On Wednesday, the company’s share price rose by 6.2% to its intraday high of Rs 968.4 per share from its previous close of Rs 911.65 after the company’s result for the December month and its investor presentation.
According to the exchange filing, Max Financial Service Ltd has announced its quarterly result for December and its business update for Q3.
Looking at their financials, the net revenue of the company rose by 39% from Rs 8,896 crore in Q3FY23 to Rs 12,356 crores in Q3FY24 on a sequential basis their net revenue rose by 21% from Rs 10,165 crore in Q2FY24 to its current level.
The net profit of the company fell by 36% from Rs 269 crore in Q3FY23 to Rs 171 crore in Q3FY24 on a sequential basis; their net profit rose by 0.5% from Rs 170 crore in Q2FY24 to its current level.
Furthermore, Axis Bank’s capital infusion was approved for Max Life by the Insurance Regulatory and Development Authority of India (IRDAI), subject to CCI approval. PFRDA has already given its approval to the shareholding revision. The infusion of Rs 1,612 crores will boost Max Life’s growth and solvency margins.
According to the investor presentation, Max Life has outpaced industry growth with a 13% CAGR in individual new businesses versus 10% for the industry. Their assets under management increased at a CAGR of 19% to Rs 1.23 lakh crore.
The company leads in online protection and health, with a CAGR of 21% in proprietary channels and 11% in bancassurance. Retail protection tripled in 5 years, while VNB increased at a 24% CAGR. New business margin increased from 20.2% in FY18 to 31.2% in FY23, with embedded value growing at a 20% CAGR.
With a market capitalization of Rs 33,200 crores, it is a mid-cap company, the company has a low debt-to-equity ratio of 0.15, and the share price of the company rose by 34% in the last year.
Max Financial Services Limited, founded on February 24, 1988, is part of India’s leading business conglomerate, the Max Group. The company’s primary focus is on growing and nurturing business investments, as well as providing management advisory services to Indian group companies.
Written by Sriram KV
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