Neco Insurance Reports Decline In Profit By 42 Percent [Q1 Report]

November 16, 2021 | Investopaper

Neco Insurance Company Limited (NIL) has reported a 42 percent decline in net profit as per the unaudited first quarterly report of the fiscal year 2078/79. NIL has earned Rs 7.19 crores in net profit in the three months period. In the same period of the previous fiscal year 2077/78, such profit stood at Rs 12.44 crores.

The decline in net profit is due to the increase in net claims by 63 percent. In the three months period, the company has paid a net claim of Rs 20.13 crores, up from 12.29 crores of the same period last year.

During this period, Neco Insurance collected a total premium of Rs 81.37 crores. Likewise, the net premium income has increased by 14 percent to Rs. 49.35 crores. In the corresponding period of the previous fiscal year, the net premium stood at Rs. 43.28 crores.


Recommended:

Dividend History Of Neco Insurance Company Limited (NIL)

Neco Insurance’s Performance In FY 2077/78


The first-quarterly report of Neco Insurance is summarized in the table below:

Neco Insurance (NIL): First Quarterly Report Summary, FY 2078/79

Financial Indicators Q1, F.Y. 2078/79 Q1, F.Y. 2077/78 Percent Change
Paid-up Capital (Rs. ‘crores’) 131.74 131.74 0.00
Reserve & Surplus (Rs. ‘crores’) 73.29 58.04 26.27
Insurance Fund  (Rs. ‘crores’) 115.33 89.39 29.02
Total Investments  & Loans (Rs. ‘crores’) 403.89 336.85 19.90
Total Premium (Rs. ‘crores’) 81.37 68.17 19.36
Net Premium  (Rs. ‘crores’) 49.35 43.28 14.02
Net Claim (Rs. ‘crores’) 20.13 12.29 63.79
Total Outstanding Claim (Rs. ‘crores’) 199.26 66.66 198.92
Net Profit  (Rs. ‘crores’) 7.19 12.44 -42.20
Management Expenses (Rs. ‘crores’) 8.9 8.36 6.46
Number Of Policies 81,557 78,042 4.50
Earnings Per Share (Rs.) 21.85
Networth Per Share (Rs.) 248.81
Market Price Per Share (Rs.) [Ashwin end, 2078 BS] 1455
P/E Ratio 66.59

Source: Unaudited Q1 Report, FY 2078/79

The Q1 report has not adjusted the 15.50 percent bonus share distributed by the company. After the adjustment, the actual paid-up capital is Rs 152.16 crores. With this, the reserve will decline according. Likewise, the actual EPS will also be lower.


Note:

The above figures are based on the unaudited quarterly report published by the respective company. Investors are advised to take other things into consideration along with this report while making investment decisions. The numbers may vary after the final audit.

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