Reliance Capital net profit misses estimates

Anil Ambani's Reliance Capital reported net profit of Rs 207 crore for the June quarter ended 2016 (Q1FY17), sequentially rising by 2.98% against Rs 201 crore in the corresponding period of the previous year. 

However, the current net profit has under-performed by declining over 50% compared to Rs 415 crore of the preceding quarter. 

Total income was around Rs 3642 crore, growing by 47.86% yoy (year-on-year) and 29.74% qoq (quarter-on-quarter). 

While operating profit (EBITDA - earnings before interest tax depreciation and amortization) was at Rs 1037 crore, up by 6.35% yoy but down by 28.28% qoq. It's operating profit margin stood at 28.47%, contracting by 1111 basis points yoy and 2304 basis points qoq. 

On standalone basis, the company's net profit of Rs 213 crore, which was up by 21.71% yoy but down by 59.50% qoq. Also, total income was at Rs 928, declining by 0.64% yoy and 31.66% qoq. 

Net interest income (NII) stood at Rs 375 crore, registering growth of 2.17% yoy. However, it declined by 51.55% against the preceding quarter. 

As on June 30, 2016, the company's net worth has rose by 13% to Rs 15,63 crore. Total asset of Reliance capital has increased by 40% to Rs 69.356. 

On segment wise revenue break-up, the company's life insurance segment was at Rs 1098 crore which was not comparable. 

It's life insurance segment has supported in boosting the top-line, as Reliance Nippon Life Insurance company became a subsidiary of the company, which was effective from start of the current financial year.