InvestorQ : Is HDFC Life a stock worth buying after the latest quarter results for March 2020?
Katherine Gonsalves made post

Is HDFC Life a stock worth buying after the latest quarter results for March 2020?

Answer
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Rutuja Nigam answered.
5 months ago


Net profits of HDFC Life fell by 14.5% YOY to Rs.312 crore for the March 2020 quarter. This was largely driven lower by lower net investment income and a rise in provisions. The net investment income slipped into the negative zone touching (-Rs.10,230 crore) in the Mar-20 quarter. Provisions for diminution in value of investments rose almost 23-fold to Rs.376 crore in Q4. On the positive side, both annualised premium equivalent (APE) and value of new business (VNB) saw a double-digit growth in FY20. APE refers to 100 percent of regular premiums and 10 percent of single premiums. This keeps the bulls still interested in the stock despite the short term pressures.