Shares of Life Insurance Corporation (LIC) were in focus ahead of the insurer’s September quarter earnings set to be announced today. LIC stock gained 1.64 per cent to Rs 631 against the previous close of Rs 620.80 on BSE. Shares of LIC have gained after two days of fall. The market cap of LIC rose to Rs 3.97 lakh crore on BSE. Total 0.15 lakh shares of the firm changed hands amounting to a turnover of Rs 95.29 crore.
The stock has fallen 27.23 per cent or Rs 236.2 since May 17 this year when it made a tepid debut on the bourses.
LIC stock listed at a discount of 8.62 per cent against the IPO issue price. The company offered its shares in a price band of Rs 902- Rs 949. The stock listed at Rs 867.20 on BSE. On NSE, the stock was listed at Rs 872, 8.11 per cent lower than the IPO price.
Meanwhile, brokerage Emkay Global expects LIC to post a 19 per cent YoY fall in net profit at Rs 1,213.30 crore for last quarter compared with Rs 1,504 crore in the corresponding quarter last year. APE is seen rising 15 per cent YoY to Rs 13,286.50 crore against Rs 11,548.80 crore. Value of new business (VBN) is seen rising 17 per cent YoY to Rs 1,854.10 crore against Rs 1,583 crore, with VBN margin seen at 13.95 per cent, rising 24 bps over 13.71 per cent YoY.
“With better returns in equity markets in Q2FY23, we expect LIC’s AUM to grow 5 per cent sequentially to Rs 43,07,100 crore in Q2FY23 and by 9 per cent YoY in H1FY23,” Emkay Global said.
In Q1 of the current fiscal, LIC posted nearly 232 times year-on-year (YoY) rise in standalone net profit at Rs 682.88 crore against a standalone profit of Rs 2.94 crore in the corresponding quarter last year.
On the other hand, the net premium income of LIC climbed 20.35 per cent YoY to Rs 98,351.76 crore. Other income of the insurance behemoth stood at Rs 160.09 crore in Q1FY23 over Rs 145.47 crore in Q1FY22. Transfer of funds from shareholders’ accounts stood at Rs 799.24 crore during the quarter under review.
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