Reliance Communications Limited is one of the arms of Reliance Anil Dhirubai Ambani Group (ADAG). The origin of this company is the outcome of Dhirubhai Ambani’s, (Founder of Reliance) dream to make a digital revolution in India by bringing affordable means of communication and information through out the country. The company offers integrated telecommunication service spanning over 15,000 towns and 400,000 villages. Reliance communications provides both wireless and wire line communication services. The company operates highly technical internet infrastructure with more than 165000 kilometers of fiber optic cable in India, Europe, United states, East and Asia pacific region. The company offers both CDMA and GSM services in India. The company made its mark in USA by acquiring Yipes Enterprise services an US based Ethernet and application delivery services The company is all set to launch it’s Direct to home (DTH) services. The company recently acquired “E-wave world,” UK-based Wimax operator. This will help the company to provide Wimax services to 12 globally by 2012. Reliance communications recently acquired Vanco Group, London based Network service provider. It recently is in talks with South African telecom operator MTN to leverage its operation by seeking equity participation either way.

FINANCIALS

The company recently announced its final quarter results recently. The net profit rose 17% and stood at 5114.3 versus net profit of Rs.4364.3 in the last quarter. Company’s sales were at Rs.34553.5 Million increased by 10.03% when compared to sales of about RS.31402.9 Million in the same period last year. The company by adding 4.8 Million customers in this quarter increased its subscriber base to 45.8 Million.

The company’s performance with its major peers is tabulated below

The company lags behind its major rival Bharathi Airtel. The other two non-listed telecom providers Vodafone and BSNL also made the competition tight by increasing their subscriber base. Indian which now has 12 telecom operators has given 120 new licenses to existing and new firms around 22 telecom circles. The company is expanding its GSM based services to all 23 areas from current 8 zones. The company plans to further expand its customer level in the rural market by providing cheaper level handsets.

STOCK OUTLOOK

The stock is trading in the market at the level of 380-450. The stock is on a downward track after hitting Rs.820 in the month of January 2008. Both short term and long term investors may accumulate the stock after it gets stabilized at the level of 450.