Went deep into how LIC has posted such an explosive growth in earnings !!
There has been a change in accounting policy, and with this change it might report the same kind of numbers in the quarters going forward
Blockbuster earnings
Q2 Net Profit 15900 CR
Q2 EPS 25
LICI Life Insurance Corporation Of India Ltd - Superb results over the quarter
Q2FY23 Net Profit Of 15,854 CR
VS
Q1FY23 Net Profit Of 603 CR
VS
Q2FY22 Net Profit Of 1480 CR
Forward PE of just 6, I am expecting similar kind of numbers in the quarters going forward
Reason being I am expecting similar kind of explosive numbers is that there has been change in accounting policy resulting in transfer of the accretion in
the Available Solvency Margin from Non-Par to Shareholders funds.
4. Note No. 4 regarding change in accounting policy resulting in transfer of the accretion in the Available Solvency Margin from Non-Par to Shareholders funds amounting to Rs.14,27,180.41 lakhs (Net of Tax) pertaining to the accretion on the Available Solvency Margin from Non Par to Shareholder's Account, due to which the profit for the quarter and half year ended September 30, 2022 has increased to that extent. The said amount
LIC could soon cross its IPO price