1. Reliance Capital Q1 profit up 23%

Reliance Capital Q1 profit up 23%

Reliance Capital, a part of Anil Ambani-controlled Reliance Group, posted a consolidated net profit of Rs 201 crore for April-June quarter, a growth of 22.6% from the corresponding quarter a year ago helped by a robust growth in income from operations.

By: | Published: August 15, 2015 12:12 AM

Reliance Capital, a part of Anil Ambani-controlled Reliance Group, posted a consolidated net profit of Rs 201 crore for April-June quarter, a growth of 22.6% from the corresponding quarter a year ago helped by a robust growth in income from operations.

The company’s income from operations rose 14.3% to R2,417 crore compared with R2,115 crore during the same quarter in the last fiscal. The biggest contributor for the company’s bottomline was its mutual fund arm the profit of which rose 21% to R108 crore. “We have gone into alternate investment fund. Offshore funds have also started growing,” Sam Ghosh, group chief executive officer of the non-banking finance company said.

The NBFC’s mutual fund arm, Reliance Capital Asset Management Co recorded a profit before tax (PAT) of R108 crore for the quarter, up by 21%. The company managed assets worth R2.43 lakh crore as of June 30, spanning pension funds, offshore funds and mutual funds.

The mutual fund’s average asset under management increased 28% to R1.45 lakh crore. Reliance Commercial Finance’s PAT rose 145% to R80 crore, while Reliance Life Insurance’s profit rose marginally by 2% to R35 crore on a year-on-year basis.

Reliance General Insurance’s profit rose 22% to R30 crore. Ghosh said that the company would be focusing on housing finance business, broking and distribution businesses, and commodity exchange business.

“In housing finance our AUM has gone up by over rs 6,000 crore. We will focus on affordable housing as well now. We are targeting an AUM of R10,000 crore this year,” Ghosh said.

The company will also go for a rights issue to help grow its commodity exchange business, Ghosh added. Shares of Reliance Capital closed 3.83% higher at R351.40 per share.

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