Policybazaar is run by PB Fintech, which will talk about its March quarter findings on Monday. The new-age company’s losses got smaller in the December quarter, and its shares are up 39% so far this year, which shows that investors are very hopeful. If you believe what experts say, losses are likely to shrink even more this quarter, and the company is likely to turn adjusted Ebitda positive, just as it said it would.
JM Financial thinks that PB Fintech will have a breakeven adjusted Ebitda for the March quarter as a whole. It predicts that the company’s quarterly losses will go down to Rs 57.40 crore from Rs 87.60 crore in December and Rs 219.60 crore in the same quarter last year. It expects sales to go up by 40.3% YoY, from Rs 540.30 crore to Rs 758.30 crore.
The stock of PB Fintech has gone up 5% in the last five trading days and a solid 57% in the last six months.
JM Financial predicts that PB Fintech’s insurance premiums will grow by 59% and its loan disbursements will grow by 50% year-over-year. This is due to the continued rise in insurance and credit penetration. However, due to the base effect, the company’s revenues should grow by 36% and 74% year-over-year.
Since insurers and investors would have concentrated on savings products prior to the tax changes taking effect on April 1, 2023, the growth in insurance premiums in this quarter is expected to be driven by those products. We expect PB Fintech to have a profitable adjusted Ebitda this quarter, which is what the management has told us to expect. This would be headed by the Policybazaar vertical, which would demonstrate an increase in contribution margin due to greater conversions through omni-channel customer service and the rationalisation of PoSP commissions, which would reduce contribution loss in new projects, it was stated.
The reduced loss for Nuvama Institutional Equities is Rs 63 crore. It brings in 63% more money than it did last year, which is Rs 882 crore.
“We expect income to grow by 63.3% YoY, which is mostly due to premiums growing by 67.5% YoY. It will be important to keep an eye on the growth of premiums in the life and health groups. Adjusted Ebitda growth and forecasts will be important for both core and new projects. The management’s comments on the effects of changes in laws, especially the IRDAI rule that requires insurers to offer different prices for direct sales, will be very important,” the report said.