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Results
26-Jul-23
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Analysis
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SBI Life Insurance Company
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Healthy growth and margins
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SBI Life Insurance
Company has posted 45% increase in the net profit of Rs 381.04 crore in the
quarter ended June 2023 (Q1FY2024). The company has posted 19% increase in net
premium collection to Rs 13104.49 crore in Q1FY2024, aided by 28% growth in the
renewal business to Rs 7348 crore, while new business premium jumped 11% to Rs 6210
crore in Q1FY2024.
The Company has
maintained its leadership position in Individual Rated Premium of Rs 2670 crore
with 23% private market share in Q1FY24. There is strong growth in Individual
New Business Premium by 18% to Rs 4060 crore in Q1FY24. New Business Premium
(NBP) increased 11% to Rs 6210 crore in Q1FY24 aided by growth in Single
premium business by 18%.
Protection
New Business Premium has increased by 12% from Rs 700 crore in Q1FY23 to Rs 780
crore in Q1FY24 due to growth in individual protection business by 5% to Rs 210
crore and growth in group protection business by 15% to Rs 570 crore in Q1FY24.
Gross
Written Premium (GWP) has grew by 19% to Rs 13560 crore in Q1FY24 mainly due to
18% growth in Single Premium (SP) and 28% growth in Renewal Premium (RP) in Q1FY24.
Strong
growth in 37th month and 61st month persistency (based on premium considering
Regular Premium/ Limited Premium payment under individual category) in Q1FY24
by 262 bps and 645 bps respectively due to our focus on improving the quality
of business and customer retention.
13th month
persistency (based on premium considering Single Premium and Fully Paid-up
policies & group business where persistency is measurable) is 88.6% in Q1FY24
vs 88.7% in Q1FY23.
VoNB eased by 1% to
Rs 870 crore for Q1FY24. VoNB margin stands at 28.8%
in Q1FY24.
AuM grew by 25% from Rs 262350 crore end
June 2022 to Rs 328280 crore end June 2023 with debt-equity mix of 69:31. Over
94% of the debt investments are in AAA and Sovereign instruments.
The Company’s net
worth increased by 15% from Rs 11760 crore end June 2022 to Rs 13530 crore end June
2023.
Robust solvency ratio
of 2.15x end June 2023 as against the regulatory requirement of 1.50x
indicating strong financial position of the Company.
The
Company has strong distribution network of 289,162 trained insurance
professionals consisting of agents, CIFs and SPs along with widespread
operations with 996 offices across country.
The
Company has diversified distribution network comprising of strong bancassurance
channel, agency channel and others comprising of corporate agents, brokers,
micro agents, common service centers, insurance marketing firms, web
aggregators and direct business.
APE
channel mix for Q1FY24 is bancassurance channel 65%, agency channel 25% &
other channels 10%.
NBP of Agency channel
has increased by 23% to Rs 1160 crore in Q1FY24 and NBP of Banca channel has
increased by 32% to Rs 3840 crore in Q1FY24 as compared to same period last
year.
Total
Cost ratio for Q1FY24 is 10.8% against 11.2% for Q1FY23. Commission ratio for Q1FY24
is 4.0% against 4.6% for Q1FY23. Operating Expense ratio for Q1FY24 is 6.8% against
6.6% in Q1FY23
Indian
Embedded Value (IEV) calculated stood at Rs 472.5 end June 2023.
Financial
Performance FY2023
Profit after Tax
(PAT) increased 14% to Rs 1720.57 crore for FY23. The company has posted strong
growth in Individual New Business Premium by 27% to Rs 20910 crore in FY23. New
Business Premium (NBP) has grew by 16% to Rs 29590 crore in FY23 aided by
growth in Regular premium business by 17%.
Protection New
Business Premium has increased by 19% from Rs 3050 crore in FY22 to Rs 3640
crore in FY23 due to growth in individual protection business by 6% to Rs 1000
crore and growth in group protection business by 25% to Rs 2640 crore in FY23.
Gross Written Premium
(GWP) has grew by 15% to Rs 67320 crore in FY23 mainly due to 17% growth in
Regular Premium (FYP) and 13% growth in Renewal Premium (RP) in FY23.
APE channel mix for
FY23 is bancassurance channel 64%, agency channel 26% & other channels 10%.
NBP of Agency channel
has increased by 19% to Rs 5490 crore in FY23 and NBP of Banca channel has
increased by 33% to Rs 17830 crore in FY23 as compared to same period last
year.
Total Cost ratio for
FY23 is 9.6% against 8.8% for FY22. Commission ratio for FY23 is 4.5% against
3.7% for FY22. Operating Expense ratio for FY23 is 5.1% against 5.1% in FY22.
VoNB increased by 37%
to Rs 5070 crore for FY23. VoNB margin increased by 420 bps to 30.1% in FY23.
SBI Life Insurance:
Results Policyholders Account
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2306 (3)
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2206 (3)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Premium earned (net)
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13104.49
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11036.02
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19
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66581.00
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58432.29
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14
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Income from
Investments
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14578.90
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-6405.66
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LP
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13260.14
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23567.95
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-44
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Other income
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8.57
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10.76
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-20
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49.85
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44.81
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11
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Contribution from the
Shareholders` account
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0.00
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0.00
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-
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1707.49
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982.15
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74
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Total Income
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27691.96
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4641.12
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497
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81598.48
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83027.20
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-2
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Commission
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521.15
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507.57
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3
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2935.96
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2084.05
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41
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Op. expenses related
to Insurance business
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939.75
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765.68
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23
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3536.00
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3048.69
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16
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Others
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184.97
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161.19
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15
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832.32
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782.87
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6
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Benefits paid (Net)
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7103.43
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5171.72
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37
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30287.46
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31339.82
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-3
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Change in valuation of
policy liabilities
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18519.66
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-2271.05
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PL
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41003.10
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43761.85
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-6
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Provision for taxation
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42.90
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33.44
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28
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147.40
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126.16
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17
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Total Expense
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27311.86
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4368.55
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525
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78742.24
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81143.44
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-3
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PAT
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380.10
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272.57
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39
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2856.24
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1883.76
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52
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Transfer to
Shareholders` account
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189.04
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100.34
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88
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2707.15
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1732.43
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56
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SBI Life Insurance:
Results Shareholders Account
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2306 (3)
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2206 (3)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Amounts transferred
from Policyholders` account
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189.04
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100.34
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88
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2707.15
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1732.43
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56
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Income from
investments
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212.04
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176.17
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20
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795.25
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988.41
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-20
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Total Income
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401.08
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276.51
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45
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3502.40
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2720.84
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29
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Expenses (apart from
Insurance)
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7.94
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8.17
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-3
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37.23
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156.98
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-76
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Contribution to
policyholders account
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0.00
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0.00
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-
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1707.49
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982.15
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74
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Others
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3.40
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0.92
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270
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-0.76
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20.96
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LP
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Total Expenses
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11.34
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9.09
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25
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1743.96
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1160.09
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50
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PBT
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389.74
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267.42
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46
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1758.44
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1560.75
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13
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Tax
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8.70
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4.57
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90
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37.87
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54.76
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-31
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PAT
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381.04
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262.85
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45
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1720.57
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1505.99
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14
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EPS (Rs)*
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15.2
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10.5
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17.2
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15.0
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Embedded Value (Rs)
per share
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472.5
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407.5
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460.0
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396.2
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* on current equity of
Rs 1000.97 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to
Profit
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Figures in crore,
Source: Capitaline Corporate Database
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