Mumbai: Reliance Communications Chairman Anil Ambani has decided that he will not take any salary from the company for the current financial year 2017-18. His decision to forego his salary for the whole year comes in the backdrop of RCom recording its worst quarterly profit.
During a year ago period, the company had recorded Rs 90 crore in its profits.
RCom also registered a Rs 948 crore loss in its revenues for the quarter ended March 31, 2017. Apart from that, the company has a huge debt outstanding that it hopes to reduce by Rs 25,000 crore soon.
Shares of the company had also tanked on bourses due to poor stock performance on mounting debt reports. Many of the woes that the company presently is at loggerheads with have been attributed to India's ailing telecom sector.
The company has also accelerated its resources generating exercise and put up its tower business for grabs for Rs 11,000 crore. A proposal in the regard is lying with the Union Cabinet that is soon expected to give its decision. Canada's Brookfield Infrastructure has shown interest in buying RCom's tower business.
The deal would be seen as one of the resource generating attempts by Reliance Communications to meet its debt obligations. Anil Ambani had earlier said that his company would come out of this debt mess very soon and also pay back lenders.
Earlier, in a public address Anil Ambani had exuded confidence that his company would clear all its dues in a time-bound manner. RCom roughly has over Rs 45,000 crore debts most of which the company believes would be able to clear by September 30 this year.
"RCom has formally advised all its lenders that it will be making repayment of an aggregate amount of Rs 25,000 crore from the proceeds of these two transactions, on or before September 30, 2017," RCom had said in a press statement.