PB Fintech-owned Policybazaar reported a significant contraction in its Q3FY23 net loss to Rs 87.3 crore against Rs 298 crore a year ago, as growth in the existing business accelerated for the fourth straight quarter.
The company has said it is on track to net profit break-even this FY, as the insurance industry continues to scale on improving efficiency.
“We stay confident of being adjusted Ebitda positive by Q4 this year and delivering the first full year of positive profit after tax (PAT) in FY24,” management said in the statement.
Revenue rose 66.1% for the quarter-ended December, to Rs 610 crore, on back of steady growth in insurance premiums and credit disbursal business, who grew 70% y-o-y to Rs 3,028 crore and 57% to Rs 3,021 crore, respectively.
According to a company statement, the company claimed an improvement in its existing business’ margin and profitability. Ebitda (earnings before interest, taxation, depreciation and amortization) loss contracted to Rs 133.3 crore against Rs 317.3 crore during the same quarter a year ago.
Running at an annual run rate of over Rs 12,000 crore insurance premium and disbursal, Policybazaar said it has now reached its highest-ever premium per enquiry of Rs 1,563 crore for 9MFY23.
In response to the latest announcements from Budget, on taxing non-ULIPs (unit-linked insurance plans), the management stated that it is focused on middle class consumers than on the wealth management category. The likely impact of the announcements on the company will be under 1%.
“Government nudging tax payers to move towards the new tax regime which will likely push higher focus on protection category by the industry.”
To be sure, insurance players, especially life insurers took a severe beating recently after the Budget 2024 when the government proposed taxing gains from maturity of non-ULIPs for annual premium above Rs 5 lakh.
Policybazaar further said its efforts to improve customer service and claims support are paying off and is reflected by a CSAT (Customer Satisfaction Score) of 88% for the quarter under review.
Shares of PB Fintech ended Friday’s session on a 5-month high, at Rs 524 apiece, up 2.4% on BSE, compared to a 0.2% decline on the Sensex. The Q3 results were announced post market hours.
