Religare Enterprises has today reported a standalone net loss of ₹ 43.27 crore for third quarter of the current fiscal on account of high finance cost. The company had registered net profit of ₹ 127.67 crore in the October—December quarter of the previous fiscal, 2015—16.
“The standalone loss figure this quarter is essentially on account of finance cost/interest cost on debt as opposed to a profit in the corresponding period last fiscal which was a reported profit on account of one—time exceptional items”, said a company spokesman.
Of the total reported loss figure, ₹ 42.82 crore is the total interest cost of which ₹ 36.54 crore is on account of the inter—company debt (within REL and operating subsidiaries), he said.
In case of consolidation it would be off set and hence technically will not be reflected as a loss in the consolidated financials.
The company’s total income also decreased to ₹7.64 crore in the reported quarter, as against ₹ 21.09 crore a year earlier, Religare said in a regulatory filing.
It said the board of directors of the company, during the quarter approved amalgamation of scheme of its 11 wholly owned direct and indirect subsidiaries to merge with itself.
In December, the company had informed about merging these entities with itself with the intent to better synergise its business activities.
The amalgamation will eliminate multiple legal entities and reduce operational and administrative costs while focusing resources on its core businesses, it had said.
Religare Enterprises is holding company for its diversified financial services groups.
The company stock closed 2.54 per cent down at 239.50 on BSE