PB Fintech, the operator of Policybazaar, is set to announce its March quarter results on Monday. The new-age company, which reported a narrowing of losses in the December quarter, has its shares rallying 39 per cent year-to-date, reflecting high investor hopes. If one were to go by analysts, a further narrowing of losses is all likely this quarter, with the firm likely to turn adjusted Ebitda positive, in line with its earlier guidance.
JM Financial sees PB Fintech reporting a group level adjusted Ebitda breakeven for the March quarter. It sees losses at the company narrowing 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 per cent YoY to Rs 758.30 crore from Rs 540.30 crore YoY.
The PB Fintech stock is up 5 per cent in the last five sessions and a solid 57 per cent in the last six months.
For the quarter, JM Financial forecast PB Fintech to deliver 59 per cent growth in insurance premium and 50 per cent YoY growth in loan disbursals with continued rise in insurance and credit penetration, while it sees respective revenues should grow at 36 per cent and 74 per cent YoY, respectively, due to base effect.
"Insurance premium growth in this quarter is likely to be led by savings product as insurers and investors would have focused on that prior to the taxation changes coming into effect on April 1, 2023. As guided by the management, we expect PB Fintech to report profitable adjusted Ebitda this quarter. This would be led by Policybazaar vertical showing improvement in contribution margin driven by better conversions through omni-channel customer support and rationalising of PoSP commissions lowering contribution loss in new initiatives," it said.
Nuvama Institutional Equities sees adjusted loss at Rs 63 crore. It sees revenue surging 63 per cent YoY to Rs 882 crore.
"We expect revenue growth of 63.3 per cent YoY, which is mainly driven by premium growth of 67.5 per cent YoY. Growth of premiums in the life and health segments will be crucial to monitor. Core and new initiatives adjusted Ebitda growth and guidance will be key. The management commentary on impact of changes in regulations will be key especially, IRDAI’s regulation requiring insurers to offer differential pricing for direct sale," it said.
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