Reliance Communications hits 52 week low backed by huge losses

Reliance Communications reported its results for the quarter ended March 31, 2017, on Saturday.

Total sales for this quarter, Q4FY17, touched Rs. 4312 crore. This represents a 10.6 per cent sequential decline and 24.1 per cent YoY decline led by the impact of free offers, disruptive pricing and unprecedented competitive intensity in the industry.

Operating loss for the recently concluded quarter jumped to Rs. 521 crore v/s operating loss of Rs. 59 crore in Q3FY17.

Its reported net loss also jumped to Rs. 948 crore v/s net loss of Rs. 488 crore in Q3FY17. The impact of the complete shutdown of its CDMA operations led the company to turn into losses.

The proposed transaction for sale of tower infrastructure has received requisite approvals from CCI. RCOM will receive an upfront cash payment of Rs. 11,000 crore through this and the same will be utilised for debt reduction.

Today, the stock opened at Rs. 25.65 and touched its 52-week low of Rs. 21.95 on the BSE backed by poor Q4 numbers.

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 communications value chain, covering over 21,000 cities and towns and over 400,000 villages. It owns and operates the world's largest next generation IP enabled connectivity infrastructure, comprising over 280,000 kilometres of fibre optic cable systems in India, USA, Europe, Middle East and the Asia-Pacific region.