Reliance Cap net dips 28% to Rs 112 cr

Anil Ambani group company Reliance Capital today reported a 28 per cent decline in net profit at Rs 112 crore for the second quarter ended September 30, mainly on account of losses in its general insurance business.

The total income fell to Rs 1,299.8 crore during the September quarter, from Rs 1,466.4 crore in the year-ago period, a decline of 11 per cent, Reliance Capital said in a filing to the Bombay Stock Exchange. The company attributed the fall in income and net profit to lower capital gains and losses from its general insurance business.

Of the group companies, Reliance General Insurance (RGI) reported a loss of Rs 28 crore on account of high claims in its health portfolio. The company has narrowed the loss from Rs 39 crore in the same quarter of the previous financial year.

“RGI has re-priced its health products and also significantly reduced exposure to the unprofitable Group Mediclaim. This has enabled the company to reduce losses,” the company said.

At the end of the September quarter, the net worth of the company stood at Rs 7,963 crore (USD 2 billion). The revenues from Reliance Capital Asset Under Management grew to Rs 163 crore, from Rs 149 crore. However, revenue from the consumer finance segment of the non-banking financial company fell to Rs 312 crore, from Rs 345 crore in the year-ago period.