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: Transcript of t

₹6,616

goes for the entire 23k of us. Thank you very much. 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, w

36%

ntire 23k of us. Thank you very much. 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

65%

. 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% wi

35%

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 gr

46%

hich 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%

33%

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

₹1,348

m 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. O

37%

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

22%

w 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 fr

₹725

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

₹506

ar 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 abou

“Yes, we will deliver profits, but they will be an outcome.”

“There will be a point when we will perhaps optimize for profits.”

“But that will be a natural course for a while.”

“I know you guys have also been realistic, you believe medium term we should grow twice the industry, may be closer to about 30%.”

“Management: That is a very fair way of thinking about it, and I wouldn't expect any outside person to think any differently but that is not how we have ever thought about.”

“I'm sure you have a market projection, let's say, of the next 10 years, for both Health and Term.”

“Whatever that market projection is, our belief is Policybazaar alone will be bigger than that market projection over the next 10 years.”

“Is it fair to say that your take rates, because you are chosen to take in a deferred way, will be better when you recognize on upfront basis on revenue?”

“I would say, look, if you want directionally, there's a likelihood that next year we should be very close to, numbers which have become meaningless from a profit or loss perspective both from a new initiatives perspective.”

“As I have always said we could end up being a bit counter cyclical in this, because we do want market share, and I don't think we will hold ourselves back for any short-term profit delivery target.”

Sanketh Godha

8

Madhukar Ladha

7

Shreya Shivani

4

Sachin Salgaonkar

3

Suresh Ganapathy

3

Dipanjan Ghosh

3

Sachin Salgaonkar

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. Management: Q1 is actually fairly straightforward. Our focus for the time being is entirely on growth. Yes, we will deliver profits, but they will be an outcome. We are clearly not optimizing for profits right now. There will be a point when we will perhaps optimize for profi

Sachin Salgaonkar

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? Management: I think you may be speaking about the POSP platform, so I'll just defer to Sarbvir on that. Management: Sachin, I would say this has been a very competitive space all around. I don't see anything very dramatic that has changed over there. I think there's a whole bunch of people who've been competing and the basis of competition has to shift. We have to focus on more granular business and work with smaller partners and add value to them. I think that's the race. If you ask me honestly, it's no longer a competitive issue. It's issue of, can we add value to our agent partners, and how much so that we can all have better economics. Management: Sachin, I just wanted to add there, more

Sachin Salgaonkar

Very clear. Thank you guys and all the best. Management: Thank you, Sachin. We'll take the next question from Suresh Ganapathy, Macquarie. Suresh, please unmute yourself.

Suresh Ganapathy

Thanks, Rasleen. Just one main question is now that Health is done so well, and of course Term has always been doing well for you guys. What would be now your market share in these two products Yashish. If I were to take retail Health premiums overall in the industry, what would be PB Fintech's share, and also on the retail Term? Roughly, if you can state those numbers. Management: I'll try to but I'll state something else a little before that, because I've been thinking deeply about this. The year Policybazaar started, the total Health and Term business in the country for retail was about ₹200 Cr. If we thought market share at that time. Actually there was an investor that time, Suresh. I won't name them. But they said, “Listen, the total market is ₹200 Cr. If you guys are 30% of this market, that’s ₹60 Cr opportunity. Why should we invest ₹20 Cr behind a business like that and so they left it out.” Another investor did not know what the Health and Term market was, and so they did inv

Suresh Ganapathy

There's one last question on the Savings thing. I'll just squeeze in. So you are right now, 2% of the market but it's stuck around that for quite some time, right? And the growth has not been great here. I mean, that's an enormous opportunity, because 80-85% of the market is Savings business. What's wrong here, or what's getting stuck here as to why you're not able to do this at a faster rate? Management: Suresh, I'll just answer that question once, and then I'll hand over to Sarbvir. At IPO, we were point 0.4%, we're at 2% now. In these years, we have moved from 0.4% to 2%. I think Sarbvir is perhaps better placed at why we are at 2% and not at 15%, like Health, etc. Management: Thanks Yashish. I think Suresh, it's a very difficult question to answer on an open forum. I would say that you have to look at it from a relevant perspective. If you look at ULIPs, if you look at the better-quality products that are sold, I think our share is more meaningful, and we always believe and in line

Suresh Ganapathy

Thanks so much, Sarbvir. Management: Thank you, Suresh. We'll take the next question from Sanketh Godha, Avendus Spark. Sanketh, please unmute yourself.