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Reliance income soars as users rise

NEW DELHI — Reliance Communications Limited, India’s second-largest mobile-phone services provider, said second-quarter profit rose 86 per cent to a record after adding users in the world’s fastest growing major wireless market.

Net income surged to Rs13.1 billion ($333 million) in the three months ended on September 30, from Rs7.02 billion a year earlier, the Mumbai-based company said. That compared with a median estimate of Rs12.3 billion in a Bloomberg survey of 10 analysts. Sales rose to Rs45.5 billion from Rs35.3 billion.

Chairman Anil Ambani plans to spend $5 billion this fiscal year to increase network coverage and close the gap with market leader Bharti Airtel Limited. Reliance earlier this month won the government’s permission to set up a nationwide GSM network as well.

“We are still in a place where mobile companies will continue to report good monthly additions,” said Jayesh Shroff, who helps manage the equivalent of about $6.4 billion at SBI Funds Management Pvt. in Mumbai.

Market share: Reliance Communications had a 17.4 per cent market share at the end of September in a country with 209.1 million wireless subscribers. Its share has narrowed from 20.5 per cent a year earlier after it had to disconnect users who couldn’t be verified according to government regulations.