POLICYBZR — earnings call

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Prepared remarks

very much. · Our total insurance premium this quarter was ₹6,616 Cr, up 36% YoY. This was

Our total insurance premium this quarter was ₹6,616 Cr, up 36% YoY.

This was led by growth in the core protection business, but specifically, Health, which grew at 65%, which is one of the highest in the last 9 quarters.

The core online insurance premium grew 35% with 46% from Health and Term, which is the protection area.

Our consolidated operating revenue grew at 33% to ₹1,348 Cr for the quarter and core insurance was up 37% YoY.

The core credit was down 22% year on year.

Our renewal and trail revenue of the last 12 month rolling basis is at ₹725 Cr up from ₹506 Cr last year, so about 43% YoY growth.

This you're seeing at a very consistent rate, moving at about 43%.

For instance, the Quarterly Renewal revenue is that an ARR of ₹673 Cr right now, up 47%.

This is only for insurance.

So the insurance quarterly Core revenue is at ₹673 Cr up 47% YoY.

So what you're seeing is the insurance revenue has actually been growing at about 47% right now.

I don't expect it to be at 47% forever.

This would be somewhere in the 45%ish range for the foreseeable future.

This is a key driver of our long-term profit growth.

From a rolling 12-month perspective, the delta between four consecutive quarters has been increasing consistently, and is now ₹218 Cr at an overall level.

Steady growth continues for our core new insurance premium net of savings business.

This is another metric which we have been highlighting for some time.

If you take the savings part out, our core business has been growing at ±40%, now for 9 quarters, and we were at 42%, this quarter.

Our Savings business has grown at more than 100% at times, and is currently at about -5% YoY.

We continue to improve our customer onboarding and claim support services and the insurance CSAT is consistently above 90%.

Our credit revenue for the quarter is ₹102 Cr and disbursals are at ₹2,095 Cr for the core online business.

We continue to strengthen our leadership in new initiatives with a revenue growth of about 50% YoY with adjusted EBITDA margins moving from -12% to -6% with a 5% contribution now.

PB Partners, our agent aggregation platform, continues to lead the market with 350k advisors.

We have moved the business increasingly towards smaller and higher quality advisors and the growth is much higher in that segment.

We are now present in 19k Pincodes covering 99% of the Pincodes in India.

Our UAE business, along with our Health business, is another star outperformer in the group.

They've been growing at 68% YoY and they have now been profitable for the last 2 quarters, so that's starting to become quite consistent.

Our consolidated PAT for PB Fintech grew from ₹19 Cr, excluding exceptional items last year, to ₹85 Cr, basically from 2% to 6% margin.

To summarize our performance since the listing

Our revenue has grown at a CAGR of 54% from ₹238 Cr in Q1FY22 to ₹1,348 Cr in Q1FY26.

And our PAT margin has grown from -47% in Q1FY22 to 6% in Q1FY26.

Of course, we have seasonality.

Q1 is usually our weakest quarter but that's just the way the industry is.

I'd be very happy to take questions now.

Thank you very much.

Sachin Salgaonkar: · Got it, very clear Yashish. That was question one. Question two to

Thanks, Rasleen.

Hope I'm audible.

Thank you, Management.

I have three questions.

First question - want to understand again how is management thinking in terms of balancing between growth and profitability.

Clearly, as Yashish indicated for last 7 quarters, we are seeing 40%+ growth in terms of core business.

But when I look on a YoY basis, your core online EBITDA margin is largely flattish at 14%.

Should we sort of look at this business that it's matured from a margin perspective and management is focusing in terms of growing at 30-40% odd percent plus going ahead.

Or should we also continue to see a margin improvement plus the growth out here?

So that's question one.

Let me pause here and pass it on to you guys.

Got it, very clear Yashish.

That was question one.

Question two to Santosh.

Wanted to understand if there is any change in strategy at Paisabazaar since you've taken over.

Clearly market, especially on credit lending on Unsecured, continues to remain soft.

And I know you guys were exploring and focusing a bit more on Secured.

So it would be great to understand from you broad changes in strategy since you've taken over Paisabazaar.

Thank you.

Last question.

Of late, there appears to be some increase in competitive intensity from some of the smaller players and platforms in the new initiative space.

Wanted to understand are you guys seeing any competitive intensity and any impact of that which could be visible on the numbers?

Very clear.

Thank you guys and all the best.

Hi Yashish and team I had couple of questions.

I know some of the question, at least the first one has been answered in some way or the other.

My question on this is on the contribution margin side for core business, we have seen a YoY dip.

Obviously, there are factors which you highlighted that you have been investing in things.

Can you give us some drivers or some pointers on to what is driving this dip, because at least on YoY basis, renewal income should have come from last year, and also there should have been slightly upward trajectory is what we are anticipating.

Fair enough.

My second question is on basically slightly higher level.

In the presentations you have highlighted how the penetration of Life and Non-Life insurance is happening.

And what we see is that the penetration has now dipped back to FY18 odd levels.

I mean Obviously PB has done quite a lot, has grown quite well during the same time period.

What do you think is actually plaguing the Indian Insurance sector like how do we recover out of this?

How do we actually play the insurance story in the long term?

Sure.

Thanks, Alok.

Just my final question on the healthcare foray side.

We have not heard much, so any update will be helpful.

Thank you, and all the best.

Got it, and all the best.

Madhukar Ladha: · Right. Great. Thanks for this and all the best.

Hi, morning.

Thank you for taking my question.

So first if I calculate the core insurance renewal take rate.

I'm not seeing any improvement over there.

I would have expected some improvement over there, given that over the years we've been selling more Health.

So, what exactly is causing this drag.

Second, if I look at the indirect costs of the new initiatives, that have grown pretty sharply in this quarter.

So, my calculation suggests that's grown about 41% YoY.

I wanted to get a sense of what is driving this and on a continuing level, what should that sort of number be?

Third Health business is growing really well for us and we're saying that new business Health growth is at 65% YoY.

I wanted to get a sense of what is the porting business over here and how much of the porting is from within our customer base opting for a new sort of insurer?

How much of the porting is from outside our customer base who are coming to us?

Those would be my three questions.

I have some data keeping questions also, which I'll go later.

Over the years, yeah, that's right.

But I was just looking at it on a YoY basis like Q1 to Q1. But I get your point.

Understood, understood.

Got it.

Thanks for that.

On the indirect costs on the New initiatives?

Alright and just some data keeping questions.

Can you give us the renewal premium breakup of POSP, UAE and Corporate?

Right.

Great.

Thanks for this and all the best.

Prayesh Jain

Hi.

Firstly, on this Healthcare part where you mentioned that things are on progress.

But more importantly, from an insurance point of view.

All the partners of yours would be working along with you on this or how would this kind of pan out or you will need a special duration with the insurance company for product or would all your existing customers would get that option?

How will kind of this thing move?