PB Fintech reports second straight quarter in profit at Rs 60 crore in Q4

Over the past 12 months, PB Fintech stock has soared 131%, more than doubling investors' capital, while Nifty rose 23% during the same period

PB Fintech, the parent company that houses online marketplaces Policybazaar and Paisabazaar, on May 7 reported a second straight quarter of profit in the January-March period.

The listed insurance aggregator, which had managed to break-even in the previous quarter, posted a net profit of Rs 60.19 crore for fourth quarter of the financial year 2023-24 (Q4FY24), up from a loss of Rs 9.34 crore the year-ago period.

On quarter-on-quarter basis, the profit grew 43.75 percent from Rs 36 crore.

The revenue from operations grew 25.4 percent year-on-year to Rs 1090 crore compared to Rs 869 crore the year ago period.

The fintech firm closed its FY24 at a profit of Rs 64 crore and a consolidated operating revenue of Rs 3437 crore, a 34 percent year-on-year jump.

For the FY24, PB Fintech's revenue of core online marketplaces, Policybazaar and Paisabazaar, grew 39 percent on-year to Rs 2,375 C crore, while new protection premiums (health insurance and term insurance) surged by 53 percent. The revenue new initiatives stood at Rs 1,062 crore from Rs 848 Crore previously.

The company said its total insurance premium for the quarter was Rs 5,127 crore, an ARR of Rs 20,000 crore, led by growth in new health and
life insurance business

The overall adjusted Earnings before Tax, Interest, Amortization, Depreciation (EBITDA) margin improved from -5 percent to 4 percent in FY24.

Meanwhile, the credit business, which continued to be adjusted EBITDA positive since Dec 2022, saw moderation in growth.

"We are now at the annualised run rate of Rs 14,000 crore credit disbursal and about 6 lakh credit card issuance on an annualised basis. Our total credit score consumer base now is over 43 million," the company said in the exchange filings.

Latest developments 

Recently, the company gave nod to three proposals. Firstly, PB Fintech is set to acquire a 100 percent stake in Genesis Group, a company with 49 percent ownership in Genesis Insurance Brokers LLC.

Simultaneously, PB Fintech will divest 29 percent of its holdings in Visit Health, currently under the umbrella of Docprime Tech, a wholly-owned subsidiary of PB Fintech. This divestment will be valued at Rs 76 crore.

Furthermore, PB Fintech will make a divestment of Rs 2 crore in Visit Internet.

Last month, ICICI Lombard, a private insurance major, announced a strategic partnership with PB Fintech, to offer insurance products on the Policybazaar platform.

Additionally, PB Fintech has revealed the incorporation of a subsidiary unit named PB Pay Private Limited to facilitate the business of payment aggregation.