PB Fintech Q4: Profit Jumps 62% QoQ To INR 60.2 Cr

PB Fintech, the parent company of insurtech platform Policybazaar, posted a consolidated net profit of INR 60.2 Cr in the March quarter (Q4) of the financial year 2023-24 (FY24) as against a loss of INR 9.3 Cr in the previous year’s quarter.

The company turned profitable in the prior quarter – Q3 FY24. On a quarter-on-quarter (QoQ) basis, PB Fintech’s profit jumped almost 62% in Q4 from INR 37.2 Cr posted in Q3, helped by sharp growth across its business segments.

PB Fintech’s operating revenue saw over a 25% rise on both QoQ and year-on-year (YoY) basis to INR 1,089.6 Cr in Q4 FY24. 

The company had posted an operating revenue of INR 869.1 Cr in Q4 FY23. 

PB Fintech said that Policybazaar’s total insurance premium for Q4 FY24 stood at INR 5,127 Cr, registering a 43% jump YoY, which was led by growth in the new health and life insurance business.

The vertical also saw an annual run rate (ARR) for insurance premiums of INR 20,000 Cr in the reported quarter.

The previous year, in Q4 FY23, it stood at INR 15,000 Cr and in Q3 FY24 the ARR stood at INR 17,000 Cr. 

“Our consistent efforts to improve customer service and claims support are paying off with multiple heartening customer messages and continue to be reflected by a CSAT (customer satisfaction score) of 89% for Q4 FY24,” said PB Fintech during its Q4 earnings announcement on Tuesday (May 7).

Revenue of the group’s core online business, which includes Policybazaar and Paisabazaar, grew 33% YoY to INR 669 Cr in Q4 FY24. This vertical’s contribution margin also improved to 45% in the quarter.

PB Fintech’s Paisabazaar did total loan disbursals worth INR 14.8K Cr and card issuance of 5.8 Lakh in FY24. The vertical issued over 75% of cards in Q4 FY24 through end-to-end (E2E) digital processes, said the company.

On the other hand, the revenue of PB Fintech’s new initiatives business witnessed a 15% jump YoY to INR 421 Cr in the reported quarter.

In the fiscal year 2024, PB Fintech’s total operating revenue stood at INR 3,438 Cr on a consolidated PAT of INR 64.4 Cr.

How Did It Spend?

PB Fintech’s total expenses rose 16% to INR 1,114.5 Cr in Q4 FY24 from INR 960.8 Cr in the same quarter last year.

On a QoQ basis, the expenses jumped over 20% from INR 925.9 Cr in Q3.

Employee Cost:

PB Fintech’s employee benefit expenses saw a 12% rise YoY to INR 439.6 Cr in Q4 FY24, which comprised 39% of the total expenses during the period.

Advertising and Promotion Expenses: 

The company managed to control its ad expenses YoY, which declined 48% to INR 238 Cr in the reported quarter.

However, on a QoQ basis, the company’s expenses in this bucket increased 11% from  INR 214.8 Cr in Q3 FY24.

With the broader market coming under selling pressure today, shares of PB Fintech also declined 2.8% to 1,243.35 on the BSE ahead of its earnings announcement.