Star Health Q4 results: Star Health and Allied Insurance Company reported on Tuesday that its net profit was a staggering 99.76% down by Rs 51 crore in the fourth quarter of the 2024-25 fiscal year (FY2555 in the fourth quarter), compared with Rs 215.14 crore in the third quarter. The same serious picture was drawn compared to the year. The company's net profit fell to 99.64% from Rs 14.232 crore in the same period last year (FY24 in the 4th quarter).
This huge revenue erosion has dealt a major blow to the company’s bottom line, both in the quarter (QOQ) and Yoy’s foundation.
Total expenses in the March quarter climbed to Rs 407,34 crore, up 5.8 per cent from Rs 38,486 crore in the third quarter, from 16.8 per cent of Rs 3,487.17 crore in the same period last year.
The sharp rise in fees, especially from rising claims settlements and operating costs, seems to have eliminated the benefits of higher premium income.
Despite the impressive pool of total premium gross, which is the increase in total revenue a company has earned from all policies it sells, total premium income in the fourth quarter rose by Rs 5,138.01 crore and 35.3% from Rs 3,796.12 crore in the previous quarter.
However, according to its stock exchange application, income from income masks the increase in fees.
The disappointing quarter was also a challenging third quarter, in which Star Health has reported net profit fell 25.7% to Rs 21.51 crore, down from Rs 28.96 crore a year ago.
However, the company reported a 15.4% premium to net income, with net worth Rs 3,799.7 crore in the third quarter.
It witnessed a 45.8% drop in the third quarter to Rs 1,525 crore.
Star Health's shares closed at Rs 399 on Tuesday, up Rs 1.10 or 0.28% on the National Stock Exchange (NSE).
