Rel Cap net profit plunges 56%

Reliance Capital, the financial services arm of the Anil Dhirubhai Ambani Group (ADAG), posted a muted profit in the first quarter ended June 30, 2009.

Reliance Capital, the financial services arm of the Anil Dhirubhai Ambani Group (ADAG), posted a muted profit in the first quarter ended June 30, 2009. The company posted a net profit of Rs 151 crore for the quarter, a 56 per cent drop from Rs 343 crore a year earlier.

HT Image

“The lower capital gains were booked in this quarter as we expect substantial gains from a planned stake sale in Reliance Life Insurance later this year,” a Reliance Capital spokesperson said, adding its subsidiary Reliance Life Insurance had shown healthy growth of 20 per cent.

Reliance Capital’s consolidated total income also decreased 3 per cent to Rs 1,469 crore. However, the company has posted growth in all its major businesses, with total customer base crossing 17 million.