Debt-ridden Reliance Communications posted consolidated profit of Rs 1,141 crore in the second quarter ended September 30, 2018 on account of one-time gain from business structuring and non-provisioning of interest to be paid to lenders.
The company had recorded loss of Rs 2,712 crore in the same period a year ago. RCom reported a one-time exceptional gain of Rs 6,876 crore during the quarter due to de-recognition of assets and liabilities pertaining to its real estate subsidiary Reliance Reality Ltd (RRL) and investment made in RRL was accounted at fair value.
RCom did not factor in interest of Rs 1,075 crore during the reported quarter due to its ongoing debt resolution proceedings. "Had the company provided interest and foreign exchange losses, the profit would have been lower by Rs 2,089 crore and Rs 3,876 crore for the quarter and half-year ended September 30, 2018," the report said.
RCom in its statement said net loss for continuing business on a comparable basis for quarter ended September 2018 has widened to Rs 125 crore against a net loss of Rs 110 crore in the previous sequential quarter.
The debt-ridden company reported losses related to discontinued businesses at Rs 165 crore for the just-ended quarter (September 2018) compared to Rs 233 crore for the trailing quarter. The company exuded confidence of closing the ongoing debt resolution in the current fiscal year "as planned".
The consolidated income of RCom declined by about 12 percent to Rs 1,014 crore during the reported quarter from Rs 1,152 crore a year ago.
RCom's portfolio comprises B2B business, including Indian and global enterprise, internet data centres, global submarine cable network and international long distance voice with 40,000 customers.
First Published: IST