RCom sells flats, stock remains flat

India's fourth largest wireless carrier Reliance Communication (RCom) informed exchange that it has sold 150 residential flats in Navi Mumbai.  The flats are situated at Sea Woods complex in Navi Mumbai. The sale consideration for the disposal has been finalised at over Rs 330 crore. RCom is looking to monetise its non-core assets through this deal. 

The entire proceeds from the monetisation of real estate will be utilised by RCom for repayment of debt, as part of its overall deleveraging plans. The company has already received more than 50% of the sale proceeds and the balance amount will be realised during the current financial year.

The company is also expecting to finalise and announce monetisation of its valuable real estate measuring nearly four acres, situated at a prime location in New Delhi. Last month also there was news that RCom can commence its debt reduction plan by selling its entire stake in Reliance Infratel which is a tower unit of RCom. The deal can fetch RCom around Rs 22,000 crores.

On the financial front, the total debt RCom looking for reducing stands at Rs 31493 crores for FY15 which is 35 per cent of the total assets of the company. The debt reduction will help into improve the debt-to-EBITDA ratio. For the year ended March 2015 the total Debt-to-EBITDA of company is 7.20.

The total operating revenue of company for FY15 stands at Rs 21770 crores compared to Rs 20940 crores in FY14 an increase of 2.50 per cent. The EBITDA is at Rs 7190 crores an increase of 8.23 per cent and EBITDA margin stands at 33 per cent for FY15 compared to 31.28 percent same period last year. Net profit of the company is stand at Rs.620 crores compared to Rs 1137 crores in FY14 a decrease of 45.47 percent. The decrease in net profit is on the back of huge depreciation and finance cost.

The stock of the RCom is trading at Rs 83.60. A decrease of 0.12 per cent from the previous close.

RCom is India's foremost and integrated telecommunications service provider. The Company has a customer base of over 118 million including over 2.6 million individual overseas retail customers. It owns and operates the world's largest next generation IP enabled connectivity infrastructure, comprising over 280,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia-Pacific region.