Reliance Communications announced mixed results for the year to 31 March 2011, while stating that a sale of its towers unit is back on the cards – which will enable it to dramatically reduce its debt. In a statement, the operator said that it has been “informed of the receipt of formal indicative offers from several interested parties” for the acquisition of its controlling stake in Reliance Infratel, although it has not put a value on the transaction. The board has now approved the start of detailed due diligence procedures, “with a view to completing such a potential transaction at the earliest.” The company had previously planned to sell the towers business to GTL Infrastructure, although this fell-through after the companies failed to agree terms.

For the twelve months, on a group level, the company reported a net profit of INR1.35 billion (US$295 million), down 71.1 percent, on revenue of INR231.1 billion, up 4.4 percent year-on-year. Wireless revenue decreased by 0.4 percent to INR165.8 billion. It said that its EBITDA margin, at 39.3 percent for the year, is the “highest in the industry.” However, less positively, it also reported sharp increases in depreciation costs and net financial charges. Reliance said that it has drawn down the third and final tranche of a US$1.93 billion loan facility signed with China Development Bank earlier this year. The bulk of the cash is being used to refinance spectrum fees, and the loan also includes a provision for the acquisition of equipment from Chinese vendors Huawei and ZTE. It was previously noted that the Chinese financing saves Reliance significant amounts of interest when compared to borrowing from other sources.