NEW DELHI Aug 1 Indian mobile carrier Reliance
Communications Ltd reported a 33 percent drop in
quarterly profit, weighed down by higher finance costs even as
pricing power improved due to reduced competition.
Reliance Communications, the most-leveraged among listed
Indian phone carriers, said on Thursday consolidated net profit
fell to 1.08 billion rupees ($18 million) from 1.62 billion
rupees a year earlier.
That was the fourth consecutive quarter of declining profits
at the company, controlled by billionaire Anil Ambani, with
profits falling in 14 of the last 16 quarters.
Analysts expected the company to report a profit of 2.87
billion rupees, according to the average estimates of five
analysts on Thomson Reuters I/B/E/S.
Reliance Communications, like its main rivals, has raised
call prices in recent months after competition eased due to the
exit of some smaller players, but its debt load has hurt its
The company has sealed two deals to lease its mobile phone
towers and fibre optic network to a 4G venture of Reliance
Industries Ltd, leading to a 76 percent surge in
Reliance Communications' stock price so far this year.
($1 = 60.8050 Indian rupees)
(Reporting by Devidutta Tripathy; Editing by Matt Driskill)