ICICI Prudential Q3 Profit Soars Despite Facing Rs 492 Cr GST Notice

ICICI Prudential Life Insurance Faces GST Notice

Breaking business news today reveals that ICICI Prudential Life Insurance Co. received a significant [[show cause notice]] for a hefty sum of Rs 492.06 crore. This notice covers the period from July 2017 to July 2022 and comes from the Additional Commissioner, CGST and C.Ex, Palghar Commissionerate in Maharashtra. While the news may seem alarming, the company has confirmed that this will not materially impact their financial statements.

Company’s Response and Financial Performance

In response to this latest development, ICICI Prudential Life plans to file an appeal with the appropriate Appellate Authority within the stipulated timeframe. This proactive approach shows the company’s confidence in its position. Separately, the insurance company also announced positive financial results. Their net profit for the third quarter of fiscal year 2024-25 saw a remarkable 43.2% surge, reaching Rs 325 crore compared to Rs 227 crore during the same period last year. This is great business news showing strong growth. For the nine months ending December 2024, their net profit climbed to Rs 803 crore, an impressive 18.3% year-on-year growth from Rs 679 crore.

Market Reaction and Analyst Outlook

The positive financial performance also impacted the market. Net premium income for the third quarter jumped 23.49% to Rs 12,261 crore, significantly up from Rs 9,929 crore in the previous year’s corresponding quarter. Investors reacted positively to this news. Shares of ICICI Prudential Life closed 0.38% higher at 606.95 apiece on the National Stock Exchange, despite the Nifty benchmark rising by a larger 1.62%. The stock’s performance has been quite strong, with a 20.24% increase over the last 12 months. Market analysis shows a positive outlook. Bloomberg data indicates that out of 35 analysts tracking the company, 20 maintain a ‘buy’ rating, 14 recommend ‘hold,’ and only one suggests ‘sell.’ The average 12-month analysts’ price target suggests a potential upside of 21.4%, further supporting the positive sentiment surrounding the company.

Other Business Updates

Meanwhile, in other business news, reports are emerging about ICICI Bank ex-employees approaching local labour offices, alleging illegal termination. This separate issue highlights ongoing challenges within the larger Indian financial sector. Stay tuned for more updates as this story develops. The latest business news is constantly evolving, and it’s vital to stay informed about these important developments.

Conclusion

Today’s business news includes both positive and negative developments for ICICI Prudential Life Insurance. While facing a large GST notice, the company’s strong financial performance and positive market outlook suggest a resilient and growing entity. The situation requires close monitoring, but the overall business news sentiment remains largely positive.

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