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PB Fintech — parent of online insurance and credit comparison platforms Policybazaar and Paisabazaar — has reported a consolidated net loss of ₹297 crore in the third quarter ended December 31, 2021. It had recorded a net loss of ₹19.12 crore in the same quarter last fiscal.
For the second quarter ended September 30, 2021, the company had recorded a consolidated net loss of ₹205 crore. Revenue from operations for the quarter under review grew 73 per cent to ₹367 crore as compared to ₹212 crore for the same quarter in the previous fiscal, the company said in its filings with stock exchanges last night.
For the nine months ended December 31, 2021, PB Fintech had recorded a consolidated net loss of ₹613.07 crore (net loss of ₹84.68 crore). Revenue from operations increased to ₹885 crore in the nine months period as compared to ₹616 crore in the same period.
PB Fintech said insurance premiums for the quarter under review grew 68 per cent year-on-year (y-o-y) to ₹1,796 crore, while credit disbursals surged 94 per cent y-o-y in the third quarter ended December 31,2021.
Shares fell more than 3% on Feb 8
Shares of PB Fintech — which got listed in bourses in mid-November last year — fell more than 3 per cent in the early trade on February 8 after the company’s December quarter earnings disappointed investors. Shares, later, made some recovery from the day’s low.
Commenting on the Q3 results, Yashish Dahiya, Chairman and Group CEO of PB Fintech, said, “Scale is critical to the success of any marketplace. We are currently at an annual run rate (ARR) of over ₹8,000 crore which is a growth of 60 per cent y-o-y. We are now growing at scale. Margins in our existing businesses were maintained at 40 per cent. Renewal revenue is at an ARR of over ₹210 crore. The renewal book operates at 90 per cent contribution margin and will be the biggest driver of our long-term profitability.”
PB Fintech’s weak earnings (bottomline performance) comes at a time when investor sentiment towards new-age technology and internet platform companies has taken a hit.
Investors in new-age tech platforms have now recalibrated valuations they are willing to pay for equities, especially for companies that are struggling to become profitable and have no history of profitability so far.
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