LIC shares climb nearly 6% as Q2 net income zooms multifold

Q2 earnings report (Representative image)

Shares of LIC ended nearly 6 per cent higher on Monday after the firm reported a multi-fold jump in net income in the quarter ended September.

The stock rallied 8.70 per cent to Rs 682.70 during the day on the BSE. It finally ended at Rs 664.80 apiece, higher by 5.85 per cent.

On the NSE, it climbed 9.11 per cent to Rs 684.90 during the day. The stock settled at Rs 664.20 apiece, a jump of 5.81 per cent.

The company's market valuation rallied Rs 23,244.85 crore to Rs 4,20,485.85 crore on the BSE.

In volume terms, 8.43 lakh shares were traded on the BSE and over 88.54 lakh shares on the NSE during the day.

A 27 per cent jump in premium income and massive gains from changes in its accounting policy along with investment income helped the national insurer LIC on Friday report a multi-fold jump in net income at Rs 15,952 crore in the July-September quarter, from Rs 1,434 crore a year-ago.

More than 40 per cent of the net income came in from profit from investments which reached Rs 6,798.61 crore, but down from the year-ago period when it had booked Rs 6,961.14 crore.

The bottom-line was also boosted by gains from changes in its accounting policy, the nation's financial powerhouse said in exchange filings.

In the June quarter, which was its first earnings after going public in May with an over Rs 20,530-crore IPO, the insurer had reported a net profit of just Rs 682.9 crore.