Online insurance aggregator PB Fintech, the parent company of Policybazaar, has turned profitable for the first time ever in line with analyst expectations during the December quarter.
The Gurugram-based company reported a profit after tax of Rs 37 crore for the third quarter, aided by robust growth in insurance premiums, better renewals which have higher margins and improvement in contributing margins. It had reported a loss of Rs 87 crore during Q3 of FY 23.
The company also reported a 43 percent growth in operating revenue, which stood at Rs 871 crore for the December quarter, compared with Rs 610 crore the company had reported in the same quarter of last financial year.
The company results were announced after market hours and the shares ended up marginally higher at 1.12 percent on January 30.
PB Fintech saw its adjusted EBITDA margin at 4 percent during the quarter, whereas it was negative 5 percent during the third quarter of the last financial year. The company's contribution margin moved up to 30 percent for the quarter from the 26 percent it had registered during the corresponding quarter of the previous financial year.
The company reported cash reserves of over Rs 5,000 crore.
The insurance aggregator saw its new insurance premiums at Rs 2,400 crore and renewal premium, which has a much higher margin, stood at Rs 1,900 crore during the quarter. The company's new protection business of health and term insurance policies saw a 41 percent growth.
The company's credit business under the Paisabazaar brand is witnessing slower growth in the second half of the year owing to the cautious approach its lending partners have adopted, post the regulatory measures and statements. While the company had reported Rs 16,000 crore in annualised credit disbursement during the first quarter, this has been recalibrated to around Rs 14,000 crore.
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