Anil Ambani group firm Reliance Capital today reported a 28 per cent decline in net profit at Rs 112 crore for the second quarter ended September 30, mainly on account of loss from its general insurance business.
The total income of the company fell to Rs 1,299.8 crore during the September quarter, from Rs 1,466.4 crore in the year-ago period, a decline of 11 per cent, Reliance Capital said in a filing to the Bombay Stock Exchange.
The company attributed the decrease in total income and net profit to lower capital gains and loss from general insurance business.
Of the group companies, Reliance General insurance reported a loss of Rs 28 crore in the September quarter on account of high claims from its health portfolio.
The company has narrowed the loss from Rs 39 crore in the same quarter of FY'10. "RGI has re-priced its health products and also significantly reduced its exposure to the unprofitable Group Mediclaim. This has enabled the company to reduce its losses in Q2 FY'11," the company said.
At the end of the September quarter, the net worth of the company stood at Rs 7,963 crore (USD 2 billion). The revenues from Reliance Capital Asset Under Management grew to Rs 163 crore, from Rs 149 crore.
However, revenue from the consumer finance segment of the non-banking financial company fell to Rs 312 crore, from Rs 345 crore in the year-ago period.