RCap Q1 net dips 94% to Rs 8 cr

Profit suffers heavily due to higher provisioning and flat business growth

Reliance Capital today reported a sharp 94 per cent decline in its net profit to Rs 8 crore for the first quarter ended June 2012, on account of higher provisioning and flat business growth.

The company had a standalone net profit of Rs 138 crore in the April-June quarter of last fiscal.

The company's income from operations dipped marginally to Rs 694 crore during the June quarter, from Rs 697 crore in the corresponding period last fiscal.

According to the regulatory filing to the BSE, the company has made a provisioning of Rs 62 crore towards diminution in the value investment and Mark to Market (MTM) losses during the June quarter.

This raised the total expenses to Rs 167 crore in June quarter, from Rs 117 crore in the same period of 2011-12.

On a consolidated basis, Reliance Capital posted a 30 per cent increase in net profit at Rs 45 crore for the first quarter ended June 2012.

The company had a net profit of Rs 35 crore in the April- June quarter of the previous fiscal.

On a consolidated basis, total income of the company increased 12 per cent to Rs 1,676 crore.

As of June 2012, the net worth of the financial services company stood at Rs 11,754 crore.

The company's consolidated business includes operations from Asset management, life and general insurance, commercial finance and broking business.