Go Digit General Insurance experienced a substantial 37.4% growth in the fiscal year ending March 2024. Through effective cost management and a significant increase in 'other income,' the publicly traded company achieved a five-fold rise in profit during the same period.
According to financial statements accessed from the National Stock Exchange, Go Digit's revenue from operations (net premium) increased by 37.4%, reaching Rs 7,096 crore in FY24 from Rs 5,164 crore in FY23. The primary source of business revenue for Go Digit in FY23 was the premium earned from the sale of insurance policies.
In FY24, the company's total income amounted to Rs 8,443 crore, which included Rs 1,347 crore from interest on investments and contributions from shareholders' funds towards excess EOM.
Costs associated with settling claims for policyholders represented 62% of the overall expenditure, which grew by 43.8% to Rs 4,990 crore in FY24 from Rs 3,471 crore in FY22. Notably, spending on commission and brokerage surged significantly to Rs 1,888 crore in FY24.
Go Digit's overall expenditure rose by 36.1% to Rs 7,958 crore in FY24, driven by expenses such as employee benefits, advertising, business promotion, legal fees, business support services, and other overheads. However, a substantial increase in other income and reductions in advertising and legal fees contributed to the company's profit soaring five times to Rs 182 crore in FY24 from Rs 36 crore in FY23.
The company's share price stood at Rs 340.6 as of June 13, 2024, with a total market capitalization of Rs 31,239 crore.
Comments