PB Fintech Q1 Results: Net loss narrows 94% YoY to ₹11.9 crore, revenue up 39%

PB Fintech released their April to June quarter results on Monday and posted a net consolidated loss of ₹11.9 crore which was 94% lower year-on-year from net loss of ₹204 crore reported during the corresponding quarter previous fiscal. The total revenue of the company jumped 39% YoY, while the operating revenue jumped 32% to ₹666 crore during the Q1FY24 from ₹505 core during the same period last fiscal year.

The Earnings before interests, taxes, depreciation, and amortization (EBITDA) was a positive ₹23 crore during the period under review, an improvement from ( ₹66 crore) during the same quarter last year which marks a jump of ₹89 crore.

“We are also very pleased that our core engines of value, the new insurance premium of protection (Health + Term), grew at c.40%, and this growth has been accelerating month on month through the quarter,” the statement from PB Fintech said.

Significance growth in new initiatives

In the new initiatives segment of the company, the operating revenue grew 11% to ₹149 crore with PB Fintech focusing strongly on the quality of the POSP business. The net loss in new initiatives narrowed to ₹46 crore compared to ₹71 crore during the corresponding quarter last fiscal.

“PB Partners continues to lead the market in scale & efficiency of operations. We have moved the business increasingly towards smaller and higher quality advisors. It has the highest proportion of non-motor business and is present in 15.4k pin codes across India, covering over 80% of pin codes in India. We stay convinced about the future potential of this business and committed to it,” the statement said.

The company expressed confidence over becoming PAT-positive for the year.

“Our Renewal/trial revenue is at an ARR of ₹418+ crore up from ₹273 crore last year's same quarter. This typically operates at over 85% margins and is a significant source of profit growth. Continuous improvement in Customer onboarding, service, and Claims support – we maintain CSAT of 88%,” PB Fintech statement added.

The shares of PB Fintech were trading 1.73% higher on Monday closing at ₹794.50 apiece.