Indian number-three operator Reliance Communications (RCOM) recorded another sizeable drop in profit for the quarter ending 31 December 2012 as it was hit by significant financial charges.

The previous period had seen profits fall dramatically as increased financing costs took their toll and the most recent quarter was no different.

Financial charges for the company rose by 59 percent year-on-year to hit INR6.05 billion ($112.7 million) during the period. Net debt rose to INR373.6 billion during the most recent period, compared to INR367.6 billion a year ago.

Net income for the company’s fiscal third quarter was INR1.06 billion, down 43 percent on the INR1.86 billion recorded for the equivalent period in 2011. The figure was significantly down on analyst estimates compiled by Bloomberg of INR1.62 billion.

Revenue was INR53 billion, up 5 percent year-on-year.

Despite the drop on a yearly basis, net income increased by 3.3 percent compared to the previous quarter’s INR1.02 billion, while there was a 1.9 percent quarterly improvement for revenue.

Wireless revenue for the most recent quarter was INR45.2 billion, up 4.7 percent year-on-year, contributing 63 percent of total revenue. Wireless EBITDA for the period increased 15 percent compared to 2011 to hit INR12.1 billion.

The operator saw a significant reduction in the number of subscribers during the quarter, ending it with 118.5 million subscribers compared to 134.8 million at the end of the previous quarter and 150.1 million a year ago.

The number of 3G customers hit 6.1 million during the period, up from 4.8 million three months earlier. Non-voice revenue made up 21 percent of the total wireless revenue.

During the period, Reliance entered a managed services agreement with Alcatel-Lucent worth $1 billion over seven years.