Reliance Cap Bottomline Dips To Rs 101.51 Crore

The net profit of Reliance Capital Ltd (RCL) has fallen to Rs 101.51 crore for the year ended March 31, 1997, from Rs 110.92 crore during the previous year, due to a maiden corporate tax payment and a rise in expenditure. The result also falls short of the projections made in December 1994.

Total income rose to Rs 222.86 crore from Rs 217.55 crore and total expenditure to Rs 26.94 crore from Rs 14,15 crore. After interest and finance charges of Rs 31.37 crore (Rs 31.71 crore), gross profit was at Rs 164.58 crore compared with Rs 171.69 crore posted previously.

 

However, due to reduction in depreciation to Rs 45.98 crore from Rs 60.72 crore, the pre-tax profit was higher by around nine per cent at Rs 118.57 crore from Rs 110.97 crore.

After the first time corporate tax provision of Rs 17.06 crore (nil), the net profit fell to Rs 101.51 crore from Rs 110.92 crore.

Reserves of the company increased to Rs 925 crore from Rs 860 crore and the annualised earnings per share dropped to Rs 8.19 from Rs 9.28. RCLs cash earning per shares for the year stood at Rs 11.90 and book value at Rs 82 per share.

The board of directors have recommended a dividend of 28 per cent (27 per cent) representing a payout of Rs 34.75 crore (Rs 32 crore). RCL will additionally bear the dividend tax of 10 per cent amounting to Rs 3.48 crore.

According to a RCL press release, the entire dividend will be tax-free in the hands of the shareholders.

Total income at Rs 222.86 crore badly fell short of the projection which was at Rs 537 crore, while profit after tax at Rs 101.51 crore was below the estimated Rs 138 crore projection.

Consequently, the earnings per share at Rs 8.19 was short of the projected Rs 10.90.

The dividend is, however, higher at 28 per cent than the project 25 per cent.

According to RCL, the variation between the projected and actual figures is attributable to the continuing depressed conditions in the capital markets which affected resource mobilisation and the overall business.

That apart, higher provisions and write offs also affected the bottomline.