Reliance Cap net drops 52%

Reliance Capital, the financial services arm of the Reliance-Anil Dhirubhai Ambani (R-ADA) group, reported a 52 per cent fall in consolidated net profit at Rs 63 crore for the quarter ended December 31, 2009, against Rs 132 crore in the same quarter the previous financial year.

On a standalone basis, the company’s net profit fell 64 per cent to Rs 41.29 crore, compared with Rs 114.43 crore in the quarter ended December, 2008.

“Lower capital gains were booked this quarter, owing to the planned partial stake sale later this year in the operating businesses, subject to necessary approvals… The full benefit of this unlocking of value will form a part of Reliance Capital’s net profit for the current financial year,” the company said in a statement.

Reliance Capital Asset Management, the country’s largest fund house, saw its assets under management grow 71 per cent to Rs 1,19,982 crore as of December 31, 2009, compared with Rs 70,208 crore.

RCap recorded an 86 per cent rise in net profit to Rs 48 crore from Rs 26 crore at the end of the previous quarter.

Reliance Life Insurance saw a 40 per cent increase in total premium to Rs 1,603 crore, against Rs 1,148 crore a year ago. New business premium was at Rs 92 crore in the reporting quarter, against Rs 830 crore in the corresponding quarter a year ago — an increase of 11 per cent. The capital invested in this business till date is Rs 2,808 crore.

The general insurance arm reported a marginal 2 per cent increase in gross direct premium against Rs 509 crore in the December 2008 quarter.