NIACL's stock rises 6% after receiving cumulative tax return of Rs 1,945 cr

The New India Assurance Company’s (NIACL) shares were in great demand on Tuesday, as they rose up to 6 per cent to hit an intraday high of Rs 191.35 on the BSE. The stock of the company has corrected 41 per cent from its 52-week high of Rs 324 reached on February 2, 2024, while its 13.2 per cent above its 52-week low of Rs 168.95 touched on November 21, 2024. 

 

NIACL’s share price today surged after the company said that it has received a cumulative tax return of Rs 1,945 crore. 

“We would like to inform you that the Income Tax Department has passed various orders for Assessment Year 2013-14, 2014-15, 2015-16, 2016-17, 2017-18, 2018- 19 and 2019-20 ruling in favour of the company thereby resulting in cumulative refund of Rs 1,945.08 crore. The company is pursuing with the Income Tax Authorities to release the above amounts at the earliest,” the company said in an exchange filing. 

 

The amount also includes a total interest of Rs 489.22 crore. NIACL is the largest general insurance company in India, based on net worth, domestic gross direct premium, profit after tax, and the number of branches. The company's operations span across 29 states and seven Union Territories in India, as well as 26 other countries worldwide, through a network of international branches, agency offices, and subsidiaries.

 

NIACL Q2FY25 results

New India Assurance reported a net profit of Rs 71 crore for the second quarter ended September 2024, marking a strong recovery from the Rs 200 crore net loss in the same period last year.

 

The Mumbai-based insurer's total income increased to Rs 10,090 crore, up from Rs 9,839 crore a year ago, as per a regulatory filing. 

 

The company's written gross premium rose to Rs 9,620 crore in Q2 FY25, compared to Rs 9,397 crore in the same quarter last year. Additionally, its net premium collection grew to Rs 8,067 crore, up from Rs 7,894 crore in Q2 FY24.

 

NIACL share price history

NIACL’s stock performance has underperformed the market year to date as it has fallen 14 per cent, while slipping 11 per cent in the last one year. In comparison BSE Sensex has risen 10.6 per cent year to date and 21.2 per cent in a year. 

 

The company has a total market capitalisation of Rs 30,751.68 crore. At 10:30 AM; the shares of the company were trading 3.74 per cent higher at Rs 187.15 a piece. By comparison, the BSE Sensex was down 0.11 per cent at 80,023.55 level.