Reliance Communications Q1 net profit jumps 34% at Rs 177 crore

MUMBAI: Reliance Communications has posted a 34 per cent increase in its profits for the quarter ended June, falling short of analysts’ expectations because a cut in interconnect charges hurt the country’s fourth largest mobile operator.

The Anil Ambani-owned company on Friday reported net profit of Rs 177 crore for the first quarter, while a forecast compilation by ET had predicted profit closer to Rs 200 crore.

The company reported total income of Rs 5,493 crore for the quarter, just over 2 per cent higher than the year ago figure of Rs 5,354 crore. RCom said it incurred Rs 90-crore hit from reduction in call termination charge, or what a telecom operator pays another when one of its users call a subscriber of the latter.

The regulatory cut made two quarters ago dragged companies’ revenue for a full quarter for the first time during April-June. Idea Cellular, the third largest operator, had reported a 4 per cent impact from the cut.