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Cannot compare latest quarterly profit with earlier ones: LIC

Cannot compare latest quarterly profit with earlier ones: LIC

On Tuesday, shares of LIC dropped over 3 per cent or Rs 25.55 to close at Rs 811.50; the fall was much higher than that of the benchmark Sensex, which fell 0.64 per cent.

For the quarter ended March 31, 2022, the insurance company reported a net profit of Rs 2,372 crore. For the quarter ended March 31, 2022, the insurance company reported a net profit of Rs 2,372 crore.

A day after announcing its first quarterly results after becoming a listed entity, insurance behemoth Life Insurance Corporation of India (LIC) clarified that the latest quarterly net profit cannot be compared to the corresponding quarters of the previous fiscal since this is the first time that it has disclosed its quarterly profit.

“We were not declaring quarterly profits earlier… Earlier, profits were disclosed at the end of the year only. So, the earlier number would be for full year and hence cannot be compared (with the latest quarterly net profit),” said Raj Kumar, Managing Director, LIC, while addressing the media on Tuesday.

The insurance major’s clarification was triggered by the media coverage of its results that were announced late on Monday. For the quarter ended March 31, 2022, the insurance company reported a net profit of Rs 2,372 crore.

As per the LIC statements released on Monday, the previous fiscal’s corresponding quarter registered a net profit of Rs 2,894 crore.

The company’s MD, however, clarified, that it would be wrong to say that the profit has dipped 18 per cent between the two quarters.

Incidentally, shares of LIC dropped over 3 per cent or Rs 25.55 on Tuesday to close at Rs 811.50. The fall was much higher than that of the benchmark Sensex, which fell 0.64 per cent or 359.33 points to close at 55,566.41.

Meanwhile, MD Raj Kumar, while addressing the media on Tuesday, highlighted the fact that the company registered an increase of nearly 40 per cent in the profit for the year ended March 31, 2022 at Rs 4,043.12 crore as against Rs 2,900.57 crore for the previous fiscal.

Further, for the year ended March 31, 2022, LIC registered an increase of 6.1 per cent in the Net Premium Income at Rs 4,27,419 crore as compared to Rs 4,02,844 crore in the previous financial year ended March 31, 2021, stated the release issued by LIC yesterday.

More importantly, the statement said that “the exercise of determination of Indian Embedded Value as on March 31, 2022 is under progress and is expected to be completed by June 30th, 2022”.

As soon as the exercise is completed, LIC of India shall make the required public disclosures of the same, it added.