4 things that will be playing on Anil Ambani's mind tomorrow when he talks about RCom

Reliance Communication is facing turbulent times. It is in trouble on many counts and there seems to be no credible way out of it. ET Now says RCom Chairman Anil Ambani will address the media tomorrow on his firm's state. If he does that, nearly a week after his company posted its annual results, several things will be worrying him. Here are four of those:

The first-ever RCom loss
RCom posted its first yearly loss since its inception of Rs 1,285 crore for fiscal gone by as against a net profit of Rs 660 crore when compared on a like to like basis. The company posted a consolidated net loss of Rs 966 crore for the fiscal ended fourth quarter compared to a net profit of Rs 90 crore in the same period last year. Anil Ambani might want to assure the investors through his public appearance that the prospects for RCom are going to improve.

Loan defaults
RCom has defaulted on its loan servicing obligations with more than 10 local banks, some of whom have categorised the exposure as "special mention account" in their asset books. A few banks might have to treat the account as an NPA after a fortnight. RCom is reeling under a debt burden of Rs 44,000 crore. Rating agencies CARE and ICRA recently downgraded ratings of the company’s bonds due to its debt obligations and the competition it faces in the Indian telecom market.

Bada Bhai
Explaining its first-ever loss, RCom has said it is the crisis in the industry, hyper competition, free offers and disruptive pricing that impacted the players including itself. Behind all this is Anil's elder brother Mukesh Ambani whose new company, Reliance Jio, decided to upset the telecom sector. Anil Ambani might want to convey how he is going to tackle the challenge posed to him by his own brother. Or how his brother's company could help his.

Financial package
Bad debts have spread to the telecom sector. Rcom has called for the government and regulators to step in with corrective measures and improve the health of the telecom industry that is now burdened under a debt of 7.5 lakh crore. Anil Ambani might appeal to the government to step into the mess.