Jobaaj Stories
In its first quarterly results since its listing, insurance giant LIC has disappointed investors once again as it reported a 17% YoY decline in profits.
The company's consolidated net profit declined from Rs 2,917.33 crores last year to Rs 2,409.39 crores this quarter ended in March 2022. The standalone net profit declined 18% to Rs 2,371 crores. Total revenue for the quarter came in at Rs 211,471 crores, 11.6% higher than last year.
Net premium income of the company saw a growth of 17.9% during the quarter as the figure for the quarter came in at Rs 144,158.84 crores. However, the company's income from investments grew less than 1% to Rs 67,855.59 crores.
According to LIC, its income from the first-year premium rose to Rs 14,663.19 crore, marking a 32.65 percent YoY surge. From renewal premium, the income rose 5.37 percent to Rs 71,472.74.05 crore, and through single premium, it increased by 33.70 percent to Rs 58,250.91 crore. The insurance industry sold 7.4 million policies in March alone, the majority of which went to LIC.
The IPO of LIC disappointed several investors and the Q4 results did not help. The Board of the company announced a dividend of Rs 1.5 per share or 15%. Today, the stock witnessed a full gap down opening as it fell over 2%. The stock has wiped out over Rs 80,000 crores of the company's market cap.
Article by Aman Agarwal.
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