New India Assurance Company Ltd's Q3FY25 Quarterly Results

Result Summary

• New India Assurance Company Ltd reported a 0.7% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a decline of 5.8%.
• Its expenses for the quarter were up by -0.0% QoQ and 1.1% YoY.
• The net profit increased 284.6% QoQ and decreased 51.7% YoY.
• The earnings per share (EPS) of New India Assurance Company Ltd stood at 2.1 during Q3FY25.

Financial Statments for Q3FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

New India Assurance Company Ltd is one of the largest insurance companies in India, providing a wide range of insurance products and services. Established in 1919, the company operates across numerous business segments including health, motor, marine, and fire insurance. As a public sector entity, it plays a significant role in India's insurance landscape, offering products that cater to both individual and corporate clients. The company has a strong national presence with an extensive network of offices and also maintains a global footprint through operations in several countries. Recent years have seen New India Assurance focusing on expanding its digital presence and innovating its product offerings to meet evolving market demands. However, specific recent developments in their operations or strategic direction are not available from the data provided.

Revenue

In the third quarter of the fiscal year 2025 (Q3FY25), New India Assurance reported a total income of ₹10,711.80 crores. This represents a slight decrease of 0.7% compared to the previous quarter (Q2FY25), where the total income was ₹10,786.57 crores. On a year-over-year basis, the total income saw a decline of 5.8% from ₹11,366.20 crores recorded in the third quarter of the fiscal year 2024 (Q3FY24). The decrease in revenue both quarter-over-quarter and year-over-year indicates an overall contraction in income during this period, which may reflect broader industry trends or company-specific factors not identified in the data.

Profitability

The company's profitability metrics for Q3FY25 show a mixed performance. Profit before tax was ₹107.26 crores, which is a decrease of 23.8% from ₹140.75 crores in Q2FY25. When compared to the previous year (Q3FY24), where the profit before tax was ₹866.44 crores, there is a substantial decline of 87.6%. The tax expense for Q3FY25 reflects a credit of ₹237.00 crores, contrasting with a tax payment of ₹67.19 crores in Q2FY25 and ₹153.44 crores in Q3FY24. This tax reversal significantly impacted the profit after tax, which increased to ₹348.51 crores from ₹90.62 crores in the previous quarter, marking a 284.6% increase. However, compared to Q3FY24, the profit after tax decreased by 51.7%. Earnings per share (EPS) for Q3FY25 stood at ₹2.10, up from ₹0.50 in Q2FY25, indicating a 320.0% increase. Yet, year-over-year, EPS declined from ₹4.40, a decrease of 52.3%.

Operating Metrics

The total expenses for Q3FY25 were ₹10,611.49 crores, which remained nearly flat compared to Q2FY25, with a marginal decrease of 0.0%. In comparison to Q3FY24, there was an increase of 1.1% from ₹10,496.23 crores. Despite a decrease in total income, the stability in expenses suggests a maintained or slightly increased cost structure. The company's focus on managing operating costs amidst declining income is apparent in these figures. The significant year-over-year decrease in profit before tax, despite stable expenses, suggests a sharper reduction in income relative to costs. The tax credit in this quarter played a crucial role in bolstering net profitability, as evidenced by the rise in profit after tax and EPS compared to the previous quarter, despite a reduction from last year’s results.