Tuesday, July 10, 2012

Reliance Communications Ltd. - 2009 Analysis

Reliance Communications Ltd.

Reliance Communications Ltd.

 
Assignment of Akanksha Mittal
PGDIE-38, NITIE
2008-10
 
 

  • RELIANCE COMMUNICATIONS (RCOM) ANNOUNCES ITS FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED DECEMBER 31, 2008
  • NET PROFIT UP BY 2.7% TO RS. 1,410 CRORE (US$ 290 MILLION)
  • REVENUES HIGHER BY 20.0% AT RS. 5,850 CRORE (US$ 1,204 MILLION)
  • EBITDA HIGHER BY 11.7% AT RS. 2,353 CRORE (US$ 484 MILLION)
  • EBITDA MARGIN AT 40.2%
  • NET WORTH EXPANDS TO RS. 29,065 CRORE (US$ 6 BILLION) AND NET DEBT-EQUITY RATIO PLACED AT A CONSERVATIVE 0.64 : 1
  • AGGRESSIVE NETWORK EXPANSION ACCELERATED WITH RS. 4,361 CRORE (US$ 900 MILLION) CAPITAL EXPENDITURE DURING THE QUARTER
  • RCOM ANNOUNCED THE WORLD?S LARGEST CUSTOMER EXPERIENCE PROGRAM AND LAUNCHED GSM SERVICES IN 11,000 TOWNS ALL OVER INDIA
       
 

  Quarterly Results

 

Dec '07

Mar '08

Jun '08

Sep '08

Dec '08

Sales Turnover

3,403.52

3,455.35

3,557.97

3,545.65

3,334.22

Other Income

7.3

1.58

1.09

1.53

64.51

Total Income

3,410.82

3,456.93

3,559.06

3,547.18

3,398.73

Total Expenses

2,343.78

2,176.29

2,367.54

2,361.95

2,466.74

Operating Profit

1,059.74

1,279.06

1,190.43

1,183.70

867.48

Total Extraordinary Income/Expenses

--

--

-63.97

-64.67

656.67

Gross Profit

1,067.04

1,280.64

1,191.52

1,185.23

931.99

Interest

135.73

328.04

248.74

119.26

569.91

PBDT

931.31

952.6

878.81

1,001.30

1,018.75

Depreciation

492.53

467.46

529.43

527.56

617.81

PBT

438.78

485.14

349.38

473.74

400.94

Tax

2.3

-26.29

2

5

3.9

Net Profit

436.48

511.43

347.38

468.74

397.04

Earnings Per Share

2.12

2.48

1.68

2.27

1.92

Equity

1,031.44

1,032.01

1,032.01

1,032.01

1,032.01

Face Value

5

5

5

5

5

 
 
 

  

Half Yearly Results

Jun '06

Dec '06

Sep '07

Mar '08

Sep '08

Sales Turnover

85.06

5,866.64

6,557.32

6,858.87

7,103.62

Other Income

0.64

16.48

1.58

8.88

2.62

Total Income

85.7

5,883.12

6,558.90

6,867.75

7,106.24

Total Expenses

27.31

3,530.42

4,013.66

4,520.07

4,729.49

Operating Profit

57.75

2,336.22

2,543.66

2,338.80

2,374.13

Total Extraordinary Income/Expenses

--

-30

--

--

-128.64

Gross Profit

58.39

2,352.70

2,545.24

2,347.68

2,376.75

Interest

24.69

137.6

-18.6

463.77

368

PBDT

33.7

2185.1

2563.84

1883.91

1880.11

Depreciation

4.07

917.8

883.67

959.99

1,056.99

PBT

29.63

1267.3

1680.17

923.92

823.12

Tax

6.01

-0.28

41.63

-23.99

7

Net Profit

23.62

1,267.58

1,638.54

947.91

816.12

Earnings Per Share(Rs)

0.19

6.2

8.01

4.59

3.95

Equity

611.57

1,022.31

1,022.31

1,032.01

1,032.01

Face Value(Rs)

5

5

5

5

5

 
 
 

  Annual Results

Mar ' 08

Mar ' 07

Dec ' 06

Dec ' 05

Other income

10.46

36.65

35.74

6.47

Employee expenses

858.65

684.4

492.04

1.11

Admin and selling expenses

-

2,119.44

1,544.81

0.56

Other expenses

7,675.08

4,444.82

3,271.18

-

Depreciation

1,843.66

1,836.12

1,364.39

2.74

Taxation

17.64

12

18.35

3.2

Net profit / loss

2,586.45

2,408.85

1,722.10

5.65

Extra ordinary item

-

-23.9

-45

-

Equity capital

1,032.01

1,022.31

1,022.31

0.05

Agg.of non-prom. shares (Lacs)

6992.16

6798.04

6797.94

-

Agg.of non promotoHolding (%)

33.88

33.25

33.25

-

OPM (%)

36.39

38.18

38.17

-

GPM (%)

33.13

36.4

36.54

-

NPM (%)

19.26

20.48

19.98


 


 

Dividend

Year Month Dividend (%)
2008 Apr 15
2007 Apr 10
 
 
 

 

Recent Performance

 

Recently in news

  • Reliance Communications announces world's largest customer experience programme and launches GSM service in over 11,000 towns all over India.

                    (Source: http://www.rcom.co.in/webapp/Communications/rcom/Media/press_release2.jsp)

              

  •       Reliance Communications joins hands with Intel, Acer, Asus, HCL and Lenovo to offer free Laptop with Reliance NetConnect- Internet Data Cards.

                     (Source: http://www.rcom.co.in/webapp/Communications/rcom/Media/press_release2.jsp)

        

  •       KRChoksey Research has downgraded its rating on Reliance Communications to sell with a target price of Rs 150 in its January 27, 2009 research report.

                     (Source: http://www.moneycontrol.com/india/news/recommendations/sell-reliance-comm-               targetrs-150-krchoksey/382332)

         

  •       Reliance Communications (RCOM) recorded a disappointing 18.8% yoy growth in Top-line in 3QFY2009. Owing to lower Margins, higher Depreciation and Taxes paid, RCOM’s Bottom-line grew by just 2.7% yoy. In fact, Profit before Tax fell nearly 5% yoy. On a qoq basis, Bottom-line fell 7.9%: Angel Broking Report.

                  (Source: http://www.moneycontrol.com/india/news/recommendations/buy-reliance-comm-targetrs-227-angel/382028)    

  •       Reliance Communications Completes Acquisition of US based Yipes Holdings Inc. through FLAG Telecom.

                (Source: http://www.rcom.co.in/webapp/Communications/rcom/Media/press_release_detail.jsp?id=282)

  •       Reliance Communications and South Africa's MTN on Friday mutually ended tie-up talks after Mukesh Ambani-owned Reliance Industries (RIL) on Thursday started arbitration proceedings against younger brother Anil's RCOM to thwart the latter’s merger with Africa’s largest telco.

                    (Source: http://timesofindia.indiatimes.com/Reliance_Communications    MTN_end_talks/rssarticleshow/3251644.cms)

 

 

Background Information

Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among India’s top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Energy Ltd).
Reliance Communications Limited is India’s largest integrated communications service provider in the private sector with over 65 million individual, enterprise, and carrier customers. They operate pan-India across the full spectrum of wireless, wireline, and long distance, voice, data, video and internet communication services. They also have an extensive international presence through the provision of long distance voice, data and internet services and submarine cable network infrastructure globally.

       (Source: http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_reliancegroup.jsp)

 

Key People:

Founder of the Company: Sh. Dhirubhai Ambani
Chairman of the Company: Mr.  Anil Ambani                     
Company Secretary: Mr. Hasit Shukla   (Source: investing.businessweek.com)
Board of directors:
  • Shri Anil D. Ambani – Chairman
  • Prof. J Ramachandran
  • Shri S.P. Talwar
  • Shri Deepak Shourie
  • Shri A.K. Purwar

                        (Source: http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_bod.jsp)

 

Listings : National Stock Exchange , Bombay Stock Exchange 

 

Strategic Business Units:

The business of Reliance Communications is organized into three strategic customer facing
business units: Wireless, Global, and Broadband. In addition, subsidiaries of
Reliance Communications are engaged, inter alia, in the ownership, operation and
development of telecom infrastructure, such as wireless communications sites and
towers.

                     (Source: http://www.rcom.co.in/webapp/Communications/rcom/IR/late_fin_result_audited.jsp)

 

 

Analysis

Adjusted EPS of Reliance Communications Ltd. over the years.(NO bonus issues)
 
                                                                                             (in Rs. except EPS, Outstanding shares)
 
 
 
 
 

 

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