Go Digit General Insurance reported a decline in revenue from operations (net premium) by 8%, falling to Rs 1,824 crore in Q1 FY25 from Rs 1,982 crore in Q4 FY24. However, the company’s gross premium for the first quarter of the current fiscal year was Rs 2,660 crore. In the previous fiscal year, ending in March 2024, the Bengaluru-based company showcased robust financial performance, with a 37.4% year-on-year increase in net premium to Rs 7,096 crore and a more than fivefold increase in profits to Rs 182 crore.
Additionally, Go Digit earned Rs 253 crore from its investments, bringing its total revenue to Rs 2,077 crore in Q1 FY25, down from Rs 2,692 crore in Q4 FY24. The largest cost center for the general insurance firm was claims paid, which accounted for 64.48% of overall expenditure. This cost decreased by 10% to Rs 1,285 crore in Q1 FY25.
Spending on commissions, employee benefits, business development, sales promotion, and other overheads brought total expenses to Rs 1,993 crore in Q1 FY25, compared to Rs 2,198 crore in Q4 FY25.
Despite a slight reduction in scale, Go Digit managed to cut costs by 9.3% quarter-on-quarter, resulting in a significant profit increase. Profits rose by 90.6%, to Rs 101 crore in Q1 FY25 from Rs 53 crore in Q4 FY24. The firm also experienced a fivefold growth in profits during FY24.
Go Digit General Insurance’s IPO was valued at Rs 2,616 crore, including a fresh issue of Rs 1,250 crore, with the remainder offered for sale. The company listed on the stock exchange on May 23 this year at a share price of Rs 286, a 5.1% increase from their price band of Rs 258-272 per share.
