Reliance Capital Announced Fourth Quarter Results
Reliance Capital (RCL) is one of India's leading and amongst the most valuable financial services companies in the private sector. The company has interests in asset management and mutual funds, life and general insurance, commercial finance, equities and commodities broking, wealth management services, distribution of financial products, asset reconstruction, proprietary investments and other activities in financial services.
RCL recently announced consolidated quarterly and yearly result of FY2015. The company's total income rose by 38.09 per cent to Rs 2469 crore in Q4FY15 on yearly basis. Its total expenditure increased by 52.55 per cent from Rs 881 crore Q4FY14 to Rs 1344 crore in Q4FY15. Total expenditure of RCL increased largely due to a 156.65 per cent increment in other expenses, a 115.56 per cent increment in reinsurance premium expense during the same period.
RCL's EBITDA increased by 24.04 per cent and stood at Rs 1125 crore in Q4FY15 against Rs 907 crore in Q4FY14. However, EBITDA margin of the company contracted by 516 basis points to 45.57 per cent in Q4FY15 on yearly basis. Its Net profit boosted by 52.43 per cent to Rs 407 crore in Q4FY15 on yearly basis though interest expense increased by just 0.64 per cent to Rs 632 crore during the quarter. But tax expenses of RCL increased by 15.85 per cent to Rs 95 crore in Q4FY15 compared to same period of previous fiscal year. The company's Net profit margin expanded by 155 basis points to 16.48 per cent in Q4FY15 on yearly basis.
Segment wise, RCL contributed revenue about 32.88 per cent of net sales amounting to Rs 839 crore from general insurance segment, 29.9 per cent of net sales amounting to Rs 763 crore from finance segment, 25.2 per cent of net sales amounting to Rs 643 crore from consumer finance segment, 9.84 per cent of net sales amounting to Rs 251 from asset management segment and remaining 2.19 per cent of net sales amounting to Rs 56 crore from others in Q4FY15.
Considering full year result, RCL's total income boosted by 17.87 per cent from Rs 7455 crore in FY14 to Rs 8787 crore in FY15. Total expenditure of the company increased by 18.98 per cent to Rs 4920 crore in FY15 compared to previous financial year. Its total expenditure increased primarily due to a 45.94 per cent increment in reinsurance premium expenses, a 16.63 per cent increment in other expenses, a 15.69 per cent increment in employee cost, a 12.47 per cent increment in net incurred claims expense during the same period.
RCL posted Rs 3867 crore EBITDA in FY15 with growth of 16.48 per cent compared to Rs 3320 crore in FY14. However, company's EBITDA margin contracted by 52 basis points to 44.01 per cent in FY15 on yearly basis. Its PBT increased by 45.34 per cent to Rs 1231 crore in FY15 on yearly basis though interest expense increased by 5.64 per cent to Rs 2642 crore during the year. RCL's Net profit increased by 34 per cent from Rs 747 crore in FY14 to Rs 1001 crore in FY15 because Nippon Life Insurance Company acquired 9 per cent stake for Rs 657 crore from Reliance Capital Asset Management during the year. But, share of associates profit declined by 51.53 per cent to Rs 79 crore in FY15 on yearly basis. Its net profit margin expanded by 137 basis points to 11.39 per cent in FY15 compared to previous fiscal year. Total Assets base of RCL was Rs 47440 crore in FY15 with growth of 4 per cent on yearly basis.
Segment wise, RCL contributed revenue about 37.89 per cent of net sales amounting to Rs 3389 crore from general insurance segment, 26.39 per cent of net sales amounting to Rs 2361 crore from consumer finance segment, 22.88 per cent of net sales amounting to Rs 2047 crore from finance segment, 9.49 per cent of net sales amounting to Rs 849 from asset management segment and remaining 3.34 per cent of net sales amounting to Rs 299 crore from others segment in FY15. Net interest margin of consumer finance segment improved to 5.9 per cent in FY15 against 5.5 per cent in FY14. Reliance Capital Asset Management manages Rs 244649 crore across mutual funds,pension funds,managed accounts and offshore funds. Reliance Mutual Fund's assets under management were at Rs 137124 core in FY15 with growth of 32 per cent on yearly basis.
RCL's shareholding pattern indicates that FII holding contracted by 27 basis points to 17.14 per cent and DII holdings expanded by 30 basis points to 12.09 per cent in March 2015 quarter.
Gujarat International Finance Tec-City allotted 5 lakh square feet space to RCL. Sumitomo Mitsui Trust Bank acquired 2.8 per cent stake amounting to Rs 371 crore in the company through preferential allotment.