Reliance Communication new initiative

Reliance Communication rose 0.92% to Rs 555 at 12:25 IST on BSE after it formed a joint venture with Alcatel-Lucent to offer managed network services to telcom firms across the globe.

The stock hit a high of Rs 559.60 and a low of Rs 552.55 so far during the day. The stock had a 52-week high of Rs 844 on 10 January 2008 and the stock hit a 52-week low of Rs 466.65 on 17 August 2007.

The company’s current equity is Rs 1,032.01 crore. Face value per share is Rs 5.

The current price of Rs 555 discounts its Q4 March 2008 annualised EPS of Rs 9.91, by a PE multiple of 56.

Reliance Communications (RCom) said on Monday, 12 May 2008, it expects the new joint venture with French-American telecom equipment provider Alcatel-Lucent to have revenue of $500 million within five to seven years. RCom said it would own 33% of the venture for network management.

The joint venture company would foray in the fast growing $16 billion managed network services industry and will cater to telecom operators, both CDMA and GSM, across the globe. The first assignment of this joint venture will be to provide managed services for Reliance Communications' nationwide CDMA & GSM networks in India.

Reliance Communication (RCom)’s net profit declined 25.5% to Rs 522.43 crore on 10% rise in sales to Rs 3455.35 crore in Q4 March 2008 over A4 March 2007.

RCom provides telecommunication services. The company provides wireless, wire line, voice, data and Internet communication services.