Life Insurance of India (LIC) has received a hefty income tax refund of ₹21,740 crore from the Income Tax Department, with an additional ₹3,700 crore refund still pending. The total amount of refund was ₹25,464.46 crore. This refund is for the Assessment Years 2012-13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19, and 2019-20. LIC is continuing to pursue the remaining refund with the Income Tax Department.
In addition to the income tax refund, LIC has also seen a significant boost from the windfall gains of the December 2023 quarter. The company sold off $4.7 billion worth of shares of listed domestic companies, taking advantage of the stock reaching its all-time high for the first time since the company was listed. This move has resulted in a 49 percent year-on-year growth in net profits for the December quarter of FY2024, reaching ₹9,444.4 crore, compared to ₹6,334.2 crore for the same period last year.
However, despite this success, shares of LIC fell by 1.52 percent, closing at ₹1,039 apiece, as the market saw a rise of 0.52 percent. Additionally, LIC’s market valuation saw a sharp decline of ₹26,217.12 crore to ₹6,57,420.26 crore as shares tumbled by over 1.5 percent. This was part of a larger trend that saw the wealth of the six most valued firms in India eroded by over ₹71,414 crore, with LIC and Tata Consultancy Services (TCS) being the biggest laggards.
It is evident that while LIC has seen significant gains in terms of income tax refunds and windfall profits, the recent decline in share prices and market valuation is a cause for concern. The company will need to navigate these challenges to maintain its financial stability and continue its growth in the market.
