Go Digit shares jump 8% on robust Q1 results: PAT surges 74%, AUM up 33%; check details

The recently listed insurance stock jumped over 7%% to an intraday high of ₹362.50 per share on the National Stock Exchange (NSE). However, the stock later pared some gains to close 3.46% higher at ₹346.5 per share.

The leading general insurance firm reported a strong 74.1% year-on-year (YoY) jump in profit after tax (PAT) during the April to June 2024 quarter at ₹101 crore, as compared to ₹58 crore in the same period last year. On a sequential basis too, the company’s profit number witnessed a whopping 92.4% uptick as opposed to ₹52.66 crore reported in the March 31, 2024 ended quarter.

The company stated that its key strengths for stellar results included high-quality customer experience, its focus on empowering distribution partners, predictive underwriting models, and an advanced technology platform.

Go Digit General Insurance’s asset under management (AUM) grew healthy double-digits to 33.2% in the June quarter, standing at ₹17,773 crore, compared to ₹13,337 crore in the corresponding period of the previous fiscal year.

The AUM rose 12.7% quarter-on-quarter (QoQ) in the quarter under review versus ₹15,764 crore as of March 31, 2024.

The company’s Premium Retention Ratio remained almost unchanged in Q1 FY25 at 76.2% from 76.9% in the year-ago period. The metric indicates the amount of risk that an insurer carries or retains, rather than passing it on to the reinsurers.

Its gross written premium, which is the total amount of money collected by an insurer from its customers in exchange for its policies, increased by 22.2% in the first quarter of the current financial year to ₹2,660 crore, compared to ₹2,178 crore in the June 2023 quarter.

The net earned premium, another indicator of an insurance company's income, also increased 23.7% year over year to ₹1,824 crore in the quarter under focus from ₹1,475 crore last year.

As a result, Go Digit General Insurance’s total income in the quarter ended June 2024 increased almost 25% on a YoY basis to ₹2,076.99 crore from ₹1,667.37 crore witnessed last year, while declining 23% sequentially.

Shares of the small-cap insurance stock are approaching their 52-week high of ₹375 apiece, recorded earlier this month on July 10, 2024.

Go Digit was listed at ₹286 per share on the Indian market on May 23, 2024, and is currently trading at Rs 346.6 apiece on the NSE, marking a 21.2% increase from its listing price.