POLICYBZR — earnings call

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Prepared remarks

growth. · The most interesting thing is we finally hit 90% on CSAT. If you remember at IPO, we were at about

The most interesting thing is we finally hit 90% on CSAT.

If you remember at IPO, we were at about 87%.

This is a very hard number to inch-up.

We are finally at 90%.

So very happy about that.

Credit business has been flat.

I think the good news is, it is about 9% up QoQ.

However, it's 8% down YoY.

It's turning some corner but there is still a lot of stress in that business.

We will be taking some corrective action on the operating cost front because we do believe that we had anticipated slightly higher growth than this.

We continue to strengthen our leadership in new initiatives with the revenue growth of 87% YoY, and the adjusted EBITDA margin has changed by 14% from -26% to -12%.

PB Partners is doing really well; very happy with the performance - about 250k advisors, 18.7k PIN codes, 98% of PIN codes in India.

The quality of business, which from outside is very difficult to assess, is clearly moving very well in the direction that we anticipate.

The UAE business insurance premium has grown at 63% YoY.

That business also continues to do very well.

Our Core Health and Life insurance business are growing ahead of expectation.

I just wanted to say this, don't get used to the 60-70% kind of growth.

It's good it's been happening.

So far it does not seem like it's changing but this is unreal growth.

Our long term guidance, our midterm guidance continues to be 30%ish.

This is good, we are enjoying it, we are also surprised by it, but that's what it is.

In anticipation of the steady growth, we did, as I mentioned, invest a bit earlier.

The other thing I wanted to mention was, our cash balance has gone up by about ₹200 Cr in the quarter, which is quite good.

It is now more than ₹5,400 Cr, but this will keep happening as we mentioned.

I think next year it'll go up a lot more.

So it's just part for the course.

We are open to questions now please.

Sachin Dixit

Thanks Rasleen.

Congrats Yashish and team on another great set of results.

I had a couple of questions.

The first one was in terms of growth.

As Yashish already highlighted, the growth that we are seeing currently is unparalleled.

I was just wondering, going forward basis, will there be a base effect issue that might crop up in FY26 that rather than having the medium terms like the 30 odd percent growth, we might end up being around more like 24-25%.

Can that sort of thing play out?

Jayant Kharote

Thanks Rasleen, and congrats for a good set of numbers.

First is on the addition that you've been doing to your teams, both online and even offline.

If you can help us understand how is the gestation period over here?

If you could quantify the number of people you've added over here and what are the plans going into Q3 & Q4 and then the gestation period?

That is the first question.

I'll come back with the second question after this.

Rishi Jhunjhunwala

Thank you.

Just one question Yashish on the thought process around PoSP.

So if we really look at it, our new initiatives are now almost 40% of our overall insurance business revenues, maybe slightly less and has grown at almost 2x our Core insurance revenues.

Just wanted to understand how much of this growth is intentionally pushed by us versus how the business is evolving and how the business is coming to us.

And if we are driving this growth to be that much faster, then what is the thought process around it, given that it is anyways considered not that much margin accretive in the long term, as well.

Suresh Ganapathy

Yashish, first on this PB Health again.

I know a lot of discussion has been done.

Is this entity already set up, the construct of the entities clear or that will evolve with time?

Who will be the partners here, and all those stuff?

Nidhesh Jain

Thanks for the opportunity.

Just one question.

Can you share contribution margin in Credit business and EBITDA margin for the Credit business for the quarter?

Yash Gandhi

Hi, thank you for the opportunity.

I have two questions.

First one is that our contribution margin is 27% for Q2 FY25. By 2026, do we expect this number to substantially increase, to let's say 45%, and then, over a couple of years to 60%?

Got it.

Thank you.

Sanketh Godha

Thank you for the opportunity.

Yashish, maybe next year, when you'll start PB Health, is it fair to assume that you and Alok will take active executive roles there, and probably you will be more non-executive board guys at PB Fintech and that's the way the management movement will happen?

Rahul Jain

Hi, I hope my line is audible.