Reliance Capital net profit down by 33% in FY11

Anil Dhirubhai Ambani group firm Reliance Capital on Monday reported 33 per cent drop in consolidated net profit at Rs 291.2 crore for 2010-11.

The financial services company had a net profit of Rs 434.5 crore in the year-ago period.

The company's total income also declined 10 per cent to Rs 5,498.5 crore during the year, from Rs 6,140.6 crore in a year ago, Reliance Capital Informed the Bombay Stock Exchange.

The net profit was down due to one time provisioning of Rs 183.7 crore on account of change in provisioning norms relating to commercial motor third party pool losses in general insurance, as intimated by the regulator, it said.

Nearly, 100 per cent of the company's operating profit was contributed by its core businesses of asset management, commercial finance and brokering and distribution as against 56 per cent in the previous year.

Operating profits from core businesses stood at Rs 600 crore, an increase of 43 per cent.

The Reliance Capital board has proposed a dividend of 65 per cent, or Rs 6.50 a piece, on shares of face value of Rs 10 for 2010-11.

The company's investment portfolio of listed equities, as on March 31, amounted to Rs 1,670.2 crore. The company has not raised any fixed deposits from the public during the period, it said.

Shares in the company gained 2.59 per cent to close at Rs 500.40 on BSE.