Reliance Capital Q2 net plunges 70%

Anil Ambani Group company Reliance Capital today reported 70.12% fall in net profit to Rs 33.45 crore for the second quarter ended September 30, 2011, mainly on account of the higher interest rate environment.

The company had posted a net profit of Rs 111.97 crore in the July-September quarter of 2010.

However, the company's total income during the quarter rose to Rs 1,546 crore from Rs 1,300 crore in the same period last fiscal, it said in a filing to the Bombay Stock Exchange (BSE).

During the first six months of the current fiscal, the company's net profit fell by 64.24% to Rs 68.28 crore from Rs 190.98 crore in the April-September period of FY11, it said.

The company's total income during the first half of FY12 rose to Rs 3,038.20 crore from Rs 2,566.67 crore in the same period of last fiscal, it added.

Earnings per share also decreased by 66.25% to Rs 1.36 from Rs 4.03 in corresponding period a year ago.

As on September 30, 2011, the total assets of the company stood at Rs 33,356 crore, an increase of 11% over the year-ago period.

While Reliance Life Insurance recorded a profit of Rs 8 crore, Reliance General Insurance posted a loss of Rs 29 crore.

Reliance Life Insurance had posted a net loss of Rs 42 crore in the year-ago period.

Reliance Capital is one of India's leading private sector financial services companies. It ranks among the top four private sector financial services and banking groups in terms of its net worth.

Shares of the company settled marginally up by 0.03% at Rs 358.90 on the BSE.