PB Fintech, the parent company of insurance aggregator Policybazaar, reported a sharp contraction in its consolidated loss at Rs 12 crore for the quarter ended June 2023, dramatic reduction from Rs 204 crore loss it reported during the first quarter of last year.
The company managed to reduce the losses as its contribution margin rises to 45 percent from 42 percent earlier. Its high renewal rate, which has 85 percent margins, contributed to the company's efforts to reduce the losses substantially.
However, the loss rose marginally on a sequential basis as the company had posted a loss of Rs 9.4 crore during the March quarter.
The results come a few days after Zomato reported a surprise net profit of Rs 2 crore during the June quarter, owing to deferred tax adjustments. PB Fintech said that it was confident of being "significantly profit after taxes (PAT) positive" for the year.
The company’s shares were up by 2.2 percent on NSE as of August 7. The results were announced after the markets closed for the day.
The insurance aggregator’s operational income for Q1 came in at Rs 666 crore, up 32 percent against Rs 505 crore registered in the corresponding quarter of the previous fiscal. It reported a total income of Rs 757 crore.
PB Fintech had reported operational income of Rs 87o crore during the March quarter, a sequential decline, owing to Q4 being seasonally strong quarter.
The company's consolidated adjusted EBITDA was Rs 23 crore for Q1, compared with the Rs 66 crore loss it reported during same quarter last year, an improvement of Rs 89 crore.
PB Fintech said that its new insurance premium of health and term plans grew at 40%, and has been accelerating month on month through the quarter.
The company's credit business under Paisabazaar has an annualized run rate of Rs 16,000 crore disbursal and the platform has also managed to issue 5.8 lakh credit card on an annualised basis. Around 75 percent of its loan disbursal were to existing customers, it added.
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