New Delhi, May 2: Mobile operator Reliance Communications (R-Com) today said its post-tax profit for 2013-14 rose 55.8 per cent to Rs 1,047 crore even as revenue rose only 2.5 per cent to Rs 22,321 crore.
R-Com said the better profit numbers were a result of improved revenue per minute (RPM), which now stands at 43.2 paise.
“During the year, we have significantly improved our revenue per minute with tariff hikes and a strong focus on paid and profitable minutes,” a statement said.
R-Com has increased tariffs up to 20 per cent for all its pre-paid customers. Tariff on discounted and promotional plans has been increased up to 20 per cent from April 25 this year.
“At R-Com, we continue to focus on growing profitable minutes on our network and the current tariff hikes are part of our efforts to reduce free and discounted minutes, and offset the ever-rising costs of input materials,” Gurdeep Singh, chief executive officer, consumer business of R-Com, said.
“We expect RPMs to improve over the next few quarters and this will impact our performance positively,” he added.
R-Com officials said its revenue in the fourth quarter rose 5 per cent to Rs 5,671 crore against Rs 5,403 crore in the third quarter. Net profit during the quarter rose 43.9 per cent to Rs 156 crore against Rs 106 crore in the third quarter.
The telecom operator also said it had fully repaid a syndicated foreign loan worth $500 million (Rs 3,100 crore) in January, after having paid back foreign loans amounting $1.31 billion earlier in the year.