Reliance Capital Q1 net profit at Rs207 crore
Reliance Capital’s June quarter profit includes figures of Reliance Nippon Life Insurance, which became a subsidiary of the firm with effect from 30 March
New Delhi: Reliance Capital has reported a consolidated net profit of Rs.207 crore in first quarter ended 30 June. Its net profit stood at Rs.201 crore in the year-ago period. June quarter’s data, the company said, include figures of Reliance Nippon Life Insurance (formerly Reliance Life Insurance Company) which became a subsidiary of the firm with effect from 30 March.
Hence, the figures for the quarter are not comparable with the corresponding quarter ended June 2015 and sequential quarter ended March 2016, it said in a regulatory filing.
“Total income is Rs.3,663 crore for the quarter ended June 2016, where as the same was at Rs.2,470 crore during the same quarter a year ago,” Reliance Capital said.
On stand-alone basis, there was a 22% rise in net profit at Rs.213 crore in June quarter of 2016-17, against Rs.175 crore year ago.
Total stand-alone income increased to Rs.1,007 crore for quarter from Rs.946 crore for same quarter year ago.
Besides, it informed for demerger of its commercial finance business to its wholly-owned subsidiary—Reliance Commercial Finance, the Scheme for Arrangement has been approved. “The appointed date for the scheme is 1 April.”
The scheme is subject to requisite approvals. Accordingly, aforesaid commercial finance division has been considered as discounting operations,” it said. The related income tax for concerned commercial finance business is Rs.15 crore and profit after tax is Rs.42 crore for the quarter ended 30 June.
Post demerger, the company would be applying to the Reserve Bank for registering itself as a core investment company, it added. Part of Reliance Group, Reliance Capital provides services in asset and mutual fund management, commercial finance, life and general insurance, equities and commodities broking, wealth management services, distribution of financial products, asset reconstruction and proprietary investments. PTI
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