PB Fintech narrows loss to Rs 12 crore in Q1FY24; stock skids ~5% amidst profit booking

8 Aug 2023 , 11:56 AM

PB Fintech shares fell more than 5% in Tuesday’s intraday session as investors booked profits after the insurance distributor trimmed losses significantly in the June quarter.

The stock gained about 11% in the previous two sessions, ahead of its June quarter reports.

On August 7, PB Fintech recorded a loss of Rs 12 crore for the first quarter of FY24, down from Rs 204 crore in the same quarter of the previous year due to good topline and operating performance.

At around 11.50 AM, PB Fintech was trading 4.66% lower at Rs 760.95, against the previous close of Rs 798.15 on NSE. The counter plunged to an intraday low of Rs 752.80.

The company was able to lower its losses by increasing its contribution margin from 42% to 45%. Its strong renewal rate, with 85% margins, aided the company’s attempts to significantly cut losses.

Revenue from operations climbed by 32% year-on-year to Rs 666 crore for the quarter. Adjusted EBITDA was Rs 23 crore for the quarter, compared to a loss of Rs 66 crore in the previous corresponding quarter, and the margin was 3%, compared to negative 13% in the previous corresponding period. New premiums in the protection market increased by 40% year-on-year.

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