The worth of its new enterprise (VNB) is estimated at Rs 714 crore for Q1FY25, marking a 17% enhance over the corresponding interval of the earlier monetary yr.
HDFC Life can be saying its April-June quarter outcomes on Monday, July 15.
Key areas to watch going ahead embrace product-level development, particularly in safety merchandise, in addition to margin steering for APE and VNB.
Within the June quarter of the final monetary yr, HDFC Life reported a consolidated internet revenue of Rs 416.7 crore, whereas within the earlier quarter i.e. Jan-March, the revenue after tax (PAT) was reported at Rs 411.6 crore.
Here is what brokerages beneficial:
Nuvama
Nuvama expects HDFC Life to report an Annual Premium Equal (APE) of Rs 2,910 crore for the quarter ended June 30, 2024, which is a possible 25% YoY bounce, however a 38% climbdown on a QoQ foundation. The corporate’s VNB for the reporting quarter is estimated at Rs 710 crore, a 17% YoY bounce however a 42% QoQ fall.In the meantime, the VNB margin is seen at 24.5%, down by 168 bps on a YoY foundation and 161 bps on a QoQ foundation.
In its view, traders will be careful for product-level development, notably safety. APE and VNB margin steering for FY25E and the medium time period would be the key investor focus, it mentioned.
Kotak Equities
Kotak estimates the APE of HDFC Life within the mentioned quarter at Rs 2,784 crore, a 19.6% YoY possible uptick, whereas a 41.1% QoQ fall. The VNB is seen at Rs 702 crore, a 15% YoY achieve, whereas a 43.1% QoQ loss. VNB margin in Q1FY25 is estimated at 25.2%, down by 100 bps YoY and 91 bps on the QoQ foundation.
The 20% YoY APE development in 1QFY25 is on a low base and a 2-year APE CAGR will possible be decrease at 16%, Kotak mentioned in a observe. Margin compression can be on greater volumes in low-margin ULIPs.
Sure Securities
Sure expects APE to develop at 20% YoY to Rs 2,801 crore. Will probably be down by 41% on the QoQ foundation. The worth of recent enterprise is estimated at Rs 729, greater by 19% YoY and down by 41 QoQ. New enterprise premium (NBP) is anticipated to rise 13% YoY to six,608 crore. Nevertheless, this can be a 31% decline.
“We pencil in new enterprise development assumptions based mostly on traits noticed until Could 2024, when HDFC Life had displayed NBP/APE de-growth of -23%/-35% for 2M1QFY25 (April and Could 2024) over 2M4QFY24 (January and February 2024). We pencil in a VNB margin contraction of -10bps QoQ based mostly on anticipated enterprise combine modifications,” Sure mentioned in a brokerage observe.
(Disclaimer: Suggestions, strategies, views, and opinions given by the specialists are their very own. These don’t characterize the views of The Financial Occasions)
