ADAG firm Reliance Communications has announced its financial results for first quarter of the fiscal year 2010-11. The company has informed that, in this reviewed quarter its net profit has gone down drastically. The net profit of the firm was reported to be Rs. 250.89 crore for the first quarter of the current year.

For the same period of time, the net profit was Rs. 1,636.61 crore in the previous year.

Hence the net profit of RCom has gone down by a massive 84.67% in the reviewed quarter against its corresponding quarter last year.

The company has said that the high foreign exchange provisioning was the main reason behind such decline. Reliance Communications (Rcom) has produced this fact to the Bombay Stock Exchange in a filing. The net sales of the firm have also gone down this time.

The net sales of RCom is recorded Rs. 251 crore the quarter under review. The total income from its operations has been declined to Rs. 5,068.50 crore in Q1 this year from Rs. 5,842.96 crore in its year ago like period.