Reliance Communications Ltd's Q4FY25 Quarter Results
- 29 May 2025
Result Summary
- Reliance Communications Ltd reported a 10.6% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Mar (Q4FY25). On a year-on-year (YoY) basis, it witnessed a decline of 15.4%.
- Its expenses for the quarter were down by 14.6% QoQ and up 8.9% YoY.
- The net profit decreased 10.6% QoQ and increased 13.0% YoY.
- The earnings per share (EPS) of Reliance Communications Ltd declined at 7.8 during Q4FY25.
Financial Statments for Q4FY25
| (₹ crores) | Q4FY25 | Q3FY25 | Q4FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 104.00 | 94.00 | 123.00 | 10.6% | -15.4% |
Total Expenses | 134.00 | 157.00 | 123.00 | -14.6% | 8.9% |
Profit Before Tax | -30.00 | -57.00 | 0.00 | -47.4% | - |
Tax | 8.00 | 0.00 | -3.00 | - | -366.7% |
Profit After Tax | -2127.00 | -2379.00 | -1882.00 | -10.6% | 13.0% |
Earnings Per Share | -7.80 | -8.70 | -6.90 | -10.3% | 13.0% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Reliance Communications Ltd is a telecommunications company that is part of the Reliance Group in India. The company primarily deals in telecommunications, offering a range of services such as mobile and fixed-line telephony, broadband, digital television, and enterprise solutions. Over the years, Reliance Communications has undergone several strategic changes to adapt to the evolving telecom industry landscape, including network upgrades and partnerships with other operators to enhance its service offerings. However, in recent years, the company has faced significant financial challenges and operational hurdles, which have impacted its market position. As of the latest financial quarter, the company's performance reflects its ongoing efforts to stabilize and improve its operations amidst these challenges.
Revenue
For the fourth quarter of fiscal year 2025 (Q4FY25), Reliance Communications Ltd reported a total income of ₹104.00 crores. This represents a quarter-over-quarter (QoQ) increase of 10.6% from ₹94.00 crores in the third quarter of fiscal year 2025 (Q3FY25). However, compared to the same period in the previous year (Q4FY24), there is a year-over-year (YoY) decline of 15.4% from ₹123.00 crores. The data indicates fluctuations in revenue performance, with a notable recovery in the most recent quarter following a dip in the preceding quarter, yet a decline compared to the previous year.
Profitability
The profitability of Reliance Communications Ltd in Q4FY25 remained under pressure, as evidenced by a negative profit before tax of ₹-30.00 crores, which is an improvement from the ₹-57.00 crores reported in Q3FY25. This marks a 47.4% decrease in losses QoQ. The company reported a tax expense of ₹8.00 crores in Q4FY25, as opposed to no tax expense in the prior quarter and a tax credit of ₹-3.00 crores in Q4FY24. Profit after tax stood at ₹-2127.00 crores in Q4FY25, reflecting a 10.6% reduction in losses QoQ from ₹-2379.00 crores in Q3FY25, but a 13.0% increase in losses YoY from ₹-1882.00 crores in Q4FY24. Earnings per share (EPS) followed a similar pattern, improving by 10.3% QoQ from ₹-8.70 to ₹-7.80, yet deteriorating by 13.0% YoY from ₹-6.90.
Operating Metrics
An analysis of the company's operating metrics reveals that total expenses in Q4FY25 were ₹134.00 crores, which is a reduction of 14.6% from ₹157.00 crores in Q3FY25, but an increase of 8.9% compared to ₹123.00 crores in Q4FY24. The reduction in expenses QoQ indicates a possible cost containment strategy, while the YoY increase suggests rising operational costs over a longer period. The continuing negative profit figures reflect ongoing operational challenges, as the company works towards stabilizing its financial standing. These figures highlight the company's current focus on managing expenses while navigating through a challenging financial landscape.