PB Fintech clocks a strong 73% revenue growth in Q3FY22; Stock slumps 5%

8 Feb 2022 , 09:15 AM

PB Fintech Limited clocked a strong 73% yoy revenue growth at Rs367cr in the December 31, 2021 ended quarter. Insurance premium grew by 68% yoy to Rs1,796cr. Credit disbursals grew by 94% to Rs1,926cr.

The existing business contribution margin was maintained at 40%. New initiatives revenue grew multifold to Rs50cr (up from Rs3cr last year) with an initial investment of Rs41cr. Adjusted EBITDA (non-GAAP) was a loss of Rs92 Cr reflecting investment in new initiatives and brand advertising, the company said in a filing on Monday.

PB Fintech Ltd stock was under pressure on Tuesday and during early trade was trading at Rs849.95 per share down by Rs46 or 5.13% from its previous closing of Rs895.95 per share on the BSE.

PB Partners (PoSP business) became the #1 B2B2C platform in the country in just six months of launch (July 2021). PB UAE business is now a close #2 in a fast-growing market. PB Corporate now covers 1.1Mn lives and is the fastest growing corporate/SME insurance business in India.

Insurance premium grew by 38% yoy to Rs4,812cr in 9MFY22. Credit disbursals grew by 169% to Rs4,416cr. Revenues grew by 44% to Rs885cr. Existing business contribution margin was maintained at 36%. New initiatives revenue grew multifold to Rs71cr (up from Rs8cr last year) with an initial investment of Rs58cr. Adjusted EBITDA (non GAAP) was a loss of Rs203cr reflecting investment in new initiatives and brand advertising.

Additional deferred revenue (for transactions closed but revenue to be realized over 12 months) grew to Rs75cr from Rs34cr last year. Costs against these transactions have been fully recognized in the accounts Jan 2022 Provisional Metrics.

Jan 2022 Provisional Metrics
Insurance premium grew by 60% yoy to Rs676cr. An annualized run rate (ARR) of Rs8,108cr. Credit disbursals grew by 79% to Rs705cr. ARR of Rs8,460cr. Total customers using credit score platform crossed 26Mn in the month of January 2022.
Yashish Dahiya, Chairman and Group CEO of PB Fintech, said: “Scale is critical to the success of any marketplace we are currently at an ARR of over Rs8,000cr which is a growth of 60% yoy, we are now growing at scale. Margins in our existing businesses were maintained at 40%. Renewal revenue is at an ARR of over Rs210cr, the renewal book operates at 90% contribution margin and will be the biggest driver of our long-term profitability.”

He added, “Paisabazaar has successfully navigated COVID and now is over Rs8,400cr ARR. Our new initiatives, PB Partners (B2B2C) has become the market leader within 6 months of launch with an investment of under $10Mn. PB Corporate is the fastest growing Corporate/MSME insurance business in the country and our UAE business is rapidly approaching market leadership. We have invested approximately Rs200cr in our brand and these new initiatives which will be value accretive in years to come.”