Star Health and Allied Insurance Company on Tuesday reported a whopping 99.76% fall in its net profit, which fell to mere Rs 0.51 crore for the fourth quarter of the financial year 2024-25 (Q4 FY25), from Rs 215.14 crore in the last quarter (Q3).
The YoY situation is also grim, with a decline of 99.64% in net profit from Rs 142.32 crore in Q4 FY24. The abrupt decline in earnings has had a significant impact on the company's QoQ as well as YoY profitability.
Total expenses for the quarter ended March rose to Rs 4,073.49 crore, an increase of 5.8% from Rs 3,848.66 crore in Q3 and 16.8% from Rs 3,487.17 crore in the same quarter last year. The uptick in expenses, fueled by higher claim settlements and operational expenses, has effectively offset the benefit of the premium income growth.
While there was a significant drop in profit, the company saw a spectacular growth in gross premium written, which was Rs 5,138.01 crore for Q4, an increase of 35.3% from Rs 3,796.12 crore for the quarter prior to it. The growth in revenue is offset, however, by the sharp jump in expenses, as reflected in the company's stock exchange filing.
This disappointing performance follows a challenging Q3, in which Star Health had already posted a 25.7% YoY decline in net profit, which had dropped to Rs 215.1 crore from Rs 289.6 crore in the corresponding period last year. In Q3, the company did report a 15.4% YoY rise in net earned premiums, at Rs 3,799.7 crore, though its EBIDTA dipped sharply by 45.8% to Rs 152.5 crore.
In the stock market, Star Health shares closed at Rs 399 on Tuesday, up marginally by Rs 1.10 or 0.28% on the National Stock Exchange (NSE).
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