POLICYBZR - PB Fintech Limited Share Price

Question 1: Could you clarify the impact of the GST cuts on your business, particularly regarding consumer demand and distributor commissions?

Answer: Yes, demand has been robust post-GST cuts. In fact, September 5th and 22nd recorded some of the highest demand days ever for us. We're optimistic about conversion rates and general interest in Health and Term insurance. As for commissions, while there are changes, our constructive dialogue with insurers suggests a balanced outcome. Our focus is on ensuring all parties"”consumers, insurers, and us as distributors"”benefit.

Question 2: Regarding the improvement in EBITDA margins seen this quarter, should we expect this momentum to be sustainable moving forward?

Answer: I wouldn't read too much into any one quarter's margin shifts. Our focus remains on growth rather than quarterly margin swings. Fluctuations may arise due to timing in payments or premium issuances. Over the long term, while we expect some stabilization in margins, quarterly changes shouldn't sway our overall strategic focus on consistent growth.

Question 3: Can you update us on Pensionbazaar and PB Money in the last three months? Are there any plans for incremental investments?

Answer: Both initiatives are still in their early stages, with minimal investment"”less than half a million dollars combined so far. We are cautiously exploring opportunities without rushing into larger commitments, particularly because we're focusing on testing concepts and designs. Once we identify scalable methodologies, we can act. Our commitment remains strong, but no immediate significant financial impacts are anticipated.

Question 4: Have you seen opportunities for cross-selling as the GST exemption leads to lower prices for customers renewing policies?

Answer: Our immediate priority is to enhance renewal rates for Health policies rather than aggressively pursuing cross-sells. We believe customers will respond positively to better pricing, thus improving renewal rates. Following that, we can explore cross-selling to increase customer value"”it's a measured approach, focusing first on retaining policyholders.

Question 5: Could you share insights into how you managed to maintain growth during the GST announcement period?

Answer: There's no secret sauce, just a dedicated team working hard to find solutions quickly. Our workforce's agility allowed us to adapt effectively, ensuring stable growth. This adaptability has become integral to our culture at Policybazaar, demonstrating our commitment to customers even during uncertain conditions.

Question 6: Can you provide a bit more detail on health insurance narrow network policies? What share do they currently hold?

Answer: We've launched Preferred network policies where customers opting for limited networks can get discounts. Currently, this represents about 15-20% of our health insurance offerings. While it's a small share now, our intention is to grow this segment as we enhance customer experience and show value in narrower networks.

Question 7: What is your anticipated contribution margin for new initiatives and when do you expect them to become profitable?

Answer: Our new initiatives have achieved a contribution margin of around 5.5%. While PoSP remains generally loss-making, our focus on UAE, a profitable venture for the last three quarters, has lifted overall margins. By FY27, we aim to minimize losses in new initiatives and bring them close to breakeven.

Question 8: Can you provide expectations for the PAT margin as a percentage of premium by FY30?

Answer: I anticipate that by FY30, our PAT margin could reach around 3%. Our growth objectives aligned with a Rs.1 trillion premium target are essential to achieving this. Despite potential GST-related adjustments, we remain focused on sustainable growth and profitability improvements.

This summary captures the key discussion points and management responses from the earnings call without omitting details or guidance provided.