Reliance Communications posted a net loss of Rs 1221 crore in the 1st quarter to June. Earlier year net profit of Rs 54 crore. It is because of an entrance of Reliance Jio in the telecom market, Reliance Jio entered with low pricing strategies. Reliance Jio creates a huge competition between telecom companies.
The net loss of the Anil Ambani’s Company Reliance Communications was also higher than the net loss suffered in the last quarter ended 31st March. The net loss of previous quarter is Rs 966 crore.
Reliance Communications revenue was dropped by 33 percent. Current revenue is at Rs 3591 crore and the previous corresponding quarter revenue was Rs 5361 crore. The company said the loss in the June quarter were due to “disruptive pricing” and “unprecedented competitive intensity”.
Reliance Communications said in the media release that, “The India telecom sector continues to be severely impacted in the 1st quarter of FY18 owing to disruptive pricing and hyper competition.”
The Reliance Communications earnings before interest, tax, depreciation, and amortization dropped over 65 percent on year to Rs 543 crore from Rs 1560 crore last year. And the quarterly earnings before interest, tax, depreciation and amortization margin go down to 15.1 percent from 29.1 percent in the previous corresponding quarter.