Reliance Capital has posted a 12-time increase in its net profit for the September quarter to Rs 401 crore, backed by a stake sale in its asset management company and growth in commercial finance business.
Excluding the stake sale, the company’s adjusted net profit went up by 72 per cent, from Rs 33 crore in the same quarter last year. The results are, however, not comparable with the corresponding quarter last year as it amalgamated Viscount Management Services (Alpha) Limited with effect from October 1, 2011.
The company had sold 26 per cent stake to Japanese insurance major Nippon Life. The deal size was Rs 1,450 crore.
The company’s consolidated total income was at Rs 2,431 crore in the second quarter, up 55 per cent from the corresponding period last year. The total assets of the company rose 16 per cent to Rs 39,007 crore. The investment portfolio of listed equities at cost was estimated at Rs 1,474 crore.
Reliance Life Insurance’s profit rose 276 per cent to Rs 31 crore. The firm’s total premium, net of reinsurance, was Rs 1,003 crore in the second quarter.
The first quarter consolidated earnings of Reliance Capital include consolidation of its 38 per cent stake in the life insurance company.
Reliance General Insurance, incurred a loss of Rs 105 crore on account of provisioning for the third party motor claim reserves for the full year has been taken in this quarter, company said in a statement.
The commercial finance business’ posted 31 per cent increase in profit before tax at Rs 72 crore while the total income rose seven per cent to Rs 534 crore. In asset management business, the pre-tax profit fell 12 per cent to Rs 58 crore as income declined by two per cent to Rs 160 crore.
The net worth increased 49 per cent to Rs 11,712 crore at the end of September.
Shares of R-Cap inched up by 0.06 per cent to settle at Rs 394.45 on the BSE.