STAR UNION DAI ICHI LIFE INSURANCE COMPANY Limited Balance Sheet (In Rs. Crores)

STAR UNION DAI ICHI LIFE INSURANCE COMPANY Limited Profit & Loss Statement (In Rs. Crores)

Star Union Dai Ichi Life Insurance Company Limited Consolidated Cash Flow Statement (Rs in Crores)

Let 's break down the Cash Flow Statement for the years 2023, 2022, and 2021, activity-wise:

Cash Flow Insight for Star Union Dai-ichi Life Insurance Company Limited - 31st March 2023:

Operating Activities In 2023, the company experienced a substantial improvement in cash flows from operating activities, reporting a total of INR 3,00,12,578 compared to INR 1,52,34,333 in 2022. This increase was primarily driven by a surge in premium receipts from policyholders, reflecting a stronger business performance. However, it 's noteworthy that payments to re-insurers and operating expenses also increased, which should be closely monitored for their impact on overall profitability.

Investing Activities, the investing activities in 2023 saw a net outflow of INR 2,89,99,439, reflecting substantial investments in fixed assets and the purchase of investments. The company continued its strategic portfolio management with significant sales and purchases of investments, aligning its investment strategy with market opportunities. The increase in interest, rents, and dividends received is indicative of the company 's focus on generating returns from its investment portfolio.

Financing Activities On the financing front, the company raised INR 20,00,000 through the issuance of share capital, and there were no borrowings in 2023. This contrasts with the previous year, where borrowing activities contributed to the financing cash flows. The repayment of borrowings in 2022 impacted the net cash flow from financing activities, while 2023 witnessed a positive trend with increased capital infusion.

Net Cash Flow and Cash Equivalents The net increase in cash and cash equivalents for 2023 was INR 29,03,316. The closing balance of cash and cash equivalents stood at INR 1,22,34,309, reflecting a healthy liquidity position for the company. The positive cash flow suggests effective management of working capital and strategic financial decision-making.

Cash Flow Insight for Star Union Dai-ichi Life Insurance Company Limited - 31st March 2022:

Operating Activities In 2022, the company reported a total cash flow from operating activities of INR 1,52,34,333, reflecting a moderate performance. Premium receipts from policyholders increased, but higher payments to re-insurers and operating expenses offset some of the gains. The company needs to evaluate and address the factors contributing to the decline in cash flow from operating activities.

Investing Activities, The investing activities in 2022 resulted in a net outflow of INR 1,29,02,833, mainly due to significant purchases of investments. The company strategically managed its investment portfolio, and the positive trend in rents, interests, and dividends received indicates a focus on optimizing returns from investments.

Financing Activities In 2022, financing activities saw a net cash inflow of INR 11,51,594. The company raised capital through the issuance of share capital and borrowings. The repayment of borrowings and payment of interest/dividends influenced the financing cash flows. The net positive cash flow reflects a balanced approach to capital structure management.

Net Cash Flow and Cash Equivalents The net increase in cash and cash equivalents for 2022 was INR 34,83,094. The closing balance of cash and cash equivalents stood at INR 93,30,993. This indicates a robust liquidity position, driven by positive cash flows from operating and financing activities. The company effectively managed its cash resources, contributing to its overall financial stability.

Star Union Dai Ichi Life Insurance Company Limited Financial Ratios

Insight of the financial ratios of Star Union Dai Ichi Life Insurance Company for March 31, 2023

Current Ratio:

March 31, 2023: 0.2

March 31, 2022: 0.2

The current ratio indicates the company 's short-term liquidity. A current ratio of 0.2 suggests that the company may face challenges in meeting its short-term obligations. It hasn 't changed from the previous year, indicating a consistent liquidity situation.

Debt-Equity Ratio:

March 31, 2023: -1.31

March 31, 2022: -1.42

A negative debt-equity ratio can be unusual and may be a result of negative equity. This may indicate that the company has more equity than debt, but it 's crucial to investigate further. A less negative ratio compared to the previous year is generally positive, suggesting a reduction in financial leverage.

Debt Service Coverage Ratio:

March 31, 2023: 1.13

March 31, 2022: -8.55

The debt service coverage ratio above 1 indicates that the company has the ability to cover its debt obligations. However, a significant improvement from the negative value in the previous year suggests a positive trend in servicing debt.

Return on Capital Employed (ROCE):

March 31, 2023: 8.86%

March 31, 2022: -12.47%
ROCE measures the efficiency of capital utilization. The positive ROCE in 2023 is a good sign, indicating that the company is generating a return on its capital. The significant improvement from a negative value in the previous year is a positive trend.

Return on Equity (ROE):

March 31, 2023: -3.80%

March 31, 2022: -15.10%

ROE reflects the return generated on shareholders ' equity. Although still negative, the improvement in ROE from the previous year suggests better utilization of equity to generate returns.

In summary, Star Union Dai Ichi Life Insurance Company has shown improvements in various financial ratios, such as debt service coverage, ROCE, and ROE. However, the negative current ratio and debt-equity ratio raise concerns about short-term liquidity and the company 's capital structure. It is advisable to delve deeper into the financial statements and industry benchmarks for a comprehensive analysis.

Dividend history of Star Union Dai ichi Life Insurance Company Limited