Reliance Communication rings on new initiative
Reliance Communication rose 0.92% to Rs 555 at 12:25 IST on BSE after it formed a joint venture with Alcatel-Lucent to offer managed network services to telcom firms across the globe.
Meanwhile, the BSE Sensex was up 172.64 points, or 1.02%, to 17,036.67 as a retreat in oil prices eased worries about inflation and after news of a takeover deal in the technology sector helped drive Wall Street higher on Monday, 12 May 2008.
On BSE, 5.07 lakh shares were traded in the counter. The scrip had an average daily volume of 18.8 lakh shares in the past one quarter.
The stock hit a high of Rs 559.60 and a low of Rs 552.55 so far during the day. The stock had a 52-week high of Rs 844 on 10 January 2008 and the stock hit a 52-week low of Rs 466.65 on 17 August 2007.
India's second largest listed telecom services provider by sales had outperformed the market over the past one month till 12 May 2008, gaining 11.5% compared to the Sensex's return of 6.66%. It had however underperformed the market in the past one quarter, declining 4.47% compared to Sensex's return of 1.52%.
The company's current equity is Rs 1,032.01 crore. Face value per share is Rs 5.
The current price of Rs 555 discounts its Q4 March 2008 annualised EPS of Rs 9.91, by a PE multiple of 56.
Reliance Communications (RCom) said on Monday, 12 May 2008, it expects the new joint venture with French-American telecom equipment provider Alcatel-Lucent to have revenue of $500 million within five to seven years. RCom said it would own 33% of the venture for network management.
The joint venture company would foray in the fast growing $16 billion managed network services industry and will cater to telecom operators, both CDMA and GSM, across the globe. The first assignment of this joint venture will be to provide managed services for Reliance Communications' nationwide CDMA & GSM networks in India.
Reliance Communication (RCom)'s net profit declined 25.5% to Rs 522.43 crore on 10% rise in sales to Rs 3455.35 crore in Q4 March 2008 over A4 March 2007.
RCom provides telecommunication services. The company provides wireless, wire line, voice, data and Internet communication services.