Reliance Communications-Reliance Comm likely to post Q1 PAT at Rs 184 cr

Anil Dhirubhai Ambani Group company Reliance Communications is likely to report a rise of 9.4% (QoQ) in profits for the first quarter of FY12. During the period, profit after tax of the company is expected to be at Rs 184 crore as against Rs 168.2 crore in the previous quarter.

However, sales are seen going down 30.3% to Rs 5,490 crore in the quarter ended June 2011 versus Rs 7,876 crore in the previous quarter.

EBITDA is likely to see a fall of nearly 59% (QoQ) to Rs 1,700 crore in the April-June period. EBITDA is expected to be at 31% as against 52.3%.

Company's fourth quarter revenues had boosted by change in accounting policy for its global division. One-time revenue recognition of Rs 2,545 crore (for bulk sale of bandwidth usage in the international business segment) led to revenues and EBIDTA being higher.

Wireless segment

Revenues growth subdued given it is still restructuring its various tariff plans.

Margins to be flat. With increasing focus on RPM that will be maintained, here will be decline in MOU and ARPU

Revenues are seen going up 2.2% to Rs 4290 crore from Rs 4197.8 crore

EBITDA is seen at 27.15% versus 27.4%
• Subscriber addition (in”000) up 5% at 142504 versus 135,719
• ARPU at Rs 103 versus Rs 107
• MOU at 234.5 versus 241
• RPM (revenue per minute) at Rs 0.44 versus Rs 0.44

Watch for performance in non-wireless segments’ performance – as that has been disappointing