Reliance Capital’s net profit fell sharply by 94 per cent to Rs 8 crore during the quarter ended June 2012, owing to flat business growth and higher provisioning. The financial services firm had posted net profit of Rs 138.72 crore during the corresponding quarter last year.
During the June 2012 quarter, the company’s revenue remained flat at Rs 704 crore. Expenditure increased 43 per cent to Rs 160 crore from Rs 112 crore. Reliance Capital made provisions of Rs 62 crore for marked-to-market losses this quarter compared with Rs 7 crore in the corresponding quarter last year, a more than seven-fold increase. The company’s income from operation fell from Rs 697 crore in the June 2011 quarter to Rs 694 crore in the June 2012 quarter. On Friday, the company’s shares closed down three per cent to Rs 340.95 on the BSE.