Reliance Communications Q1 net dips 33 per cent while profit soars for Idea by 97 per cent

NEW DELHI: The financial results of rival telecom majors Idea Cellular and Reliance Communications on Thursday presented a study in contrast as the net profit of the former, an Aditya Birla Group firm, nearly doubled while that of the Anil Ambani-owned venture plummeted by a third.

While both companies benefitted from stabilising tariffs, Reliance Communications continued to be dragged by the cost of servicing its debt which has been a drag on its numbers for several quarters.

Its efforts to raise funds by selling stakes in itself and some of its units haven't paid off so far, though on Thursday the company reiterated that it was in advanced talks to sell a stake in its wholesale telecommunications unit, Reliance Globalcom BV, to some private equity investors led by Dubai-based Samena Capital Investments.

Reliance Communications, the third largest mobile phone company by subscribers, reported a sharp 33% year-on-year drop to Rs 108 crore in first quarter profits. Its finance cost increased to Rs 687 crore as against Rs 554 crore a year back.