Anil Ambani group firm Reliance Capital reported a 43 per cent decline in net profit to Rs 60 crore for the third quarter ending December 2011on Friday.
The financial services company had a consolidated net profit of Rs 106 crore in the October-December quarter of previous fiscal.
The company attributed the decline in profit mainly to “47 per cent increase in interest costs and a loss of Rs 34 crore from general insurance business”.
The total income rose 16 per cent to Rs 1,587 crore during the December quarter,Reliance Capital said in a regulatory filing to the BSE.
During the April-December 2011,Reliance Capital’s net profit fell to Rs 128 crore,down 57 per cent from Rs 298 crore in the corresponding period a year ago.
As on December 2011,the company’s networth stood at Rs
During the quarter,Reliance Capital completed the sale of 26 per cent stake in its life insurance venture Reliance Life to Japan’s Nippon Life.
“The proceeds of over Rs 2,700 crore from 26 per cent strategic stake sale of Reliance Life Insurance to Nippon Life,were used to bring down debt at Reliance Capital,” the filing added.
During the quarter,the life insurance business reported a profit of Rs 10 crore and commercial finance arm posted a profit of Rs 65 crore.
The company further said that Nippon Life has entered into an agreement to acquire a 26 per cent stake in Reliance Capital Asset Management (RCAM) for Rs 1,450 crore and the “transaction is expected to close shortly”.
At the end of December quarter,the average assets managed by RCAM stood at Rs 82,306 crore.
On a standalone basis,Reliance Capital posted a 3-fold growth in net profit at Rs 15 crore for the December quarter.
Shares of Reliance Capital closed at Rs 409.85,down 3.28 per cent over previous close on the BSE.