POLICYBZR — earnings call
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Prepared remarks
we have with us · Mr. Yashish Dahiya, Chairman & CEO, PB Fintech
Mr. Yashish Dahiya, Chairman & CEO, PB Fintech Mr. Alok Bansal, Executive Vice Chairman, PB Fintech Mr. Sarbvir Singh, Joint Group CEO, PB Fintech Mr. Naveen Kukreja, Co-founder & CEO, Paisabazaar Mr. Mandeep Mehta, Group CFO, PB Fintech, and Ms Rasleen Kaur, Head, Strategy & Investor Relations, PB Fintech.
not translate in December. · Management: I just wanted to add: So, the seasonality this year has been a little bit typical in
Hi Yashish and team!
Hope you can hear me.
Congrats again for delivering a good growth quarter.
My first question was with regards to profitability.
So, while obviously revenue continues to ramp up, the jump in sequential path seems a bit muted.
What is driving this?
Is this just Paisabazaar related impact, or there is more to it, in terms of contribution effect.
Sorry I have not been able to go through the presentation, so the question might be a bit naive.
Just a quick follow up on the Savings piece.
The markets, obviously, January has started very badly, and who knows how it's going ahead.
So, Savings could continue to be a laggard.
So, are you building accordingly or you still believe that other segments will take care of the investments that you've already
Got it.
On my second question quickly - An update on the Healthcare foray?
If you have anything in place, we'll love a good update?
Understood.
Thanks a lot for the update and all the best.
we have with us · Mr. Yashish Dahiya, Chairman & CEO, PB Fintech
Yes.
Am I audible?
Yes, just to clarity.
If you clarified the secured business is now part of new initiative, and it's not considered the core business, right?
Okay, got it
Can you give the Core online business disbursal for the quarter?
Okay.
Got it.
That was helpful.
Thank you.
not translate in December. · Management: I just wanted to add: So, the seasonality this year has been a little bit typical in
Congratulations to management on good set of numbers.
My first question is on your Core growth.
Clearly, every year we have a new base, and you guys continue to positively surprise on the overall growth.
So, on this high base, should we continue to see 30%+ growth for next couple of years or do you see downside risk to this growth?
Thank you, very clear.
In one of your slides, you did mention that the future growth will be coming from tier-2 & tier-3 cities.
So, question out here is, can you help us in terms of the contribution today for premium from tier-2 & tier-3 cities?
Where do we see that going?
And again, incrementally, should we see higher investments or a bit of pressure on margins as we go and target consumers into these places?
Got it, very clear.
My third question is - Clearly, we are seeing a better growth coming from secured versus unsecured.
Question to management is in medium term, how should we think about the growth coming from unsecured space?
Is this something where the company is looking to defocus, or, how the stress in this part of the industry goes down, we should see growth again, picking from unsecured?
Thank you Naveen.
And my last question - Yashish, your last guidance in the company was 2+ years back.
Today we are pretty comfortable in terms of PB Fintech, raising more that ₹1,000 Cr+ in terms of net income for FY27. Given the fact that even your new initiatives margins are improving, your core business margins continue to improve, any thoughts in terms of coming up with a new guidance, or revising that guidance as we head forward?
Got it.
Thank you.
Hi, 3Q was a weak quarter for life, , as you mentioned.
And I think you've capacitated for more.
But volumes were a little weaker.
Just curious.
How are you looking at 4th quarter?
Have you sort of made similar investments.
And any feelers that you have from insurance companies.
Just moving on to the non-life part.
The regulator has asked the insurance players to move to 1/n formula.
Obviously, you're not part of it.
So, your premium numbers continue to be the way you've been doing it in the past.
But have they changed the commission structures?
Have they deferred the commissions for long term policies.
Sure, got it.
Thank you very much, and all the best.
Got it.
Thank you.
Hi, guys, I just wanted to understand, how are the performance marketing costs trending.
My assumption is that, our growth in health and term has largely been driven by conversions , may not be that much of upper funnel growth.
So would the performance marketing cost, , as a percentage of revenue or premiums.
Have they seen a significant reduction given that, , health insurance has seen significant growth over the last 2 years
Question on this would be, I would like to understand how persistency in health insurance renewals is playing out in the context that in the base last year, already health insurance growth had taken off.
So just wanted to get a feel if how persistency is broadly trending.
Yes, these are my 2 questions on Policybazaar.
Fantastic congratulations on that.
On Paisa.
Just one question.
There's this number in our presentation monthly inquiries that number has actually seen a significant growth.
Wanted to clarify or understand what drives that particular metric.
Monthly Inquiries.
Okay.
Thank you.
Congratulations on a good set of numbers, guys.
Thanks.
Thanks for the opportunity.
The 2 questions.
Firstly, if you can share contribution margin and EBITDA margin for credit business for the core credit business.
On the on the credit side, core credit side.
Secondly, what would be your market share on new health side?
Sure, and lastly, just a comment that if you, if you can share the renewal rates the way you have shared in DRHP
solution. · We'll look into it. We'll probably try and share it in the future.
We'll look into it.
We'll probably try and share it in the future.
not translate in December. · Management: I just wanted to add: So, the seasonality this year has been a little bit typical in
Sure.
Sure.
Thank you.
That's it for my side.
Madhukar Ladha: · Understood. Thank you, all the best.
Hi!
Good evening.
Congratulations on a good set of numbers.
Your contribution margin has been lower.
But if I look at your adjusted EBITDA margin for the existing business that has improved so there has been a pretty good control over cost.
The indirect cost.
But and this is despite you telling us that you mentioned 1,200 to 1,500 vacant seats.
So , I wanted to understand what is really driving this and , when do we see either we eliminating some of these seats, or we filling up these seats for.
Yes, because, , when I look at when I back out the fixed costs or indirect cost between, , contribution and adjusted EBITDA margin for 6 months, there's a growth of about 12.5%.
But for 9 months there's actually a decline, on a year over year basis.
Is this sustainable?
Because then , that could lead to a higher margin expansion.
Q4. And beyond.
So how should we think about this, and what is driving this.
Got it.
And also coming back to this, whole thing by the regulator of , accounting for long term policies on 1/n basis, are we changing our strategy in in any way?
And as an insurance broker, I would tend to believe that it's always better for you to sell a 3 year plan over a 1 year plan right?
Because it guarantees you persistency upfront or reduces lapse rats.
Okay, got it.
And can you just give me your renewal premium for the platform business and for the new initiative separately.
Understood.
Thank you, all the best.
not translate in December. · Management: I just wanted to add: So, the seasonality this year has been a little bit typical in
Congratulations for the good set of numbers and thank you for providing this opportunity.
So, I have basically 3 questions, what is your market share in the incremental life business within the industry; another is like, how big is your saving business for you now in terms of premium.
And the 3rd is, what is your agent productivity like?
If you break down your growth between your agent, product, agent, growth and productivity growth.
Okay.
So, then it is better to assume like, if you expect to grow 30, then you will be adding 30% more agents or employees will bring business for you, or there will be the existing agent who will be more productive and can bring 30% more business.
Okay?
And if you can say that, how big is the saving business in terms of percentage of total premium right now.
Okay.
Okay, sure.
No problem.
Thank you.