Mumbai, Oct. 31: Reliance Communications (R-Com) today reported a 51.7 per cent slump in net profit at Rs 740 crore in the second quarter ended September 30.

The telecom company had raked in a profit of Rs 1,531 crore in the year-ago quarter.

Revenues rose just 1 per cent to Rs 5,703 crore. Wireless revenues — which account for over 70 per cent of the company’s overall revenues — fell 7.5 per cent to Rs 4,010 crore.

Profit margins were impacted by intense competition, aggressive industry-wide tariff restructuring and higher operational costs involved in the rollout of GSM services.

Earnings before interest, tax, depreciation and amortisation were down 12.2 per cent to Rs 2020 crore from Rs 2302 crore in the year-ago quarter.

The company said its net profit would have been higher at Rs 1023 crore if it hadn’t been for the provisioning it had to make for mark to market losses on foreign exchange derivatives amounting to Rs 283 crore. “These losses stand fully recovered, based on subsequent favourable exchange rate movements,” it added.

The company’s customer base has grown 53.3 per cent to 92 million from 60 million in the corresponding quarter a year ago.