(PMLI) Prabhu Mahalaxmi Life Insurance Q3 Performance: Net Profit Sees Marginal Growth Amid Expense Surge

Prabhu Mahalaxmi Life Insurance has published its unaudited financial report for the third quarter of FY 2081/82, showcasing moderate growth in key performance areas while also grappling with rising expenses. As of the end of Chaitra 2081, the company reported a net profit of Rs. 270.72 million, marking a marginal increase of 0.67% from Rs. 268.89 million in the corresponding period of the previous fiscal year.

The company’s total income surged by 16.54% to Rs. 4.54 billion compared to Rs. 3.89 billion in Chaitra 2080. This growth was largely driven by a notable 17.81% rise in net earned premium, which climbed to Rs. 3.49 billion. However, the increase in revenue was nearly matched by an increase in expenses. Total expenses rose sharply by 17.72% to Rs. 4.26 billion, driven in part by a 21.35% increase in net benefits and claims paid, which totaled Rs. 3.37 billion in this quarter.

From a capital standpoint, the company strengthened its base with a 10% increase in share capital, rising to Rs. 4.73 billion from Rs. 4.30 billion in Ashad 2081. Similarly, catastrophe reserves grew by 15.58% to Rs. 104.76 million, indicating a more cautious provisioning approach. On the other hand, retained earnings declined significantly by 16.89% to Rs. 794.57 million, reflecting higher outflows and perhaps reduced reinvestment capacity.

The Earnings Per Share (EPS) slightly dipped to Rs. 7.64 from Rs. 8.35, while the Price-to-Earnings (PE) ratio rose to 71.69 from 61.31, suggesting that the stock has become relatively more expensive compared to its earnings. Furthermore, the net worth per share dropped to Rs. 121.89 from Rs. 123.35, a subtle sign of pressure on shareholder value.

Despite the tight profit margins and increasing expense load, the company’s consistent income growth and capital expansion reflect resilience and cautious optimism. The next quarter’s performance will be crucial in determining whether the company can improve profitability while managing claims and operating costs effectively.