LIC, the country’s largest insurance company, recently announced its fourth quarter results, marking a year since its listing.
The results for the last quarter have been exceptionally positive.
In the quarter ending March 2023, LIC’s profit (LIC Profit) witnessed a nearly fivefold increase. However, there has been a decline in LIC’s net income, accompanied by a setback in earnings.
LIC’s Journey since Listing on May 17
On May 17 last year, LIC’s profit for the fourth quarter of the financial year 2022-23 reached Rs 13,428 crore.
Analyzing other figures released by LIC, the net premium income of the insurance company decreased by 8 percent to Rs 1.31 lakh crore, compared to Rs 1.43 lakh crore a year ago.
For the entire financial year 2022-23, LIC’s net profit amounted to Rs 35,997 crore, a significant increase from the previous year’s Rs 4,125 crore.
Dividend Announcement of Rs.3 per Share
Encouraged by the outstanding results of the fourth quarter, LIC has declared a dividend of Rs.3 per share.
It is worth mentioning that LIC’s initial public offering (IPO) was the largest in the country’s history, raising Rs 21,000 crore from the market.
However, the stock market debut was lackluster, leading to a negative return of 35 percent for investors over the past year.
Significant Losses Since Listing
LIC’s shares have consistently experienced a decline since listing, resulting in a market capitalization (LIC MCap) reduction of approximately Rs 2 lakh crore within a year.
The company’s investment income played a major role in driving the surge in profit during the fourth quarter.
From January to March 2023, LIC generated Rs 67,846 crore in investment returns.
Additionally, the company’s net commission increased by 5 percent to reach Rs 8,428 crore during this period.
Shares Surge Following Q4 Results
The impact of LIC’s Q4 results is evident in the company’s shares, which are experiencing a significant surge since the stock market opened on Thursday.
As of 9:28 am, LIC shares were trading at Rs 607.35, showing a gain of 2.21 percent at the time of reporting.
On the previous trading day (Wednesday), the stock closed at Rs 593.55 on the BSE, reflecting a gain of 0.61 percent.
With the fivefold increase in LIC profit, it was evident that stock prices will also increase. That is the thing we all have been waiting from long. Right after the IPO, the stock price is always down. People who have invested during IPO are still in Loss.
But recent developments show signs of recovery, investors may also see profit within few months. Of course, we are dependent on global market but are affected less. If you have not already invested in LIC, do consider investing after proper research.
Have you already invested in LIC? Are you in Profit? Let us know in comments below.