Go Digit General Insurance witnessed a 37.4% growth during the fiscal year ending March 2024. However, controlled cost and a massive ‘other income’ enabled the publicly listed company to register a five-fold jump in profit during the same period.
Go Digit’s revenue from operations (net premium) grew 37.4% to 7,096 crore in FY24 from Rs 5,164 crore in FY23, its annual financial statements accessed from the National Stock Exchange show.
Go Digit offers motor, travel, property, and health insurance products. The premium earned on the sale of insurance policies was the main source of business revenue for Go Digit in FY23.
The company also earned Rs 1,347 crore from the interest on investment and contribution from shareholders fund towards excess EOM which tallied the overall income to Rs 8,443 crore in FY24.
For the insurance company, the claims settled to its policyholders accounted for 62% of the overall cost which grew 43.8% to Rs 4,990 crore in FY24 from Rs 3,471 crore in FY22. Significantly, Go Digit spent on commission and brokerage surged 13X to Rs 1,888 crore in FY24.
Expenses Breakdown
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- Commission and brokerage
- Employee benefits
- Advertising and business promotion
- Business support services
- Legal professional
- Claims paid including outstanding
- Others
The firm’s burn on employee benefits, advertising and business promotion, legal, business support services, and other overheads took its overall expenditure up by 36.1% to Rs 7,958 crore in FY24.
The massive other income and cut down in advertising and legal fees helped Go Digit to post a 5X jump in its profits to Rs 182 crore in FY24 from Rs 36 crore in FY23. On a unit level, it spent Rs 1.12 to earn a rupee.
Note: The company posted Rs 338 crore of profits in FY23 which is re-written at Rs 36 crore. This significant change could be attributed to a shift in the company’s accounting policies.
Go Digit’s share price is listed at Rs 340.6 at the end of June 13, 2024. The company has a total market cap of Rs 31,239 crore.
