PB Fintech hits record high on reporting turnaround Q1 numbers

PB Fintech rallied 5.88% to Rs 1,516.15 after the company reported a consolidated net profit of Rs 60.18 crore in Q1 FY25 as compared with a net loss of Rs 11.41 crore in Q1 FY24.

Revenue from operations climbed 51.81% to Rs 1,010.49 crore in Q1 FY25 as against Rs 665.59 crore recorded in the corresponding quarter previous year.

The firm reported a profit before exceptional items and tax of Rs 29.75 crore in the June quarter as against a loss before exceptional items and tax of Rs 11.58 crore posted in Q1 FY24. Exceptional item was at Rs 4,105 crore during the quarter.

 

The firms adjusted EBITDA zoomed 113.04% to Rs 49 crore in Q1 FY25 as against Rs 23 crore posted in Q1 FY24. Adjusted EBITDA margin improved to 5% in the quarter ended 30 June 2024 as against 3% registered in Q1 FY24.

During the quarter, core online business revenue was at Rs 665 crore (up 29% YoY). The business' contribution margin reduced to 43% in Q1 FY25 from 45% posted in Q1 FY24.

Core business adjusted EBITDA jumped to Rs 92 crore in Q1 FY25 from Rs 69 crore in Q1 FY24. Adjusted EBITDA margin improved to 14% in the quarter ended 30 June 2024 as compared to 13% registered in Q1 FY24.

The companys total insurance premium for the quarter was Rs 4,871 crore, led by growth in new health & life insurance business at 78% YoY.

The firms renewal / trail revenue stood at an ARR of Rs 559 crore, up from Rs 418 crore last year same quarter. This typically operates at over 85% margins and is a significant source of profit growth. The company continues to improve its customer onboarding & claims support services and insurance customer satisfaction (CSAT) is now at 89.9%.

Credit business sees moderation in growth, however continues to be adjusted EBITDA positive since Dec 2022. We are now at Rs 31,000 crore credit disbursal and more than 1.3 lakh credit card issuance. Our total credit score consumer base now is about 46 million, the company stated in the press release.

The company added that it continues to strengthen its leadership in New Initiatives with revenue growth of 131% YoY with adjusted EBITDA margin moving from negative 31% to negative 12%.

Core health and life insurance businesses are growing ahead of expectations. In anticipation of continued growth, the company over invested in building operational capacity, said the firm.

Meanwhile, the company is proposing to enter into an agreement to advance an unsecured loan upto Rs 100 crore to Policybazaar Insurance Brokers Private (Policybazaar), a wholly owned subsidiary of the firm, in one or more tranches, at an interest rate not lower than the prevailing yield of Government securities closest to the tenor of loan.

PB Fintech is engaged in providing integrated online marketing and IT consulting and support services largely for the financial services industry including insurance. It operates Policybazaar, the India's largest digital insurance marketplace and Paisabazaar that provides services related to lending products.

The scrip hits life high at Rs 1,664.35 in todays intraday session.

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