RCom narrows net loss in Q4 of FY2018-19

Total income for the March quarter of FY2018-19 stood at Rs 1,089 crore against Rs 976 crore recorded in the same quarter a year ago

New Delhi: Reliance Communications (RCom) narrowed its net loss to Rs 7,767 crore in the fourth quarter of 2018-19 as opposed to Rs 19,776 crores in the corresponding period of FY2017-18. For the entire financial year, the company, which is currently undergoing insolvency proceedings, reported a net loss of Rs 7,206 crore as against Rs 23,839 crore in 2017-18.

Total income for Q4 at Rs 1,089 crore

Total income for the March quarter of FY2018-19 stood at Rs 1,089 crore against Rs 976 crore recorded in the same quarter a year ago, RCom said in a regulatory filing. Its total income for the entire financial year slumped to Rs 4,194 crore as opposed to Rs 4,684 crore in 2017-18.

Loss would have been larger if RCom provided interest

The company also added that it has not provided interest totalling Rs 1,063 crore and Rs 3,907 crore for the quarter and FY 2018-19, respectively, and foreign exchange variance aggregating to Rs 275 crore gain and Rs 803 crore loss for the quarter and year ended March 31, 2019, respectively.

If RCom had provided interest and foreign exchange variance, the loss would have been higher by Rs 788 crore and Rs 4,710 crore for the quarter and FY2018-19, respectively.

The backdrop

The news comes as the National Company Law Tribunal (NCLT) allowed RCom to exclude the 357 days spent in litigation before giving its nod to insolvency proceedings. The Anil Ambani-group company is now the first firm in the conglomerate to be officially declared bankrupt. It owes over Rs 50,000 crore to banks.

RCom has been mired in financial trouble for the last two years and was forced to suspend operations.