Policybazaar parent posts sharp drop in Q3 loss; targets profitability in FY24
PB Fintech, the parent company of Policybazaar and Paisabazaar, said insurance premium increased 70% from a year earlier in the December quarter, while credit disbursals improved 57%. Revenue jumped 66%.
, the parent company of Policybazaar and Paisabazaar, sharply narrowed losses for the financial third quarter aided by a significant bump up in its insurance and credit operations, and expects to swing to profitability in 2023-24.
Consolidated loss for the three months ended December narrowed to Rs 87.6 crore from a loss of Rs 298 crore in the same period a year earlier.
Revenue from operations jumped from Rs 367 crore to Rs 610 crore.
More significantly, the company's insurance premium collection grew 70% during the quarter to Rs 3,082 crore, its highest for the year.
Credit disbursals improved 57% year-on-year to Rs 3,021 crore.
"The existing business EBITDA should grow by roughly Rs 150 crore every passing year," PB Fintech said in a stock exchange filing, referring to Policybazaar and Paisabazaar. "We stay confident of being adjusted EBITDA positive by Q4 this year and delivering the first full year of positive (profit after tax) in 2023-24."
The company also said it was at an annual run rate of over Rs 12,000 crore in insurance premiums and disbursals, and that its credit business broke even in December.
Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortisation, for Policybazaar and Paisabazaar increased by Rs 67 crore for the December quarter, the company said, adding that the two businesses now have been profitable for four successive quarters.
"This growth is driven by three things—growth of renewal income, growth of new business, and higher efficiency in new business,” the company said in its filing.
Total expenses increased from Rs 698.8 crore a year earlier to Rs 766.37 crore in the third quarter.
Shares of PB Fintech ended Friday at Rs 524 apiece on BSE, up 2.43%, while the benchmark Sensex index shed 123 points, or 0.20%, to close at 60,682.70.
Edited by Feroze Jamal