Aditya Birla Sun Life AMC Limited — Q3 FY26

Aditya Birla Sun Life Amc Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=kyZKsg5oj6U Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Aditya Bira Sunlife AMC Limited Q3 and 9M F526 earnings 0:09 9 seconds conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:18 18 seconds you need assistance during the conference call, please signal an operator by pressing start then zero on your touchstone phone. Please note that 0:25 25 seconds this conference is being recorded. I now want the conference over to Miss Ma Lutra from Incred Equities. Thank you and over to you Miss Lutra. 0:35 35 seconds Thank you Renju. Good evening everyone. 0:37 37 seconds On behalf of Ingred Equities, I welcome all to builder sunlight's third quarter 9 months and FI26 owning 0:46 46 seconds conference call. We have along with us Mr. Ray Bala Subramanyam MD and CEO and Mr. Pep Sharma CFO. We are thankful to 0:54 54 seconds the management for allowing us this opportunity to host him. I would now like to hand it over to Balasur for his opening remark. Over to you sir. 1:02 1 minute, 2 seconds Yes, thank you Magna and good evening everyone and thank you for joining us today. Let me begin by extending my warm 1:11 1 minute, 11 seconds uh wishes for a happy and prosperous new year to everyone. I hope you all had the opportunity to review our earnings presentation which is accessible on both 1:19 1 minute, 19 seconds the stock exchanges and our company website. 1:23 1 minute, 23 seconds Let me start by outlining the current economic outlook and providing update on developments within the mutual industry. 1:30 1 minute, 30 seconds As is known the global economy has entered a phase of recalibration and despite persistent tar tensions and policy volatility growth is stabilizing 1:39 1 minute, 39 seconds towards trend levels of approximately 3.2% 2% as estimated. Nations are fundamentally reassessing supply chains and trade partnership and response to 1:48 1 minute, 48 seconds these resion and continuing and meanwhile inflation continues moderating trajectory allowing central banks to 1:55 1 minute, 55 seconds pivot their focus towards supporting growth. This conversion signals a shift from crisis management to a strategic adaptation. 2:04 2 minutes, 4 seconds India continues to outpace the global peers with remarkable consistency of real GDPs on track to expand by robots 2:12 2 minutes, 12 seconds about 1.4% in FI26. While CP inflation has moderated a favorable 2.2%. 2:18 2 minutes, 18 seconds The gold movement of strong growth pad with the low inflation continues and we maintain a positive outlook for FI27 projecting normal GDP growth of 9.75%. 2:31 2 minutes, 31 seconds This optimism is underpinned by several factors. the transmission of monetary and fiscal stimulus, expectation of easing of tar pressures, robust resol 2:40 2 minutes, 40 seconds demand supported by strong agriculture output and continued fiscal support for rural India. We anticipate inflation to normalize around 3.75%. 2:49 2 minutes, 49 seconds well within the alway comfort zone and preserving space for growth supportive conditions appear available for a 2:56 2 minutes, 56 seconds capital expenditure cycle with a capacitation at elevated levels and healthy corporate balance sheets while global uncertainty remains a key risk 3:05 3 minutes, 5 seconds India's fundamental position is strongly for sustained growth momentum and hopefully in the budget should also drive the future growth more 3:13 3 minutes, 13 seconds aggressively Indian equity markets hold a t of two forces in this quarter external pressures testing resell strength and domestic growth domestic 3:21 3 minutes, 21 seconds strength in the equations. There was intermittent volatility of the global uncertainties FP outflows and profit booking 3:29 3 minutes, 29 seconds pressures. These downward movements were largely largely offshured by robust domestic institutional participation overall equities controlled the quarter 3:37 3 minutes, 37 seconds on a firm the structural strength of India's equity ecosystem. That's why short-term market fluctuations as we witnessed the last few days as well. 3:46 3 minutes, 46 seconds Continuing with the midship industry update, the midship industry quarterly average am as of 31st December 2025 compared to 68 3:56 3 minutes, 56 seconds lakh cr as of 31st December 24 resulting year on year growth of about 18%. The industry recorded SAP inflows of 4:04 4 minutes, 4 seconds approximately 31,000 crores for December 25 reflecting quarter growth of about 6%. The total number of middle 4:11 4 minutes, 11 seconds portfolios stood approximately 26.97 crores as of December 25. During the Q3 4:18 4 minutes, 18 seconds FI26, the industry session of approximately about 3,1300 crores across equity and debt funds with equity 4:27 4 minutes, 27 seconds collection predominantly driven by sector and thematic and cap funds. 4:33 4 minutes, 33 seconds Individual average for December 25 at 49.28 28 lakh cr contributing about 60.1% of the total am and B3 is an 4:42 4 minutes, 42 seconds average am of 14.1 lakh crores account for 18.4% of the total am growing by 18% 4:48 4 minutes, 48 seconds year on year performance highlight our over average assets under management 4:56 4 minutes, 56 seconds including alternate assets now stand at 4.81 81 lakh cr highest ever am a achievement growing at 20% yearon year 5:05 5 minutes, 5 seconds our mutual fund quarterly average am has reached 4.4 40 lakh crores representing 14% yearon year increase and within this 5:13 5 minutes, 13 seconds our equity mutual fund quarterly average stands at two lakhs across growing by 11% year on year as anc we firmly 5:21 5 minutes, 21 seconds believe that the SAP is continues to remain a cornerstone of our long-term investing in India our SAP contribution 5:28 5 minutes, 28 seconds for December 25,8 supported by 40 lakh uh contribution coming from SAP accounts in alignment 5:36 5 minutes, 36 seconds with these visions we have launched a new SA safety led initiative under education program plan for life. This campaign goes beyond wealth creation. It 5:44 5 minutes, 44 seconds encourages the investors to think long-term, plan for life milestones and importantly prepare for retirement through systematic withdrawal plans. Our 5:53 5 minutes, 53 seconds total number of investors folio for December 25 stood at 1.08 crores witnessing 3% yearon-year growth. We are 6:02 6 minutes, 2 seconds driving growth by building scale through increased market attraction. Our overall fund performance has improved quite significantly leading to better market 6:11 6 minutes, 11 seconds perceptions and importantly stronger flows into our core core product. That is the momentum gives the confidence. 6:20 6 minutes, 20 seconds Building on these strong foundations, one of our key priorities continues to be strengthening our core equity offerings particularly uh flexiap fund 6:30 6 minutes, 30 seconds and multi fund and our balance advantage fund as well as some of the thematic funds that we have been seeing closed 6:36 6 minutes, 36 seconds like conga fund as well as um as well as the the consumption fund. Uh these are 6:43 6 minutes, 43 seconds some of the key product product focus that reasonably improved flows coming on this 6:50 6 minutes, 50 seconds segment. Our focus remains on scaling this flagship product. So a combination of SAP inflows robust contribution 6:58 6 minutes, 58 seconds across all distribution channels include on improved fun performance and increased market engagement. Our drive to build scale through enhanced 7:06 7 minutes, 6 seconds fractions coupled with improved overall performance has led to a better market perception and rising closing core products creating momentum for continue 7:15 7 minutes, 15 seconds grow. Turning to alternate business the PMS and AI segments have demonstrated 7:21 7 minutes, 21 seconds robust momentum supported by expanding suit of credit offerings. We continue to enhance and refine our solutions to 7:29 7 minutes, 29 seconds address evolving physical requirements of HNI and family offices and some of the institutions. 7:35 7 minutes, 35 seconds Our PMS experienced substantial growth expanding from 38 53 crores year back 20,000 7:44 7 minutes, 44 seconds crores in Q36 repres mandate accounted for about 20,000 cr as 7:53 7 minutes, 53 seconds of December 315 while our PMS and AFM excluding ESI mandate registered a 8:01 8 minutes, 1 second strong irranial growth of 70% reflecting robust organ IC momentum in our core alternate business and during the 8:09 8 minutes, 9 seconds quarter we received ETF allocation letter appointing as as one of the manager for mandates. They now 8:17 8 minutes, 17 seconds progressing through the required regulatory formalities and expect to be on board of the assets in in the before 8:25 8 minutes, 25 seconds the current quarter ending on the conf side. We successfully completed the final closure of our ABSL India special 8:33 8 minutes, 33 seconds opportunity fund series 1 commitment for one 500 crores during the quarter and currently have fundraising under way for 8:40 8 minutes, 40 seconds series 2 ABSL India structured opportunity fund 2 and money money managers we also preparing to launch ASL 8:48 8 minutes, 48 seconds India select sector fund under AS category in equity our real estate business has built significant momentum 8:55 8 minutes, 55 seconds and gained [clears throat] considerable traction driven by strong investors interest and robust deal pipeline and during the 9:02 9 minutes, 2 seconds quarter we launched real estate credit opportunity fund series to the category 2 9:10 9 minutes, 10 seconds lending to post approval field across cities 9:18 9 minutes, 18 seconds registering Iran air growth of approximately about 44% the option average 4841 crores we have 9:26 9 minutes, 26 seconds incorporate our newly owned subsidy company as international if limited uh in G city to expand our gift 9:34 9 minutes, 34 seconds operations and and are currently in the process of securing regulatory approvals and hopefully before the quarter ending 9:42 9 minutes, 42 seconds we'll be up and running. uh we continue to see flows through our current brand set up across our existing funds such as 9:50 9 minutes, 50 seconds India is the engagement fund flex fund for inverter remittance and global blue fund for outward maintance 9:58 9 minutes, 58 seconds under the scheme deliver globally competitive solution to our investor our passive business has continued to demonstrate good momentum with the 10:06 10 minutes, 6 seconds quarterly average a year touching 30,600 crores representing a year on year growth about 28% 10:14 10 minutes, 14 seconds and customer base expanding to 15.1 lakh per year. Our ETF offerings have witnessed total fractions with the ETF 10:22 10 minutes, 22 seconds average growing by 40% yearon year significant outcome in industry ETF growth of growth rate of 24%. We're 10:30 10 minutes, 30 seconds building towards the better long-term outcome by improving on tracking differences as a key focus while also improving a tracking error. Last year 10:38 10 minutes, 38 seconds industry wide we witnessed good inflows in precious metals like gold and silver and our offering in this space make an exceptional case for diversifications. 10:48 10 minutes, 48 seconds As of today our passive product suit comprises of 52 distinct offerings across 10:54 10 minutes, 54 seconds income commodities and multi fund designed to address the diverse investment needs of our investors. 11:01 11 minutes, 1 second Moving to the financial performance, Tuesday FY26 revenue from operation 11:07 11 minutes, 7 seconds stood at 478 crores up 77% year. Tuesday FY 26 profit after tax was at 358 crores 11:16 11 minutes, 16 seconds up by 19% yearon year. Fi 26 profit after tax at 270 crores up by 20%. 11:25 11 minutes, 25 seconds Our 9 months revenue from operation 2,381 crores up 10% on year. A 9 months 11:32 11 minutes, 32 seconds profit before tax 2,46 crores up by 11% on year and profit after tax for 9 11:38 11 minutes, 38 seconds month88 crores up by 12% on year. With this I would like to open the floor for any question that you may have and I'll 11:47 11 minutes, 47 seconds be joined by Sharma to answer any question that you may have. 11:52 11 minutes, 52 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on a touchtone telephone. If you 12:01 12 minutes, 1 second wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 12:08 12 minutes, 8 seconds and gentlemen, we'll wait for a moment while the question queue assembles. 12:14 12 minutes, 14 seconds The first question comes from the line of Moitamal with Sentum. Please go ahead. Yeah. Am I audible? 12:22 12 minutes, 22 seconds Yes, you are. 12:24 12 minutes, 24 seconds Yeah. Uh thanks for the opportunity. Uh so my first question is what the employee benefit expenses. So even if I remove that labor code extra cost, uh 12:33 12 minutes, 33 seconds the employee benefit expenses were higher by around 20% Y. So what explains this increase in employee benefit expenses? 12:41 12 minutes, 41 seconds Yeah. India. 12:43 12 minutes, 43 seconds So Mohit actually employee benefit expenses have gone up by basically on two counts. Uh that is one 12:52 12 minutes, 52 seconds is the additional impact of the graduity based on the new labor code right uh which uh counts to around 2.82 A2 12:59 12 minutes, 59 seconds crores. Uh that is one. Second is on the uh ESOP costs. Uh this is actually the 13:07 13 minutes, 7 seconds uh our parent company ABL some ESOP was given to our select employees. So there 13:14 13 minutes, 14 seconds is a cost of ESOP of around 4.6 4.66 crores for this quarter. So these are the two uh which are actually increasing the cost for the quarter. 13:26 13 minutes, 26 seconds Okay. So, so going forward we should expect this to to do be recurring or is it one time? No. So, graduity is a one-time cost. 13:36 13 minutes, 36 seconds It's not recurring and uh the ESOP cost would be there for next four quarters, three more quarters on this account. 13:44 13 minutes, 44 seconds That is basically this rolling out of ESOP option for employees in the recent uh meeting. Yeah. 13:51 13 minutes, 51 seconds Understood. and and a second if you can share segment wise. 13:57 13 minutes, 57 seconds Yeah. So uh 14:03 14 minutes, 3 seconds for equity our yields are around 64 64 65 basis point and for that it is around 14:12 14 minutes, 12 seconds 24 basis point and liquid is around 13 basis points. Understood. 14:20 14 minutes, 20 seconds Yeah. And and in terms of this PMS and EIS, do you can can you give some revenue numbers for 9M and Q? 14:28 14 minutes, 28 seconds Yeah. 14:30 14 minutes, 30 seconds So uh 14:42 14 minutes, 42 seconds uh the alternate revenue for Q3 was around 34 34 crores which is which is around 4 and a half% of our total revenue. 14:53 14 minutes, 53 seconds That is helpful. Uh so lastly on ease uh so how do you see ease actually going forward for the next four to five 15:01 15 minutes, 1 second quarters do you see a meaningful decline? How do we see the yield basically? 15:07 15 minutes, 7 seconds Yeah, I think broadly uh moing uh we at this point of time we estimate 15:15 15 minutes, 15 seconds the impact of the circular would be minimal and to the extent uh very limited impact we should see at the same 15:24 15 minutes, 24 seconds time since we looking at building the size of all the things and what momentum coming in um in the overall key 15:32 15 minutes, 32 seconds portfolios in terms of traction. So to the extent as the size of the fund increases of course there is a corresponding increase in revenue but 15:40 15 minutes, 40 seconds may come as the marginal reduction thing but again I don't see it very significant at the same time since we're also 15:47 15 minutes, 47 seconds looking at building our other businesses especially the alternate as well as PMS and broad and overall businesses from 15:54 15 minutes, 54 seconds the AMC point of view we should see um uh we should see an improved performance rather than any significant reduction in the uh fees. 16:05 16 minutes, 5 seconds Right. So the registry yield is minimal impact because of the circular uh do you mean to say that we'll be able to pass on to the distributors? 16:15 16 minutes, 15 seconds uh no I think we'll we'll see it I think as we come closer to the implementation date of course we will uh we will see 16:22 16 minutes, 22 seconds how best it has to be uh optimally utilized uh for the benefit of everyone keeping in mind the invest of the center 16:30 16 minutes, 30 seconds uh bas preliminary uh assessment is actually is uh we'll have to uh balance it out ensure it has 16:40 16 minutes, 40 seconds a minimal impact understood understood so my last question is on SIS. So your thoughts and you know when will be able to launch it? 16:50 16 minutes, 50 seconds Yeah. So in the case of FIF we have already filed applications and the approval also has is of course 16:57 16 minutes, 57 seconds awaited u we we thought that went on with this month and uh since we have asked for the 17:05 17 minutes, 5 seconds revised uh structure in the portfolio it's likely to their approval likely to come this month. I think hope month of 17:13 17 minutes, 13 seconds February we will launch it by the time budget would also be out and um we'll be the first one to we our first one will 17:21 17 minutes, 21 seconds launch month of February uh we'll also of course plan to launch the equity long chart uh fund uh making applications 17:30 17 minutes, 30 seconds once uh we are confident that we can uh we have the talent pool to manage the fund once the person comes on board 17:38 17 minutes, 38 seconds starting at least fund will launch which is a hybrid uh fund which is the equity taxation sometime in February. 17:50 17 minutes, 50 seconds All right. This is very helpful. So thanks and wish you all the best. Yeah. 17:58 17 minutes, 58 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of PR Jen with Motil Oswell Financial Services Limited. 18:08 18 minutes, 8 seconds Please go ahead. 18:10 18 minutes, 10 seconds Yeah. Hi, good evening sir. Uh so firstly you know like our fund performance has been improving and um 18:18 18 minutes, 18 seconds you know quite a few schemes are appearing in the top quartile on one year return basis uh and they contribute 18:25 18 minutes, 25 seconds to to a large portion of our equity aum as well but in spite of that we kind of continue to lose market share on the 18:33 18 minutes, 33 seconds equity side as well as if I look at the SIP data that you've provided uh that also keeps coming down. Now how how 18:42 18 minutes, 42 seconds generally you know it does take a lag effect I understand from a fund performance improvement to market share improvement but still it's been some 18:50 18 minutes, 50 seconds time that our fund performance has improved but uh we still not seeing any uh you know even market share not being 18:59 18 minutes, 59 seconds stable right we keep seeing decline month in terms of market share so where do you uh when do you see the effect of 19:07 19 minutes, 7 seconds this fund performance uh uh uh you translating into market share gains both on SIP as well as normal market shares. 19:18 19 minutes, 18 seconds Yeah, thanks V. 19:21 19 minutes, 21 seconds uh see I think the way I look at is if I look at uh the whole of last one one and a half years the market share loss has 19:30 19 minutes, 30 seconds been coming down in terms of as a basis point that's something you have seen now we almost come to uh stabilizing kind of 19:37 19 minutes, 37 seconds thing now almost come to a stage where is now getting stabilized that's one second is on the fund performance 19:46 19 minutes, 46 seconds moving from 1 to two and three and that's something we already seeing it start reflecting Most of our funds while we have done very well on one and a half years is now 19:54 19 minutes, 54 seconds start operating on the 3 year. Normally what happens is as the short-term performance start up in the long-term performance it comes as part of the 20:03 20 minutes, 3 seconds recommendation list. I'll be seeing that happening in the last two quarters. the number of approval that is coming from the Runa channel partners that is come 20:11 20 minutes, 11 seconds something should be taken as a signal uh of products coming as part of the recommendation list and basis which is 20:18 20 minutes, 18 seconds coming in and second some of the online platform where we also saw significant flows on funds which were top performing 20:26 20 minutes, 26 seconds funds already started seeing some of our funds appearing in the segment as well that's it take some time for all these things 20:34 20 minutes, 34 seconds to come in to so-called public domain. So I think these are some of the thing already seeing it reflecting on net inflows 20:42 20 minutes, 42 seconds coming in funds like sunlight equity which is flexica fund uh fund we are seeing improvement in terms of flows uh 20:50 20 minutes, 50 seconds balance of fund have seen good flows and multi fund have got good flows. Sorry the of course um the the category in 21:00 21 minutes which where we even see an industrywide the scheme if I knock that off and other 21:07 21 minutes, 7 seconds schemes we are getting uh the flows already began. The SAP is right. If I look at SAP number minus the STP SAP is 21:17 21 minutes, 17 seconds something which comes from large investors they of course dynamically manage that and therefore minus SAP if 21:24 21 minutes, 24 seconds you take it I think we already seen that SAP numbers and equity getting better. 21:29 21 minutes, 29 seconds Of course there's no question that it has to gain further momentum given the fact the industry also 21:36 21 minutes, 36 seconds coming in the segment. Um I think the lastly of course from a sales team point of view the high focus that we have been 21:44 21 minutes, 44 seconds have put in place in terms of improve the productivity of every RM across the country uh with improved fund 21:51 21 minutes, 51 seconds performance and reasonably high level of engagement and become of activities in the retail segment which our retail team is doing it I think should start 22:00 22 minutes reflecting in terms of uh improved performance coming on the numbers as we move forward that I'm I'm I'm reasonably 22:06 22 minutes, 6 seconds confident the things are shaping up. Uh I think it's remain improve these numbers on a 22:15 22 minutes, 15 seconds quarter basis. So as far as the market share concerns of course if I look at top 10 players versus rest of the players we must also of course remember 22:23 22 minutes, 23 seconds that overall market is expanding and more players coming in. I think we also have to keep a close watch on our absolute performance improvement. In 22:32 22 minutes, 32 seconds fact when I look at this year whole of this year 9 month numbers I'm close to about 600 growth of net sales that I got 22:39 22 minutes, 39 seconds on some of our equity as a product and overall as a fun we got almost about 45,000 net sales but these are numbers 22:48 22 minutes, 48 seconds actually reflection of the confidence uh which the team at which the team is driving the whole thing I think improved performance will only further boost the 22:56 22 minutes, 56 seconds confidence the entire team across the country and disting partners to bring the numbers And that's something I'm already seeing 23:04 23 minutes, 4 seconds it as a uh the reflection coming from our 23:17 23 minutes, 17 seconds Yeah. Yeah. Sorry. Sorry. Uh uh you know if I got your number right it you said 4500 crores of flows in this year in this 9 months. 23:28 23 minutes, 28 seconds No no no totally about 50% roughly overall as fun including fixed income and equity will be close about 600 inflows next across all put together 23:37 23 minutes, 37 seconds including arbitrage funds okay and so so I'm just saying I'm just saying why I'm 23:44 23 minutes, 44 seconds saying number is not disclosed generally it is number generally we keep track of how we are progressing on water on water basis those numbers are not generally 23:52 23 minutes, 52 seconds disclosed anywhere but I'm just going by uh the trend that I'm saying like fund I'm seeing some inflows multi inflows 24:01 24 minutes, 1 second maybe the rate of inflows could be lower but I think what I see is actually the beginning of the reverse of the trend 24:09 24 minutes, 9 seconds itself will gain momentum yeah right uh sir anything on the distribution side where you would want 24:17 24 minutes, 17 seconds to take action given that we are you know there in the top quartile performance any commission actions that you would want to take wherein you kind 24:25 24 minutes, 25 seconds of increase a bit of commissions and take some pressure on your yields and get the volume growth which can 24:32 24 minutes, 32 seconds which can help you. Is there anything of that sort as a part of the strategy? 24:38 24 minutes, 38 seconds So that's something we keep doing it as part of a strategy products which can generate the volume 24:45 24 minutes, 45 seconds at the same time if one has to consider for for a brief period uh in terms of 24:53 24 minutes, 53 seconds support sales activities that's something we we do it already the focus point that I'm talking about it the team do have some of flexibility to push for 25:01 25 minutes, 1 second the volume that's something we keep doing it I think as we start saying we keep in mind even for employees point 25:09 25 minutes, 9 seconds of view in order to motivate employees to run around the market improve their productivity we do incentivize 25:18 25 minutes, 18 seconds drive with that's something we keep doing it I'm sure this strategy will ever be always ever evolving then nothing is one time 25:27 25 minutes, 27 seconds we have to do it this this anyway is a contin also then another segment wise distribution partners 25:36 25 minutes, 36 seconds which we call privilege club uh something again we keep driving it in order to help them uh improve their overall ranking and whatever we can do 25:44 25 minutes, 44 seconds in terms of various activities that we undertake uh that remains as one of our focus area. 25:50 25 minutes, 50 seconds Got it. So last question uh is your flow market share coming closer to or is it 25:58 25 minutes, 58 seconds is it very close to your backbook market share uh probably in the month of December or currently in January? uh how 26:06 26 minutes, 6 seconds is it kind of panning out? Uh is it very close to your backbook market share? 26:12 26 minutes, 12 seconds Yes, somewhat we can say I think see the way I see is uh the the moment we see the rate of falling comes down somebody 26:21 26 minutes, 21 seconds equating on the reverse trend. 26:27 26 minutes, 27 seconds Got that all the best. Uh thank you so much. Yeah. 26:34 26 minutes, 34 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question 26:41 26 minutes, 41 seconds comes on the line of Deepangan Kosh with city. Please go ahead. 26:45 26 minutes, 45 seconds Hi. Uh good evening sir. So uh few questions uh from my side. Uh on the expense side if I look at your other 26:52 26 minutes, 52 seconds expense run rate and not looking at looking at quarterly volatilities but looking at it more from a uh let's say 26:59 26 minutes, 59 seconds rolling 12 month sort of a thing. uh it seems that the run rate has uh meaningfully been controlled uh despite 27:06 27 minutes, 6 seconds you know you're kind of growing your um alternate speeds you're also kind of uh probably scaling up your sales uh 27:14 27 minutes, 14 seconds personnel on the MF side given the traction in flows so just you know to get some sense of you know how should one think of the trajectory on the other 27:21 27 minutes, 21 seconds expense side in case let's say uh you had to kind of scale up uh initiative uh given that your performance is not back 27:28 27 minutes, 28 seconds on track. Uh the second question uh is on the flow share and you know I'm trying to triangulate this math you know 27:36 27 minutes, 36 seconds that your SIP market share uh is like fully yet to stabilize uh but obviously your redemptions are probably kind of uh 27:44 27 minutes, 44 seconds narrowed down resulting in improvement in net flow trajectory. So just from a channel perspective, would it be fair to 27:52 27 minutes, 52 seconds assume that when performance improves uh maybe the MFTts or the more assisted channels are the fastest to pick up in 28:00 28 minutes terms of uh both net new money and maybe lower churn rate? I mean are you seeing that or is or maybe am I you know you 28:07 28 minutes, 7 seconds can I can stand corrected in case that's not the trajectory. Uh the third question uh is on the uh similar lines. 28:16 28 minutes, 16 seconds I mean you mentioned uh some number on the flow part in uh in reply to the previous participant question. Uh but 28:23 28 minutes, 23 seconds you know you included arbitrage also it I mean uh is it possible to give you know some idea of the quantum excluding 28:30 28 minutes, 30 seconds arbitrage and just two data keeping questions if you can spell out the employee number and SIP AUM number as of December 31st. 28:43 28 minutes, 43 seconds on the expense. Yeah. So actually the expensy uh in our 28:50 28 minutes, 50 seconds uh initial uh uh two quarters we had our oneage summit and growth summits across 28:58 28 minutes, 58 seconds the country and u and actually for this increasing the engagement our distributors and investors. uh Q3 has 29:06 29 minutes, 6 seconds those activities have been low and that is why if you see that there was no increase on quarter quarterly basis in fact it is flat but if you see on uh to 29:16 29 minutes, 16 seconds date basic I think that average uh I think um would continue to be in coming quarters so these all activities of our 29:25 29 minutes, 25 seconds field engagement with our distributors and investors will keep on happening however there would be some quarter and quarter fluctuation when some free 29:34 29 minutes, 34 seconds quarters will have those events sweepers may not have but I think the right way to look at is the to date average. 29:42 29 minutes, 42 seconds Yeah. 29:42 29 minutes, 42 seconds Okay. And um the employee number is uh currently it is around uh 1,680 29:50 29 minutes, 50 seconds people 83 to be precise and uh SIPUM is around 87,000 approaches 869 84 around 30:00 30 minutes 87,000 just to answer the other question um as far as the channel concerns 30:09 30 minutes, 9 seconds uh definitely um uh the uh organized channel which is a banking channel ND channel and MFD channel which 30:16 30 minutes, 16 seconds contributes roughly about 80% of the AM and we do have very strong relationship with build historically the performance 30:26 30 minutes, 26 seconds improvement definitely improves the confidence of our partners and go aggressively push it down and um MFD is 30:35 30 minutes, 35 seconds one channel which we already seeing some traction organ channels of course goes by the recommendation of the product which I mentioned earlier Here's some of 30:43 30 minutes, 43 seconds the organized channel which sells say three four products of each of the category we are already seeing is coming 30:50 30 minutes, 50 seconds as part of the recommendation list. uh barring one or two uh where we are in the borderline case for the product to 30:58 30 minutes, 58 seconds become part of list and as for the end is concerned again some of the products are now coming as part of recommend as it comes part of the recommendation list 31:06 31 minutes, 6 seconds then naturally there is a higher responsibility ownership and incentive to sell the product from those channel 31:13 31 minutes, 13 seconds partners part that I see uh the trend is reversing as far as the online which is digital platform concerns uh While we do 31:22 31 minutes, 22 seconds have presence with each of these partners which build over a period of time the strong partner for all of them the 31:31 31 minutes, 31 seconds fact they go by criteria they apply in selection of the funds and some of our funds again coming 31:40 31 minutes, 40 seconds as part of their uh the recommendation list uh and therefore build a strategy around it. 31:47 31 minutes, 47 seconds How do we get higher volume? We have seen this kind of volume coming in few quarters back on some of the funds based 31:54 31 minutes, 54 seconds on understanding and evolving situation that's [clears throat] something we'll push. I think largely if I look at it uh it'll be mix of all the channels because we can't say this one channel as a fun 32:03 32 minutes, 3 seconds I've got separate responsibility for each of the channel partners with the people around it and therefore 32:10 32 minutes, 10 seconds with respect to the flows I just give you a broader trend in terms of though we don't give the individual fund wise 32:17 32 minutes, 17 seconds or category wise flow but overall equity I just give the number and then broadly we can take it about uh 60 to 6040 kind 32:26 32 minutes, 26 seconds of ratio 64 for 40 for other fine. So we don't give the integer number but broadly that's the kind of motor you can take as a breakup. 32:36 32 minutes, 36 seconds Got so just to clarify this was for 3Q or 9M this data that you mentioned the last data point 32:45 32 minutes, 45 seconds 9 months. Yeah correct correct for the full year 9 months. Yeah correct if I could just squeeze in one small question uh and thanks for the answers to the 32:53 32 minutes, 53 seconds previous questions. uh you know uh your performance is improving after some time right and what you've seen uh you know 33:00 33 minutes over the last few years um for some of your peers where we saw a turnaround in performance uh while Asian market share 33:07 33 minutes, 7 seconds picks up it uh never really recovers to the previous peaks and maybe that's a function of market fragmentation uh or maybe changing industry dynamics 33:16 33 minutes, 16 seconds and also distribution difficult to kind of pinpoint uh having said that in this environment uh you know given that your 33:25 33 minutes, 25 seconds performance improvement somehow coincides with a time frame and there's a regulatory change also. Uh would it be fair to assume that you 33:32 33 minutes, 32 seconds would want to kind of maybe um take a differentiated stance with respect to payouts through your distributors such that um you know maybe 33:42 33 minutes, 42 seconds there's motivation to kind of aggressively push your products a little kind of follow suit in terms of passing on the head to the distributors. 33:51 33 minutes, 51 seconds No, as far as the growing the business concerns, uh that commitment because if you have to grow a little faster, we 33:58 33 minutes, 58 seconds apply multiple strategies which includes uh temporary incentive that need to be provided for pushing the stage. Normally 34:05 34 minutes, 5 seconds we do that on a select basis. Uh it is nothing new to us. At the end of the day again we we should also of course have 34:14 34 minutes, 14 seconds respons profitability uh target that we generally keep. we have to do the find balance between uh 34:21 34 minutes, 21 seconds profitability versus the overall growth in AM versus the revenue. Uh that's something we will we we keep doing it. 34:29 34 minutes, 29 seconds Uh I cannot say this will not do that. I think our is so dynamic it's very difficult to take a single stand and basically push it 34:38 34 minutes, 38 seconds now that performance improvement is coming performance pull comes recognition comes if the volume starts coming in therefore we have to give 34:45 34 minutes, 45 seconds little bit higher push that means temporary adjustment of the pricing which of course normally we are open but again we try of course do the balancing 34:53 34 minutes, 53 seconds between growing the size and maintain the overall profitability expectations that's something we'll continue to keep uh Thank you sir. All the best. 35:04 35 minutes, 4 seconds Yeah. 35:07 35 minutes, 7 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Abjit Sakhare with Kotek securities. Please go ahead. 35:19 35 minutes, 19 seconds Hi uh good evening everyone. My first question was uh if you could uh indicate how have been the yields on the fresh 35:27 35 minutes, 27 seconds info that have come up in the last uh couple of months compared to the overall uh book yields and uh uh the context is 35:37 35 minutes, 37 seconds just to kind of uh check this uh you know with reference to your earlier comment that the idea will be to keep the yields intact right I mean not just 35:45 35 minutes, 45 seconds because of the uh uh the the telescopic decline but also uh new regulations that will set in from next year onwards. 35:58 35 minutes, 58 seconds Yeah. On the incremental price more or less the same there's nothing difference we not any force per se uh in this 36:05 36 minutes, 5 seconds order. Therefore, more or less the deal remains the same as what Praid mentioned earlier. Uh the the intent of 36:13 36 minutes, 13 seconds maintaining overall I just mentioning uh given the fact of course the regulatory framework might have marginal impact but 36:21 36 minutes, 21 seconds broadly uh the intention is to keep the uh keep the keep the uh trend on the 36:29 36 minutes, 29 seconds margins more or less the same. So that's the attempt you will make through a mix of product uh through a mix of momentum 36:37 36 minutes, 37 seconds that you are bringing certain high margin asset classes. 36:42 36 minutes, 42 seconds Got it sir. Um and uh how should we think about the expense growth uh for next couple of years? 36:51 36 minutes, 51 seconds Yes. So uh Vij the expense growth would be uh the normal expense growth no um shockers on that account except uh which 37:00 37 minutes would be like in in line with inflation and um closer to that except uh we may see impact of the new 37:08 37 minutes, 8 seconds scheme esop scheme which we have rolled out in the month of January. 37:13 37 minutes, 13 seconds Yeah. So next few quarters we will have impact on the manpower cost on account of this new esop scheme. 37:20 37 minutes, 20 seconds Yeah. and the basise third quarter right sir sorry sorry sorry to interrupt sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry sorry so otherwise other expenses would 37:28 37 minutes, 28 seconds be in line with the normal inflationary except in employee cost on account of esop cost and that's that's already kind of 37:36 37 minutes, 36 seconds showing up in the third quarter employee cost right the impact of eop third quarter uh no third quarter is not 37:43 37 minutes, 43 seconds completely showing because the new esop scheme of uh ABS AMC has been rolled out in January third quarter actually is 37:51 37 minutes, 51 seconds having the impact of the parent company esop to select employees. Yeah. 37:57 37 minutes, 57 seconds Mhm. Okay. And uh over 3 years will be spread over 3 years which make provision. 38:08 38 minutes, 8 seconds Okay. And so last question I missed uh the data on equity flows that you mentioned uh the previous question uh with with respect to the 9month flow. 38:18 38 minutes, 18 seconds Sir, if you could please repeat that. 38:21 38 minutes, 21 seconds I said overall the flows have been improving in the equity and broadly I said as a fun close to about 40 of 38:29 38 minutes, 29 seconds inflows which includes fix income equity and arbitrage and within the equity I mentioned close to about 600 g of kind of inflows roughly tough cut number um 38:37 38 minutes, 37 seconds that's what I just mentioned and within that the focal product that we are pushing which is the uh flex fund 38:46 38 minutes, 46 seconds multi game fund uh In fact, we also getting start getting close on the small and midcap fund. But though may not be 38:54 38 minutes, 54 seconds the same order as what industry is getting it but these are some of the I'm seeing on at least about seven or eight product in terms of flows improvement. 39:05 39 minutes, 5 seconds Got it sir. Very useful. Thank you so much. 39:11 39 minutes, 11 seconds Thank you ladies and gentlemen. As there are no further questions we have come to the end of question and answer session. 39:18 39 minutes, 18 seconds I would now like to hand the conference over to the management for closing comments. 39:25 39 minutes, 25 seconds Yeah, thank you and thank you everyone for joining. And with this we conclude our Q3 FIA26 earnings call. If you have 39:33 39 minutes, 33 seconds any query of course there's a caller right back to Praep Sharma and Shivani Manga. Yeah. Thank you. 39:44 39 minutes, 44 seconds Thank you on behalf of Adit Ba Sunlife AMC Limited. That concludes this conference. Thank you for joining us. You may now disconnect your lines.