Slow Business Growth, Rising Claim Payment and Higher Provision Leads to 8.32% Fall in Net Profit of Siddhartha Insurance
Sun, Aug 7, 2022 9:59 AM on Financial Analysis, Latest,
Siddhartha Insurance Limited (SIL) has published its fourth-quarter report for the fiscal year 2078/2079 with a decline in net profit by 8.32% compared to the corresponding quarter of the previous year. The company’s net profit decreased to Rs. 32.10 crores in this quarter from Rs. 35.01 crores in the corresponding quarter.
As per the unaudited report for the fourth quarter published today, Siddhartha Insurance has a paid-up capital of Rs. 1.28 Arba with a reserve of Rs. 31.26 crores. The company has an insurance fund of Rs. 1.16 arba.
The company has Rs 59.01 crores as a long-term investment and Rs 2.95 arba as a short-term investment
The Net Premium rose by 14% to Rs. 1.05 arba in FY 2078/2079 from Rs. 92.64 crores in the corresponding quarter of the previous year. The company has earned Rs. 9.80 crores from income from investment, loans, and other headings and Rs. 41.79 crores from Reinsurance Income.
The company’s net claim increased by 20.68% to Rs. 69.24 crores in this quarter. The company’s number of policies stood at 179,093 till Q4 of 2078/2079 with a fall of 27.22%.
Its earnings per share (EPS) stood at Rs. 24.93 whereas Net worth per share stood at Rs. 222.11. The company traded at a P/E multiple of 21.81 times. The company has recently signed merger MoU with Premier Insurance Limited to meet the minimum capital paid up capital of Rs 2.5 arba within 2079 year.
Major Highlights:
| Particulars (In Rs '000") | Siddhartha Insurance | ||
| Q4 2078/79 | Q4 2077/78 | Difference | |
| Paid Up Capital | 1,288,000 | 1,120,000 | 15.00% |
| Reserve and Surplus | 312,617 | 344,935 | -9.37% |
| Insurance Fund | 1,168,316 | 1,007,781 | 15.93% |
| Contingent Fund | 91,841.00 | 76,665.00 | 19.80% |
| Long Term Investment and Loan | 590,159.00 | 438,323.00 | 34.64% |
| Short Term Investment and Loan | 2,958,804.00 | 2,596,981.00 | 13.93% |
| Gross Premium | 2,616,742 | 2,359,568 | 10.90% |
| Net Premium | 1,056,236 | 926,499 | 14.00% |
| Re-Insurance Commission Income | 417,923 | 361,433 | 15.63% |
| Income from Investment, Loan and others | 98,073 | 110,929 | -11.59% |
| Claim Payment (Net) | 692,436 | 573,791 | 20.68% |
| Agent Commission | 29,810 | 33,657 | -11.43% |
| Gross Profit | 462,828 | 445,331 | 3.93% |
| Net Profit | 321,071 | 350,191 | -8.32% |
| No of Policies | 179,093 | 246,058 | -27.22 |
| EPS (In Rs.) | 24.93 | 31.27 | -20.27% |
| Net Worth per Share (In Rs.) | 222.11 | 227.62 | -2.42% |
| Qtr End PE Ratio | 21.81 | - | - |
| Qtr End Market Price | 543.70 | - | - |
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