Post Q1 Rcom Rallied Above 2%

RCom disclosed a 5.8 per cent rise in consolidated net profit to Rs 54 crore for the quarter ended June 30. Telecom operator Reliance Communications decided to merge its wireless telecom business with Aircel to create the country's fourth-biggest mobile phone operator. It posted a net profit of Rs 51 crore in the corresponding period a year ago. The consolidated total income from operations got reduced by 4.7 per cent to Rs 5,259 crore in this quarter from Rs 5,521 crore in the corresponding period last year. Results for quarter are driven by the switching of CDMA customers to 4G LTE. RCom 4G LTE services now in action across India. The revenue of RCom from Indian operation is noted at Rs 4,693 crore, down 2.5 per cent from Rs 4,812 crore in the corresponding period a year ago. The global operations segment of the company recorded revenue of Rs 1,185 crore, up by 5.3 per cent, from Rs 1,125 crore during 2015-16. The company said that its revenue per minute from phone calls rose by 1.6 per cent Y-o-Y whereas total minutes of usage slipped by 4.8 per cent to 10,000 during this period. RCom said that its revenue per user increased by 5.7 per cent to Rs 148. It further added that the total data customer base has risen 9.9 per cent Y-o-Y to 38.9 million which includes 25.4 million 3G and 4G customers in first quarter. The total data traffic at 102 billion MB is up 10.4 per cent Y-o-Y, it further added
RCom share price closed at a rise of 2.51% at Rs. 51.15. The stock was seen to quote at Rs. 51, touching the day’s high and low at Rs. 51.60 and 50.00.

Rcom is among the top 500 shares identified by Dynamic Levels for this quarter. On 15th RCOM share price opened at Rs. 52.20(up by 2.74%). For further details refer to RCOM share price forecast.