Delhi News

Reliance Capital Reverses Losses Reports Rs 215 Crore Profit In Q2

Reliance Capital swings to black with net profit of Rs 215 crore in September quarter

New Delhi:

Reliance Capital (RCap), which is undergoing insolvency process, on Friday swung back to the black and posted a consolidated net profit of Rs 215.23 crore for the quarter ended September 2022.

The non-banking finance company had posted a consolidated net loss of Rs 1,115.56 crore in the year ago quarter ended September 2021. Also, there was a net loss of Rs 491.40 crore in the preceding quarter ended June 2022.

The profit before tax stood at Rs 289.74 crore for the reported quarter, while there was a loss before tax of Rs 1,114.52 crore in the year-ago quarter.

However, for the half year from April-September period of the current fiscal, the debt-ridden company remained in the red with net loss of Rs 276.17 crore. But the loss was trimmed against Rs 2,161.80 crore registered in the first half of 2021-22.

The company had posted a net loss of Rs 8,054.74 crore in fiscal ended March 2022.

The company’s total income during July-September quarter of this fiscal year grew to Rs 6,046.65 crore, as against Rs 6,001.67 crore in same period of 2021-22, Reliance Capital said in a regulatory filing.

For the half year ended September 2022, revenues were tad lower at Rs 9,651 crore from Rs 10,448.87 crore during the April-September period of the previous fiscal.

Reliance Capital is engaged in the business of finance and investments, general and life insurance, commercial finance and others.

Reserve Bank of India (RBI) had in November 2021 superseded the board of directors of Reliance Capital and appointed Nageswara Rao Y as the administrator of the company as per the RBI Act in the aftermath of debt defaults issues leading to erosion of capital.

The regulator also appointed a three-member advisory committee to assist the administrator of the company to discharge his duties.

In December 2021, the Mumbai bench of the National Company Law Tribunal(NCLT) ordered to initiate the Corporate Insolvency Resolution Process (CIRP) against the company under the provisions of the Insolvency and Bankruptcy Code, 2016.

On a standalone basis, Reliance Capital posted a net loss of Rs 25.67 crore in Q2FY23, however, it was narrowed from Rs 253.21 crore loss in the year-ago quarter. In June 2022 quarter, it posted a net loss of Rs 214.75 crore.

For the half year ended September 2022, there was a net loss of Rs 240.42 crore, down from Rs 586.33 crore year on year.

Reliance Capital had as many as 20 subsidiaries (including step-down subsidiaries) at end of September 30, 2022. Of these, Reliance Commercial Finance and Gullfoss Enterprises Pvt Ltd ceased to be a subsidiary with effect from October 14, 2022.

Besides, it had 5 associate companies as well, of which two ceased to be its subsidiaries from October 14, 2022.

Stock of Reliance Capital closed at Rs 11.22 apiece on BSE, up 4.76 per cent from its previous close. 

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