PB Fintech Q2 preview: Will the insure-tech player report strong performance this quarter?

PB Fintech, the parent company of PolicyBazaar and PaisaBazaar, is set to announce its results for the quarter and half year ended on September 30, 2024 on Tuesday, November 5. Analysts tracking the counter believe that the insure-tech player is likely to deliver a strong set of performance on a year-on-year (YoY) comparison.

Brokerages foresee PB Fintech coming in black in the second quarter of the current financial year, reporting a positive bottomline. Even on a quarter-on-quarter (QoQ) basis, PB Fintech is likely to report a manifold rise in the net profit. Revenue is also seen to come on a healthy growth, analysts believe with expansion in margins.

JM Financial pegs total insurance premium to grow 51.5 per cent YoY to 5,266.2 crore, while revenue may come in at Rs 1,110.2 crore, up 37 per cent YoY and 10 per cent QoQ. Adjusted ebitda is seen at Rs 48.4 crore, up 275 per cent YoY and 95 per cent QoQ, with margins improving 277 bps to 4.4 per cent. PAT is likely to come in at Rs 42.6 crore, up 122.6 per cent sequentially.

"We expect Insurance premium to grow 51.5 per cent YoY whereas Loan disbursals are expected to decline 2.3 per cent YoY. We expect Policybazaar revenue to improve sequentially by 7.3per cent in Q2, whereas Paisabazaar is expected to grow by 27.2 per cent QoQ with gradual recovery of unsecured personal loans. Overall, revenue growth is expected at 36.8 per cent YoY," said JM.

Shares of PB Fintech Ltd dropped 2.67 per cent on Tuesday as the stock hit lows at Rs 1,666.90 during the session. The total market capitalization of the company managed to hold Rs 76,000 crore. The stock had settled at Rs 1,712.75 in the previous trading session.

Nuvama Institutional Equities expects a strong core platform business premium growth to drive over 30 per cent existing business revenue growth. Its margins are expected to remain subdued as growth in health premiums is expected to remain strong, it said.

Nuvama pegs PB Fintech's revenue at Rs 1,159.1 crore, up 43 per cent YoY ad 15 per cent QoQ. Ebitda may come in at Rs 69.1 crore, zooming 132 per cent YoY and 40 per cent sequentially. Its net profit may come in at Rs 65 crore, zooming 243 per cent QoQ. The company had reported a net loss of Rs 21.1 crore in the year ago period.