Go Digit General Insurance has reported significant growth for the fiscal year ending March 2024, achieving a 37.4% increase in revenue from operations and a fivefold surge in profit, attributed to controlled costs and substantial ‘other income’.
According to its annual financial statements accessed from the National Stock Exchange, Go Digit’s revenue from operations (net premium) rose to Rs 7,096 crore in FY24 from Rs 5,164 crore in FY23. The company’s main revenue driver remained the premium earned from motor, travel, property, and health insurance products.
In addition to its core business revenue, Go Digit generated Rs 1,347 crore from interest on investments and contributions from the shareholders’ fund towards excess EOM. This brought the company’s overall income to Rs 8,443 crore for FY24.
A significant portion of Go Digit’s costs was attributed to claims settled for policyholders, which accounted for 62% of the overall expenses. This figure rose by 43.8% to Rs 4,990 crore in FY24, up from Rs 3,471 crore in FY22. Notably, the company’s expenditure on commission and brokerage saw a 13-fold increase, reaching Rs 1,888 crore in FY24.
The firm’s total expenditure, including employee benefits, advertising and business promotion, legal, business support services, and other overheads, increased by 36.1% to Rs 7,958 crore in FY24. Despite these rising costs, strategic reductions in advertising and legal fees, along with substantial other income, enabled Go Digit to achieve a fivefold increase in profits, jumping to Rs 182 crore in FY24 from Rs 36 crore in FY23.
It is worth noting that the company previously reported Rs 338 crore in profits for FY23, which has been revised to Rs 36 crore, likely due to changes in accounting policies.
As of June 13, 2024, Go Digit’s share price stood at Rs 340.6, with a total market capitalization of Rs 31,239 crore.
Overall, Go Digit’s impressive financial performance in FY24 highlights its robust growth trajectory and effective cost management strategies.
