Will PB Fintech be that elusive profitable new-age tech co?
Management certainly thinks so and has guided for 1000cr PAT by FY27
(Stock rose above 200 DMA)
Here's how it plans to achieve profits?🧵
PS:#pbfintech still has unused cash reserves of 5000cr raised from IPO 😮
Management certainly thinks so and has guided for 1000cr PAT by FY27
(Stock rose above 200 DMA)
Here's how it plans to achieve profits?🧵
PS:#pbfintech still has unused cash reserves of 5000cr raised from IPO 😮
#PBFINTECH is the owner of PolicyBazaar and PaisaBazaar, 🇮🇳 largest marketplaces for insurance and credit products respectively
PolicyBazaar is already EBITDA positive
PaisaBazaar achieved EBITDA breakeven in Q3Fy23
75% of cards issued is end-to-end digital>>improve margins
PolicyBazaar is already EBITDA positive
PaisaBazaar achieved EBITDA breakeven in Q3Fy23
75% of cards issued is end-to-end digital>>improve margins
Path to profitability #PBFintech
1️⃣ Renewal expansion
Most of the costs to acquire new user is booked in 1st year. Hence Operating margins in renewal > 85%
It took 14 years to get to renewal ARR to ₹210 crores & then 1 year to increase it by ₹105 crores!! #exponential ⬆️
1️⃣ Renewal expansion
Most of the costs to acquire new user is booked in 1st year. Hence Operating margins in renewal > 85%
It took 14 years to get to renewal ARR to ₹210 crores & then 1 year to increase it by ₹105 crores!! #exponential ⬆️
2️⃣ Growth in new Business
Revenue rose 66% in Q3FY23, to Rs 610 crore, on back of steady growth in insurance premiums and credit disbursal business, who grew 70% yoy to Rs 3,028 cr and 57% to Rs 3,021 cr, respectively
Twin effects of above 2 been beautifully explained ⬇️
Revenue rose 66% in Q3FY23, to Rs 610 crore, on back of steady growth in insurance premiums and credit disbursal business, who grew 70% yoy to Rs 3,028 cr and 57% to Rs 3,021 cr, respectively
Twin effects of above 2 been beautifully explained ⬇️
3️⃣ Higher cost efficiencies on new initiatives
New initiatives rev is 3.7x of last year . But adjusted EBITDA loss has remained the same.
PB partners (agent aggregator platform) continues to lead the market in scale and efficiency of operations
UAE business grown 167% yoy
New initiatives rev is 3.7x of last year . But adjusted EBITDA loss has remained the same.
PB partners (agent aggregator platform) continues to lead the market in scale and efficiency of operations
UAE business grown 167% yoy
4️⃣ Reduction in ESOP costs
ESOP costs are on a decreasing trend helping EBITDA.
First year it was 600 cr, second year 550, 350, etc and to decrease to 30cr
ESOP costs are on a decreasing trend helping EBITDA.
First year it was 600 cr, second year 550, 350, etc and to decrease to 30cr
Valuations
PBFINTECH doesn't take stress on its books as it's an aggregator platform
90% of customers is acquired through inbound marketing. So marketing costs to not increase
Hence valuing at 30x EV/EBITDA, for 1000cr EBITDA in FY27,
EV to be >40000cr
Current EV:23500cr
PBFINTECH doesn't take stress on its books as it's an aggregator platform
90% of customers is acquired through inbound marketing. So marketing costs to not increase
Hence valuing at 30x EV/EBITDA, for 1000cr EBITDA in FY27,
EV to be >40000cr
Current EV:23500cr
Risk
The big risk to PB Fintech's earnings growth is from the proposed govt's UPI like insurance marketplace called Bima Sugam.
It will not only increase competition but also could affect margins
The big risk to PB Fintech's earnings growth is from the proposed govt's UPI like insurance marketplace called Bima Sugam.
It will not only increase competition but also could affect margins
• • •
Missing some Tweet in this thread? You can try to
force a refresh
