RELIANCE COMMUNICATIONS Announces Quarterly Results (1QFY20); Net Profit Down 83.9%
Tue, 13 Aug

RELIANCE COMMUNICATIONS has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

RELIANCE COMMUNICATIONS Quarterly Financials

No. of Mths
Qtr. Ending
3
Jun-18*
3
Mar-19*
3
Jun-19*
QoQ ChangeYoY Change
Net SalesRs m10,0609,6208,650-10.1%-14.0%
Other incomeRs m201,27010-99.2%-50.0%
TurnoverRs m10,08010,8908,660-20.5%-14.1%
ExpensesRs m8,7209,6308,060-16.3%-7.6%
Gross profitRs m1,350-3,850590-56.3%
DepreciationRs m1,9801,9702,1408.6%8.1%
InterestRs m50039047020.5%-6.0%
Profit before taxRs m-1,110-4,940-2,010
TaxRs m1014,64050-99.7%400.0%
Profit after taxRs m-1,120-19,580-2,060
Gross profit margin%13.4-40.06.8
Effective tax rate%-0.9-296.4-2.5
Net profit margin%-11.1-179.8-23.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter fell 14.0% on a year-on-year (YoY) basis. The expenses were down by 7.6% YoY during the same period.
  • The company's operating profit declined by 56.3% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 6.8% in 1QFY20 as against 13.4% in 1QFY19.
  • Depreciation charges increased by 8.1% and finance costs declined by 6.0% YoY, respectively.
  • Other income declined by 50.0% YoY during the quarter.
  • Net profit for the quarter declined by 83.9% YoY. Net profit margins during the quarter declined from -11.1% in 1QFY19 to -23.8% in 1QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 10.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 16.3% QoQ during the same period.
  • The company's operating profit increased by 115.3% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 6.8% in 1QFY20 as against 40.0% in 4QFY19.
  • Net profit for the quarter increased by 89.5% QoQ, while net profit margins increased from -179.8% in 4QFY19 to -23.8% in 1QFY20.

To see how RELIANCE COMMUNICATIONS has performed over the last eight quarters,please visit here.

RELIANCE COMMUNICATIONS Share Price Performance

Over the last one year,RELIANCE COMMUNICATIONS share price has moved down from Rs 20.5 to Rs 1.3, registering a Loss of Rs 19.2 or around 93.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,639.3 (down 1.8%). Over the last one year it has moved up from 7,514.1 to 7,639.3, a gain of 125 points (up 1.7%).

Overall, the S&P BSE SENSEX is down 1.3% over the year.

Current Valuations

At the current price of Rs 1.3, the price to book value (P/BV) ratio of RELIANCE COMMUNICATIONS stands at 0.1 times.