With the price war in the telecom sector taking its toll, Reliance Communications (RCom) has posted a 51.6 per cent fall in profit after tax at Rs 740 crore for the quarter ended September 2009 compared to Rs 1,531 crore in the corresponding quarter last year.

Profit after tax would have been higher at Rs 1,023 crore but for provision of forex/derivatives MTM (mark-to-market) losses of Rs 283 crore — these losses stand fully recovered, based on subsequent favorable exchange rate movements, the company said. RCom revenue was marginally higher at Rs 5,703 crore compared to Rs 5,645 crore in the corresponding quarter last year.

Said RCom chairman Anil Dhirubhai Ambani, “In the near term, the wireless sector in India is undergoing a challenging phase, with increased competitive intensity... We believe a forward-looking and conducive regulatory framework by TRAI and DOT, which is already under consideration, to facilitate market driven industry consolidation will be a strong enabler to protect and create long term value for all stakeholders.”