18 February 2024 – Life Insurance Corporation of India (LIC), the nation’s largest insurer, has confirmed the receipt of ₹21,740 crore in income tax refunds from the Income Tax Department. The total refund amount was ₹25,464.46 crore, with approximately ₹3,700 crore still pending processing.
Founded in 1956, LIC holds a significant position in India’s insurance sector. It was established to provide life insurance coverage to Indians and has played a pivotal role in the country’s financial landscape.
Key Details:
LIC received refund orders for multiple Assessment Years, including 2012-13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19, and 2019-20. However, a portion of the total refund, amounting to ₹3,700 crore, is still awaited.
In a statement, LIC mentioned, “In this regard, the Income-tax Department has released ₹21,740.77 crore on 15.02.2024. The Corporation is pursuing the balance with the Income Tax Department.”
Financial Gains and Quarterly Performance:
LIC capitalized on windfall gains during the December 2023 quarter by selling shares worth $4.7 billion in listed domestic companies. This move coincided with the stock reaching its all-time high, marking the first since the company went public.
The stellar quarterly reports contributed to this success, showcasing a remarkable 49% year-on-year growth in net profits for the December quarter of FY2024, reaching ₹9,444.4 crore compared to ₹6,334.2 crore in the same period last year.
Market Impact and Share Performance:
Despite the positive financial developments, LIC experienced a 1.52% decline in its shares, closing at ₹1,039 apiece on Friday. This dip occurred amid a broader market rise of 0.52%.
The overall market cap of the six most valued firms in India witnessed a substantial decrease on Friday, with a wealth erosion of over ₹71,414 crore. LIC, along with Tata Consultancy Services (TCS), faced the most significant setbacks among the top 10 most valued firms.
Conclusion:
LIC’s substantial income tax refund, coupled with its strategic financial moves and robust quarterly performance, reflects its resilience in navigating market dynamics. As the insurer continues its pursuit of the pending refund, the company’s influence in India’s financial landscape remains significant despite short-term market fluctuations.
