Following the release of its fourth-quarter results, LIC, the country’s largest insurance company, experienced a significant surge in its share prices.
As the stock market opened on Thursday, LIC shares witnessed a remarkable boom, trading at Rs 607.35 at 9:28 am, reflecting a gain of 2.21 percent.
LIC announced its fourth-quarter results, marking a year since the company’s listing. The results for the last quarter were outstanding, with LIC’s profit increasing nearly fivefold. However, the company faced a decline in earnings and registered a decrease in net income.
In the quarter ending March 2023, LIC reported a profit of Rs 13,428 crore, compared to Rs 2,714 crore in the same period the previous year.
While the net premium income of the insurance company decreased by 8 percent to Rs 1.31 lakh crore, it stood at Rs 1.43 lakh crore a year ago.
For the entire financial year 2022-23, LIC’s net profit reached Rs 35,997 crore, compared to just Rs 4,125 crore in 2021-22.
Buoyed by the impressive Q4 results, LIC has declared a dividend of Rs 3 per share. It is worth noting that LIC had launched the largest initial public offering (IPO) in the history of the country, raising Rs 21,000 crore from the market.
However, the company’s listing on the stock market was lackluster, resulting in a negative return of 35 percent for investors over the past year. Despite this, LIC’s net commission has increased by 5 percent to Rs 8,428 crore during this period.
The positive Q4 results have had a direct impact on the company’s share prices, leading to a surge in LIC shares.
With a gain of 2.21 percent, LIC stock traded at Rs 607.35 at 9:28 am on Thursday. During the previous trading day on Wednesday, the stock had closed at Rs 593.55 on the BSE, marking a gain of 0.61 percent.
