Star Health & Allied Insurance Company Ltd : Latest Quarterly Results Analysis

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Star Health and Allied Insurance Company Ltd. 30 Apr 2024 13:56 PM

Result PDF

General Insurance company Star Health and Allied Insurance Company announced Q4FY24 & FY24 results:

Financial Highlights:

- Profit After Tax (PAT): Star Health recorded a stellar PAT of Rs 845 crore in FY24, marking a significant 37% increase from the previous fiscal year.
- Gross Written Premium (GWP): The GWP saw an 18% rise, reaching Rs 15,254 crore in FY24, indicating robust growth in the company's core business operations.
- Q4 Performance: For Q4FY24, PAT stood at Rs 142 crore, a 40% YoY increase, with GWP growing by 18% to Rs 4,968 crore for the same quarter.
- Combined Ratio: The financial year concluded with a combined ratio of 96.7% and improved to 92.7% in Q4FY24.
- Claim Ratio: The FY24 claim ratio was 66.5%, with a Q4 claim ratio at 64.1%.

Operational Performance
- Market Share: In the retail health insurance segment, Star Health maintained its dominant position with a 33% market share. Its market share among general insurance companies rose modestly by 22 basis points to 5.26%.
- Expense of Management Ratio: The company efficiently kept this ratio at 30.7%, below the 35% regulatory requirement.
- Cashless Claims: An enhancement in cashless claims payout was observed, with 87% in FY24 compared to 80% in FY23.

Expansion and Growth
- Distribution Network: The addition of 16,000 agents in Q4FY24 and a total of 75,000 in FY24 expanded the agent count to 7,01,000.
- Phygital Presence: Strategic increments to the company's physical and digital presence include 881 branches and 14,295 network hospitals.

Commenting on the results Anand Roy, MD & CEO of Star Health Insurance said, "We at Star Health made a conscious journey of putting risk-first and growth later, which helped us in carving a path towards sustainable secular growth. We have yet again delivered record profits, which reflects our financial strength and stability, and underscores our competitive advantage and customer-centric approach. Our results demonstrate strengthened fundamentals through our sharpened focus on innovative product offerings and sound claim settlement process. Continuing to consolidate our market leadership, we are now shifting gears towards accelerating growth with profit. Our steady expansion in both volume and profit, showcases the strength of our customer's continued trust in us. We delivered robust growth across all our channels, including agency, bancassurance, and digital. This well positions us to rapidly scale up our business towards a sustained accelerated growth trajectory."

Result PDF

FY23 Annual Result Announced for Star Health and Allied Insurance Company Ltd.

Star Health and Allied Insurance Company announced FY23 results:

Registers a net profit of Rs 619 crore for FY23
Company delivers combined ratio of 95.3% for FY23
Gross Written Premium of Rs 12,952 crore in FY23
Appoints Anand Roy as the Chief Executive Officer and Managing Director

Anand Roy, newly appointed Chief Executive Officer and Managing Director of Star Health and Allied Insurance Company said, “I am extremely humbled and also excited about my new role at Star Health. It is indeed a privilege and honour to lead this great organisation into its next phase of success. FY 22-23 has been a good year for us where we saw steady growth q-o-q. We focused on improving our retail market share, lowering our combined operating ratio, growing our channel partners and agent network. The year saw us launch a couple of innovative products which were well received by customers across the country. Our growth strategy also focused on strengthening our presence through branches and increasing our network hospital presence for better customer service. Our combined ratio for FY23 improved to 95.3% versus 117.9% for FY22.”

“Retail health insurance will remain our primary focus for the years ahead. We continue to invest heavily in enhancing our customer experience through product innovation and digitalization. The brand of Star Health is well entrenched in all parts of our country. We will keep identifying new opportunities for growth and expansion and contribute to increasing the penetration of health insurance in India”, added Mr. Roy.

Result PDF

Trending News

Operational performance was better than expectations

Revenue increased by 18.2% YoY (+143.7% QoQ) to Rs 14768.8 crore in Q4FY24. During the quarter, the company has recognized additional revenue of ~Rs 549 crore pertaining to change of value of an old contract. EBITDA margin was at 40% (vs 26% in Q4FY24). However, the company has reversed the provision of Rs 1034 crore made in earlier years. Adjusted revenue growth during the quarter stands at 13.8% YoY with EBITDA margin at 30.4% (+439 bps YoY). EBITDA was up 81.8% YoY to Rs 5901.3 crore. PAT was up 52.2% YoY to Rs 4308.7 crore due to lower tax outgo last year in Q4FY23. For FY24, revenue is up 12.8% YoY to Rs 30381.1 crore with EBITDA margin at 32.1% (vs 24.8% in FY23). PAT for FY24 is up 30.8% YoY to Rs 7621 crore.

Published on 17-May-2024 09:10

M & M reports healthy Q4FY24, guided for aggressive capex spend and product launches till 2030

At M&M, on the standalone basis, topline for the quarter came in at ₹25,109 crore (up 11% YoY) with automotive segment volumes growing 14% YoY at 2.16 lakh units and tractor sales volume at 0.72 lakh units (down 20% YoY). EBITDA in Q4FY24 came in at ₹3,240 crore with corresponding EBITDA margins at 12.9% (up 10 bps QoQ). Resultant PAT for the quarter stood at ₹2,038 crore (up 32% YoY). Automotive segment EBIT margins improved further to 8.8% (up 50 bps QoQ) while Farm Equipment segment margins improved to 15.8% (up 30 bps QoQ). It generated healthy CFO to the tune of ~₹ 11,500 crore in FY24 with capex spend pegged at ~₹ 5,000 crore. It also declared a dividend of ₹ 21/share for FY24.

Published on 17-May-2024 09:09

Caplin Point Q4FY24- US driven growth continues

Revenues grew ~16% YoY to Rs 453 crore on the back of ~78% growth in Caplin Steriles (mainly US) to Rs 103 crore which was driven by consistent launches in injectables and ophthalmics. Legacy Latam markets growth was slightly muted at 5% to Rs 350 crore on a higher base. EBITDA grew ~17% YoY to Rs 145 crore with margins stood at 32%. PAT grew ~20% to Rs 121 crore.

Published on 17-May-2024 09:08

Biocon Q4FY24 Results- soft quarter with growth in Biosimilars only solace

Revenues grew 4% YoY to Rs 3604 crore driven by Biosimilars which grew ~12% YoY to Rs 2358 crore. Research Services (Syngene) de-grew 8% YoY to Rs 917 crore, while Generic sales de-grew 3% to Rs 718 crore. EBITDA stood at Rs 916 core, a de-growth of 8% mainly due to higher employee expenses (Viatris integration) and other expenses even as R&D spend was significantly lower. EBITDA margins stood at 23.4% during the quarter (~300 bps lower).

Published on 17-May-2024 09:07

Vodafone Idea: Renewed capex to be key monitorable

Vodafone Idea’s (VIL) Q4FY24 performance was muted, albeit subscriber churn saw some moderation QoQ. Reported revenues were down 0.6% QoQ to ₹ 10,607 crore. ARPU was up 0.7% QoQ to ₹ 146. The subscriber base declined at ~2.6 million QoQ (vs. 4.6 mn decline in Q3), with monthly churn rate at 3.9%, down from 4.3% in Q3. 4G base saw an addition of 0.7 mn. Reported EBITDA margins was flattish QoQ at 40.9% largely due to lower network opex and marketing expenses. The reported loss stood at ₹ 7675 crore.

Published on 17-May-2024 09:04

Revenue de-growth continues on decline in exports and lower explosive realisation

Revenues declined by 16.5% YoY (+12.7% QoQ) to Rs 1610.7 crore in Q4FY24 as the revenue across major segments remained lower on YoY basis. Explosives segment revenue (46% of total) declined by 19% YoY (+6.3% QoQ) to Rs 736 crore as volume growth of 24% YoY (+8% QoQ) was negated by decline in realisations (-34% YoY, flat QoQ). Exports revenue (37% of total) was down by 20% YoY (-5.6% QoQ) to Rs 589 crore. However, defence segment revenue (12% of total) increased by 75% YoY (+213% QoQ) to Rs 194 crore. EBITDA margin improved significantly by 342 bps YoY (-297 bps QoQ) to 22.0%, primarily led by lower raw material (ammonium nitrate) prices. Subsequently, EBITDA was down 1.1% YoY (flat QoQ) to Rs 353.7 crore. PAT was up 10% YoY (+9.4% QoQ) to Rs 242.7 crore on higher other income and lower tax outgo. For FY24, revenue is down 12% YoY to Rs 6070 crore with EBITDA margin at 23% (vs 19% in FY23). FY24 PAT is up 8% YoY to Rs 875.3 crore.

Published on 17-May-2024 09:03

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