Reliance Cap Q2 net dips 28% to Rs112 cr

Reliance Cap Q2 net dips 28% to Rs112 cr

Mumbai: Anil Ambani group firm Reliance Capital on Saturday reported a 28% decline in net profit at Rs112 crore for the second quarter ended 30 September, mainly on account of loss from its general insurance business.

The total income of the company fell to Rs1,299.8 crore during the September quarter, from Rs1,466.4 crore in the year-ago period, a decline of 11%, Reliance Capital said in a filing to the Bombay Stock Exchange.

The company attributed the decrease in total income and net profit to lower capital gains and loss from general insurance business.

Of the group companies, Reliance General Insurance (RGI) reported a loss of Rs28 crore in the September quarter on account of high claims from its health portfolio.

The company has narrowed the loss from Rs39 crore in the same quarter of FY10. “RGI has re-priced its health products and also significantly reduced its exposure to the unprofitable Group Mediclaim. This has enabled the company to reduce its losses in Q2 FY11," the company said.

At the end of the September quarter, the net worth of the company stood at Rs7,963 crore ($2 billion).

The revenues from Reliance Capital Asset Under Management grew to Rs163 crore, from Rs149 crore.

However, revenue from the consumer finance segment of the non-banking financial company fell to Rs312 crore, from Rs345 crore in the year-ago period.