Reliance Capital announces Q3FY19 results

Q3 FY19 NET PROFIT ROSE TO RS. 213 CRORE (US$ 30 MILLION), TOTAL INCOME OF RS. 5,016 CRORE (US$ 717 MILLION)

Reliance Capital Limited (RCL) today announced its financial results for the quarter ended December 31, 2018. The performance highlights are:

Consolidated results – quarter ended December 31, 2018

  • Q3 FY19 Total income of Rs. 5,016 crore (US$ 717 million), as against Rs. 5,386 crore in the corresponding previous period
  • Q3 FY19 Net profit at Rs. 213 crore (US$ 30 million), as against a profit of Rs. 6 crore in the corresponding previous period
  • Q3 FY19 Earnings per share of Rs. 8.5 (US$ 0.12)

Credit Rating:

As on December 31, 2018, the Company had a net debt equity ratio of 5.7. It continues to enjoy the highest rating of ‘A1+’ by ICRA for its short term borrowing program, and ‘CARE AA’ by CARE for its long term borrowing program.

Operational Review:

As on December 31, 2018, the total assets of the Company stood at Rs. 89,400 crore (US$ 12.8 billion) – an increase of 7%.

The Company has not raised any fixed deposits from the public.

The consolidated results have been prepared in line with Ind AS. Insurance companies are not covered under Ind AS. Accordingly, the standalone results of Reliance General Insurance and Reliance Nippon Life Insurance have been disclosed on the basis of IRDAI reporting.

Businesses:

Reliance Nippon Life Asset Management (RNAM)

  • RNAM is India’s largest asset manager, with assets under management (AUM), as on
    December 31, 2018, at Rs. 4,14,362 crore (US$ 59.2 billion) – a YoY increase of 7%
  • For the quarter ended December 31, 2018, the income from operations was
    Rs. 404 crore (US$ 58 million)
  • For the quarter ended December 31, 2018, profit after tax was Rs. 110 crore
    (US$ 16 million)
  • As on December 31, 2018, Reliance Mutual Fund had a wide distribution network across approx. 300 locations and over 72,500 empanelled distributors across India

Reliance Commercial Finance (“Reliance Money”)

  • Reliance Money is amongst the leading SME lenders in the Indian non banking finance space, with a focus on transforming itself into a diversified and new-age finance solutions provider, both in the commercial and consumer finance space
  • Reliance Money offers a wide range of products which include SME Loans, Microfinance, Loans Against Property (LAP), Infrastructure Finance, Agriculture Loans, Supply Chain Finance, Two-wheeler Financing and Used Car Loans
  • As on December 31, 2018, the assets under management (including securitized portfolio) was Rs. 17,257 crore (US$ 2.5 billion)
  • As on December 31, 2018, the outstanding loan book was Rs. 15,527 crore (US$ 2.2 billion) – a YoY increase of 5%
  • For the quarter ended December 31, 2018, the total income rose to Rs. 525 crore (US$ 75 million)
  • For the quarter ended December 31, 2018, profit before tax was Rs. 69 crore (US$ 10 million) – a YoY increase of 12%
  • As on December 31, 2018, the gross NPA ratio improved to 2.9% as against 4.4% as
    on December 31, 2017

Reliance Home Finance (RHF)

  • RHF provides a wide range of loan solutions like Home Loans, Affordable Housing Loans, LAP and Construction Finance. RHF also provides property services that help customers find their dream homes / properties
  • As on December 31, 2018, the assets under management (including securitized portfolio) was Rs. 18,288 crore (US$ 2.6 billion) – a YoY increase of 24%
  • As on December 31, 2018, the outstanding loan book was Rs. 16,160 crore (US$ 2.3 billion) – a YoY increase of 26%
  • For the quarter ended December 31, 2018, the total income was Rs. 516 crore (US$ 74 million) – a YoY increase of 22%
  • For the quarter ended December 31, 2018, the profit before tax was Rs. 88 crore (US$ 13 million) – a YoY increase of 30%

Reliance General Insurance (RGI)

  • RGI offers insurance solutions for auto, health, home, property, travel, marine, commercial and other speciality products
  • RGI is amongst the leading private sector general insurance companies in India. It has a private sector market share of 8.2%, in terms of gross premium, of the private sector general insurance industry (for the quarter ended December 31, 2018)
  • For the quarter ended December 31, 2018, the Gross Written Premium was Rs. 1,316 crore (US$ 188 million) – a YoY increase of 22%
  • For the quarter ended December 31, 2018, the profit before tax was Rs. 34 crore (US$ 5 million) – a YoY increase of 20%
  • As on December 31, 2018, the investment book stood at Rs. 9,839 crore (US$ 1.4 billion) – a YoY increase of 30%
  • As on December 31, 2018, the net worth was Rs. 1,537 crore (US$ 220 million) – a YoY increase of 13%
  • As on December 31, 2018, RGI had a distribution network of over 130 branches and approx. 29,600 agents

Reliance Nippon Life Insurance (RNLI)

  • RNLI is amongst the leading private sector life insurance companies in terms of new business premium with a market share of 1.4% of the private sector life insurance industry (for the quarter ended December 31, 2018)
  • For the quarter ended December 31, 2018, the New Business Premium was Rs. 243 crore (US$ 35 million) – a YoY increase of 13%
  • For the quarter ended December 31, 2018, the Renewal Premium was Rs. 793 crore (US$ 113 million)
  • For the quarter ended December 31, 2018, the Total Premium (net of reinsurance) increased to Rs. 1,030 crore (US$ 147 million) – a YoY increase of 3%
  • The 13th month persistency improved to 75% as on December 31, 2018, as against 69% as on December 31, 2017
  • As on December 31, 2018, the total funds under management stood at Rs. 20,202 crore (US$ 2.9 billion) – a YoY increase of 7%
  • The business made a marginal profit in the quarter ended December 31, 2018
  • As on December 31, 2018, the distribution network stood at over 725 offices and over 59,200 active advisors across India

Broking and Distribution businesses

  • Reliance Securities, one of the leading retail broking houses in India, provides a varied customer base with access to equities, equity options and wealth management solutions
  • The Distribution business is a comprehensive financial services and solutions provider, assisting customers with access to mutual funds, insurance products and other financial products, and has a pan India presence with over 1,300 customer touch points
  • In equity broking, as on December 31, 2018, there were over 8,83,000 broking accounts, an increase of 4%, with an average daily stock exchange turnover of
    Rs. 5,122 crore (US$ 732 million) – a YoY increase of 13%
  • In commodity broking, as on December 31, 2018, the commodity broking accounts rose by 9% to approx. 1,07,000, with average daily commodities turnover of over Rs. 335 crore (US$ 48 million) – a YoY increase of 24%
  • As on December 31, 2018, wealth management AUMs was over Rs. 3,750 crore (US$ 537 million)
  • For the quarter ended December 31, 2018, the total income was Rs. 84 crore (US$ 12 million) – a YoY increase of 25%
  • For the quarter ended December 31, 2018, the profit after tax was Rs. 7 crore (US$ 1 million)

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