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POLICY BAZAAR 2023-24 Annual Report Analysis

Wed, 11 Sep

POLICY BAZAAR has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

POLICY BAZAAR Income Statement Analysis

• Operating income during the year rose 34.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 5.5% in FY24 as against 25.9% in FY23.
• Depreciation charges increased by 39.0% and finance costs increased by 23.7% YoY, respectively.
• Other income grew by 46.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 19.1% in FY23 to 1.9% in FY24.

POLICY BAZAAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	25,579	34,377	34.4%
Other income	Rs m	2,590	3,806	46.9%
Total Revenues	Rs m	28,168	38,183	35.6%
Gross profit	Rs m	-6,615	-1,880	NA
Depreciation	Rs m	638	887	39.0%
Interest	Rs m	216	267	23.7%
Profit before tax	Rs m	-4,880	771	NA
Tax	Rs m	0	127	NA
Profit after tax	Rs m	-4,879	644	NA
Gross profit margin	%	-25.9	-5.5
Effective tax rate	%	0.0	16.5
Net profit margin	%	-19.1	1.9

For Investors: Our Big Prediction

POLICY BAZAAR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 9.5%.
• Current assets rose 17% and stood at Rs 48 billion, while fixed assets fell 10% and stood at Rs 19 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 67 billion as against Rs 63 billion during FY23, thereby witnessing a growth of 8%.

POLICY BAZAAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	46,714	48,644	4.1
Current Liabilities	Rs m	5,509	6,032	9.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	62,540	67,412	7.8
Current assets	Rs m	41,222	48,225	17.0
Fixed Assets	Rs m	21,318	19,188	-10.0
Total Assets	Rs m	62,540	67,412	7.8

POLICY BAZAAR Cash Flow Statement Analysis

• POLICY BAZAAR's cash flow from operating activities (CFO) during FY24 stood at Rs 87 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 3 billion, an improvement of 626.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -568 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs -3 billion net cash flows seen during FY23.

POLICY BAZAAR Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-2,990	87	-
Cash Flow from Investing Activities	Rs m	414	3,008	626.4%
Cash Flow from Financing Activities	Rs m	-425	-568	-
Net Cash Flow	Rs m	-2,951	2,525	-

Current Valuations for POLICY BAZAAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an improvement from the EPS of Rs -10.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,774.0, stands at 585.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.6 times, while the price to sales ratio stands at 23.3 times.
• The company's price to cash flow (P/CF) ratio stood at 261.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	56.8	76.2
TTM Earnings per share	Rs	-10.8	1.4
Diluted earnings per share	Rs	-10.7	1.4
Price to Cash Flow	x	-68.7	261.9
TTM P/E ratio	x	-59.7	585.0
Price / Book Value ratio	x	5.7	8.2
Market Cap	Rs m	266,503	400,996
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for POLICY BAZAAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.0x during FY24, from 7.5x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 3.9x during FY24, from -21.6x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 1.3% during FY24, from -10.4% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 2.1% during FY24, from -10.0% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 1.4% during FY24, from -7.5% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	7.5	8.0
Debtors’ Days	Days	967	691
Interest coverage	x	-21.6	3.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-7.5	1.4
Return on equity	%	-10.4	1.3
Return on capital employed	%	-10.0	2.1

To see how POLICY BAZAAR has performed over the last 5 years, please visit here.

POLICY BAZAAR Share Price Performance

Over the last one year, POLICY BAZAAR share price has moved up from Rs 795.4 to Rs 1,774.0, registering a gain of Rs 978.7 or around 123.0%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for POLICY BAZAAR and quarterly results for POLICY BAZAAR)