The New India Assurance Company Ltd (NIACL) experienced a 6% surge in its share price on Tuesday, 26 November 2024. This came after the company announced it had received a cumulative tax refund amounting to ₹1,945 crore. The stock reached an intraday high of ₹191.35 on the Bombay Stock Exchange (BSE).
Tax refund details
NIACL confirmed in a regulatory filing that the Income Tax Department passed rulings in its favour for the assessment years 2013-14 through 2019-20. These rulings resulted in a cumulative refund of ₹1,945.08 crore, which includes a total interest amount of ₹489.22 crore. The company is currently engaging with tax authorities to expedite the release of these funds.
About NIACL
NIACL is recognised as India's largest general insurance company based on net worth, domestic gross direct premium, profit after tax, and branch network. Its extensive operations span across 29 states, seven Union Territories, and 26 international markets. The company functions through a wide network of international branches, agency offices, and subsidiaries.
Q2FY25 financial results
For the second quarter of FY25, NIACL reported a net profit of ₹71 crore, marking a significant recovery from a ₹200 crore net loss during the same period in FY24. The company's total income increased to ₹10,090 crore compared to ₹9,839 crore in the previous year.
Gross premium written by NIACL rose to ₹9,620 crore in Q2 FY25, compared to ₹9,397 crore in the same quarter last year. Net premium collection grew to ₹8,067 crore, up from ₹7,894 crore during Q2 FY24.
NIACL share price history
NIACL's stock has faced challenges, with a 14% decline year-to-date and an 11% drop in the last year. These figures contrast with the BSE Sensex, which has gained 10.6% year-to-date and 21.2% over the past year. Despite these challenges, the recent 6% rise in NIACL's stock has generated interest among those planning to invest in stocks.
At 10:30 AM, NIACL shares were trading 3.74% higher at ₹187.15 on the BSE. In comparison, the BSE Sensex recorded a 0.11% decline, trading at 80,023.55 during the same period.
Key observations for investors
The ₹1,945 crore tax refund announcement has given NIACL shares a temporary boost in the market. For those considering the opportunity to invest in stocks, the financial performance and market movements of NIACL provide useful insights.
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