Reliance Capital Q1 profit falls 55%

Consolidated profit of Anil Ambani group firm Reliance Capital dropped by 55 per cent to Rs 34.8 crore in the first quarter of the current fiscal, mainly on account of high interest rate regime.

The company posted a "net profit of Rs 34.8 crore, against Rs 77 crore in the corresponding period", an decrease of 55 per cent, mainly on account of higher interest rate environment," Reliance Capital said in a press release.

Earnings per share, too, decreased 55 per cent to Rs 1.42 against Rs 3.13 in the year-ago period, Reliance Capital said.

Total income during April-June 2011 quarter, it said, increased by 18 per cent to Rs 1,492.1 crore against Rs 1,266.9 crore in the corresponding period last fiscal.

Reliance Capital said its operating profits from major businesses increased by 78 per cent to Rs 104.7 crore from Rs 58.7 crore for the corresponding period in the previous fiscal.

As on June 30, 2011, the total assets of the company stood at Rs 32,419.4 crore, an increase of 19 per cent over the year-ago period.

While Reliance Life Insurance recorded a profit of Rs 8 crore, Reliance General Insurance posted a loss of Rs 39 crore.

Reliance Life Insurance during the quarter posted a profit of Rs 8 crore. In the year-ago period, it had reported a loss of Rs 122 crore.

Reliance General Insurance managed to curtail its losses to Rs 30 crore in the June quarter from Rs 39 crore in the corresponding quarter last fiscal.