R-Cap turns green, posts Rs 329-cr profit

Aided by the sale of stake in its asset management business to Japan’s Nippon Life Insurance Co, Reliance Capital Ltd (R-Cap), the financial services arm of the Anil Ambani-led Reliance Group, reported a consolidated net profit of Rs 329 crore in the quarter ended March 31, compared to a net loss of Rs 6 crore in the year-ago period.

The company’s consolidated income went up by 25 per cent to Rs 2,002 crore in the quarter, against Rs 1,600 crore a year earlier.

Consolidated net profit would be Rs 507 crore if one-time provisioning for third- party motor claims were not taken into account, the company said.

During the quarter, R-Cap sold 26 per cent stake in Reliance Mutual Fund to Nippon Life Insurance for Rs 1,450 crore. The deal is expected to be closed shortly.

R-Cap’s consolidated net profit for 2011-12 rose 57 per cent to Rs 458 crore against Rs 291 crore the year before. The company reported a 20 per cent rise in its total income at Rs 6,627 crore in last year, against Rs 5,536 crore in 2010-11 On a stand-alone basis, the company reported a threefold jump in the net profit at the Rs 356.14 crore for the March quarter, compared with Rs 112.4 crore in the corresponding period a year ago.

Total stand-alone income during January-March stood at Rs 1,135.6 crore, up from Rs 814.3 crore a year earlier.