RCOM Q3 consolidated net loss at Rs 531 crore

Reliance Communications has posted a consolidated net loss of Rs 531 crore compared with a profit of Rs 39 crore in the second quarter of the current fiscal (Q2FY17).

The company suffered net loss during the quarter, primarily on account of unprecedented competitive intensity in the industry.

There was also an increase in amortisation and interest expense aggregating Rs 278 crore on account of capitalisation of 850 mhz spectrum liberalisation fee, RCOM said.

The company also suffered a loss as this was the first full quarter after the company’s complete shutdown of its profitable CDMA operations, RCOM added.

Consolidated turnover for the company (post eliminations) fell 4.3% to Rs 4,922 crore compared with Rs 5,142 crore in the sequential quarter. EBIDTA for the company decreased 21.8% to Rs 1,206 crore compared with Rs 1,542 crore in Q2FY17, while EBIDTA margins fell 550 basis points (5.5%) to 24.5% against 30% in Q2FY17.