Leading general insurer on Tuesday reported an 11 percent growth in net profit at Rs 353 crore in the three months ended December boosted by capital gains of Rs 152 crore and higher sales. The company’s gross direct premium income for the quarter rose 17 percent, lower than the industry growth of 18.1 percent, to Rs 5,493 crore.
The company in its quarterly business update disclosed that operated transmission lines are upwards of 99.75 percent. It added 371 circuit kilometers to its operational network during the quarter, taking the total to 18,795 circuit kilometers. The company also operationalised 3,500 MVA capacity, taking the total to 40,001 MVA. Fully commissioned Jam Khambhaliya Transco and WRSS XXI (A) transco lines during the quarter.
Signs binding term sheet to acquire 100 percent stake in Sproutlife Foods. The company will make an initial investment of Rs 175 crore for a 39.4 percent stake by February 15, 2023. To further infuse another Rs 80 crore by March 31, 2025, based on pre-agreed pre-money valuation. The remaining stake will be acquired based on pre-defined valuation criteria.
ICICI Prudential Life
December quarter annualised premium equivalent (APE) declines 5.5 percent to Rs 1,822 crore from Rs 1,929 crore last year. New business premium rises 3.7 percent to Rs 3,928 crore. Value of new business up 20 percent year-on-year while VNB margin expands 720 basis points to 33.9 percent.
Operational performance affected by weak health of one of the blast furnaces, which had to be stopped frequently for repairs. Net profit declines 74 percent from last year. Realisations of pig and ductile iron pipes decline in-line with softer commodity prices. Recovery is seen in the coming quarter as the blast furnace has now been repaired. The domestic demand for pig iron is likely to firm up in the March quarter. The final quarter of the year is generally the best period for DI pipes in terms of project execution.
To unveil new hypermarket chain called Spencers Value Market. It will launch in six locations – Karimnagar, Warangal, Kurnool, Guntur, Bimavaram and Vijayanagaram between January 16-22, 2023. Also promises a minimum 6 percent discount on all items.
New 120 KLPD distillery of the company at its sugar unit in Sankili, Andhra Pradesh, has commenced commercial operations.
Rail Vikas Nigam
The company has emerged as the L1 (lowest bidder) for supply, erection, testing and commissioning of power supply receiving and distribution system for Surat Metro Phase I and Ahmedabad Metro Project Phase II. The two projects have a cost of Rs 673.8 crore and Rs 384.3 crore respectively. In both the tenders, the company participated in consortium with Siemens India. RVNL has a 35 percent share in both projects. The Letter of Award (LoA) is yet to be issued.
December quarter net profit up 20.5 percent year-on-year to Rs 84.8 crore. Revenue up 11 percent. However, EBITDA drops 4.5 percent from last year while margin contracts 600 basis points to 37.4 percent from 43.4 percent
Glenmark, Eris Life
Eris Life to acquire part of Glenmark’s dermatology portfolio for Rs 340 crore in the Indian market. The company will acquire nine trademarks of Glenmark’s dermatoloty portfolio along with line extensions. For Eris, this deal is likely to strengthen its medical derma portfolio and also aid growth in market share. For Glenmark, this is the second sale of its non-core assets in a month after divesting cardiac brand Razel to JB Chemicals and Pharmaceuticals for Rs 313.7 crore.
Life Insurance Corporation of India has purchased additional 0.057% stake in the IT services company via open market transactions on January 16. With this, LIC’s shareholding in the company increased to 5.033%, from 4.976% earlier