R-Capital consolidated net profit at Rs 181 crore
JimAndaz.com - India News and Events of India
Advanced Search
 
Regional News RSS Feed
Home > Business > R-Capital consolidated net profit at Rs 181 crore
R-Capital consolidated net profit at Rs 181 crore
 
R-Capital consolidated net profit at Rs 181 crore

Kolkata- Reliance Capital's consolidated net profit for the quarter ended September 30 was Rs 181 crore, compared to Rs 401 crore in the corresponding period last year. But the figures were not comparable, as the company had made a one-time capital gain by selling a part of its stake in Reliance Capital Asset Management last year.

Excluding this one-time capital gain, the consolidated profit after tax more than trebled, on a year-on-year basis, in the second quarter. The life insurance arm and the commercial finance business made more profit, while the general insurance subsidiary reversed its loss.

Reliance Life Insurance’s profit during the quarter increased 338 per cent from the year-ago period to Rs 136 crore. Reliance Capital has 48 per cent stake in the life insurance company.

Reliance General Insurance made profit of Rs 16 crore during the period, compared to a loss of Rs 105 crore in the corresponding period last year. It sold 800,000 policies during the quarter.

The company's insurance businesses are expected to perform well during the third quarter. The growth may slow down a little in the fourth quarter but the company is confident of growing these businesses profitably.

Reliance Commercial Finance saw its profit rising 27 per cent year-on-year to Rs 91 crore in the July-September period. Its net interest margin also improved 120 basis points from a year ago, to 5.3 per cent. It disbursed over Rs 2,000 crore during the three-month period and had Rs 16,097 crore of assets under management.

The company aims to improve its net interest margin to 5.5 per cent by the end of this financial year. The company has been cautious in lending to commercial vehicle and infrastructure segments. The company will continue to focus on SME financing, loan against property and home loans. However, given the uncertain economic conditions, it is expected that the assets under management are to be around Rs 16,500 crore at the end of this financial year.

Reliance Capital was also making efforts to improve its net debt equity ratio to 1.6-1.7 per cent from the current 1.8 per cent.

Shares of Reliance Capital ended at Rs 341.75 on the National Stock Exchange on Tuesday, down 4.15 per cent from the previous close.
Posted On : 13 Nov 13
R-Capital consolidated net profit at Rs 181 crore
Tags | About Us | Sitemap
Copyright © 2009 Jupiter Infomedia Pvt. Ltd. All rights reserved including the right to reproduce the contents in whole or in part in any form or medium without the express written permission of Jupiter Infomedia Pvt. Ltd.