PB Fintech shares fall over 4% post Q1 earnings
PB Fintech, the parent of insurance platform Policybazaar and credit marketplace Paisabazaar, fell 4% to Rs 767 in Tuesday's trade after the company reported its June quarter earnings. The firm posted an operating profit and a significantly smaller net loss for the fiscal first quarter. Net loss for the quarter ended June 30 shrank to Rs 11.9 crore from Rs 204.3 crore a year earlier, even as operating revenue rose 32% to Rs 665.58 crore.
On a sequential basis, however, the online financial services company’s loss was wider compared with Rs 9.34 crore in the quarter ended March 31. Operating revenue declined 23% sequentially. The Gurgaon-based company said it posted consolidated adjusted earnings before interest, taxes, depreciation and amortisation of Rs 23 crore for the first quarter.
A year earlier, it had posted an adjusted operating loss of Rs 66 crore. While announcing its March-quarter results, PB Fintech had said it was looking to post a net profit in FY24. On Monday, the company said its core online business posted a 39% rise in operating revenue at Rs 516 crore for the June quarter, beating market seasonality.
“Q4 (the fourth quarter) is traditionally the strongest quarter, and for the first time ever our core online business revenue for Q1 FY24 is higher than our Q4 FY23, beating traditional seasonality,” said the company as a part of the results. Meanwhile, PB Fintech’s board approved an infusion of up to Rs 700 crore capital in Policybazaar Insurance Brokers for FY24 and FY25, to meet the subsidiary’s general operating expenses and enhance brand awareness. It also approved the infusion of up to Rs 200 crore in Paisabazaar Marketing and Consulting and another Rs 200 crore in PB Fintech FZ-LLC, its UAE arm.
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