HDFC Life Insurance Co.'s net profit rose 15% year-on-year in the July-September quarter but missed the analysts' estimate.
The insurer posted a net profit of Rs 433 crore in the quarter ended Sept. 30, 2024. That compares with consensus estimate of Rs 543 crore of analysts polled by Bloomberg. In the year-ago period, the company posted a net profit of Rs 377 crore.
The net premium income during the quarter under review climbed 12% year-on-year to Rs 16,570 crore, compared to Rs 14,756 crore in the corresponding quarter of the previous fiscal.
The value of new business grew 17% YoY to Rs 938 crore in the September quarter. However, the VNB margin declined to 24.3% from 25.1% in the preceding quarter.
HDFC Life Q2 Results: Key Highlights (Standalone, YoY)
Net profit up 15% at Rs 433 crore (Bloomberg estimate: Rs 543 crore).
Annualised premium equivalent grew 26.7% to Rs 3,858 crore.
Value of new business advanced 17.1% to Rs 968 crore.
VNB margin declined to 24.3% from 25.1% (QoQ).
HDFC Life's solvency ratio slipped to 181%, compared to 186% in the June quarter. The 13th month persistency ratio fell to 82.5% from 84%, whereas the 61st month persistency ratio improved to 67.9% from 51.4% in the year-ago period.
HDFC Life Insurance Share Price
HDFC Life Insurance's shares declined after the Q2 results were declared.
HDFC Life Insurance's shares declined after the Q2 results were declared.
Shares of HDFC Life Insurance slipped following the second quarter results as the insurer's net bottomline missed the estimates. The scrip was trading 3.19% lower at Rs 716.95 apiece, compared to a 0.32% decline in the benchmark Nifty 50.
The stock has risen 10.7% year-to-date, and by 14.5% over the past 12 months.
Out of 32 analysts tracking the stock, 27 have a 'buy' rating, four suggest a 'hold', and one recommends to 'sell', as per Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 9.2%.
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