PB Fintech Limited

rs,

), Mumbai – 400051 BSE Limited Department of Corporate Services/ Listing Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400001 SYMBOL: POLICYBZR SCRIP CODE: 543390 Sub.: Earnings Call

84%

digitization as well as product and process innovation for the industry. This is reflective in the 84% CSAT, which has grown well over the last year, owing to our efforts in the area of customer servic

45%

ss, the insurance marketplace Policybazaar and the credit marketplace Paisabazaar combined grew at 45% year on year and broke even for the quarter with an adjusted EBITDA of ten crores. We will continu

215 crore

ey of higher and higher profitably and growth. Out of the total revenue, credit linked revenue was 215 crores for the year. For our insurance business, we had an adjusted EBITDA of 28 crores for the quarter.

28 crore

nked revenue was 215 crores for the year. For our insurance business, we had an adjusted EBITDA of 28 crores for the quarter. We mentioned about extending our customer connect beyond the remote calling, whi

222 crore

expansion is also built into our core business contribution margins. Our renewals book provided 222 crores of revenue in the last year. Most of this flows directly to the bottom line. Renewal book is buil

88 crore

ok is built on the cumulative business, done over the years and will continue to grow. We also had 88 crores of deferred revenue on 31st of March, 2022. These are revenues from customers who have chosen to

1.5 million

latform for enhancing engagement and service capabilities with MSMEs and corporates. They now have 1.5 million customers being serviced. PB UAE has achieved market leadership in some categories and is a clos

37x

ppreciate that, as we have mentioned, these businesses from a revenue perspective have grown about 37x in the last one year. That is very, very rapid expansion. I think expecting both efficiency and su

5,000 crore

efficiency going forward. PB Fintech: Another important point to note is that we have more than 5,000 crores in cash reserves, and we are very well capitalized to invest in these initiatives and take them t

27 million

re now chasing scale to break even or rather chasing break even through scale. We now service over 27 million customers with the credit score program and have been able to sharply segment for creating pre-app

90%

the rapidly changing times, we recently went out to some of our investors, representing more than 90% of our shareholding, and we are very glad to have received the feedback from all of them, and also

“While all the effort from our side is done but the customers’ payments will come over the remaining part of the year, we will be recognizing this revenue over the coming quarters.”

“However, growth now onwards will be balanced with higher efficiency.”

“Thus, there will be higher focus on efficiency going forward.”

“Our belief is that the cost of these investments will be less than the interest that we earn on our cash reserves.”

“Sarbvir will be taking those questions as it relate to policy?”

“Those come under, essentially your pre-contribution margin costs and your other people costs will be those costs, which are...”

“And so what you're talking about is, maybe about a 50% higher growth will take care of it because we don't expect the new initiative losses to be growing.”

“And does that mean that at some level, is it possible for you guys to give a guidance?”

“No, we will not be giving the guidance in terms of when we've decided, and our board has not allowed us to give a guidance in terms of when we become EBITDA-positive.”

“It is an initiative which we believe will be important going forward as well, where we want to invest.”

PB Fintech

50

Vijit Jain

23

Sarbvir Singh

20

Yashish

16

Naveen Kukreja

8

Alok Bansal

5

Yashish Dahiya

4

Arpit Shah

3

Nidhesh Jain

3

Pinto Kumar

2

Vijit Jain

Good afternoon, everyone. This is Vijit Jain from Citi Research. Welcome to PB FinTech for Q4 FY22 earnings call. From the management at Policybazaar, we have Yashish Dahiya, Chairman, Executive Director and CEO, PB FinTech. We have Mr. Alok Bansal, Vice Chairman, and full-time Director, PB FinTech. We have Mr. Sarbvir Singh, President Policybazaar. Mr. Naveen Kukreja CEO, Paisabazaar and Mr. Mandeep Mehta, Group CFO. I'll now hand over the call to Yashish and Alok for opening remarks, and then the operator will open it up to Q&A. Thank you.

PB Fintech

Thank you very much. Good afternoon, everyone. Before I get into some of the details, I will take a minute to highlight unique characteristics about our industry. The salient fact about Policybazaar is that our customers come to us on our website or app to research and buy insurance. While this is a very normal thing in most industries, it is unique in insurance because in insurance, it is a fairly intensive sales process where people physically go and scout for customers. That is how a bulk of insurance in the country is done. The productivity of these people who go and physically scout for business is typically under about a hundred-thousand rupees per month. While for us, the same productivity is upwards of a million rupees per month. The primary reason for this difference in productivity is not because we have any super humans in our system who are doing something very different from the physical agent. It is just the inbound nature of these consumers because once the consumer come

PB Fintech

Another important point to note is that we have more than 5,000 crores in cash reserves, and we are very well capitalized to invest in these initiatives and take them towards fruition. Our belief is that the cost of these investments will be less than the interest that we earn on our cash reserves. Paisabazaar continues to be the leading credit marketplace and has rebounded strongly from COVID. We have improved contribution margins over the last two years, and thus are now chasing scale to break even or rather chasing break even through scale. We now service over 27 million customers with the credit score program and have been able to sharply segment for creating pre-approved products. The business is also co-creating products with partners in loans and credit cards to expand credit coverage and digitize processes faster. Given the rapidly changing times, we recently went out to some of our investors, representing more than 90% of our shareholding, and we are very glad to have received

Pinto Kumar

Yes. We'll now begin the Q&A session. If you have a question, please press the raise hand button, which can be found at the bottom of the Zoom interface. If you're dialed in by a telephone press star nine, to raise your hand. I request you to please limit yourself to maximum one question. Thank you.

Arpit Shah

Hi. Congratulations on the [inaudible 00:09:00]. I actually have three questions for all. We have seen a very large increase in our revenues despite the premiums remaining same. We saw five [inaudible 00:09:13] bump from 386 CIRs in last quarter, whereas a premium as direct 2200 cross broadly for this quarter. We saw very big jump in revenues despite the premiums remaining same. What are the reasons for that? That's my number one question. My number two question is how do we make money in PB partners and PB corporate? What are our typical take rates and what are the typical unit economies that we're following over there? What kind of expenses direct and indirect we have in those businesses and what kind of revenues we share with our agents that we have for our POSP business? My third question is, can you share the direct and indirect cost for employee expenses, marketing expenses for FY '22?

Sarbvir Singh

I think the first question that you had was around the quarterly change in revenue, that is largely because the mix has changed. Last quarter we had a higher share of corporate revenue, corporate business typically has lower margins and in this quarter we have a larger share from PB partners where the revenue margin is much, much higher. That is the reason why it may appear to you that the revenue has grown much more rapidly sequentially than the APE has grown.