HDFC Life Insurance Company Ltd Q1FY22 consolidated net profit at Rs. 269.55 crores

HDFC Life Insurance Company Ltd has reported financial results for the period ended June 30, 2021.

Financial Results (Q1 FY 2021-22) - QoQ Comparison

The company has reported total income of Rs.14605.87 crores during the period ended June 30, 2021 as compared to Rs.19192.86 crores during the period ended March 31, 2021.

The company has posted net profit / (loss) of Rs.269.55 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.319.06 crores for the period ended March 31, 2021.

The company has reported EPS of Rs.1.33 for the period ended June 30, 2021 as compared to Rs.1.58 for the period ended March 31, 2021.

Financials	Q1 FY2021-22	Q4 FY20-21	% Change
Total Income	₹ 14605.87 crs	₹ 19192.86 crs	-23.9%
Net Profit	₹ 269.55 crs	₹ 319.06 crs	-15.52%
EPS	₹ 1.33	₹ 1.58	-15.82%

Financial Results (Q1 FY 2021-22) - YoY Comparison

The company has reported total income of Rs.14605.87 crores during the period ended June 30, 2021 as compared to Rs.14520.83 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.269.55 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.450.54 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.1.33 for the period ended June 30, 2021 as compared to Rs.2.23 for the period ended June 30, 2020.

Financials	Q1 FY2021-22	Q1 FY2020-21	% Change
Total Income	₹ 14605.87 crs	₹ 14520.83 crs	0.59%
Net Profit	₹ 269.55 crs	₹ 450.54 crs	-40.17%
EPS	₹ 1.33	₹ 2.23	-40.36%

Commenting on the current situation, Ms. Vibha Padalkar, MD & CEO said "The pandemic has impacted lives across the world. For most organizations it has been a test of resilience and agility to adapt to the ever evolving situation. As a leading Life Insurance company, we are determined to help our customers and support our employees and other stakeholders during these trying times."

Commenting on the Q1 FY22 performance, Ms. Vibha Padalkar, MD & CEO said "Against the backdrop of disruption in business on account of localised lockdowns, and surge in cases during the second wave, we recorded 22% growth and market share of 17.8% in private sector in terms of Individual WRP. We clocked 40% growth in terms of value of new business and we achieved a New Business Margin of 26.2% in Q1. Our product mix continues to remain balanced and our annuity business witnessed strong growth of 61% in this quarter. In comparison to Q1 of last fiscal, the Company clocked higher renewal collections, with 13th month persistency improving from 87% to 90%.

In the quarter gone by, we witnessed a steep rise in death claims, with peak claims in wave 2 at around 3-4 times of the peak claim volumes in the first wave. We paid over 70,000 claims in Q1. The gross and net claims provided for amounted to Rs. 1,598 crore and Rs. 956 crore respectively. Based on our current claims experience, we have set up an additional reserve of Rs. 700 crore to service the claims intimations expected to be received. Our endeavour is to promptly settle every bonafide claim. Our Profit after Tax stands at Rs. 302 crore (33% lower than Q1 FY21), on the back of higher claims reserving towards heightened claims intimation expected in Q2 and Q3. The strength of our balance sheet and back book surplus has enabled us to absorb the shock of heightened claims, whilst continuing to deliver growth.

With signs of the second wave receding, over the past month, we have seen a gradual pick-up in economic activity, across parts of the country. We see greater customer engagement and an increased interest in life insurance policies."

Shares of HDFC Life Insurance Company Ltd was last trading in BSE at Rs.697.95 as compared to the previous close of Rs. 693.8. The total number of shares traded during the day was 167082 in over 6682 trades.

The stock hit an intraday high of Rs. 702 and intraday low of 692. The net turnover during the day was Rs. 116613132.

Source : Equity Bulls

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