Reliance Communications (RCom) is losing out on the race to match steps with its counterparts particularly Bharti Airtel. The company’s net profit for the quarter ended June 30, 2010 dropped to Rs.251 crore at a fall of 85% as compared to net profit of Rs.1,637 crore recorded last year.

RCom followed Bharti Airtel in attributing the steep fall to exchange variations. Revenues for the quarter stood at Rs.5,109 crore compared to revenues of Rs.5,093 crore in the preceding March quarter.

The EBITDA for the quarter was up by 1.9% from Rs.1,602 crore to Rs.1,632 crore.

Interestingly RCom announced the results after the closing of stock exchanges, perhaps apprehending the fall in share prices upon announcement of the results.

The company’s subscriber base increased to 111 million at a growth rate of 39% on a yearly scale. The minutes of usage increased from 83.3 billion minutes to 94.4 billion minutes at a growth rate of 13.3%.

The company is already facing tough time financially and has offloaded stakes in subsidiaries offlate. But with dwindling financials, the company will find it tough to justify the expected valuation and therefore may have less negotiating powers in its procession.