Reliance Cap posts Rs 101 cr profit for Oct-Dec 2012

Its total income rose to Rs 1,716 cr in the third quarter ended Dec 2012

Reliance Capital today said its consolidated net profit for the quarter ended December 31, 2012 increased by 68% from a year ago to Rs 101 crore. The reversal of losses in the general insurance arm and growth in profits of life insurance and commercial finance businesses aided the company's earnings during the quarter.

The financial services firm's consolidated total income grew by 7% to Rs 1,716 crore.

"Each of our businesses performed well during the quarter. Our general insurance business has turned profitable and we are confident of growing this business profitably in coming quarters. Life insurance business will also continue to see good growth," Sam Ghosh, chief executive officer of Reliance Capital, told Business Standard.

Reliance General Insurance made a profit of Rs 16 crore in October-December quarter compared to a loss of Rs 34 crore in the corresponding period previous year. The life insurance arm's profit surged 296% to Rs 40 crore from Rs 10 crore.

Higher yields and improved cost efficiencies allowed Reliance Commercial Finance to report 29% rise in profit before tax. The outstanding loan book, however, narrowed to Rs 13,764 crore at the end of last quarter from Rs 14,252 crore a year ago.

Reliance Capital closed the quarter with total assets of Rs 39,753 crore, an increase of 26%. The investment portfolio of listed equities was Rs 1,489 crore at cost at the end of December, 2012. The company's net worth stood at Rs 11,819 crore.

Ghosh said there was no immediate need to inject capital in any of the businesses.

Reliance Capital shares today closed at Rs 468.65 on the National Stock Exchange (NSE), down 1.76% from previous close.