IndianMascot
Core Member
Reliance Communications Ltd’s September quarter results were marginally weaker than expected. Headline numbers seemed alright, with revenues declining by 2.2% and earnings before interest, tax, depreciation and amortization (Ebitda) being only 0.7% lower compared with the June quarter. But the improvement in profitability was primarily in the non-core business.
The drop in revenues, therefore, was on expected lines. The improvement in margins came as a surprise, but it’s important to note here that wireless margins were flat and margins in the global enterprise business, which includes long distance and enterprise services, fell. Overall margins improved only because of a sharp increase in margins in the others category, which includes DTH services, retailing (Reliance World), property leasing and investments.
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The drop in revenues, therefore, was on expected lines. The improvement in margins came as a surprise, but it’s important to note here that wireless margins were flat and margins in the global enterprise business, which includes long distance and enterprise services, fell. Overall margins improved only because of a sharp increase in margins in the others category, which includes DTH services, retailing (Reliance World), property leasing and investments.
Wish to read further, Click ----> Here