HDFC Life misses Q4 profit view on higher expenses, PAT rises marginally

The Mumbai-based insurer said its standalone profit after tax rose a marginal 0.3% to Rs 359 crore for the quarter ended March 31

Reuters Bengaluru
HDFC Life to raise exposure to capital goods stocks on govt infra push

Listen to This Article

India's HDFC Life Insurance Co Ltd reported a smaller-than-expected rise in fourth-quarter profit on Wednesday, as higher expenses more than offset the rise in income from premiums.
The Mumbai-based insurer said its standalone profit after tax rose a marginal 0.3% to Rs 359 crore for the quarter ended March 31.
Analysts, on average, had expected a profit of Rs 373 crore, as per Refinitiv IBES data.
The sale of pricier policies jumped in March after the government said it would withdraw tax incentives on such policies issued from April. That contributed to a 35.9% rise in net premium income to Rs 194,27 crore.
The government said it would now tax the total returns on the maturity of life insurance policies if the aggregate premium topped Rs 500,000 a year.
However, ballooning expenses offset this rise in income.

Also Read

Composite insurance licence regime may trigger M&A activity: HDFC Life CFO

2023 may see an M&A surge in insurance sector: Shriram General Insurance MD

Structure of insurance laws to be altered with proposed amendments: Experts

LIC may turn into composite insurer; likely to merge 4 PSU general firms

New tax norm to hurt insurers; stocks attractive for the long run: Analysts

Sify reports consolidated Q4 profit at Rs 34 mn, revenue up at Rs 8,861 mn

L&T Technology Q4 net profit rises 18.1%, dividend of Rs 30/share declared

Poonawalla Fincorp Q4 profit up double at Rs 181 cr, AUM grows 37%

Maruti Suzuki Q4 net profit up 42.6%; firm declares dividend of Rs 90/share

Tata Consumer Products net profit rises 23.5% in January-March quarter

Management expenses, which include net commission and other operating expenses related to the insurance business, jumped 65.9%, driven mainly by higher marketing and business development expenses, the company said.
The insurer's net income from investments also fell 15% to Rs 1,190 crore.
The company's value of new business, which measures expected profit from new premiums and is a key gauge for growth, was up 36.9% following the merger with Exide Life Insurance, completed in the previous quarter.
Shares of HDFC Life closed 0.4% higher to Rs 531.6 ahead of the results.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

HDFC Life Insur.

  • 1D
  • 5D
  • 1M
  • 3M
  • 6M
  • 5Y

First Published: Apr 26 2023 | 5:56 PM IST

Explore News