Reliance ADAG companies register smart profits

Reliance Anil Dhirubhai Ambani Group (ADAG) company Reliance Capital has posted a net profit of Rs 181 crore and revenue of Rs 1,869 crore for second quarter of current financial year, helped by robust growth in insurance, commercial finance and mutual fund businesses.

The company had posted a net profit of Rs 401 crore and revenue of Rs 2,431 crore in the same quarter last financial year, but the figures are not comparable as the year-ago period included significant one-time capital gains from sale of stake in mutual fund unit.

Announcing its results for the quarter ended September 30, 2013, the company said its second quarter net profit nearly tripled after excluding the one-time gains while revenue has risen by 20 per cent for the same period.

Reliance Capital had sold 26 per cent stake in its mutual fund arm Reliance Capital Asset Management for Rs 1,450 crore to Japan's Nippon Life last year. The company said that excluding the one-time gains from this transaction in the second quarter of last financial year, its net profit grew by 201 per cent to Rs 181 crore in July-September quarter of FY 2013-14, from Rs 60 crore in year-ago period.

The revenue rose by 20 per cent to Rs 1,869 crore, from Rs 1,554 crore in the corresponding period.

Reliance Capital is a leading non-banking financial services entity in the country with presence across insurance, mutual fund and brokerage businesses among others. Besides, it is one of the 26 entities that have applied for banking license to RBI.

Among individual businesses, Reliance Life Insurance net profit rose by 338 per cent to Rs 136 crore in the second quarter of current financial year, while general insurance unit has recorded a net profit of Rs 16 crore (as against a loss of Rs 105 crore in second quarter of last fiscal).

Reliance Commercial Finance net profit has risen by 27 per cent to Rs 91 crore, while Reliance Capital Asset Management net profit grew by 16 per cent to Rs 67 crore.

The company said that the new business premium for life insurance unit has risen by 58 per cent to Rs 509 crore, while total funds under management stood at Rs 17,525 crore as on September 30, 2013.

Reliance Capital Asset Management managed Rs 1,76,089 crore as on September 30, 2013 across mutual funds, pension funds, managed accounts and offshore funds.

Its broking business posted a revenue of Rs 50 crore for the quarter, while distribution business generated revenue of Rs 35 crore for the same period (up 25 per cent).