Insights

PB Fintech Extends Losses in Q3FY22 — Revenue Jumps Sharply

8 February 2022 • Parikshit Singh

PB Fintech Ltd reported its Q3FY22 earnings yesterday. The Company’s reported an extension in EBITDA loss and loss however it saw a considerable rise in its revenue.

The company’s revenue showed a growth of 73.18% in Q3FY22 at Rs. 367.27 crore as compared to Rs. 279.58 crore in the corresponding quarter previous year and showed a growth of 46.3% on a QoQ basis as against Rs 251 crore in Q2FY22.

The company’s EBITDA loss stood at Rs. 283.78 crore as against EBITDA loss of Rs. 3.62 crore in Q3FY21 showing a huge extension in losses on a YoY basis and as against a loss of Rs. 191.11 crore showing extension in losses on a QoQ basis.

Loss for the company stood at Rs. 298.01 crore vs loss of Rs. 19.58 crore in the corresponding quarter previous year on a YoY basis. Further, the loss in Q3FY22 stood at Rs. 204.4 crore in Q2FY22.

The employee benefit expense increased in Q3FY22 by 1422.01% to Rs. 298.01 crore as against Rs. 19.58 crore in the corresponding quarter previous year and increased by 45.77% on a QoQ basis as against Rs. 204.44 crore in Q2FY22. 

Insurance premium grew by 68% YoY to Rs 1,796 crore and credit disbursals grew by 94% to Rs 1,926 crore. New initiatives revenue grew multifold to Rs 50 crore with an initial investment of Rs 41 crore.

Commenting on the QIII FY22 results, Yashish Dahiya, Chairman and Group CEO of PB Fintech, said “Scale is critical to the success of any marketplace we are currently at an ARR of over Rs 8,000 crore which is a growth of 60% YoY, we are now growing at scale. Margins in our existing businesses were maintained at 40%. Renewal revenue is at an ARR of over Rs 210 crore, the renewal book operates at 90% contribution margin and will be the biggest driver of our long-term profitability.” He added, “Paisabazaar has successfully navigated COVID and now is over Rs 8,400 crore ARR. Our new initiative, PB Partners (B2B2C) has become the market leader within 6 months of launch with an investment of under $10Mn. PB Corporate is the fastest growing Corporate/MSME insurance business in the country and our UAE business is rapidly approaching market leadership. We have invested approximately Rs 200 crore in our brand and these new initiatives which will be value accretive in years to come.”

Source: Exchange Filings

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