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Reliance Communications

BSE:532712
Snowflake Description

Mediocre balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
532712
BSE
₹2B
Market Cap
  1. Home
  2. IN
  3. Telecom
Company description

Reliance Communications Limited provides enterprise voice, data, video, and IT infrastructure solutions to enterprises, over-the-top (OTT) players, and network operators in India and internationally. The last earnings update was 74 days ago. More info.


Add to Portfolio Compare Print
  • Reliance Communications has significant price volatility in the past 3 months.
532712 Share Price and Events
7 Day Returns
-3.5%
BSE:532712
-0.4%
Asia Wireless Telecom
-0.1%
IN Market
1 Year Returns
-93.2%
BSE:532712
2.7%
Asia Wireless Telecom
10.4%
IN Market
532712 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Reliance Communications (532712) -3.5% -7.9% 20.6% -93.2% -97.6% -98.9%
Asia Wireless Telecom -0.4% 2.6% 6.9% 2.7% -7.9% -15%
IN Market -0.1% 1.8% 3.7% 10.4% 21.7% 23.4%
1 Year Return vs Industry and Market
  • 532712 underperformed the Wireless Telecom industry which returned 2.7% over the past year.
  • 532712 underperformed the Market in India which returned 10.4% over the past year.
Price Volatility
532712
Industry
5yr Volatility vs Market

Value

 Is Reliance Communications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Reliance Communications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Reliance Communications.

BSE:532712 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 22.2%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:532712
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Wireless Telecom Unlevered Beta Simply Wall St/ S&P Global 0.32
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.322 (1 + (1- 35%) (32467.95%))
46.078
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (2 * 7.85%)
22.18%

Discounted Cash Flow Calculation for BSE:532712 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Reliance Communications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BSE:532712 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 22.18%)
2020 2,228.68 Est @ 38.69% 1,824.10
2021 2,875.59 Est @ 29.03% 1,926.31
2022 3,515.77 Est @ 22.26% 1,927.61
2023 4,132.01 Est @ 17.53% 1,854.22
2024 4,719.31 Est @ 14.21% 1,733.32
2025 5,280.59 Est @ 11.89% 1,587.38
2026 5,822.88 Est @ 10.27% 1,432.64
2027 6,354.66 Est @ 9.13% 1,279.65
2028 6,884.43 Est @ 8.34% 1,134.66
2029 7,420.03 Est @ 7.78% 1,000.93
Present value of next 10 years cash flows ₹15,700.00
BSE:532712 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹7,420.03 × (1 + 6.48%) ÷ (22.18% – 6.48%)
₹50,323.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹50,323.85 ÷ (1 + 22.18%)10
₹6,788.48
BSE:532712 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹15,700.00 + ₹6,788.48
₹22,488.48
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹22,488.48 / 2,722.98
₹8.26
BSE:532712 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BSE:532712 represents 1.025x of NSEI:RCOM
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.025x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 8.26 x 1.025
₹8.47
Value per share (INR) From above. ₹8.47
Current discount Discount to share price of ₹0.82
= -1 x (₹0.82 - ₹8.47) / ₹8.47
90.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Reliance Communications is available for.
Intrinsic value
>50%
Share price is ₹0.82 vs Future cash flow value of ₹8.47
Current Discount Checks
For Reliance Communications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Reliance Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Reliance Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Reliance Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Reliance Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:532712 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in INR ₹-13.20
NSEI:RCOM Share Price ** NSEI (2020-01-28) in INR ₹0.8
Asia Wireless Telecom Industry PE Ratio Median Figure of 35 Publicly-Listed Wireless Telecom Companies 15.26x
India Market PE Ratio Median Figure of 2,641 Publicly-Listed Companies 13.94x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Reliance Communications.

BSE:532712 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:RCOM Share Price ÷ EPS (both in INR)

= 0.8 ÷ -13.20

-0.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reliance Communications is loss making, we can't compare its value to the Asia Wireless Telecom industry average.
  • Reliance Communications is loss making, we can't compare the value of its earnings to the India market.
Price based on expected Growth
Does Reliance Communications's expected growth come at a high price?
Raw Data
BSE:532712 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Asia Wireless Telecom Industry PEG Ratio Median Figure of 28 Publicly-Listed Wireless Telecom Companies 2.59x
India Market PEG Ratio Median Figure of 410 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Reliance Communications, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Reliance Communications's assets?
Raw Data
BSE:532712 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in INR ₹-131.03
NSEI:RCOM Share Price * NSEI (2020-01-28) in INR ₹0.8
Asia Wireless Telecom Industry PB Ratio Median Figure of 51 Publicly-Listed Wireless Telecom Companies 1.86x
India Market PB Ratio Median Figure of 3,588 Publicly-Listed Companies 0.9x
BSE:532712 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:RCOM Share Price ÷ Book Value per Share (both in INR)

= 0.8 ÷ -131.03

-0.01x

* Primary Listing of Reliance Communications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reliance Communications has negative assets, we can't compare the value of its assets to the Asia Wireless Telecom industry average.
X
Value checks
We assess Reliance Communications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Wireless Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Wireless Telecom industry average (and greater than 0)? (1 check)
  5. Reliance Communications has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Reliance Communications expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Reliance Communications has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.9%
Expected Wireless Telecom industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Reliance Communications expected to grow at an attractive rate?
  • Unable to compare Reliance Communications's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Reliance Communications's earnings growth to the India market average as no estimate data is available.
  • Unable to compare Reliance Communications's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
BSE:532712 Future Growth Rates Data Sources
Data Point Source Value (per year)
Asia Wireless Telecom Industry Earnings Growth Rate Market Cap Weighted Average 9.9%
Asia Wireless Telecom Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
India Market Earnings Growth Rate Market Cap Weighted Average 19.2%
India Market Revenue Growth Rate Market Cap Weighted Average 8.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:532712 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:532712 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
BSE:532712 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-09-30 33,400 5,970 -36,270
2019-06-30 40,520 -9,520
2019-03-31 41,910 3,740 -8,550
2018-12-31 40,690 11,110
2018-09-30 41,620 12,270
2018-06-30 43,120 -610
2018-03-31 46,720 9,640 490
2017-12-31 181,890 -15,090
2017-09-30 152,480 -54,290
2017-06-30 177,230 -26,780
2017-03-31 66,130 -3,880 1,250
2016-12-31 207,596 104,077 -3,051

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Reliance Communications is high growth as no earnings estimate data is available.
  • Unable to determine if Reliance Communications is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:532712 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Reliance Communications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532712 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
BSE:532712 Past Financials Data
Date (Data in INR Millions) EPS *
2019-09-30 -13.20
2019-06-30 -3.46
2019-03-31 -3.12
2018-12-31 4.06
2018-09-30 4.52
2018-06-30 -0.23
2018-03-31 0.19
2017-12-31 -5.44
2017-09-30 -22.21
2017-06-30 -10.84
2017-03-31 0.51
2016-12-31 -1.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Reliance Communications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Reliance Communications's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Telecom companies here
  2. Reliance Communications's competitive advantages and company strategy can generally be found in its financial reports archived here.
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Reliance Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Reliance Communications has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Reliance Communications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Reliance Communications's growth in the last year to its industry (Wireless Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Reliance Communications does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Reliance Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Reliance Communications's 1-year growth to the Asia Wireless Telecom industry average as it is not currently profitable.
Earnings and Revenue History
Reliance Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Reliance Communications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532712 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 33,400.00 -36,270.00 8,710.00
2019-06-30 40,520.00 -9,520.00 9,600.00
2019-03-31 41,910.00 -8,550.00 9,590.00
2018-12-31 40,690.00 11,110.00 6,430.00
2018-09-30 41,620.00 12,270.00 6,110.00
2018-06-30 43,120.00 -610.00 6,050.00
2018-03-31 46,720.00 490.00 5,170.00
2017-12-31 181,890.00 -15,090.00 25,279.70
2017-09-30 152,480.00 -54,290.00 20,919.70
2017-06-30 177,230.00 -26,780.00 21,849.70
2017-03-31 66,130.00 1,250.00 6,150.00
2016-12-31 207,596.00 -3,051.00 27,908.70
2016-09-30 212,802.00 5,285.00 27,864.70
2016-06-30 215,018.00 6,842.00 28,170.70
2016-03-31 219,540.00 6,390.00 27,586.40
2015-12-31 217,518.00 7,765.00 27,925.40
2015-09-30 217,782.00 6,749.00 27,942.40
2015-06-30 218,174.00 6,334.00 27,408.40
2015-03-31 217,700.00 7,140.00 26,406.40
2014-12-31 215,681.00 6,409.00 25,938.00
2014-09-30 215,025.00 5,482.00 26,702.00
2014-06-30 219,353.00 10,702.00 27,527.00
2014-03-31 218,240.00 10,470.00 28,550.00
2013-12-31 218,560.00 11,938.00 29,044.00
2013-09-30 217,539.00 11,909.00 29,396.00
2013-06-30 201,035.00 6,180.00 315.00
2013-03-31 210,280.00 6,720.00 29,150.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Reliance Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if Reliance Communications has efficiently used its assets last year compared to the Asia Wireless Telecom industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Reliance Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.
X
Past performance checks
We assess Reliance Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Wireless Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Reliance Communications has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Reliance Communications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Reliance Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Reliance Communications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Reliance Communications's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Reliance Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Reliance Communications has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Reliance Communications Company Filings, last reported 3 months ago.

BSE:532712 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 -356,400.00 751,480.00 10,870.00
2019-06-30 -38,580.00 492,910.00 14,430.00
2019-03-31 -38,580.00 476,060.00 14,770.00
2018-12-31 42,190.00 494,240.00 9,840.00
2018-09-30 42,190.00 494,240.00 9,840.00
2018-06-30 31,150.00 490,360.00 8,960.00
2018-03-31 31,150.00 472,340.00 9,280.00
2017-12-31 247,170.00 496,410.00 7,970.00
2017-09-30 247,170.00 496,410.00 7,970.00
2017-06-30 289,690.00 457,330.00 15,010.00
2017-03-31 289,690.00 457,330.00 15,010.00
2016-12-31 290,334.00 445,857.00 17,831.00
2016-09-30 309,911.00 445,468.00 18,452.00
2016-06-30 310,293.00 442,845.00 22,133.00
2016-03-31 318,650.00 436,170.00 15,920.00
2015-12-31 325,042.00 426,512.00 21,721.00
2015-09-30 326,236.00 423,841.00 24,892.00
2015-06-30 328,536.00 412,048.00 26,091.00
2015-03-31 384,480.00 398,280.00 27,680.00
2014-12-31 327,251.00 386,898.00 19,230.00
2014-09-30 328,138.00 387,917.00 24,574.00
2014-06-30 276,452.00 414,760.00 12,534.00
2014-03-31 335,390.00 419,780.00 12,100.00
2013-12-31 287,088.00 420,650.00 13,035.00
2013-09-30 289,744.00 427,522.00 15,824.00
2013-06-30 288,619.00 398,880.00 14,016.00
2013-03-31 345,750.00 415,470.00 14,170.00
  • Reliance Communications has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Reliance Communications's debt level has increased considering it has negative shareholder equity.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Reliance Communications has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Reliance Communications has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -72% per year.
X
Financial health checks
We assess Reliance Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Reliance Communications has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Reliance Communications's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Reliance Communications dividends.
If you bought ₹2,000 of Reliance Communications shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Reliance Communications's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Reliance Communications's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:532712 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Asia Wireless Telecom Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 3.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1392 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:532712 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
BSE:532712 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2015-06-01 0.000 0.000
2015-05-29 0.000 0.000
2015-02-16 0.000 0.000
2015-02-13 0.000 0.000
2014-11-14 0.000 0.000
2014-08-14 0.000 0.000
2014-06-27 0.000 0.000
2014-06-24 0.000 0.000
2014-05-02 0.000 0.000
2013-08-28 0.250 0.190
2012-09-04 0.250 0.317
2011-09-27 0.500 0.687
2010-05-17 0.850 0.711
2009-06-30 0.800 0.405
2009-06-01 0.800 0.253
2009-05-04 0.800 0.304

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Reliance Communications has not reported any payouts.
  • Unable to verify if Reliance Communications's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Reliance Communications's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Reliance Communications has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Reliance Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Reliance Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Reliance Communications has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Reliance Communications's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Juergen Hase
TENURE AS CEO 3.5 years
CEO Bio

Mr. Juergen Hase has been Chief Executive Officer for IOT Business for Reliance Group at Reliance Communications Ltd. and Reliance Industries Limited since July 7, 2016. Mr. Hase has worked in the global telecommunications industry for more than 25 years to develop, implement and execute new businesses in different global markets. He was a Director IoT / M2M in Ooredoo at the Group level, based in Qatar, responsible for implementing the IoT business for Ooredoo in the Middle East, North Africa and South Asia, in multiple vertical segments like Automotive, Telematics, Smart Cities, Healthcare, Insurance, and Energy. Prior to Ooredoo, he served as Vice President of the M2M Competence Center at Deutsche Telekom (DT) for over a decade. As one of the founders, he helped DT develop this unit as one of the leading global players in the field of IoT. He serves as an active board member of many global M2M associations such as Global M2M. Mr. Hase graduated at the Technical University in Germany with a major in Telecommunications.

CEO Compensation
  • Insufficient data for Juergen to compare compensation growth.
  • Insufficient data for Juergen to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure

Average tenure of the Reliance Communications management team in years:

2
Average Tenure
  • The tenure for the Reliance Communications management team is about average.
Management Team

Viswanath Rao

TITLE
Executive Director & CFO
AGE
61
TENURE
0.2 yrs

Rakesh Gupta

TITLE
Company Secretary and Compliance Officer
AGE
43
TENURE
0.5 yrs

Prakash Gokarn

TITLE
Head of Corporate Strategy for 3G Business

Braham Singh

TITLE
Senior Vice President of Global Product Management
TENURE
4.5 yrs

Juergen Hase

TITLE
Chief Executive Officer for IOT Business - Reliance Group
TENURE
3.5 yrs
Board of Directors Tenure

Average tenure and age of the Reliance Communications board of directors in years:

2.2
Average Tenure
60
Average Age
  • The average tenure for the Reliance Communications board of directors is less than 3 years, this suggests a new board.
Board of Directors

Anil Ambani

TITLE
Chairman
COMPENSATION
₹160K
AGE
60

Viswanath Rao

TITLE
Executive Director & CFO
AGE
61
TENURE
0.2 yrs

Manjari Kacker

TITLE
Non-Executive Non-Independent Director
COMPENSATION
₹520K
AGE
66
TENURE
5.3 yrs

Chhaya Virani

TITLE
Independent Director
COMPENSATION
₹440K
AGE
65
TENURE
2.2 yrs

Punit Garg

TITLE
Non-Executive Director
COMPENSATION
₹23M
AGE
54
TENURE
2.3 yrs

Suresh Rangachar

TITLE
Non Executive Non Independent Director
AGE
55
TENURE
2.2 yrs

Ryna Karani

TITLE
Independent Director
COMPENSATION
₹520K
AGE
52
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Reliance Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Reliance Communications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Reliance Communications Limited provides enterprise voice, data, video, and IT infrastructure solutions to enterprises, over-the-top (OTT) players, and network operators in India and internationally. It offers business Internet, network, cloud networking, data center, enterprise voice, cloud telephony, and access number services; and collaboration services, which include audio and Web conferencing, as well as voice and various value added wholesaling services for carriers and service providers. The company also builds, owns, and operates telecommunication towers, optic fiber cable assets, and related assets. In addition, it offers infrastructure and connectivity, and managed services. The company was formerly known as Reliance Communication Ventures Limited and changed its name to Reliance Communications Limited in June 2006. Reliance Communications Limited was incorporated in 2004 and is based in Navi Mumbai, India.

Details
Name: Reliance Communications Limited
532712
Exchange: BSE
Founded: 2004
₹2,314,528,792
2,722,975,050
Website: http://www.rcom.co.in
Address: Reliance Communications Limited
Dhirubhai Ambani Knowledge City,
H Block,
Navi Mumbai,
Maharashtra, 400710,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI RCOM Equity Shares National Stock Exchange of India IN INR 06. Mar 2006
BSE 532712 Equity Shares Mumbai Stock Exchange IN INR 06. Mar 2006
BDL RECOM GDR REG S Bourse de Luxembourg LU USD 15. Aug 2006
Number of employees
Current staff
Staff numbers
0
Reliance Communications employees.
Industry
Wireless Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/01/28 12:45
End of day share price update: 2020/01/28 00:00
Last estimates confirmation: 2017/05/27
Last earnings filing: 2019/11/15
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.