PB Fintech Q4 results today. Hopes of a firm turnaround adjusted Ebitda positively to keep the shares going
PB Fintech, the operator of Policybazaar, is set to announce its March quarter results on Monday. The new company, which reported a narrowing of losses in the December quarter, is up 39 percent year-to-date, reflecting high investor hopes. Going by analysts, a further narrowing of losses is likely this quarter, and the firm is likely to turn adjusted Ebitda positive, in line with previous guidance.
JM Financial sees PB Fintech reporting a group-level adjusted Ebitda breakeven for the March quarter. It sees losses at the company narrow to Rs 57.40 crore in the quarter from Rs 87.60 crore in December and Rs 219.60 crore in the year-ago quarter. It sees revenue rising 40.3 percent YoY to Rs 758.30 crore from Rs 540.30 crore YoY.
PB Fintech shares are up 5 percent over the past five sessions and a solid 57 percent over the past six months.
For the quarter, JM Financial predicted that PB Fintech will deliver 59 percent growth in insurance premiums and 50 percent annual growth in loan disbursements with continued increases in insurance and credit penetration, while it sees the respective revenues should grow by 36 percent and 74 percent. cent YoY, respectively due to base effect.
“Insurance premium growth this quarter is likely to be led by savings product, as insurers and investors would have focused on it before the tax changes come into force on 1 April 2023. As guided by management, we expect PB Fintech to report profitable adjusted Ebitda this quarter. This will be led by the Policybazaar vertical showing improvement in coverage driven by better conversions through omni-channel customer support and rationalization of PoSP commissions reducing contribution loss in new initiatives,” it said.
Nuvama Institutional Equities sees adjusted loss of Rs 63 crore. It sees revenue rise 63 percent year-on-year to Rs 882 crore.
“We expect revenue growth of 63.3 percent year-on-year, which is mainly driven by premium growth of 67.5 percent year-on-year. Premium growth in the life and health segments will be crucial to monitor. Core and new initiatives adjusted Ebitda -growth and guidance will be Management’s comment on the impact of regulatory changes will be key, particularly IRDAI’s regulation requiring insurance companies to offer differential pricing for direct sales,” it said.
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