Religare Enterprise reported a net loss of Rs 49.4 crore for the first quarter ended June 30, 2010, compared to a net profit of Rs 13.4 crore in the corresponding quarter last financial year.
Consolidated revenue for the quarter grew 42 per cent at Rs 447.6 crore from Rs 315.2 crore in the same quarter last year.
Combination of factors including regulatory changes and macro factors impacted income from AMC and Insurance-both broking and manufacturing. Additionally insurance was impacted by seasonality, with Q1 traditionally being a subdued quarter, said the company.
On sequential basis (compared to quarter ended March 31, 2010), its net profit was Rs 32 crore--and revenue dipped 16 per cent from Rs 531.2 crore.
The company reported a net loss for the quarter as its interest and Finance charges rose by 204 per cent YoY and 42 per cent QoQ, due to rapid increase in book size and small increase in cost of funding.
The company said that despite a loss at the consolidated level, that it made a tax provision of Rs 24.5 crore because our businesses are structured as separate legal entities. However, these losses would be set off against future earnings.
The company employed 8,178 personnel as on June 30, 2010 as compared to 8,607 as of March 31, 2010.
The company continued to expand its businesses. The retail distribution now covers 2,123 business locations spread across 560 cities as on June30, 2010 as compared to 2,092 business locations and 557 cities as on March 31, 2010.