PB Fintech reports a loss of Rs 9 million in the fourth quarter; Achieves break-even at operating level
News update
- OfStartupStory | 23 May 2023
PB Fintech, the parent company of Policybazaar, achieved a significant reduction in losses during the fourth quarter, registering a loss of Rs 8.9 crore. This marks a significant improvement compared to the loss of Rs 220 crore reported in the same quarter last year and Rs 87 crore in the previous December quarter.
During the January-March period, PB Fintech witnessed a remarkable 61% year-on-year increase in operating revenue, reaching Rs 869 crore. In the corresponding period of the previous year, revenues were Rs 540 million. The company proudly announced that it achieved break-even on an operating level for the quarter.
Within the overall business, there was an impressive 65% year-on-year growth in insurance premiums, amounting to Rs 3,586 crore. Additionally, credit disbursements reached Rs 3,358 crore, up 53% year-on-year.
In the company’s existing business, there was a significant 31% year-on-year growth in operating income, reaching Rs 504 crore, while profit margins stood at 44%. Core adjusted EBITDA for the March quarter stood at Rs 64 crore. On a consolidated level, the company achieved an adjusted EBITDA of Rs 28 crore in the fourth quarter, representing an EBITDA margin of 3%. This marks a noticeable improvement compared to the same quarter last year, which had a negative EBITDA of Rs 80 crore and a margin of -15%.
According to the company, its existing ventures, Policybazaar and Paisabazaar, have maintained positive adjusted EBITDA for over a year, with Paisabazaar achieving individual EBITDA positivity since December 2022. Growth in the fourth quarter was primarily driven by renewal revenue, which has reached an annual run rate (ARR) of over Rs 388 crore, along with improved efficiency and expansion of new business.
In the credit business segment, the company has achieved an annual disbursement rate of Rs 15,000 crore and issued approximately 5.3 lakh credit cards. In addition, around 35 million customers have gained access to their credit scores through the company’s platform.
In terms of new initiatives, revenue has seen growth and reached Rs 364 crore, while the adjusted EBITDA loss has reduced to Rs 36 crore. The company expresses optimism about achieving positive profitability in the current financial year. On Monday, PB Fintech shares concluded trading 1.87% lower at Rs 617.95 on the National Stock Exchange (NSE).
Follow the Startup Story
