HDFC Life Insurance Full Year 2024 Earnings: Beats Expectations

HDFC Life Insurance (NSE:HDFCLIFE) Full Year 2024 Results

Key Financial Results

• Revenue: ₹1.02t (up 44% from FY 2023).
• Net income: ₹15.7b (up 15% from FY 2023).
• Profit margin: 1.5% (down from 1.9% in FY 2023). The decrease in margin was driven by higher expenses.
• EPS: ₹7.32 (up from ₹6.41 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

HDFC Life Insurance Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 9.9%. Earnings per share (EPS) also surpassed analyst estimates by 2.2%.

The primary driver behind last 12 months revenue was the Unit Linked Funds - Individual Life segment contributing a total revenue of ₹343.6b (34% of total revenue). Notably, cost of sales worth ₹934.9b amounted to 92% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to ₹45.3b (61% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of ₹5.28b. Explore how HDFCLIFE's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Insurance industry in India.

Performance of the Indian Insurance industry.

The company's shares are down 1.2% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 1 warning sign for HDFC Life Insurance that you need to be mindful of.

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