PB Fintech Turns Profitable in Q3 with ₹37 Crore, Reports Strong Financials and Market Growth

31 Jan 2024 , 10:52 AM

PB Fintech, parent of Policybazaar, achieved profitability in Q3 with a profit after tax of ₹37 crore, marking a turnaround from a ₹87 Crore loss in Q3 FY 23.

Factors driving profitability include robust growth in insurance premiums, improved renewals with higher margins, and an overall improvement in contributing margins.

Financial performance highlights reveal a 43% growth in operating revenue to ₹871 Crore in Q3, compared to ₹610 Crore in the last fiscal year. Adjusted EBITDA margin improved to 4% from negative 5% in the previous year, and contribution margin increased to 30% for the quarter, up from 26%.

Market response: Company shares ended 1.12% higher on January 30 after the results. The company reported a strong financial position with cash reserves exceeding ₹5,000 Crore.

Insurance business highlights include new insurance premiums of ₹2,400 Crore and renewal premiums, with higher margins, standing at ₹1,900 Crore. The new protection business, focusing on health and term insurance policies, saw a 41% growth.

The credit business under the Paisabazaar brand faced challenges with slower growth in H2 due to a cautious lending approach by partners. Annualized credit disbursement was recalibrated to around ₹14,000 Crore from the initially reported ₹16,000 Crore in Q1.

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