
5,475 |
5,177 |
5.8% |
Broadband |
1,787 |
1,144 |
56.2% |
Diversified |
431 |
372 |
|
Total (post eliminations) |
19,068 |
14,468 |
31.8% |
|
|
|
|
EBITDA |
|
|
|
Wireless |
6,085 |
3,984 |
52.7% |
Global |
1,403 |
1,271 |
10.4% |
Broadband |
865 |
519 |
66.6% |
Diversified |
(122) |
26 |
|
Total (post eliminations) |
8,199 |
5,721 |
43.3% |
|
|
|
|
EBITDA margin |
43.0% |
39.5% |
3.5ppt |
|
|
|
|
Depreciation |
2,805 |
2,465 |
13.8% |
Financial Charges (net) |
(400) |
- |
|
Exceptional items |
1,283 |
30 |
|
PBT |
7,076 |
3,225 |
119.4% |
Tax |
284 |
62 |
|
PAT (before minority |
|
|
|
interest) |
6,793 |
3,163 |
|
Share of minority interest |
1,392 |
- |
|
PAT (after minority |
|
|
|
interest) |
5,401 |
3,163 |
70.8% |
About Reliance Communications
Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani (1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The Reliance Anil Dhirubhai Ambani Group currently has a market capitalization of over Rs. 3,00,000 crore (US$ 75 billion), net worth in excess of Rs. 55,000 crore (US$ 14 billion), cash flows of Rs. 11,000 crore (US$ 2.8 billion), net profit of Rs. 7,700 crore (US$ 1.9 billion) and zero net debt.
Rated among "Asia's Top 5 Most Valuable Telecom Companies", Reliance Communications is India's foremost and truly integrated telecommunications service provider. The company, with a customer base of over 48 million including over 1.5 million individual overseas retail customers, ranks among the Top 10 Asian Telecom companies by number of customers. Reliance Communications’ corporate clientele includes 1850 Indian and multinational corporations, and over 250 global carriers.
Reliance Communications has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire infocomm value chain, covering over 15,000 towns and 400,000 villages. Reliance Communications owns and operates the world's largest next generation IP enabled connectivity infrastructure, comprising over 165,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.
Financial Results:
|
3 months ended |
12 months ended |
|
|
|
|
% |
|
|
% |
Particulars |
31/3/08 |
31/3/07 |
change |
31/3/08 |
31/3/07 |
change |
Turnover |
|
|
|
|
|
|
Wireless |
4,161 |
2,969 |
40.1% |
15,214 |
10,728 |
41.8% |
Global |
1,526 |
1,294 |
17.9% |
5,475 |
5,177 |
5.8% |
Broadband |
510 |
330 |
54.5% |
1,787 |
1,144 |
56.2% |
Diversified |
68 |
95 |
|
431 |
372 |
|
Total (post eliminations) |
5,311 |
3,937 |
34.9% |
19,068 |
14,468 |
31.8% |
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
Wireless |
1,676 |
1,151 |
45.6% |
6,085 |
3,984 |
52.7% |
Global |
409 |
312 |
31.1% |
1,403 |
1,271 |
10.4% |
Broadband |
249 |
161 |
54.7% |
865 |
519 |
66.6% |
Diversified |
(12) |
16 |
|
(122) |
26 |
|
Total (post eliminations) |
2,316 |
1,635 |
41.7% |
8,199 |
5,721 |
43.3% |
|
|
|
|
|
|
|
EBITDA margin |
43.6% |
41.5% |
2.1 ppt |
43.0% |
39.5% |
3.5 ppt |
|
|
|
|
|
|
|
Depreciation |
786 |
638 |
23.2% |
2,805 |
2,465 |
13.8% |
Financial Charges (net) |
(8) |
(39) |
|
(400) |
- |
|
Exceptional items |
(61) |
(3) |
|
1,283 |
30 |
|
PBT |
1,600 |
1,039 |
54.0% |
7,076 |
3,225 |
119.4% |
Tax |
(27) |
15 |
|
284 |
62 |
|
PAT (before minority interest) |
1,627 |
1,024 |
58.9% |
6,793 |
3,163 |
114.8% |
Share of minority interest |
124 |
- |
|
1,392 |
- |
|
PAT (after minority interest) |
1,503 |
1,024 |
46.8% |
5,401 |
3,163 |
70.8% |
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