PB Fintech, the parent company of PolicyBazaar, is scheduled to release its second-quarter results for FY25 on November 5, 2024. Analysts and investors are particularly focused on the company's recent strategic move into the healthcare sector, which may influence future growth and profitability. For individuals looking to engage in share market investment, understanding the financial performance of companies like PB Fintech is essential.
Expected growth in revenue
According to estimates, PB Fintech's revenue is projected to grow by 35.15% year-on-year (Y-o-Y) to reach ₹1,096.9 crore, up from ₹811.6 crore in the previous year. On a quarter-on-quarter (Q-o-Q) basis, revenue is expected to increase by 8.5%. This growth is anticipated to stem from a gradual recovery in unsecured personal loans, a factor worth considering for those making share market investments.
Anticipated profit after tax (PAT) surge
For the quarter ending September 30, 2024, analysts predict that PB Fintech's profit after tax (PAT) will reach ₹40.2 crore. This represents a substantial turnaround from a loss of ₹20.2 crore recorded in the same quarter last year. Moreover, the PAT is expected to rise by an impressive 110.4% on a quarterly basis. This anticipated growth in profitability is likely to be a key point of interest for share market investment enthusiasts.
Insights on the insurance sector
Analysts expect PB Fintech to sustain its growth trajectory, predicting a 52% Y-o-Y growth in insurance premiums, with core insurance premium growth at 42%. New initiatives within the company could potentially lead to an accelerated ramp-up of 81%.
Revenue expectations for PolicyBazaar and PaisaBazaar
Revenue for PolicyBazaar is forecasted to grow by 43.6% year-on-year, while Paisabazaar is expected to see a 7.6% increase. Despite potential declines in take rates in insurance, improvements in credit disbursals are anticipated. Overall, the group’s revenue is expected to be approximately ₹1,110.2 crore, indicating a 36.8% increase from the previous year, an important metric for those engaged in share market investment.
Margin projections and operational improvements
The group contribution margin is estimated to be 29.1%, slightly down from 30.4% in the previous quarter and up from 28% in Q1. However, analysts predict that the adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) margin will expand by 280 basis points (bps) year-on-year and by 190 bps quarter-on-quarter, reaching 4.4%. This operational leverage, resulting from strong revenue growth, may appeal to investors interested in share market investment.
EBITDA margin recovery
The EBITDA margin for PB Fintech is expected to improve to -1.6%, a significant recovery from -11% recorded in the same quarter last year. This improvement underscores the company's potential for enhanced financial stability and performance, an aspect that those involved in share market investment should closely monitor.
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