PB Fintech shares gain 3% as losses narrow in Q2

Policybazaar parent PB Fintech’s shares jumped 3 percent on November 6 after the insurance player recorded a consolidated net loss of Rs 21 crore for the quarter ended September.

The net loss was 89 percent lower than Rs 187 crore reported in the year-ago quarter. However, on a sequential basis, the company’s net loss widened by 75 percent from Rs 12 crore in the June quarter.

As of 2.09 pm, PB Fintech stock was trading at Rs 721.5 on the NSE, higher by 2.77 percent, after gaining almost 5 percent earlier in the day.

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The loss narrowed on a year-on-year basis on a jump in its operating revenue as the startup reported healthy growth in contribution margins and renewal rate in the reporting quarter.

The consolidated revenue saw a rise of 42 percent year-on-year to 812 crore. The core online revenue came in at Rs 597 crore, higher by 46 percent YoY .

“We are very pleased that our Health & Term Insurance business, which is a bulk of our long-term value, witnessed 53 percent YoY growth in new premium for Q2 FY24, which is the highest in the last 7 quarters. This growth continues to accelerate,” said the company in a filing, adding, “Our total insurance premium for the quarter was Rs 3,475 crore, an ARR of Rs 14,000 crore”.

Shareholding pattern, stock price movement

Shares of PB Fintech jumped 61.23 percent year-to-date, while the blue-chip index Nifty 50 has risen 6.29 percent during the same time-period.

There is no promoter holding in the firm, with FIIs holding 49.4 percent in the company. DIIs increased their shareholding in the September quarter to 16.4 percent from 15.4 percent, while the public held 33.4 percent in the company.