INDIA'S RELIGARE ENTERPRISES POSTS US$5MLN PROFIT LOSS IN Q2

Indian financial services firm Religare Enterprises (BSE:532915) on Wednesday reported a consolidated net loss of Rs 24.2 crore (US$5.47 million) in the second quarter of the current fiscal year, mainly on account of investments in its subsidiaries.

The company had a net profit of Rs 29.7 crore during the July-September quarter of the last fiscal year.

The company attributed the loss to investment in its global asset management and investment banking subsidiaries.

Religare reported a total income of Rs 627.4 crore in Q2 FY'11, up 51 per cent year-on-year basis.

In the first half of 2010-11, the company's consolidated net loss is Rs 73.63 crore, compared to net profit of Rs 43.12 crore during April-September period last year, Religare Enterprises said in a statement.

Religare Enterprises Group CEO Shachindra Nath said: "The results of Q2 FY 11 are testimony to fact that we continue to build a well-diversified integrated financial play in India."

On standalone basis, Religare reported a net loss of Rs 12.29 crore in Q2 FY'11, compared to Rs 2.28 crore net profit over the year ago period.

It announced the acquisition (subject to regulatory approval) of 50 per cent equity stake in Bartleet Mallory Stock Brokers, a top-5 stockbroking firm in Sri Lanka.

Religare said it is diligently executing inorganic strategy to build multi-boutique platform and over a 100 hundred opportunities are evaluated to identify three to four targets.

The company said Religare Health Insurance Ltd intends to launch new products this fiscal year. It is awaiting R1 license from the Insurance Regulatory and Development Authority (IRDA).

The loan book size increased by 50 per cent to Rs 3,900 crore as on September 30, 2010 from Rs 2,600 crore compared to June 30, 2010.