Reliance Comm hit by quarterly loss again

India’s Reliance Communications posted a fourth straight quarterly loss and said it failed to pay interest on some debentures, sending the debt-laden firm’s shares tumbling 14 per cent to a record low and its bonds down yesterday.

The Anil Ambani-controlled telecom operator reported late on Saturday a quarterly loss of Rs27.09 billion (Dh1.52 billion; $414.06 million), compared with a profit of Rs620 million a year ago. Revenue nearly halved to Rs26.67 billion, amid a price war started by upstart rival Reliance Jio, which is backed by Anil’s elder brother Mukesh Ambani.

RCom, as the company is widely known, also said in a securities filing over the weekend that it has missed interest payments on two outstanding domestic nonconvertible debentures.

Debt-restructuring

The loss and missed payments make a recovery for RCom that much harder and come at a time when there are doubts about a previously flagged debt-restructuring plan.

With net of debt of Rs443 billion as of end-March, RCom is the most leveraged among listed Indian telecom companies.

After its previous plan to cut debt by selling towers to Canada’s Brookfield and merging its wireless business unit with rival Aircel fell apart, RCom came up with a new plan last month pledging to repay a total Rs270 billion from new deals for its towers, infrastructure assets, and real estate.

It has yet to finalise buyers for any of the assets it is planning to sell.