PB Fintech Q3 results today: Fintech likely to swing to profit. Key things to track for investors
SECTIONSPB Fintech Q3 results today: Fintech likely to swing to profit. Key things to track for investorsBy Akash Podishetti, ETMarkets.comRate StoryFollow usShareFont SizeAbcSmallAbcMediumAbcLargeSavePrintCommentSynopsis
PB Fintech Q3 results: PB Fintech, operator of policybazaar, to report Q3 results today with expected revenue growth of 34% YoY and first positive profit. Analysts predict a profit of Rs 26.9 crore. The company's Q2 revenue from operations grew at 42% YoY to Rs 812 crore. JM Financial expects strong growth in insurance premium and loan disbursals with respective revenue growth of 45% and 42%. Despite a strong quarter, analysts see room for high growth with declining losses in PoSP and increased renewals for sustained margin improvement.
ETMarkets.comFintech major PB Fintech, which operates and runs policybazaar, will report its third quarter results today. Analysts expect the company to report healthy revenue growth along with first-ever quarterly profit.
The revenue is expected to rise 34% year-on-year, led by protection business due to operating leverage and normalised advertising spends. The profit is expected to be around Rs 26.9 crore.
PB Fintech had posted losses of Rs 21.1 crore in the preceding September quarter and Rs 87.6 crore in the December quarter of last year. Its overall revenue from operations grew at 42% year-on-year to Rs 812 crore in the second quarter.
The new initiatives business will likely have strong top line growth though rising competitive intensity in PoSP business will result in EBITDA margins sustaining around second quarter levels.
"In the third quarter, we expect PB Fintech to deliver 32% and 37% YoY growth in insurance premium and loan disbursals with the respective revenue growing at 45% and 42%, respectively, with take-rates expected to remain higher in FY24 across verticals," said JM Financial.
The group contribution margin will be around 30.1%, as compared to 26.2% in the third quarter of FY23 as the mix shifts towards new initiatives, resulting in a slight dilution despite consumer mix improvement across respective segments.
"Expect revenue growth to be steady in the third quarter. OPM losses to inch-up significantly due to ongoing investments. Investors will keep an eye on the commentary around utilization of cash, overall insurance and lending industry growth outlook," said Dolat.
Despite a strong quarter, analysts believe there will be enough headroom for high growth with declining losses in PoSP and rise in renewals to deliver sustained margin improvement.
"We forecast the company to deliver insurance premium, loan disbursals and revenue CAGR growth of 30%, 29% and 30%, respectively over FY23-26E period," JM Financial said.
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