HDFC Life declares dividend as standalone PAT rises by 14 Percent in Q4
HDFC Bank Latest Updates: HDFC Life, one of India's leading life insurance firms, has announced a strong performance in the March 2023 quarter, with standalone profit after tax (PAT) of ₹358.66 crore. This represents a growth of 13.8% from the preceding quarter, where the company posted a PAT of ₹315.22 crore. HDFC Life also declared a dividend of ₹1.90 per equity share, indicating a positive outlook for the company's future performance.
While the quarter-on-quarter growth in PAT is impressive, year-on-year growth is relatively modest, with only a 0.31% increase from a profit of ₹357.52 crore in Q4 of FY22. Despite this, HDFC Life has shown strong growth across all key metrics and has closed the fiscal year FY23 on a high note.
HDFC Life's net premium income grew by 35.9% year-on-year to reach ₹19,426.57 crore in Q4FY23. In Q4FY23, HDFC Life
witnessed a substantial increase in net commissions, which grew to ₹1,111.43 crore from ₹620.74 crore in Q4FY22 and ₹692.83 crore in the previous quarter (Q3FY23). On a consolidated basis, HDFC Life recorded a net profit of ₹361.97 crore in the fourth quarter ending March 31, 2023, representing a growth of 14.6% compared to the preceding quarter. Although HDFC Life's standalone PAT for Q4FY23 increased by 14% compared to the previous quarter, it was 28.5% lower than the profit recorded in Q4FY22.
HDFC Life's MD & CEO, Vibha Padalkar, praised the company's robust performance, citing the Reserve Bank of India's approval for HDFC Bank or HDFC Ltd to increase their stake in HDFC Life to over 50%, which eliminated any uncertainty regarding HDFC Bank's shareholding. Padalkar also mentioned the company's impressive individual WRP growth of 27%, which translated to market shares
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16.5% and 10.8% in the private and overall sectors, respectively, demonstrating consistent growth in individual and group businesses.
Padalkar also emphasized the increase in protection share in total NBP from 24% in FY22 to 29% in FY23, with overall protection APE growing by about 20% in FY23. The annuity business in FY23 grew by 18% on a received premium basis, with APE growth at 59% due to the pickup in the regular premium annuity product, Systematic Retirement Plan.
In addition to the positive financial results, HDFC Life also reported a strong new business margin of 27.6% for the year, resulting in the delivery of new business value of ₹3,674 crore, a growth of 37%. The company also achieved margin neutrality, even after taking into consideration the acquired business. This achievement was ahead of their target, demonstrating the company's efficiency and ability
generate value for its stakeholders.
Vibha Padalkar expressed her positive outlook on the growth prospects of the insurance industry and emphasized the company's commitment to increasing insurance penetration, aligning with the regulator's vision.
In a recent meeting, the board of directors of HDFC Life recommended a final dividend of ₹1.90 per equity share for FY23, subject to the approval of shareholders at the upcoming AGM.
On the Bombay Stock Exchange (BSE), HDFC Life's stock closed at ₹531.90 per share, slightly higher than the previous session's closing price.
HDFC Life had a good Q4FY23 with significant growth in key areas such as net premium incomes, net commissions, and individual WRP. The company closed the fiscal year on a positive note and is expected to maintain its growth trajectory. The company has a strong market share in the private and overall sectors, indicating consistent growth leadership.