Policybazaar Q4 Results: Net losses narrowed, revenues rose. Find out what analysts are saying

PB Fintech, the parent company of insurance focused fintech player Policybazaar recently announced its results for the Jan - Mar ‘23 period. With net losses narrowing and revenues rising, the company’s results appear to be solid.

However, in terms of share price performance, Policybazaar has had a topsy-turvy ride in recent times. Over the past year, the Policybazaar share price has declined by more than 12%. Yet, in 2023 so far, the stock has gained close to 36%.

So, how did Policybazaar really perform in the March quarter? Did it follow its fellow competitors like Paytm and displayed growth across its key verticals? What were Policybazaar revenues? How much profits did Policybazaar report? Did Policybazaar improve its margins? What was the Policybazaar dividend, if any? Let’s try and decode!

Decoding Policybazaar Q4 Earnings

Policybazaar revenues:

• Policybazaar reported revenue from operations of Rs 869 crores for the Jan - Mar ‘23 period. This denotes a significant jump of 61% from the previous year. The rise in revenues were on the back of growth in both of its key segments.
   
• Revenues from its core insurance broker services business came in at Rs 443.8 crores for the March quarter, up 61% from the previous year.
   
• Revenues from other services stood at Rs 425.3 crores.This denotes a yearly growth of 61% from the prior year.

Policybazaar insurance premium: The jump in revenues from the insurance broking business can be attributed to the sharp jump witnessed in the premiums collected.

Notably, the insurance premium collections in the Jan - Mar ‘23 period stood at Rs 3,586 crores. This marked an increase of 65% from the previous year.

Policybazaar loans: The amount of loan disbursed also witnessed a rise from the previous year. Loans disbursals at the end of the March quarter stood at Rs 3,357 crores, up 53% from the prior year.

Policybazaar margins: In the March quarter, Policybazaar recorded positive operating margins. Operating margins improved to 3% from -15% in the previous year.

Moreover, the company reported operating profits of Rs 28 crores in the Jan - Mar ‘23 period. This compares favourably to an operating loss of Rs 80 crores reported in the previous year.

Further, contribution margin improved to 25% for the Jan - Mar ‘23 period from 17% in the previous year. Contribution margin is the difference between sales and variable expenses divided by the total revenue of the company.

Policybazaar dividend: Policybazaar did not declare any dividend during the March quarter.

Policybazaar net losses: Policybazaar reported a narrowing of net losses in the Jan - Mar ‘23 period.

Notably, the net losses narrowed to Rs 9 crores in the March ‘23 quarter. This marked a significant improvement from the previous year’s figure of a loss of Rs 220 crores in the same period.

Policybazaar Q4 results: Analyst target price

Morgan Stanley: The renowned global brokerage has a “Buy” rating on the stock with a price target of Rs 810. Robust performance especially on the operating front has been cited by the firm that can drive Policybazaar share price growth in the near term.

Kotak Institutional Equities: The top domestic brokerage has a “Buy” rating on the stock with a price target of Rs 725. The firm believes that solid contribution levels in its new initiatives business and improving leverage is expected to drive the Policybazaar share price growth in the near term.

JM Financial: The leading brokerage has a “Buy” rating on the stock with a price target of Rs 980. 

Nuvama: The top brokerage has a “Hold” rating on the stock with a price target of Rs 595. The firm cited the company’s leading market share in the online insurance broking space and growing presence in the offline segment is expected to drive the Policybazaar share price higher in the near future.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.