LIC to share Q3 results, announce interim dividend today. Profit may rise 12%, says Emkay

LIC Q3 earnings: Emkay APE falling 14.3 per cent YoY to Rs 10,561.70 crore compared with Rs 12,317 crore in the year-ago quarter. Value of new business (VNB) is seen at Rs 1,641.10 crore against Rs 1,801 crore YoY

Life Insurance Corporation of India (LIC) will be announcing its December quarter results today. The life insurer’s board would also consider paying interim dividend for FY24.

Emkay Global expects LIC to report a 12.2 per cent year-on-year (YoY) rise in profit at Rs 7,108.70 crore for the December quarter compared with Rs 6,334.20 crore in the same quarter last year.

It sees Annual premium equivalent (APE) falling 14.3 per cent YoY to Rs 10,561.70 crore compared with Rs 12,317 crore in the year-ago quarter. Value of new business (VNB) is seen at Rs 1,641.10 crore against Rs 1,801 crore YoY while VNB margin is seen expanding to 15.5 per cent from 14.6 per cent. AUM is expected to rise 11.9 per cent to Rs 49,61,600 crore compared with Rs 44,34,900 crore YoY.

Earlier on February 5, LIC informed stock exchanges that the meeting of ts board of directors is scheduled on February 8 to consider and approve unaudited financial results (standalone and consolidated) for the quarter and nine-month period ended on December 31, 2023. In the said meeting, LIC said, the board of directors may also consider a proposal for declaration of interim dividend for the financial year 2023-24.

“We expect LIC to report an 11.6 per cent decline in APE during 9MFY24E driven by a 10.3 per cent decline during H1FY24 and a decline in growth during October and November. The fall in the APE is largely on account of the decline in the group business. With increase in the share of Non-par products, we expect VNB margins to expand to 14.9 per cent during 9MFY24E vs. 14.6 per cent for 9MFY23, implying VNB margin of 15.5 per cent for Q3FY24E,” it said.

On Wednesday, LIC shares settled at Rs 1,045, up 1.98 per cent. LIC recently breached its 2022 IPO issue price of Rs 949.

Prime Minister Narendra Modi on Wednesday said many rumours were spread about the largest life insurer in the past and yet the stock was trading at record high levels.

In July 2023, the country’s largest life insurer paid a dividend of Rs 3 a share. On Monday, shares of LIC ended 5.3% higher on the National Stock Exchange at Rs 995.75.

Intraday, shares of the insurance major had rallied close to 9% to hit an all-time high of Rs 1,028. Its market capitalisation topped the Rs 6-lakh crore mark, making it India’s most valued PSU by beating the State Bank of India.

In December, the finance ministry granted time to the PSU insurer to comply with 25% minimum public shareholding till 2032. The stock has been rallying since then as the exemption reduces the possibility of an offer for sale (OFS) by the government.

In May 2022, the government sold a 3.5% stake in LIC through an initial public offering, which was entirely an offer for sale worth around Rs 21,000 crore. It remains India’s largest IPO to date.

With Thanks Reference to: https://www.businesstoday.in/markets/company-stock/story/lic-to-share-q3-results-announce-interim-dividend-today-profit-may-rise-12-says-emkay-416623-2024-02-08 and https://economictimes.indiatimes.com/markets/stocks/news/lic-board-to-consider-interim-dividend-declare-q3-earnings-on-february-8/articleshow/107435995.cms?from=mdr