R com ru4-qfy2010-180510

4QFY2010 Result Update I Telecom
May 18, 2010

Reliance Communications ACCUMULATE
CMP Rs145
Performance Highlights Target Price Rs155
Reliance Communications’ (RCOM) 4QFY2010 performance failed to meet Investment Period 12 Months
our expectations on the core operations front. Wireless revenue grew 1.7%
qoq (down 9% yoy), which was lower than the industry average in the Stock Info
quarter. The company has crossed the 100mn subscriber milestone during
Sector Telecom
the quarter. Global business grew by 2.3% qoq (7.8% yoy), whereas
broadband segment sales declined by 3.5% qoq (3.9% yoy). Profit after tax, Market Cap (Rs cr) 29,928
however, grew by 10.1% sequentially (down 16% yoy), largely on account of
Beta 1.2
higher interest earned (up 99% qoq). We recommend an Accumulate on the
stock. 52 WK High / Low 359/140

Mediocre growth across businesses: RCOM recorded a growth of 1.7% qoq Avg. Daily Volume 22,47,928
in the Top-line during 4QFY2010 to Rs5,093cr, mainly due to a strong Face Value (Rs) 5
subscriber growth of 9.2% qoq to 102.4mn and total traffic growth of 5%
qoq. The growth in the Minutes of Usage (MoU) was lower than the industry BSE Sensex 16,876
minute growth of ~10%, however it managed to restrict the decline in the Nifty 5,066
Revenue per Minute (RPM) at Rs0.44 (down by Rs0.01), which is
commendable. Global business segment revenue grew by 2.3% qoq, led by a Reuters Code RLCM.BO
13.8% growth in the Long Distance minutes. However, Broadband revenues
Bloomberg Code RCOM.IN
declined 3.5% qoq, despite significant addition in the number of Access lines.
RCOM recorded a contraction of 260bp qoq (decline of 400bp yoy) in its Shareholding Pattern (%)
EBITDA Margin, mainly due to higher Network Operation Costs. However,
higher interest earned resulted in a bottom-line growth of 10.1% qoq. Promoters 67.6

MF/Banks/Indian FIs 12.2
Outlook and Valuation: Going forward, we expect RCOM to post a 7% CAGR
in its Top-line over FY2010-12E, while the Bottom-line is expected to record a FII/NRIs/OCBs 9.0
compounded de-growth of 12%. We have factored in a 21% CAGR in the Indian Public 11.2
mobile subscriber base over FY2010-12E, while also modeling for a 12%
compounded fall in the RPM. We have valued the stock at Rs155 per share, Abs. (%) 3m 1yr 3yr
at 8.5x of its FY2012E earnings, and at a 40% discount to our target multiple
Sensex 3.4 18.1 18.0
for Bharti (Historical discount during FY2008-10 of 30%). The higher discount
to Bharti is justified in view of the latter’s superior operating performance
R Com (13.4) (49.2) (70.8)
(ARPU/RPM/MoU), higher ROE and lower leverage position. We recommend
an Accumulate on the stock, with a Target Price of Rs155.

Key Financials (Consolidated)
Y/E March (Rs cr) FY2009 FY2010E FY2011E FY2012E
Net Sales 22251 21496 22412 24592
% chg 18.2 (3.4) 4.3 9.7
Net Profit 6045 4777 3674 3698
% chg 46.4 (21.0) (23.1) 0.7
FDEPS (Rs) 28.0 22.1 17.0 17.1
EBITDA Margin (%) 38.7 34.0 31.5 30.0
P/E (x) 5.2 6.5 8.5 8.5 Rahul Jain
P/BV (x) 0.7 0.8 0.7 0.7 Tel: 022 – 4040 3800 Ext: 345

RoE (%) 14.3 12.4 8.7 8.1 E-mail: Rahul.j@angeltrade.com

RoCE (%) 6.9 5.5 4.9 4.7
Vibha Salvi
EV/EBIDTA (x) 6.7 6.8 7.2 6.6
Tel: 022 – 4040 3800 Ext: 329
ARPUs (Rs/user/month) 244 158 154 146
E-mail: vibhas.salvi@angeltrade.com
Source: Company, Angel Research

1
Please refer to important disclosures at the end of this report Sebi Registration No: INB 010996539

Reliance Communications I 4QFY2010 Result Update

Exhibit 1: 4QFY2010 Consolidated Financial Performance
Y/E March (Rs cr) 4QFY10 4QFY09 % chg 3QFY10 % chg FY2010 FY2009 % chg
(yoy) (qoq)
Net Revenues 5,093 5,798 (12.2) 5,310 (4.1) 21,496 22,251 (3.4)
Operating Expenditure 3,491 3,741 (6.7) 3,497 (0.2) 14,312 13,517 5.9
Operating Profit (EBITDA) 1,602 2,057 (22.1) 1,813 (11.6) 7,185 8,733 (17.7)
Finance Charges (Net) (813) (494) (408) (1,822) (1,078)
Depreciation & Amortisation 1,085 1,143 (5.1) 833 30.2 3,747 3,608 3.8
ESOP amortisation 1 (157) (100.9) 22 (93.4) 37 7 401.6
Income before Income Taxes 1,329 1,565 (15.1) 1,365 (2.6) 5,223 6,197 (15.7)
Tax 192 49 296.1 200 (4.0) 445 (52)
Minority Interest (83) 65 (227.4) 56 (247.4) 119 205 (41.9)
Share of Associates - (2) 1 (100.0) 3 (2)
Net Income 1,220 1,454 (16.1) 1,108 10.1 4,655 6,045 (23.0)
Diluted EPS (Rs) 5.4 6.8 (19.4) 5.2 5.6 21.6 28.1 (22.9)
EBITDA Margin (%) 31.5 35.5 34.1 33.4 39.3
Net Profit Margin (%) 23.9 25.1 20.9 21.7 27.2
Mobile ARPUs (Rs/user/month) 139.0 224.0 (37.9) 149.0 (6.7) 158.0 244.0 (35.2)

De-growth in Broadband and Global businesses drags the Top-line

RCOM recorded a small growth of 1.7% qoq (decline of 9% yoy) in its wire line
revenues, led by strong subscriber growth of 9.2% and traffic growth of 5% qoq. The
RPM declined by Rs0.01 (2.2% qoq) to Rs0.44, which was lower compared to the
industry average, since RCOM was one of the first operators to reduce tariffs
through the launch of its ‘Simply Reliance’ plans. The MoU per subscriber declined
by 3.6% qoq to 318 minutes. RCOM’s wireless market share reached to 17.7%, with
a total subscriber count of 102mn. The Churn ratio expanded to 2.8% from 2% in
3QFY2010, highlighting the increased competitive intensity. Although the traffic
growth was below the industry average, the company managed to restrict the fall in
the RPM to a mere 2% qoq. We believe that the recent launch of its unlimited
(monthly and daily cap applicable) plan, under the new ‘Simply Reliance’ plan
would boost its traffic growth in the coming period.

The company recorded a 2.3% qoq growth (7.8% yoy growth) in its Global business,
mainly due to the NLD minutes’ traffic growth of 18% qoq, which was supported by
a reduction in the call charges. ILD traffic, however, declined by 6% qoq. The
Broadband Business revenues declined by 3.5% qoq (fall of 3.9% yoy), on account
of a 5.5% qoq fall in the Average Revenue per line (ARPL) per month to Rs1,551.
The company added a net 15,000 Access lines during the quarter, taking the total
Access line count to 1.46mn.

The intersegment revenue witnessed a 16% qoq growth, on account of an increase
in NLD Traffic and on-net traffic.

Exhibit 2: Segment-wise Revenue Break-up
4QFY10 4QFY09 3QFY10 % chg % chg
Rs cr Rs cr Rs cr Yoy qoq
Wireless 4,090 4,502 4,023 (9.1) 1.7
Global 2,028 1,880 1,982 7.8 2.3
Broadband 680 708 705 (3.9) (3.5)
Others* 285 313 316 (10.0)
Gross Revenues 7,082 7,403 7,025 (4.3) 0.8
Less: Inter-segment
1,989 1,605 1,715 24.0 16.0
Revenues
Net Revenues 5,093 5,798 5,310 (12.2) (4.1)
Note:* includes Reliance Big TV and network operating revenues

May 18, 2010 2


Margins decline on higher Network Expenses and Access Charges

RCOM recorded a contraction of 260bp yoy (decline of 400bp qoq) in its EBITDA
Margin, mainly due to higher Network Operation Costs, which spiked by 200bp qoq
(up 650bp yoy). The access charges were also up 190bp qoq (up 120bp yoy), and
SG&A expenses grew by 16.8% qoq; however, a reduction of 20bp qoq in staff costs
restricted a further erosion in the margins during the quarter. EBIDTA per minute
(EPM) declined by 7% or Rs0.01 at Rs0.13. The company’s cost per minute remained
flat at Rs0.31, resulting in a decline in the margin spread. Going forward, we
believe that the company would continue to face margin pressures on account of its
recent plan launch, which offers free bundled minutes to R2R as well as to other
service providers. This would cap the revenue realisation per subscriber, but would
cause a variable rise in the operating cost (positively correlated to a growth in
traffic).

Higher Interest earned supports Bottom-line

The company recorded a 99% growth in Interest earned during the quarter to
Rs813cr, which arrested the impact of the decline in the operating margins.
Depreciation costs grew by 30% qoq, as the company charged certain assets for
impairment (one-time expense) during the quarter, which would normalise in the
coming quarter at the 3QFY2010 run-rate. The tax rate remained flat at 14.5%, but
the losses in subsidiaries (Minority Interest) stood at Rs83cr as against the profits of
Rs56cr in 3QFY2010. The PAT for the quarter stood at Rs1,220cr, up 10.1% qoq
(down 16.1% yoy). Going forward, the profitability would come under pressure as
the increased leverage (capex of Rs3,000cr and 3G requirements) would dent the
net interest earnings in the coming quarters.

Exhibit 3: Wireless Business operating metrics
% chg % chg
4QFY10 3QFY09 3QFY10
yoy qoq
Gross revenues (Rs cr) 4,090 4,502 4,023 (9.1) 1.7
Mobile subscriber base (Mn) 102.4 72.7 93.8 40.9 9.2
Mobile ARPUs (Rs/user/month) 139 224 149 (37.9) (6.7)
Total minutes of usage (Mn) 93,500 74,800 89,000 25.0 5.1
Revenues per minute (Rs) 0.44 0.60 0.45 (27.3) (3.2)
MoUs per user per month 318 372 330 (14.5) (3.6)
EBITDA (Rs cr) 1,182 1,663 1,254 (28.9) (5.8)
EBITDA Margins (%) 28.9 36.9 31.2 (8.1) (2.3)
EBITDA/minute (Rs) 0.13 0.22 0.14 (43.2) (10.4)
EBIT (Rs cr) 761 902 848 (15.7) (10.3)
EBIT Margins (%) 18.6 20.0 21.1 (1.4) (2.5)
Source: Company, Angel Research, Margin change is in Bps

Exhibit 4: Global Business operating metrics
% chg % chg
yoy qoq
Gross revenues (Rs cr) 2,028 1,880 1,982 7.8 2.3
Total minutes of usage (Mn) 18,742 11,073 16,466 69.3 13.8
Revenues per minute (Rs) 1.08 1.70 1.20 (36.3) (10.1)
EBITDA (Rs cr) 356 503 419 (29.3) (15.2)
EBITDA Margins (%) 17.5 26.7 21.2 (9.2) (3.6)
EBITDA/minute (Rs) 0.19 0.45 0.25 (58.2) (25.5)
EBIT (Rs cr) 132 286 181 (54.0) (27.1)
EBIT Margins (%) 6.5 15.2 9.1 (8.7) (2.6)

May 18, 2010 3


Exhibit 5: Broadband Business operating metrics
% chg % chg
yoy qoq
Gross revenues (Rs cr) 680 708 705 (3.9) (3.5)
Access lines ('000) 1,469 1,385 1,455 6.1 1.0
ARPLs (Rs/line/month) 1,661 1,680 1,654 (1.1) 0.5
Buildings directly
1,029,327 929,600 1,018,732 10.7 1.0
connected
EBITDA (Rs cr) 253 316 275 (20.1) (8.3)
EBITDA Margins (%) 37.2 44.7 39.1 (16.8) (5.0)
EBIT (Rs cr) 135 209 158 (35.3) (14.3)
EBIT Margins (%) 19.9 29.5 22.4 (9.6) (2.5)

Exhibit 6: RCOM v/s Peers - Mobility Business metrics
Mobile subscriber base (Mn)
Bharti Airtel 127.6 93.9 118.9
RCOM 102.4 72.7 93.8
Idea 63.8 38.9 52.3
% Inc/Dec over Bharti (19.7) (22.6) (21.1)
% Inc/Dec over Idea 60.5 86.8 79.3
Wireless/Mobile Business Revenues (Rs cr)
Bharti Airtel 8,198 8,222 7,962
RCOM 4,090 4,502 4,023
Idea 3,312 2,936 3,123
Wireless/Mobile Business ARPUs (Rs/user/month)
Bharti Airtel 220 305 230
RCOM 139 224 149
Idea 185 255 200
% Inc/Dec over Idea (24.9) (12.2) (25.5)
Wireless/Mobile Business total MoUs (Mn minutes)
Bharti Airtel 172,797 130,669 153,241
RCOM 93,500 74,800 89,000
Idea 68,275 44,224 57,841
Wireless/Mobile Business MoUs (Minutes/customer/month)
Bharti Airtel 468 485 446
RCOM 318 372 330
Idea 398 402 389
% Inc/Dec over Idea (20.1) (7.5) (15.2)
Wireless/Mobile Business RPMs (Rs)
Bharti Airtel 0.47 0.63 0.52
RCOM 0.44 0.60 0.45
Idea 0.47 0.63 0.51
% Inc/Dec over Idea (6.9) (4.5) (11.4)

May 18, 2010 4


Outlook and Valuation
Going forward, we expect the recurring revenues of the Global business to show an
increasing trend, led by traffic growth in the NLD and ILD voice businesses. In the
Wireless segment, the company has already incurred huge investments in the past,
which includes the capex on the GSM network setup in the last one year, and it is
likely to spend an estimated amount in upward of over $2bn for the 3G spectrum in
FY2011E. The increased capex requirement would further strain the interest burden
in FY2012E. Wireless revenues are likely to grow at a modest rate of about 4%, as
the growth in the traffic would be curbed by lower per minute realisations.

RCOM’s passive infrastructure sharing agreement with Etisalat DB is also expected
to book revenues in FY2011E, which is expected to improve Reliance Infratel’s
revenues, tenancy ratio and profitability, going forward. The company has 50,000
towers, with a tenancy ratio of ~1.75x (best in the industry). The company has been
sharing infrastructure with all the major domestic as well as new players. The
company’s plans regarding Reliance Infratel’s IPO listing are under consideration,
through which the company plans to dilute a 10% stake in Reliance Infratel.
However, taking cognisance of the current capital market dynamics, the company
intends to wait for the right time to take this step.

Going forward, we expect RCOM to post a 7% CAGR in its Top-line over FY2010-
12E, while the Bottom-line is expected to record a compounded de-growth of 12%.
We have factored in a 21% CAGR in the mobile subscriber base over FY2010-12E,
while also modeling for a 12% compounded fall in the RPM. At the CMP, the stock is
trading at a P/E of 8x on its FY2012E EPS, and an EV/EBITDA of 6.6x its FY2012E
EBITDA. Although the valuations appear attractive, we believe that the likely
headwinds in terms of intense price war, mobile number portability, and costly
spectrum charges would hamper profitability, while increasing the capital intensity in
the sector. Hence, in view of the increased uncertainty, we are downgrading our
earnings estimates for FY2011E and FY2012E.

We have valued the stock at Rs155 per share, at 8.5x of its FY2012E earnings, and
at a 40% discount to our target multiple for Bharti (Historical discount during
FY2008-10 of 30%). The higher discount to Bharti is justified in view of the latter’s
superior operating performance (ARPU/RPM/MoU), higher ROE and lower leverage
position. We recommend an Accumulate on the stock, with a Target Price of Rs155.

Exhibit 7: One year forward P/E Band

1000
900
800
700
Share Price (Rs)

600
500 28x
400
22x
300
16x
200
100 10x

0
Apr-06

Apr-07

Apr-08

Apr-09

Apr-10
Aug-06

Aug-07

Aug-08

Aug-09
Dec-06

Dec-07

Dec-08

Dec-09


May 18, 2010 5


Exhibit 8: Premium/Discount in RCOM P/E v/s Bharti Airtel P/E
60
50
40
30
20
10
0

(%)
(10)
(20)
(30)
(40)
(50)
(60)

Aug-06

Aug-07

Aug-08

Aug-09
Jun-06

Jun-07

Jun-08

Jun-09
Dec-06

Dec-07

Dec-08

Dec-09
Apr-06

Apr-07

Apr-08

Apr-09

Apr-10
Oct-06

Feb-07

Oct-07

Feb-08

Oct-08

Feb-09

Oct-09

Feb-10
Premium/Discount to Bharti Airtel Avg. Historical Discount


May 18, 2010 6


Profit & Loss Statement (Consolidated) (Rs cr)
Y/E March FY2008 FY2009 FY2010E FY2011E FY2012E
Gross sales 22,665 26,988 28,424 29,635 32,517
Less: Inter-segment revenues 3,838 4,737 6,928 7,223 7,926
Net Sales 18,827 22,251 21,496 22,412 24,592
Other operating income - - - - -
Total operating income 18,827 22,251 21,496 22,412 24,592
% chg 32.0 18.2 (3.4) 4.3 9.7
Total Expenditure 10,853 13,644 14,189 15,352 17,214
Cost of Services 6,259 7,985 9,566 10,085 11,312
SGA 3,406 3,986 3,076 3,698 4,181
Personnel 1,188 1,673 1,548 1,569 1,721
Other - - - - -
EBITDA 7,975 8,607 7,307 7,060 7,378
% chg 44.6 7.9 (15.1) (3.4) 4.5
(% of Net Sales) 42.4 38.7 34.0 31.5 30.0
Depreciation& Amortisation 2,805 3,608 3,747 3,818 4,121
EBIT 5,170 4,999 3,560 3,242 3,257
% chg 69.5 (3.3) (28.8) (9.0) 0.5
(% of Net Sales) 27.5 22.5 16.6 14.5 13.2
Interest & other Charges (400) (507) (1,186) (500) (500)
Other Income 240 698 636 672 738
(% of PBT) 4.1 11.2 11.8 15.2 16.4
Share in profit of Associates - - - - -
Recurring PBT 5,810 6,204 5,383 4,414 4,495
% chg 78.5 6.8 (13.2) (18.0) 1.8
Extraordinary Expense/(Inc.) (1,267) 7 37 - -
PBT (reported) 7,076 6,197 5,345 4,414 4,495
Tax 284 (52) 445 618 674
(% of PBT) 4.0 (0.8) 8.3 14.0 15.0
PAT (reported) 6,793 6,249 4,900 3,796 3,821
Add: Share of earnings of
(1.5) 1.6 (3.2) (3.2) (3.2)
associate
Less: Minority interest (MI) 1,390.1 205.2 119.3 119.3 119.3
Prior period items - - - - -
PAT after MI (reported) 5,401 6,045 4,777 3,674 3,698
ADJ. PAT 4,135 6,052 4,815 3,674 3,698
% chg 29.3 46.4 (20.4) (23.7) 0.7
(% of Net Sales) 28.7 27.2 22.2 16.4 15.0
Basic EPS (Rs) 26.2 29.3 23.1 17.8 17.9
Fully Diluted EPS (Rs) 25.0 28.0 22.1 17.0 17.1
% chg 70.5 11.9 (21.0) (23.1) 0.7

May 18, 2010 7


Balance Sheet (Consolidated) (Rs cr)
SOURCES OF FUNDS
Equity Share Capital 1,032 1,032 1,032 1,032 1,032
Preference Capital - - - - -
Reserves& Surplus 27,994 41,248 37,751 41,209 44,691
Shareholders Funds 29,026 42,280 38,783 42,241 45,723
Minority Interest 2,431 655 747 747 747
Total Loans 25,822 39,162 24,747 22,882 22,882
Deferred Tax Liability 103 28 - - -
Total Liabilities 57,382 82,126 64,277 65,870 69,352
APPLICATION OF FUNDS
Gross Block 46,339 75,510 73,443 83,528 90,906
Less: Acc. Depreciation 8,956 14,114 19,077 22,895 27,015
Net Block 37,383 61,396 54,366 60,633 63,890
Capital Work-in-Progress 14,930 11,310 11,952 11,952 11,952
Goodwill 3,565 5,222 5,222 5,222 5,222
Investments 11,000 9,566 120 120 120
Current Assets 10,582 14,714 16,415 14,043 16,917
Cash 878 1,683 4,859 1,984 4,298
Loans & Advances 4,269 6,756 5,483 5,983 5,983
Other 5,434 6,276 6,074 6,076 6,636
Current liabilities 20,078 20,081 23,798 26,099 28,748
Net Current Assets (9,496) (5,367) (7,382) (12,056) (11,831)
Mis. Exp. not written off - - - - -
Total Assets 57,382 82,126 64,277 65,870 69,352

Cash Flow Statement (Consolidated) (Rs cr)
Profit before tax 7,076 6,197 5,345 4,414 4,495
Depreciation 2,805 3,608 3,747 3,818 4,121
Change in Working Capital (3,584) (2,025) 5,191 1,799 2,089
Less: Other income (1,635) (879) 636 672 738
Direct taxes paid (216) (393) 445 618 674
Cash Flow from Operations 4,447 6,508 13,202 8,741 9,292
(Inc)./ Dec in Fixed Assets (17,393) (12,243) (3,796) (10,085) (7,378)
(Inc)./ Dec. in Investments (2,979) 1,557 9,446 - -
(Inc)./ Dec. in loans and advances - - - - -
Other income 776 678 636 672 738
Cash Flow from Investing (19,595) (10,008) 6,285 (9,413) (6,640)
Issue of Equity - - - - -
Inc./(Dec.) in loans 10,075 7,508 (14,415) (1,865) -
Dividend Paid (Incl. Tax) (118) (179) (205) (215) (216)
Others (1,130) (3,024) (1,692) (122) (122)
Cash Flow from Financing 8,826 4,305 (16,312) (2,203) (339)
Inc./(Dec.) in Cash (6,322) 805 3,175 (2,874) 2,314
Opening Cash balances 7,201 878 1,683 4,859 1,984
Closing Cash balances 878 1,683 4,859 1,984 4,298

May 18, 2010 8


Key Ratios
Valuation Ratio (x)
P/E (on FDEPS) 5.8 5.2 6.5 8.5 8.5
P/CEPS 3.6 3.1 3.5 4.0 3.8
P/BV 1.0 0.7 0.8 0.7 0.7
Dividend yield (%) 0.5 0.6 0.6 0.6 0.6
EV/Sales 2.3 2.6 2.3 2.3 2.0
EV/EBITDA 5.5 6.7 6.8 7.2 6.6
EV / Total Assets 0.6 0.6 0.6 0.6 0.5
Per Share Data (Rs)
EPS (Basic) 26.2 29.3 23.1 17.8 17.9
EPS (fully diluted) 25.0 28.0 22.1 17.0 17.1
Cash EPS 39.8 46.8 41.3 36.3 37.9
DPS 0.7 0.8 0.8 0.9 0.9
Book Value 141 205 188 205 222
Dupont Analysis
EBIT margin 28.7 25.6 19.5 17.5 16.2
Tax retention ratio 96.0 100.8 91.7 86.0 85.0
Asset turnover (x) 0.3 0.3 0.3 0.3 0.3
ROIC (Post-tax) 8.0 6.5 4.8 3.9 3.7
Cost of Debt (Post Tax) (0.4) (0.4) (0.9) (0.5) (0.5)
Leverage (x) 1.4 1.8 1.4 1.0 0.9
Operating ROE 19.5 18.6 12.7 8.2 7.5
Returns (%)
ROCE (Pre-tax) 11.1 6.9 5.5 4.9 4.7
Angel ROIC (Pre-tax) 11.8 8.7 6.2 6.5 6.4
ROE 14.2 14.3 12.4 8.7 8.1
Turnover ratios (x)
Asset Turnover (Gross Block) 0.4 0.3 0.3 0.3 0.3
Inventory / Sales (days) 8.5 7.5 9.0 8.2 7.9
Receivables (days) 43.6 53.2 60.2 51.6 49.2
Payables (days) 166.4 73.9 71.0 70.2 71.2
Working capital cycle (ex-cash) (days) (114.4) (13.2) (1.8) (10.4) (14.1)
Solvency ratios (x)
Net debt to equity 0.5 0.7 0.5 0.5 0.4
Net debt to EBITDA 1.7 3.2 2.7 2.9 2.5
Interest Coverage (EBIT / Interest) - - - - -

May 18, 2010 9


Research Team Tel: 022-4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com

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Angel Securities Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services
in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past.

Neither Angel Securities Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the
use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section).

Disclosure of Interest Statement Reliance Communication
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock Yes
3. Angel and its Group companies’ Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below Rs 1 lakh for Angel and its Group companies.

Address: Acme Plaza, ‘A’ Wing, 3rd Floor, M.V. Road, Opp. Sangam Cinema, Andheri (E), Mumbai - 400 059.
Tel : (022) 3952 4568 / 4040 3800

Angel Broking Ltd: BSE Sebi Regn No : INB 010996539 / CDSL Regn No: IN - DP - CDSL - 234 - 2004 / PMS Regn Code: PM/INP000001546 Angel Securities Ltd:BSE: INB010994639/INF010994639 NSE:
INB230994635/INF230994635 Membership numbers: BSE 028/NSE:09946
Angel Capital & Debt Market Ltd: INB 231279838 / NSE FNO: INF 231279838 / NSE Member code -12798 Angel Commodities Broking (P) Ltd: MCX Member ID: 12685 / FMC Regn No: MCX / TCM /
CORP / 0037 NCDEX : Member ID 00220 / FMC Regn No: NCDEX / TCM / CORP / 0302

May 18, 2010 10

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