PB Fintech reports 89% reduction in Q2 FY24 net loss of Rs. 21 Crore

PB Fintech has reported a significant turnaround in its financial performance for the second quarter of fiscal year 2023-24 (Q2FY24).

PB Fintech, the parent company of the renowned insurance aggregator Policybazaar, has reported a significant turnaround in its financial performance for the second quarter of fiscal year 2023-24 (Q2FY24). The company disclosed a net loss of ₹21 crore during this period, marking an impressive 89% reduction compared to the net loss of ₹187 crore reported in the corresponding quarter of the previous year.

During this quarter, PB Fintech did really well in its main online business. They made a lot more money, with their revenue going up by 46% compared to last year, reaching ₹597 crore. This big increase in revenue shows that more people are using digital insurance services, and the company is good at meeting that demand.

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In the domain of insurance, PB Fintech reported a notable surge in its health and term insurance business. This segment, which is a pivotal component of its long-term value, experienced a remarkable 53% year-on-year growth in new premiums for Q2FY24. “Our health and term insurance business, which is a bulk of our long-term value, witnessed 53 percent YoY growth in new premium for Q2FY24, which is the highest in the last 7 quarters,” the company said, adding that its total insurance premium for the quarter was 3,475 crore.

The company also placed a spotlight on its robust renewal or trail revenue, which is now at an annual recurring revenue (ARR) of ₹436 crore, a substantial increase from the ₹294 crore reported in the same quarter of the previous fiscal year. This segment operates with over 85% margins, making it a significant contributor to the company’s overall profit growth

PB Fintech’s credit business has been a noteworthy success story. The company announced that its credit business achieved “adjusted EBITDA positive” status since December 2022. Furthermore, PB Fintech has achieved an annualized run rate of ₹16,500 crore in disbursals, and it issued approximately 6 lakh credit cards on an annualized basis. This demonstrates the continued success and growth in its credit operations and positions PB Fintech as a significant player in the digital credit space.

In terms of market performance, on November 3, the scrip of PB Fintech, the parent company of Policybazaar, settled at ₹702.60 apiece on the BSE. This represented a modest 0.4% increase compared to the previous day’s closing price.