Thursday, July 8, 2010

RELIANCE CAPITAL = MEDIOCRE IN FY10 = FUTURE HIGHLY RPOMISING = MANY INITIATIVES



Reliance Capital Limited
NSE Symbol RELCAPITAL
Reliance Capital Limited, a member of the ADAG Group has the following Businesses :
·        Reliance Asset Management – Mutual fund & offshore fund
·        Reliance Life Insurance
·        Reliance Consumer Finance – Home finance & Asset finance
·        Reliance Money – Broking, Distribution, Wealth Management &
·        Investment Banking
·        General Insurance
·        Other businesses
Its web site and Investor presentations show a number of initiatives being taken by the company – which are  at various stages of implementation and success. The company is also acquiring stakes in other companies like quant, Bloomberg UTV and so on.


RESULTS COMPARISON
The performance of Reliance capital limited has been mediocre in FY10 compared to the 2 preceding years both in respect of consolidated results and stand alone results. But, as earlier said, it has taken huge initiatives in respect of several businesses – which may pay off well in FY11.

CONSOLIDATED RESULTS

Net Sales for FY10 has come down by 1% to Rs.5895 Cr compared to Rs.5949 cr in FY09 but has shown increase of 23% compared to Rs.4793 Cr in FY08.
Total Expenditure has however increased by 19% in FY10 to Rs.4220 Cr compared to Rs.3551 Cr in FY09 and by 28% compared to Rs.3293 Cr in FY08. The main increase is under the head “other expenditure”. Thus operating profit itself is down by 22% compared to FY09.
Consolidated Net profit is down by 57% in FY10 to Rs.435 Cr compared to Rs.1016 Cr in FY09, and by 57%  compared to Rs.1009 Cr in FY08.
Consolidated Basic EPS is also therefore down by the same percentage of 57% to Rs.17.63 in FY10 compared to Rs.41.35 in FY09 and compared to Rs.41.08 in FY 08 – on the face value of Rs.10.
PE RATIO : At the current price of Rs.759, the price Earning Ratio is 43.05 – but on last year’s EPS, the PE is just 18.36.This would appear to indicate the market’s confidence in reliance capital bouncing back to its earlier levels quickly.
SEGMENT ANALYSIS : Further analysis reveals the following profits in the three Years of FY10,FY09 and FY08.
The major set back is in the segment of Finance and Investing whose profits have declined considerably. General Insurance continues to be unprofitable. Thus, it would appear that a pull back in finance and investment (including stock market related activities etc) and in the General Insurance segment – which of course requires a certain minimum period to pay back – will again see this ADAG company coming back to higher levels of profitability. Reliance Capital hopes to break even in General Insurance in FY11 –as per an investor presentation it made in May 2010.
A news item dated april22 nd 2010 - states as below on its Life insurance business :
Reliance Life Insurance, a part of Reliance Capital of the Reliance Anil Dhirubhai Ambani Group (ADAG), registered a record high market share of 14.51 percent in March 2010 ...

Thus – it seems, it is pushing its Life insurance business very hard to success.

Another news Item on its Asset Management segment is :

Reliance Asset Management (UK) Plc commenced operations from the Dubai International Financial Centre (DIFC) here Sunday to offer a full range of wealth and investment advisory services.

This improvement  on various fronts may continue further and reflect in Reliance capital performance in coming Quarters.
SEGMENT RESULT NUMBERS :
RESULTS                       FY10 
 Fy09
 Fy08
FIN & INV
34256
103751
119129
CON.FIN
13501
9165
586
ASSET MGMT
23027
11473
20543
UNALLOCATE
0
0
OTHERS
-2743
1153
GENINSURNC
-9055
-5017
-16284
Total
58986
120525
123974




CONSOLIDATED FIGURES :

FY10(lakhs)
Dif%1
Dif%2
Net Sales
589524
594868
479267
-1
23
Other Operating Income
21554
2741
12652
686
70
traded goods
31314
-
-
Employees Cost
53535
55407
40322
-3
33
Depreciation
6762
5671
4121
19
64
Other Expenditure
330377
294066
284905
12
16
Total Expenditure
421988
355144
329348
19
28
OP.PRT
189090
242465
-22
Other Income
2982
4334

-31
PBI EI
192072
246799

-22
Interest
133240
126384
40997
5
225
Pr.aft.Int bef.EI
58832
120415

-51
P  B T
58832
120415
121574
-51
-52
Tax Expense
14659
18109
20550
-19
-29
P A T
44173
102306
101024
-57
-56
Net Profit
44173
102306
101024
-57
-56
Minority Interest
1035
784
618
32
67
Shares of Associates
-316
-45
-500
602
-37
Consolidated NPT
43454
101567
100906
-57
-57
Dividend (%)
-
-
-
Face Value (in Rs.)
10
10
10
0
0
Paid-up Equity
24616
24616
24616
0
0
Reserves
-
-
-
Basic EPS bef EI
17.63
41.35
41.08
-57
-57



STAND ALONE
RESULTS

On a stand alone basis, the results indicate more or less a similar picture AS ABOVE.
Net Sales in FY10 has come down by 26% to Rs.2169 Cr compared to Rs.2947 Cr in FY09; but shows an increase of 5% compared to Rs.2067 Cr in FY 08.
However, stand alone Net Profit in down by 65% in FY10 to Rs.339 Cr from Rs.968 Cr in FY09, and by 67% to Rs.1025 Cr in FY08.
The stand alone Basic EPS is down by similar percentage in FY10 to Rs.13.82 from Rs.39.41 in FY09 and Rs.41.75 in FY08.
Dividend (%) has however been maintained at  65% - same as last year.
The company has been investing well in many other companies – whose results in terms of profits must accrue to reliance capital in FY11.

Stand Alone Figures :
FY10(lakhs)
Dif%1
Dif%2
Net Sales
216873
294744
206698
-26
5
Other Oprtg Income
19789
2741
1281
622
1445
Employees Cost
12163
14908
15786
-18
-23
Depreciation
1816
2122
1709
-14
6
Other Expenditure
56216
53322
32524
5
73
Total Expenditure
70195
70352
50019
0
40
Opr Profit
166467
227133

-27
Other Income
2326
4244

-45
PB I& EI
168793
231377

-27
Interest
125960
123675
40815
2
209
P A I. BEF.EI
42833
107702

-60
P B T
42833
107702
117145
-60
-63
Tax Expense
8891
10900
14600
-18
-39
P A T
33942
96802
102545
-65
-67
Net Profit
33942
96802
102545
-65
-67
Dividend (%)
65
65
55
0
18
Face Value (in Rs.)
10
10
10
0
0
Paid-up Equity
24616
24616
24616
0
0
Reserves
689970
674708
593711
2
16
Basic EPS(Rs.)
13.82
39.41
41.75
-65
-67
Public holding (No)
111190574
112558995
112808081
-1
-1
Public holding (%)
45.27
45.82
45.92
-1
-1

ANNOUNCEMENTS
TO THE
EXCHANGE

17-06-2010        Reliance Capital Limited has informed the Exchange regarding a press release vide its letter dated June 16, 2010, titled "Reliance Capital To Acquire 18% Interest in Bloomberg UTV".
03-05-2010        Reliance Capital Limited has informed the Exchange that the Board of Directors at its meeting held on April 30, 2010 have recommended a dividend of Rs. 6.50 per share of face value of Rs 10/- each for the year subject to the approval of the members of the Company.    -
01-05-2010        Reliance Capital Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 216873 lacs for year ending on 31-MAR-2010 against Rs. 294744 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 33942 lacs for the year ending on 31-MAR-2010 against Rs. 96802 lacs for the year ending on 31-MAR-2009.     -
22-02-2010        Reliance Capital Limited has informed the Exchange that "The Board of directors of the Company today i.e. on February 20, 2010 have noted the cash open offer to the public shareholders of Fame India Limited ("FIL"), a company listed on the Bombay Stock Exchange and the National Stock Exchange of India, being made by Reliance MediaWorks Limited ("RMW") as a competitive bid under Regulations 10, 12, 25(1) and 25(3) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (the "SEBI Takeover Regulations"), to acquire up to 2,16,00,000 equity shares of FIL constituting 62.08% of the fully paid up issued equity share capital of FIL at an offer price of Rs.83.40/- per equity share. Reliance Capital Partners and the Company will be "persons acting in concert" with RMW for the purposes of the said open offer. A public announcement to this effect with all the relevant details is being released by ICICI Securities Limited, the merchant bankers appointed the Company,RMW and RCP under the SEBI Takeover Regulations".         -
30-01-2010        Reliance Capital Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-DEC-2009 as follows: Net Sales of Rs. 48475 lacs for quarter ending on 31-DEC-2009 against Rs. 65119 lacs for the quarter ending on 31-DEC-2008. Net Profit / (Loss) of Rs. 4129 lacs for the quarter ending on 31-DEC-2009 against Rs. 11444 lacs for the quarter ending on 31-DEC-2008.   -
30-01-2010        Reliance Capital Limited has informed the Exchange regarding a media release dated January 30, 2010 titled "Reliance Capital reports consolidated total income of Rs. 1,485 Crore (US$ 318 million) for the quarter, as against Rs. 1,573 crore - Decrease of 6%". A copy of the media release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
30-01-2010        Reliance Capital Limited has informed the Exchange regarding the consolidated Results for the quarter ended on 31-DEC-2009 as follows: Net Sales of Rs. 135293 lacs for quarter ending on 31-DEC-2009 against Rs. 156981 lacs for the quarter ending on 31-DEC-2008. Net Profit / (Loss) of Rs. 6318 lacs for the quarter ending on 31-DEC-2009 against Rs. 13154 lacs for the quarter ending on 31-DEC-2008. -
27-11-2009        Reliance Capital Limited has informed the Exchange regarding a media release dated November 27, 2009 titled "Reliance Capital to take Majority Stake in Quant Capital Group". A copy of the media release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
30-10-2009        Reliance Capital Limited has informed the Exchange regarding the standalone Results for the half year ended on 30-SEP-2009 as follows: Net Sales of Rs. 122113 lacs for half year ending on 30-SEP-2009 against Rs. 144902 lacs for the half year ending on 30-SEP-2008. Net Profit / (Loss) of Rs. 21338 lacs for the half year ending on 30-SEP-2009 against Rs. 52215 lacs for the half year ending on 30-SEP-2008.         -
30-10-2009        Reliance Capital Limited has informed the Exchange regarding the standalone Results for the quarter ended on 30-SEP-2009 as follows: Net Sales of Rs. 61424 lacs for quarter ending on 30-SEP-2009 against Rs. 66862 lacs for the quarter ending on 30-SEP-2008. Net Profit / (Loss) of Rs. 10909 lacs for the quarter ending on 30-SEP-2009 against Rs. 19530 lacs for the quarter ending on 30-SEP-2008.    -
30-10-2009        Reliance Capital Limited has informed the Exchange regarding a media release dated October 30, 2009 titled "Reliance Capital reports consolidated total income of Rs. 1,447 Crore (US$ 295 million) for the quarter, as against Rs. 1,305 crore - increase of 11%". A copy of the media release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
30-10-2009        Reliance Capital Limited has informed the Exchange regarding the consolidated Results for the half year ended on 30-SEP-2009 as follows: Net Sales of Rs. 284803 lacs for half year ending on 30-SEP-2009 against Rs. 284143 lacs for the half year ending on 30-SEP-2008. Net Profit / (Loss) of Rs. 30687 lacs for the half year ending on 30-SEP-2009 against Rs. 57249 lacs for the half year ending on 30-SEP-2008.         -
30-10-2009        Reliance Capital Limited has informed the Exchange regarding the consolidated Results for the quarter ended on 30-SEP-2009 as follows: Net Sales of Rs. 139531 lacs for quarter ending on 30-SEP-2009 against Rs. 130393 lacs for the quarter ending on 30-SEP-2008. Net Profit / (Loss) of Rs. 15583 lacs for the quarter ending on 30-SEP-2009 against Rs. 22942 lacs for the quarter ending on 30-SEP-2008.         -
31-07-2009        Reliance Capital Limited has informed the Exchange regarding the standalone Results for the quarter ended on 30-JUN-2009 as follows: Net Sales of Rs. 60689 lacs for quarter ending on 30-JUN-2009 against Rs. 78040 lacs for the quarter ending on 30-JUN-2008. Net Profit / (Loss) of Rs. 10429 lacs for the quarter ending on 30-JUN-2009 against Rs. 32685 lacs for the quarter ending on 30-JUN-2008.    -
31-07-2009        Reliance Capital Limited has informed the Exchange regarding a media release dated July 31, 2009, titled "Reliance Capital reports Consolidated Total Income of Rs. 1,469 Crore (US$ 316 Million) for the quarter, as against Rs. 1,514 Crore - Marginal Decrease of 3%". A copy of the media release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements). For more details click here.      -
31-07-2009        Reliance Capital Limited has informed the Exchange regarding the consolidated Results for the quarter ended on 30-JUN-2009 as follows: Net Sales of Rs. 145272 lacs for quarter ending on 30-JUN-2009 against Rs. 153750 lacs for the quarter ending on 30-JUN-2008. Net Profit / (Loss) of Rs. 15104 lacs for the quarter ending on 30-JUN-2009 against Rs. 34307 lacs for the quarter ending on 30-JUN-2008.         -
21-07-2009        Reliance Capital Limited has informed the Exchange regarding the Proceedings of the Annual General Meeting held on July 21, 2009. A copy of the same shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
30-04-2009        Reliance Capital Limited has informed the Exchange regarding a media release dated April 30, 2009, titled "Reliance Capital reports Consolidated Total Income of Rs. 5,976 Crore (US$ 1.3 Billion) for the year - an increase of 22%". A copy of the media release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements). For more details click here. -
30-04-2009        Reliance Capital Limited has informed the Exchange that at the meeting of the Board of Directors of the Company held on April 30, 2009, the Board, recommended a dividend of Rs.6.50 on equity share of Rs.10/- each for the financial year ended March 31, 2009.   -
30-04-2009        Reliance Capital Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2009 as follows: Net Sales of Rs. 84723 lacs for quarter ending on 31-MAR-2009 against Rs. 79707 lacs for the quarter ending on 31-MAR-2008. Net Profit / (Loss) of Rs. 33144 lacs for the quarter ending on 31-MAR-2009 against Rs. 38649 lacs for the quarter ending on 31-MAR-2008.      -
30-04-2009        Reliance Capital Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2009 as follows: Net Sales of Rs. 294744 lacs for year ending on 31-MAR-2009 against Rs. 206698 lacs for the year ending on 31-MAR-2008. Net Profit / (Loss) of Rs. 96802 lacs for the year ending on 31-MAR-2009 against Rs. 102545 lacs for the year ending on 31-MAR-2008.    -
30-04-2009        Reliance Capital Limited has informed the Exchange regarding the consolidated Results for the quarter ended on 31-MAR-2009 as follows: Net Sales of Rs. 153744 lacs for quarter ending on 31-MAR-2009 against Rs. 163469 lacs for the quarter ending on 31-MAR-2008. Net Profit / (Loss) of Rs. 31164 lacs for the quarter ending on 31-MAR-2009 against Rs. 36557 lacs for the quarter ending on 31-MAR-2008.         -
30-04-2009        Reliance Capital Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2009 as follows: Net Sales of Rs. 594868 lacs for year ending on 31-MAR-2009 against Rs. 479267 lacs for the year ending on 31-MAR-2008. Net Profit / (Loss) of Rs. 101567 lacs for the year ending on 31-MAR-2009 against Rs. 100906 lacs for the year ending on 31-MAR-2008.


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