PB Fintech reported a consolidated net profit of INR 50.98 Cr in Q2 FY25, compared to a loss of INR 21.11 Cr in the year-ago period.
Operating revenue jumped to INR 1,167.2 Cr in Q2 FY25 from INR 811.6 Cr in last year’s quarter.
The total expenditure jumped to INR 1,213.4 Cr from INR 930.22 Cr last year.
PB Fintech, parent company of Insurtech major Policybazaar, reported a consolidated net profit of INR 50.98 Cr in the second quarter (Q2) of the financial year 2024-25 (FY25), compared to a loss of INR 21.11 Cr in the of the previous year.
However, profits fell 15% sequentially from INR 59.98 Cr in the June quarter of the current fiscal. Notably, this marks the fourth consecutive profitable quarter for PB Fintech.
Meanwhile, PB Fintech’s operating revenue jumped over 43% YoY (YoY) to INR 1,167.2 Cr in Q2FY25 from INR 811.6 Cr in the quarter of the previous year. On a sequential basis, it jumped 15% from INR 1,010.5 Cr in Q1FY25.
The company attributed the increase in revenue to consistent revenue growth and improving margins. While the core online business, which includes Politics Bazaar
and Paisabazaar, contributed INR 767 Cr (up 28% YoY) to the group’s operating revenue in Q2 FY25, arm new initiativesRevenue grew 87% YoY to INR 400 Cr.
The insurance giant’s adjusted EBITDA total profitability further improved by 4.3 times to INR 56 Cr during the quarter under review, compared to INR 13 Cr during the year-ago period .
The fintech’s total insurance premium stood at INR 5,450 Cr in Q2 FY25, up 57% YoY, driven by broad-based growth in the health and insurance segments. life.
In a filing with the BSE, the company highlighted that it had disbursed loans worth INR 4,237 Cr during the quarter under review and issued 1.46 Lakh cards.
“Our core health and life insurance businesses are growing faster than expected. In anticipation of this steady growth, we have invested ahead of sales in operating expenses which we believe will be amortized in the second half of the year,” the company said in its earnings release.
A Closer Look at Business Spending
PB Fintech’s total spend increased over 30% YoY in Q2 FY25 to INR 1,213.4 Cr, compared to INR 930.22 Cr last year. This jump is mainly explained by a sharp increase in “other expenses”, which jumped 77% over one year.
Staff cost: PB Fintech’s employee benefits expenditure increased 20% YoY to INR 507.57 Cr in September quarter from INR 422.84 Cr in Q2 FY24.
Other expenses: The fintech major spent INR 355.23 Cr on other expenses during the financial year, compared to INR 200.48 Cr in the quarter ended September 2024.
Advertising and promotion costs: The company spent INR 278 Cr in this tranche in Q2 FY25, up over 12% from last year’s INR 247.36 Cr.
Shares of PB Fintech closed 4.24% lower at INR 1,640.2 on BSE on Tuesday (November 5).