Reliance Communications reported a 40% decline in net profit at Rs. 445 crore for Q2 attributing it to high foreign exchange provisioning.

“The net profit would have been higher by 165 per cent at Rs.1,181 crore but for mark-to-market gain of Rs.735 crore, used to set-off earlier notional forex loss,” said the company.

“The July-September quarter results are not good for any of the domestic telecom operators because of high tariff war and stiff competitions among the players,” said RCom President and CEO (Wireless Business) Syed Safawi.

The company’s total revenues declined to Rs.5,022.99 crore as compared to Rs.5,496.25 crore recorded last year during the corresponding quarter. Financial charges amounted to Rs.279 crore. Cash and Bank balances were at Rs.680.05 crore down 15.45%.

Minutes of usage increased to 94.6 billion in the July-September quarter current fiscal against 84.5 billion in the same quarter last year. Subscriber base increased 36.3% to 117 million.

 “The company is now mainly focussing on providing the data services and by the end of this month we will be reaching to more than 100 areas and in next three months our services will reach over 600 service areas,” Safawi said.