PB Fintech Reports Q4 Loss of Rs 9 Crore; Achieves Break-Even at Operating Level
- ByStartupStory | May 23, 2023
PB Fintech, the parent company of Policybazaar, achieved a significant reduction in losses during the fourth quarter, recording 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 revenue from operations, reaching Rs 869 crore. In the corresponding period of the previous year, the revenue stood at Rs 540 crore. The company proudly announced that it achieved break-even at the 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 disbursals reached Rs 3,358 crore, marking a 53% year-on-year increase.
In the company’s existing operations, there was a significant 31% year-on-year growth in operating revenue, reaching Rs 504 crore, while the contribution margins stood at 44%. The core business adjusted EBITDA for the March quarter amounted to Rs 64 crore. On a consolidated level, the company achieved adjusted EBITDA of Rs 28 crore in Q4, representing a 3% EBITDA margin. This marks a notable improvement compared to the same quarter last year, which had a negative EBITDA of Rs 80 crore and a -15% margin.
According to the company, its existing ventures, Policybazaar and Paisabazaar, have maintained a positive adjusted EBITDA for over a year, with Paisabazaar achieving individual EBITDA positivity since December 2022. The growth in the fourth quarter was primarily propelled by renewal income, which has reached an annual run rate (ARR) of over Rs 388 crore, along with improved efficiency and expansion in new business.
In the credit business segment, the company has achieved an annualized disbursal run rate of Rs 15,000 crore and issued approximately 5.3 lakh credit cards. Moreover, around 35 million customers have accessed their credit scores through the company’s platform.
Regarding new initiatives, revenue has experienced growth, reaching Rs 364 crore, while the adjusted EBITDA loss has reduced to Rs 36 crore. The company expresses optimism about attaining positive profitability in the current fiscal year. On Monday, PB Fintech shares concluded trading 1.87% lower at Rs 617.95 on the National Stock Exchange (NSE).
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