India’s PB Fintech, parent of online insurance aggregator Policybazaar, reported a profit for the second consecutive quarter on Tuesday as sales rose in a seasonally strong quarter amid lower spending by marketing.
The company, which also operates online credit marketplace Paisabazaar, reported a consolidated net profit of 605.9 million rupees ($7.3 million) for the quarter ended March 31, compared with a net loss of 89. 5 million rupees a year ago.
From January to March, insurance sales are high as taxpayers purchase insurance policies to benefit from tax reductions at the end of the tax year.
PB Fintech’s operating revenue rose more than 25% to Rs 10.9 billion, with revenue from its largest segment, insurance brokerage, more than doubling.
The company, which reported its first-ever profit in the December quarter, reduced its marketing and promotional expenses to focus on profitability.
In the March quarter, its advertising and promotion expenses fell nearly 48% from a year earlier to Rs 2.38 billion.
At the same time, growth in its lending business has slowed following the Indian central bank’s crackdown on unsecured lending.
The annualized loan disbursement rate, which helps forecast loan disbursement for the year, was 140 billion rupees at the end of March, down from 150 billion rupees a year earlier.
Shares of PB Fintech ended down 3.1% ahead of the results release.
($1 = 83.4884 Indian rupees)
