New India Assurance Company Limited shares gained 4.57 percent gain in early trading, ahead of the budget announcements, on Saturday, February 1.
At 9:50 am, New India Assurance Company Ltd shares were trading at Rs 185.89 apiece.
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Until last year end, there were reports about the central government considering a 'turnaround' plan for the three main general insurance companies after reviewing their capital requirement. This also involved an option of government infusion, or a fundraise. CNBC-TV18 had reported the possibility of merging the non-life PSUs with New India Assurance as per the ongoing discussions.
However, the latest reports revealed that the plan might be replaced to simply pick up one of the three major names for privatisation. The other two entities are likely to be provided capital support to strengthen balance sheets, reports Mint.
The Q3FY25 results for the company reflected a decline in its key metrics. Its net sales reached Rs 10,666.84 crore, a decrease of 5.75 percent compared to Rs. 11,318.03 crore reported in December 2023.
The company’s profitability also faced a significant downturn, with net profit dropping 50.58 percent to Rs 353.46 crore from Rs 715.17 crore in the same quarter last year. In terms of operational performance, EBITDA fell drastically by 86.6 percent, amounting to Rs 116.43 crore, compared to Rs 869 crore in December 2023.
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