Reliance Communications shares surged on Wednesday after reporting a more than six-fold jump in net profit for the quarter ended September 30.
Shares of the telecom firm opened on a firm note and gained as much as 7.54 per cent to Rs 138.95 on the NSE. The stock climbed 7.58 per cent to Rs 138.95 on the BSE.
Over 86 lakh shares were traded on the NSE, while 22 lakh shares changed hands on the BSE.
Reliance Communications yesterday reported a net profit of Rs 675 crore for the three months ended September 30 from Rs 102 crore a year earlier.
Total income rose 6.55 per cent to Rs 5,361 crore compared with Rs 5,031 crore for the same period last year.
The company said the net profit includes Rs 441 crore from a write back provision.
"The company has, during the quarter, reassessed the requirement of maintaining balance of Rs 441 crore of provision for business restructuring created pursuant to the schemes of amalgamation approved by High Court in financial year 2006-07 and as determined by the board, credited to other income as no longer required," it said.
The employee cost of the company also declined to Rs 224 crore for the reported quarter as compared to Rs 344 crore in the same period last year.
The company said it remains free cash flow (FCF) positive and this is expected to continue.
"Rcom generated operational cash flow (EBITDA) of Rs 2,328 crore in Q2, paid net finance charges of Rs 676 crore and invested Rs 364 crore on capex during the quarter," the statement said.
Rcom said revenue per minute (RPM) increased to 43.4 paisa, up 7.7 per cent year-on-year basis.
"We have significantly improved RPM with tariff hikes and strong focus on paid and profitable minutes," it said.
The average revenue per user (ARPU) of the company stood at Rs 120 in Q2.
The total data traffic was up 116 per cent y-o-y at 37,570 million MB. The traffic has increased due to increase in data subscribers and higher data usage per customer.
"The total data customer base has grown 30.8 per cent y-o-y to 34 million including 9.1 million 3G customers in Q2," it said.