LIC shares climb nearly 5 percent on strong Q1 earnings. |
Mumbai: Shares of Life Insurance Corporation of India (LIC) jumped nearly 5 percent on Friday following the announcement of its first-quarter financial results, which showed a 5 percent rise in net profit. The stock rose 4.69 percent to Rs 927 on the BSE and 4.75 percent to Rs 927.10 on the NSE, reflecting investor optimism around the insurer’s performance and future outlook.
Net profit edges up to Rs 10,987 crore
LIC reported a net profit of Rs 10,987 crore for the first quarter of FY25, compared to Rs 10,461 crore in the same period last year. The modest rise comes amid a broader strategy shift by the state-run insurance giant to focus on profitability. The company remains optimistic about achieving double-digit profit growth by the end of the fiscal year.
Income and premium collection see upward movement
Total income rose to Rs 2,22,864 crore in the June quarter, up from Rs 2,10,910 crore in the corresponding period last year. Additionally, LIC’s first-year premium collections in Q1 increased marginally to Rs 7,525 crore, compared to Rs 7,470 crore a year ago. The growth in both income and premium indicates sustained demand and operational stability.
Leadership signals focus on profitability
R Doraiswamy, the newly-appointed CEO and MD of LIC, expressed confidence in maintaining growth momentum. “We are looking at enhancing profitability. We would be reaching a respectable level and expect double-digit growth in profits during the current financial year,” Doraiswamy said. His statement reinforces the company’s focus on improving its bottom line, which grew 18 percent last year—from Rs 40,676 crore to Rs 48,151 crore.
Investor sentiment gets a boost
The upbeat Q1 performance and management’s confident outlook have bolstered investor sentiment. The nearly 5 percent surge in LIC’s share price reflects market confidence in the insurer’s growth trajectory and long-term value creation for shareholders.
