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Published 19:26 IST, May 7th 2024

PB Fintech reports second consecutive profitable quarter boosted by insurance sales

For the quarter ending on March 31, the company reported a consolidated net profit of Rs 60.59 crore, marking a turnaround from net loss of Rs 8.95 crore.

Reported by: Business Desk
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Policybazaar | Image: Policybazaar
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PB Fintech Q4 earnings: PB Fintech, the parent company of popular online insurance aggregator Policybazaar, has announced its second consecutive profitable quarter, driven by increased sales in a seasonally-strong period and reduced marketing expenditures.

For the quarter ending on March 31, the company reported a consolidated net profit of Rs 60.59 crore, marking a turnaround from net loss of Rs 8.95 crore in the same period last year. The surge in profitability was accompanied by a robust revenue growth, with revenue from operations climbing over 25 per cent to Rs 1,090 crore.

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January-to-March quarter typically witnesses heightened insurance sales as individuals purchase policies to leverage tax rebates ahead of the financial-year end. The trend contributed to a substantial increase in revenue, particularly in the insurance broking segment, where revenue more than doubled.

PB Fintech's strategic focus on profitability has been underlined by a concerted effort to curtail marketing and promotional expenses. In March quarter, the company's advertising and promotion costs plummeted by nearly 48 per cent compared to the previous year, reflecting a disciplined approach towards cost management.

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However, the company saw a slowdown in its credit business growth, attributed to regulatory actions by the Reserve Bank of India (RBI) aimed at tightening regulations around unsecured lending. The annualised credit disbursal run-rate, an indicator projecting loan disbursement for the year, declined to Rs 14,000 crore by the end of March, down from Rs 15,000 crore a year earlier.

Despite the positive financial performance, PB Fintech's shares closed 3.1 per cent lower prior to the announcement of the quarterly results.

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(With Reuters inputs)
 

19:26 IST, May 7th 2024