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<strong>Reliance</strong> <strong>Communications</strong><br />

Cost management (% of revenue) with stable margins…<br />

Margins 42.3% 40.8% 40.2% 38.9%<br />

% of Total Revenue<br />

100%<br />

90%<br />

15.3%<br />

18.2% 19.9%<br />

80%<br />

22.2%<br />

70%<br />

60%<br />

18.6%<br />

18.2%<br />

17.5%<br />

50%<br />

16.5%<br />

40%<br />

6.6%<br />

30%<br />

8.1% 7.5% 6.9%<br />

Network expenses<br />

- Increase in network cost due <strong>to</strong><br />

expansion of coverage & GSM<br />

launch<br />

- Opex of other new businesses like<br />

DTH, Vanco, etc<br />

SG&A expenses<br />

- Focused marketing & various cost<br />

control measures<br />

Staff cost<br />

20%<br />

10%<br />

0%<br />

17.2%<br />

14.7% 14.9% 15.5%<br />

1Q FY09 2Q FY09 3Q FY09 4Q FY09<br />

Access charges & LF<br />

- Expansion of fiber optic assets &<br />

increase in PoIs<br />

- Removal of ADC<br />

…inspite of launch of multiple new businesses<br />

Wireless | Infratel | Globalcom | Enterprise | Home<br />

10 of 55

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