Himalayan Life Insurance's Q3 Net Profit Declines by 7.99% to Rs. 43.54 Crores Due to Rising Expenses
Wed, May 8, 2024 10:45 AM on Latest, Financial Analysis, Company Analysis,
Himalayan Life Insurance Limited (HLI) has released its financial results for the third quarter of fiscal year 2080/2081, revealing a 7.99% decline in net profit. The company's net profit decreased to Rs. 43.54 crores, compared to Rs. 47.32 crores reported in the same quarter of the previous fiscal year.
HLI maintains a paid-up capital of Rs. 8.02 Arba and substantial reserves, including Rs. 1.32 Arba in retained earnings, Rs. 19.92 Crores in other equity, and Rs. 41.62 Crores in catastrophe reserves.
Despite the decline in net profit, HLI experienced an 8.41% increase in net premiums during the quarter, reaching Rs. 12.02 Arba in Q3 FY 2080/81. Additionally, the company generated Rs. 4.12 Arba from income derived from investments, loans, and other financial activities.
However, the quarter also witnessed a notable 14.90% increase in net claims, totaling Rs. 13.97 Arba. On a positive note, commission expenses decreased by 6.34%, amounting to Rs. 99.81 Crores.
Key financial metrics for HLI include an annualized earnings per share (EPS) of Rs. 7.24 and a net worth per share of Rs. 124.25. The Price-to-Earnings (P/E) ratio stands at 54.64 times, reflecting the company's financial position despite the decline in net profit.
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Himalayan Life Insurance | ||
|---|---|---|---|
| Q3 2080/81 | Q3 2079/80 | Difference | |
| Share Capital | 8,020,383.60 | 8,020,383.60* | 0.00% |
| Share Premium | 0.00 | 0.00 | - |
| Catastrophe Reserves | 416,277.59 | 446,540.00* | -6.78% |
| Retained Earnings | 1,329,209.33 | 744,480.80* | 78.54% |
| Other Equity | 199,217.22 | 319,063.60* | -37.56% |
| Insurance Fund | 61,802,917.70 | 52,123,166.00* | 18.57% |
| Investment | 61,347,647.87 | 52,924,820.00* | 15.91% |
| Net Premium | 12,023,055.43 | 11,090,454.80 | 8.41% |
| Income from Investment, Loan and others | 4,126,320.97 | 3,616,413.91 | 14.10% |
| Claim Payment (Net) | 13,971,112.63 | 12,159,624.89 | 14.90% |
| Commission Expenses | 998,132.73 | 1,065,647.45 | -6.34% |
| Net Profit | 435,429.79 | 473,234.04 | -7.99% |
| No of Policies | 389,991.00 | 575,316.00 | -32.21% |
| EPS (In Rs.) | 7.24 | 7.87 | -7.99% |
| Net Worth per Share (In Rs.) | 124.25 | 118.83 | 4.56% |
| PE Ratio | 54.64 | ||
| Solvency Ratio | 1.66 | - | - |
