{"id":160982,"date":"2024-05-09T07:19:40","date_gmt":"2024-05-09T11:19:40","guid":{"rendered":"https:\/\/44.250.171.167\/?p=160982"},"modified":"2024-05-09T07:19:42","modified_gmt":"2024-05-09T11:19:42","slug":"pb-fintech-ltd-q4-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/pb-fintech-ltd-q4-fy24-earnings-conference-call-insights\/","title":{"rendered":"PB Fintech Ltd Q4 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from PB Fintech Ltd (POLICYBZR) Q4 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Growth and Performance<\/strong>\n<ul>\n<li>Core insurance business, health and life, saw 53% year-over-year growth in new premiums..<\/li>\n<li>Total insurance premium for Q4 was INR 5,123 crores, with an annualized run rate of INR 20,000 crores.<\/li>\n<li>New insurance premiums grew 47% in Q4, driven by strong health insurance performance.<\/li>\n<li>Online insurance premiums, including renewals, grew 40%, and core insurance revenue grew 36%.<\/li>\n<li>Achieved full-year PAT breakeven ahead of target, with a PAT of INR 64 crores.<\/li>\n<li>Revenue for FY24 grew 34% to INR 3,438 crores, and core business revenue grew 39% to INR 2,375 crores.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Credit Business and New Initiatives<\/strong>\n<ul>\n<li>The credit-linked Paisabazaar business slowed down as expected, growing 22%.<\/li>\n<li>The credit business reached an annualized run rate of INR 14,000 crores in disbursals and INR 6 lakh crores in credit card issuance.<\/li>\n<li>The credit score consumer base increased to 43 million, with 75% of cards processed digitally and disbursals from existing customers.<\/li>\n<li>New initiatives grew 15% year-over-year but 50% quarter-over-quarter, with strong performance from PB Partners.<\/li>\n<li>The UAE premium business grew 2.3 times, continuing its strong performance.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margins and Profitability<\/strong>\n<ul>\n<li>Adjusted EBITDA margin for core businesses improved from 6% to 14%, with adjusted EBITDA of INR 324 crores.<\/li>\n<li>Trail revenue grew to INR 577 crores from INR 388 crores, contributing significantly to profits.<\/li>\n<li>Disproportionate fresh health business growth impacted margins due to lower initial margins.<\/li>\n<li>New initiatives broke even on a contribution basis during the year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Health Insurance<\/strong>\n<ul>\n<li>PB Fintech&#8217;s health insurance persistency is higher than previous years, with a 1-2% increase compared to the past.<\/li>\n<li>The percentage of ported policies in fresh business is around 20%, which is half of the overall market level.<\/li>\n<li>This indicates PB Fintech is successful in bringing new customers to health insurance rather than relying on portability.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Credit Business Outlook<\/strong>\n<ul>\n<li>The regulator is favoring secured loan products over unsecured, prompting PB Fintech to explore secured categories.<\/li>\n<li>Currently, secured disbursals account for 13-15% of total disbursals but only 4% of revenue.<\/li>\n<li>The company is exploring loan against securities and other secured categories to increase their contribution.<\/li>\n<li>However, there is an expected 0-10% growth in the credit business for the next quarter due to a process-based slowdown, not quality issues.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Unsecured Loan Business<\/strong>\n<ul>\n<li>PB Fintech is confident in the unsecured loan business and does not see it as a concern.<\/li>\n<li>The current slowdown in the credit business is temporary and expected to last for the next quarter only.<\/li>\n<li>The slowdown is attributed to a process-based issue rather than a quality-based issue.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Marketing and Branding Spend<\/strong>\n<ul>\n<li>Does not operate with a fixed marketing\/branding budget in mind.<\/li>\n<li>Spending decisions are tactical and ROI-driven, focused on capitalizing on growth opportunities when they have effective creatives.<\/li>\n<li>Overall, marketing spend is expected to grow but at a lower rate than revenue growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Offline Channel Contribution<\/strong>\n<ul>\n<li>The offline channel (branches, feet-on-street) contributes around 20-22% of total premiums collected.<\/li>\n<li>Proportion is gradually inching upwards as PB Fintech expands its offline presence by adding more centers and people.<\/li>\n<\/ul>\n<\/li>\n<li><strong>PoSP Business<\/strong>\n<ul>\n<li>The PoSP business operates at an 80-20 ratio of motor to non-motor premiums.<\/li>\n<li>While premium growth continues to outpace the market, PB Fintech&#8217;s focus is on quality, smaller agents, and geographic expansion.<\/li>\n<li>The PoSP growth trajectory is expected to remain strong, around 2-2.5x the overall market growth rate.<\/li>\n<li>Reinsurance Broking<\/li>\n<li>PB Fintech recently obtained a reinsurance broking license and is working on building this business.<\/li>\n<li>The protection segment is seen as an initial area of focus for reinsurance broking activities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>EoM Regulations<\/strong>\n<ul>\n<li>PB Fintech&#8217;s low commission rates of 16-17% in health compared to the EoM cap levels 30-35% provide ample headroom.<\/li>\n<li>As a low-cost supplier, PB Fintech would be among the last to be impacted by any EoM-related expense cuts by insurers.<\/li>\n<li>The online model reduces fixed costs compared to other channels by offering services like claims assistance and customer support.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Leveraging AI and Technology<\/strong>\n<ul>\n<li>Actively exploring ways to leverage AI, machine learning, and generative AI across various areas.<\/li>\n<li>Key focus areas include risk assessment, improving call center productivity, enhancing customer service, and transforming customer interactions.<\/li>\n<li>Generative AI holds potential for breakthrough changes in how customers interact with digital assets.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Tax Implications<\/strong>\n<ul>\n<li>The company has around INR 2,100 crores of carry-forward losses that can be utilized against future profits.<\/li>\n<li>However, the utilization of losses depends on where profits are generated across different group entities.<\/li>\n<li>Profits from investments cannot be offset by carried-forward operational losses, resulting in tax payments.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Bima Sugam Platform<\/strong>\n<ul>\n<li>Optimistic about the upcoming Bima Sugam platform launched by insurers.<\/li>\n<li>Expects this to expand the insurance market dramatically, potentially 20 times its current size.<\/li>\n<li>While offering lower prices initially, PB Fintech expects to gain market share as volumes increase.<\/li>\n<li>Open to adapting its business model, even operating at lower take rates if needed.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Profitability and Growth Focus<\/strong>\n<ul>\n<li>Priority is growth over short-term profitability, which is viewed as an outcome.<\/li>\n<li>Profits are expected to increase as the business scales and the existing book generates more renewals.<\/li>\n<li>This year&#8217;s profitability will translate into higher profits in future years as the growth compounds.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from PB Fintech Ltd (POLICYBZR) Q4 FY24 Earnings Concall Growth and Performance Core insurance business, health and life, saw 53% year-over-year growth in new premiums.. Total insurance premium for Q4 was INR 5,123 crores, with an annualized run rate of INR 20,000 crores. New insurance premiums grew 47% in Q4, driven by strong [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[12270,10169,8233],"class_list":["post-160982","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-brokerage","tag-earnings","tag-insurance-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":160516,"url":"https:\/\/alphastreet.com\/india\/cyient-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":160982,"position":0},"title":"Cyient Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 25, 2024","format":false,"excerpt":"Key highlights from Cyient Ltd (CYIENT) Q4 FY24 Earnings Concall Industry Trends China Plus One strategy driving new opportunities in regions like India. 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FY24 consolidated revenue at all-time high of\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":170620,"url":"https:\/\/alphastreet.com\/india\/pb-fintech-q1-fy26-earnings-results\/","url_meta":{"origin":160982,"position":4},"title":"PB Fintech Q1 FY26 Earnings Results","author":"Chirag Gupta","date":"August 26, 2025","format":false,"excerpt":"PB Fintech Ltd, popularly known as Policy Bazar is India\u2019s largest online platform for insurance and lending products through its flagship brands - Policybazaar and Paisabazaar platform through which they provide convenient access to insurance, credit and other financial products. Presenting below are its Q1 FY26 earnings results. \u00a0 Q1\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Policy Bazaar Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/3-16.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/3-16.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/3-16.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/3-16.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/3-16.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/3-16.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":161429,"url":"https:\/\/alphastreet.com\/india\/tracxn-technologies-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":160982,"position":5},"title":"Tracxn Technologies Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 21, 2024","format":false,"excerpt":"Key highlights from Tracxn Technologies Ltd (TRACXN) Q4 FY24 Earnings Concall Financials Q4 FY24 revenue from operations: INR 20.3 crores. Q4 FY24 total income: INR 21.6 crores. FY24 revenue from operations: INR 82.8 crores (6% YoY growth). FY24 total income: INR 87 crores (7.2% YoY growth). Q4 FY24 EBITDA: INR\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/160982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=160982"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/160982\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=160982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=160982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=160982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}