Aditya Birla Sun Life Amc Ltd — Q4 FY26

Aditya Birla Sun Life Amc Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=qulxu2nowMg Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 FI26 earnings conference call of Aditella Sunlife EMC Limited hosted by Incred Equities. 0:12 12 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal an operator by pressing start then zero on your touchstone phone. I now hand the 0:28 28 seconds conference over to Miss Magna Lutra from Intra Equities. Thank you and over to you. Thank you Ruucha. Good evening everyone. 0:36 36 seconds On behalf of Intra Equities, I welcome you all to Adita Sunlife AMC's fourth quarter and full year by 26 ended 0:45 45 seconds conference call. We have along with us Mr. Aala Subramanyaman MD and CEO and Mr. Praep Sharma CFO. We are thankful to 0:54 54 seconds the management for allowing us this opportunity to host them. I would now like to hand it over to Balasur for his opening remarks. Over to you sir. 1:02 1 minute, 2 seconds Yeah and thank you uh Magna and and good evening to everyone and thank you for joining our Q4 FA26 1:11 1 minute, 11 seconds investors call and I I hope you all had the opportunity to read through the learning presentation but available both the stock and our company website. 1:22 1 minute, 22 seconds Let me begin by sharing our perspective on the current macroeconom environment followed by update on uh the quarter 1:29 1 minute, 29 seconds ending F26 for our mutual business. The ongoing conflict as is known in West Asia and the view of global uncertainty 1:38 1 minute, 38 seconds are fundamentally changed the world order and surging energy prices have changed the global macro perspective and are posing challenges for global economic growth. 1:48 1 minute, 48 seconds For India, there is the disruptions uh in the in the Asian market where thanks due to the geopolitical risk 1:56 1 minute, 56 seconds driven energy cost higher and depreciated the Indian rupee versus US dollar which continues to remain a risk in the very short term. The risk of 2:05 2 minutes, 5 seconds sentiment has prompted FI's outflow and broadbased equity market corrections across emerging market. As a result of 2:12 2 minutes, 12 seconds that, the IMF now projects global growth to moderate to 3.1% in 2026, down from 2:19 2 minutes, 19 seconds 3.4% for 2025 with the headline inflation expected to rise modestly. The peak of parlated uncertainty is behind 2:28 2 minutes, 28 seconds us and potential productivity gains from AI provide meaningful structural tailwind over the medium term. India has 2:35 2 minutes, 35 seconds demonstrated commendable resilience through this period. domestic growth momentum remains fundamentally healthy 2:42 2 minutes, 42 seconds and expect the GDP growth to be about 6 something% for the year preserving India's position as the fastest growing 2:50 2 minutes, 50 seconds major economy inflation expected to rise modestly however it remain at a comfortable position within RV tolerance bands with 2:58 2 minutes, 58 seconds subdued core inflation and healthy food stocks providing additional buffers and India growth outlook continues to be 3:06 3 minutes, 6 seconds underpinned by strong domestic demand improving investment activity, a supportive monetary policy stance and healthy bank and corporate balance 3:14 3 minutes, 14 seconds sheet. And turning to equity market, the last quarter witnessed a sharp transition from optimism to caution with 3:22 3 minutes, 22 seconds market correcting from near record highs ded by persistent FI outflows and global risk of sentiment rising crude prices. 3:30 3 minutes, 30 seconds increasingly sustained participation from domestic mutual funds and retail investors question the decline underscoring the growing maturity of 3:38 3 minutes, 38 seconds domestic liquidity and reinforcing that discipline long-term investing and trusted guidance have never been more valuable coming to an update on the 3:47 3 minutes, 47 seconds image of industry the quarterly average am for the industry as a whole stood at 81.5 cr as of March 2026 compared to 3:55 3 minutes, 55 seconds 67.4 4 lakh cr as of 31st March 25 year on year growth of 21%. The industry recorded his highest ever SAP 4:04 4 minutes, 4 seconds contribution approximately 37 crores for March 26 representing yearon-year growth of 24%. 4:11 4 minutes, 11 seconds Total mutual fund folio stood at approximately 29 crores as of March 2026. During Q4 26 the industry saw 4:19 4 minutes, 19 seconds total in NFO collection approximately 112 crores across equity and debt funds with the equity collection driven by 4:26 4 minutes, 26 seconds predominantly flex fund multi fund and smaller miscar fund and despite equity market volatility industry witnessed the 4:35 4 minutes, 35 seconds continuous flows into various schemes highlighting sustained investors confidence the long-term growth potential of Indian equities individual 4:43 4 minutes, 43 seconds average am for March 2026 stood at 47.4 4 lakh cr contributing to about 60% of the total industry size and B30 cities 4:52 4 minutes, 52 seconds with an average AM of 14.4 40 lakh cr accounted for 18% of the total am growing by 19% year on year coming to 5:00 5 minutes the ABS Lency performance highlights at the ABS Lency our overall average including alternate assets now stands at 5:09 5 minutes, 9 seconds 4.74 lakh cring with 17% year on year our mutual fund quarterly average AM 5:15 5 minutes, 15 seconds stood at 4.36 lakh cr representing 14% yearon year increase with this our equity mutual fund quarterly 3M transit 5:24 5 minutes, 24 seconds approximately 1.900 lakh cring by 17% year on year our SAP contribution for March 26 has seen reasonably good pick 5:33 5 minutes, 33 seconds up,24 crores growing 11% quarteron quarter where we close about,80 crores, 204 5:40 5 minutes, 40 seconds crores supported by 40 lakh contribution coming from SAP account building on this momentum we the forefront of driving our 5:49 5 minutes, 49 seconds SAP adoption through a sub important plan combined and reinforcing the value of investing uh through the market 5:56 5 minutes, 56 seconds cycles and systematically our ambition on ABC is to reach every household in India making hal SAP as a reality we're 6:04 6 minutes, 4 seconds working in the direction which will help us in improving SAP number further to investors folio for March 2026 stood at 6:11 6 minutes, 11 seconds 1.1 cr the new SAP registration for the quarter approximately six lakhs growing of 16% on a quarteron quarter basis 6:19 6 minutes, 19 seconds another area where we have shown improvement in the current quarter S registration actually higher than the previous quarters reflecting on both the 6:28 6 minutes, 28 seconds number of registration happening in the quarters. Over the last year we at ABSC have made meaningful investment in strengthening the investment team on 6:37 6 minutes, 37 seconds people and sharpening our portfolio conscesses and investment framework uh re reinvented investment framework in 6:45 6 minutes, 45 seconds order deliverance performance. This in fact resulted in a sustained improvement in our investment performance in equity 6:53 6 minutes, 53 seconds directly translating into growing investors confidence and distributors confidence and consistent flows across our core funds offering. In fact the 7:01 7 minutes, 1 second current quarter we continue to see momentum coming in our flows in our flexiap fund balance adon fund multi 7:10 7 minutes, 10 seconds fund small and midcap funds genx fund and multicap funds. 7:15 7 minutes, 15 seconds Market expansion has always been a key priority uh for us and continue to deepen our presence across our energy 7:22 7 minutes, 22 seconds market and today we are present about 19,000 pin codes spanning across the country reflecting our commitment to bring in quality investment solutions in 7:32 7 minutes, 32 seconds every to every corner of India building on this foundation we plan to add several new location FI27 further 7:39 7 minutes, 39 seconds expanding our geograph footprint in fact in the current quarter we have seen our retail productive improving across all 7:46 7 minutes, 46 seconds markets. This is reflecting a number of distributors getting uh added to our fund as a number of distributors getting 7:54 7 minutes, 54 seconds activated across markets across different markets in order to further drive our business. We have enhanced our technology platform and digital 8:02 8 minutes, 2 seconds capabilities with a clear focus on delivering a seamless experience including the launch of our new investor app is reinforcing our commitment to simple, transparent and accessible investing. 8:12 8 minutes, 12 seconds We also launched the new partner app which enhanced capabilities and we remain focused on leveraging technology to drive smarter wealth creation and long-term value to our investors. In 8:20 8 minutes, 20 seconds fact, in our digital platform, we added some of the features which will actually bring in uh bring in the number of 8:28 8 minutes, 28 seconds customers additions and having customers multifolios and so on so forth and also improve the service standards in our app 8:36 8 minutes, 36 seconds which will in fact help us in terms of adding more customer base times to come. 8:40 8 minutes, 40 seconds Moving to our alternate business, the PMS and AF category has maintained a strong momentum complemented by a comprehensive suit of trade offerings. 8:49 8 minutes, 49 seconds Our PMS and AF assets grew significantly from 11,300 crores to 30,000 crores which again grow over three times. is 8:57 8 minutes, 57 seconds also supported by ESAC manage that we won last year and as you all know Samir Narin who our PMS head managing the 9:05 9 minutes, 5 seconds investments as a head of investment uh now we're taking additional responsibility of offshore fund management along with building the 9:13 9 minutes, 13 seconds business and expanding our global investment capability as head of offshore business both on money management as well as on building the 9:21 9 minutes, 21 seconds business as CMS with these deep commitment and and fashion. I'm sure these two asset 9:30 9 minutes, 30 seconds classes will start building some more outcome as time to come. We'll continue to raise funds uh in some of the funds 9:37 9 minutes, 37 seconds that we launched last year in India fund fund based out of GIT ABSL flexica fund for remote city and global bluechip fund 9:46 9 minutes, 46 seconds which again created which has given a huge experience for investors to provide globally competitive solution to investors. We plan to launch ABSL global 9:55 9 minutes, 55 seconds emerging market fund uh very soon through the gifts team. Karan Dawe who was part of our AB capital talent pool. 10:03 10 minutes, 3 seconds We now taking charge of debt a platform in order to provide uh fixed income credit oriented the performing credit 10:10 10 minutes, 10 seconds oriented funds where lead credit with a focus on scaling our offerings in this phase. The ESC mandate accounted for 10:18 10 minutes, 18 seconds about 20,000 crores as of March 26 while PMS and AF excluding ESA mandate registered year on year growth of about 10:25 10 minutes, 25 seconds 14%. Reflecting healthy underlying momentum backed by strong performance coming from our PMS as well on the EPFO 10:33 10 minutes, 33 seconds mandate which last quarter I mentioned about we won the equity mandate. This quarter we signed the agreement formal agreement we signed and now we already 10:41 10 minutes, 41 seconds operationally to get the inflows full after fulfilling few other formalities next few days I'm in the current quarter 10:48 10 minutes, 48 seconds we'll get to an EPA for money in the fixed income phase as per the mandate given to us for next five years we are 10:55 10 minutes, 55 seconds currently in the fundraising plan in the special opportunities fund series 2 and structured opportunities fund in series 11:03 11 minutes, 3 seconds 2 and money managers fund in the um AF Face along with a ABSL India select 11:11 11 minutes, 11 seconds sector fund in the equity space. On the real estate front, our AM group approximately about 740 crores 11:18 11 minutes, 18 seconds registering 14% yearon-year growth. We currently have a fundraising underway for real estate credit opportunities fund series 2 and focus on senior 11:28 11 minutes, 28 seconds lending to post approval brownfield real estate projects across cities. In our KI business, we continue to witness 11:36 11 minutes, 36 seconds significant momentum with our quarterly average aming the 4 crores mark to stand at 41,200 crores in Q4 FI26 representing 11:45 11 minutes, 45 seconds year on year growth of 25%. Our customer base expanding about 16.9 cr 11:53 11 minutes, 53 seconds 68% year on year signal output 40%. Our party product suit now comprise 12:01 12 minutes, 1 second 54 distinct offerings across equity fix commodities and multi solutions designed to address the diverse investment needs of our investors. 12:11 12 minutes, 11 seconds During the quarter we launched two new products in the passive segment which is the ABSL MSA India EF fund. This will be 12:19 12 minutes, 19 seconds based out of Gib City fitting into our fund in India. uh and hopefully we get to about uh flows from FI's invested in 12:27 12 minutes, 27 seconds this fund and for which we launch this fund. The same day we also [clears throat] launched BC top 10 banks ETF where we have started seeing some 12:36 12 minutes, 36 seconds flow of investments especially for those who are dedicated investment they make in the financial index and we're happy 12:43 12 minutes, 43 seconds to announce that we have incorporated our holy one subsidiary as international limited gift and have 12:51 12 minutes, 51 seconds succained the retail license to further strengthen our presence in the earlier presence in G city was in the form of a branch as an external armor from AMC. 13:00 13 minutes Now it is become 100% only owned subsidy company with this we'll be able to launch product for in domance and out 13:07 13 minutes, 7 seconds for as small as the ticket price about $3,000 as $2,000. We launched our SA vertical under the AEX SA brand with our 13:16 13 minutes, 16 seconds first offering the AEX [clears throat] SA hybrid long shot fund with evolving investor needs and the rapid expansion of India's affiliate segment. This 13:24 13 minutes, 24 seconds category represent significant growth liver for us. Building on this momentum, we plan to introduce a new offerings as 13:32 13 minutes, 32 seconds guided by new circular the near term to further strengthen and scale this platform. In line with this, we have further enhanced our investment 13:40 13 minutes, 40 seconds capability with addition of two specialist bringing [clears throat] deep expertise in long shot as well as derivative based strategy using options 13:48 13 minutes, 48 seconds and futures market str. Moving to the financial number 26 revenue from operation is at 458 13:56 13 minutes, 56 seconds crores as compared to 449 429 crores in Q4 FI25. 14:01 14 minutes, 1 second Our Q4 FI2 operating profit was about 22 crores as compared to 233 crores. Our Q4 14:08 14 minutes, 8 seconds FI23 profit after tax was 181 cr as compared to 228 crores. This is actually on account of uh increase in reduction 14:17 14 minutes, 17 seconds other income due to the mark to market actions for the quarter. Revenue from operations for the full year FI26 was 14:25 14 minutes, 25 seconds 1,845 [clears throat] crores as against,680 crores. FI2 operating profit was,4 crores as 14:32 14 minutes, 32 seconds compared to 941 crores. FI20 profit after tax is 970 crores as compared to 913 crores. FI25. We are pleased to 14:41 14 minutes, 41 seconds announce the board has proposed a dividend of 25.5% per share be somewhat equal about 78% of profit distributions 14:50 14 minutes, 50 seconds for the current quarter for the full year. With this I would like to open the floor for any questions. I'll be joined by Praep Sharma to take any of the questions that you may have. 15:01 15 minutes, 1 second Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star 15:08 15 minutes, 8 seconds and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 15:17 15 minutes, 17 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 15:28 15 minutes, 28 seconds The first question is from the line of Mohit Mangal from Centrum Broking. Please go ahead. 15:34 15 minutes, 34 seconds Yeah. Uh uh uh good evening everyone and thanks for the opportunity. Uh so my first question is on the regulatory impact. So you know from the 1st of 15:41 15 minutes, 41 seconds April we see uh that there will be a five basis impact on the equity. So how do you intend to mitigate the impact and 15:49 15 minutes, 49 seconds uh what would be the net impact on our books? 15:55 15 minutes, 55 seconds Yeah. I think this is the broad impact generally post the um the regulator changes is in 16:03 16 minutes, 3 seconds the range of about 3 to four basis points roughly. But however given the fact that the way the industry has been operating the way we have been operating 16:12 16 minutes, 12 seconds uh we will try and uh do the structures in such a manner that it does have least impact as far as the the P&L concerns 16:21 16 minutes, 21 seconds given the fact that the reduction is actually quite marginal and and suitably making the the the structures that we 16:31 16 minutes, 31 seconds have both on the commission structures and other expenses. Keeping all those things in mind, we'll try and make it uh neutral to everyone and win-win for the 16:39 16 minutes, 39 seconds overall business without having any kind of deep impact either for the distribution community or for our business. 16:48 16 minutes, 48 seconds Okay. So, you intend to pass on to the to the distributor basically and and there'll be like one or two bases pointed time that is what you intend to say. 16:57 16 minutes, 57 seconds No, we have not quantified any kind of exact number. I think um I think we will of course roll it out the current uh quarter and as of now the assumption 17:05 17 minutes, 5 seconds that you are making as far as the NC impact concerns will be very marginal we would look at from all angles how do we 17:12 17 minutes, 12 seconds maintain the overall profitability at the same time when we also look at passing on optimizing the the entire thing we'll also of course since it goes 17:20 17 minutes, 20 seconds across the entire distributed community we also feel even from a distributed point of view even if it is margin impact will be the least understood So 17:30 17 minutes, 30 seconds how has the flow market share versus the book market share this quarter uh 17:37 17 minutes, 37 seconds in line with the in line with the uh market only. So in terms of market share you saying? 17:43 17 minutes, 43 seconds Yeah. Yeah. Market share. Slow market share versus book market share. It's in line with our market. In line with the market share. Yeah. 17:52 17 minutes, 52 seconds Okay. Okay. In line with the market share. See we have we have seen improvement in terms of our flows. I think if you have to give you some kind 18:00 18 minutes of colors. Uh one we we actually this quarter is better than the previous quarter in terms of flow of funds coming into the funds that we have been 18:08 18 minutes, 8 seconds promoting. uh backed by uh rhythmically good acceptance uh more and more um more and more appro also coming in from the 18:16 18 minutes, 16 seconds banking channel that's I think is good news second is the way we looked at it as you we've been saying for last only 18:24 18 minutes, 24 seconds one and a half years uh we'll continue to focus on reducing the fall in the market share u that before we start 18:31 18 minutes, 31 seconds rising that's something again has happened in this quarter too I think the overall reduction is a very very marginal very I think narrowed quite significantly 18:39 18 minutes, 39 seconds uh with improved flows broadly I would say uh we would uh we would come it should come reasonably close to the market growth momentum very soon. 18:50 18 minutes, 50 seconds Understood. So my last question is on few bookkeeping questions. First is what is the AUM? Uh secondly if you could 18:58 18 minutes, 58 seconds quantify the ETF AM your fifth income includes the ETF. So if you can give me the ETF premium and lastly the PMS and 19:06 19 minutes, 6 seconds revenue for finance 26 and Q4 finance 26. 19:10 19 minutes, 10 seconds Sure. So I'll take the second question which is the ETF equity rather than out of 41 crores roughly 19:18 19 minutes, 18 seconds 500 crores is the uh ETF which includes gold and uh gold and silver um rough 19:25 19 minutes, 25 seconds roughly about 11500 crores roughly 11,500 crores and balance is actually fixed income target maturity fund we can 19:33 19 minutes, 33 seconds call it as far as the question the other question SIP book is about 76 19:40 19 minutes, 40 seconds 76 crores is SAP book uh with respect to revenue overall uh in the one second 19:48 19 minutes, 48 seconds just yeah 19:57 19 minutes, 57 seconds the PMS and this revenue I'll just tell you revenue coming from PMS and yeah so revenue share from PMS and EF 20:05 20 minutes, 5 seconds alternate is around 6% on gross basis Mo and on net basis it be around 3 and a half%. 20:12 20 minutes, 12 seconds Yeah. Okay. Understood. So just one followup. 20:16 20 minutes, 16 seconds You said 6 a.m. is 76,000 odd. Last quarter it was around 87,000 Kes. Uh so that's the employee moment right? 20:26 20 minutes, 26 seconds Yes. Yes. Yes. Yes. Yes. Purely money. Yeah. Pure. Okay. 20:36 20 minutes, 36 seconds Thanks. Does that answer your question Mr. Moit? 20:47 20 minutes, 47 seconds Yeah. Yeah, please. Thank you so much. 20:50 20 minutes, 50 seconds Thank you. Participants or wishes to ask a question, please press star and one. 20:56 20 minutes, 56 seconds The next question is from the line of the Panjan Kosh from City Group. Please go ahead. 21:03 21 minutes, 3 seconds Hello. Uh so good evening. Just few questions from my side. uh first you mentioned uh in your previous uh uh 21:12 21 minutes, 12 seconds comment that uh your flows in the funds that you have been pushing or you know funds or performance is good there has 21:20 21 minutes, 20 seconds been improvement in flows quarteron quarter uh but if I look at the overall active equities as a cohort for you and 21:27 21 minutes, 27 seconds look at let's say 4Q versus 3Q or 4Q versus um last year 4Q uh how the quarteron quarter and YI look like uh for the entire equity basket as a whole. 21:39 21 minutes, 39 seconds Uh my second question uh is on the expense side. Uh you mentioned in your commentary that you have uh you kind of have expanded your team on the SIS side. 21:49 21 minutes, 49 seconds Uh you also have ambitions to continue to scale up your um uh alternates and PMS businesses, offshore businesses. So 21:57 21 minutes, 57 seconds when I look at the employee expense growth, how should one think of uh let's say for the next one or two years in terms of the growth? Uh finally uh I 22:05 22 minutes, 5 seconds have a few data keeping questions. Uh one is SIP flows for the quarter. Uh the second is ESOP expense for the quarter 22:13 22 minutes, 13 seconds and year. And third is the number of employees outstanding as of March 31st. Sure. 22:21 22 minutes, 21 seconds As far as the flow is concerned Japan um uh I think the last quarter as I mentioned and this quarter also the so 22:29 22 minutes, 29 seconds the way I look at it the what we trying to build in addition to arbitrage fund which also considers active equity and 22:37 22 minutes, 37 seconds we have seen good pick up in the first half of this year in terms of our arbitrage fund and then we started 22:44 22 minutes, 44 seconds seeing pick up coming in flexi cap fund multi allocation fund multiap fund and the balance adonage fund. So that's why 22:52 22 minutes, 52 seconds I think we continue to see inflows and even we also promoting uh these kind of five six focus products and the thematic 23:00 23 minutes side we continue to see flows in the next fund and now we are seeing good pick up in the small and midcap fund. We 23:08 23 minutes, 8 seconds are now seeing flows in the small and midcap fund. So that is the way we are pushing it. And third of course where are we also losing some assets in the early part of the year is LSS schemes. 23:18 23 minutes, 18 seconds Uh thanks to significant improvement that you have seen in the performance. 23:22 23 minutes, 22 seconds Uh in fact our outflows are quite has come down quite though the asset as a category is not getting flows. Uh but we 23:30 23 minutes, 30 seconds had a little bit of excess outflow in initially for underperformance of the schemes that got narrowed quite significantly. This year we have seen a significant pick. In fact I must also 23:39 23 minutes, 39 seconds share with you the number of funds have delivered Q to performance and equity now gone gone almost about 85%. In fact 23:46 23 minutes, 46 seconds current quarter we have almost insignificant significant ins portion of our funds is in the Q4 and that 23:54 23 minutes, 54 seconds something is uh is is something is being accepted. In fact uh during the current quarter we got our products approved part of the banking channel which is 24:03 24 minutes, 3 seconds also one of the fees we are working on it. uh now wherever we got one product added now two products got added from the list of that I just showed to you so 24:12 24 minutes, 12 seconds I think uh I think each quarter on quarter basis we are improving it and hopefully uh this year we'll see the momentum continuing as far as the flow 24:19 24 minutes, 19 seconds concerns that's we are pushing the team for improve the productivity point of then uh other two questions uh I'll ask to just give you insight 24:28 24 minutes, 28 seconds yeah so the other one was on the employee expenses uh you were talking about so basically See uh there uh we 24:37 24 minutes, 37 seconds launched a new employee scheme uh in Q4 which uh we had the impact in the current quarter and that will continue 24:46 24 minutes, 46 seconds in the next year in coming quarters also. However, that uh impact is not that really uh visible in the Q4 24:54 24 minutes, 54 seconds numbers. If you see uh there are there's not increase from Q3 to Q4 largely on account of uh there was some employee 25:02 25 minutes, 2 seconds related reversal because of the performance variable pay performance. Uh that has been offset during Q4. However, 25:09 25 minutes, 9 seconds Q going forward uh there would be an impact of around uh around 8 to 10 crores per quarter in in next year. Next year. 25:17 25 minutes, 17 seconds Yeah. In next year. So this would be on account of ESOC and all. As far as you said on the employee the two new employees I think that there that there 25:26 25 minutes, 26 seconds should not be much impact that is only running uh employee cost and and normal influary employee cost should be there. 25:33 25 minutes, 33 seconds Yeah. As far as your employee cost in addition to everything mention mentioned I think from a team point of view uh we 25:41 25 minutes, 41 seconds are more or less there except we'll add uh we have our ETF passive gentleman left. So uh we'll be adding one or two 25:49 25 minutes, 49 seconds member team uh to build our passive business. Of course you have an existing team no doubt but to help that business uh we have some serious plan uh in order 25:58 25 minutes, 58 seconds to bring bring in higher focus on passive growth as well. That's something which you'll do and second of course some people have left and therefore some 26:06 26 minutes, 6 seconds people are coming in. So largely if I look at it from employee cost point of view there will be marginal increase not not big time increase but also 26:13 26 minutes, 13 seconds simultaneously we also will keep looking at optimizing the existing resources what additional respond they can take and uh and therefore this will remain 26:22 26 minutes, 22 seconds somewhat under control as far as the ISO concern while you mentioned about next year impact will come in fact I must 26:28 26 minutes, 28 seconds mention we rolled out our plan the this year well on time uh at close about 84 26:35 26 minutes, 35 seconds rupees price in Fact this also boosted the confidence and motivation of people were almost about 110 employees 26:43 26 minutes, 43 seconds recovered. Uh therefore I would probably say that with the improvement of performance uh and pre team also got 26:49 26 minutes, 49 seconds motivated post issuance of our resop and this also should add to the overall positivity for the fund. 27:02 27 minutes, 2 seconds Got it. Uh if I can get the uh data point that I asked for SIP flows for the quarter number of employees uh and yes uh those were the two questions. 27:12 27 minutes, 12 seconds Yeah sure. So SIP flows are the 1,24 cl 27:23 27 minutes, 23 seconds one second just give a second. 27:31 27 minutes, 31 seconds So 1,28 crores is for the per for the March and if you see for quarter it is 3,600 27:39 27 minutes, 39 seconds and the employees are 1,615 employees as of March. 27:45 27 minutes, 45 seconds Sorry 1,615 you said right? 27:49 27 minutes, 49 seconds 50 5 yeah 1650 1650 okay so just one follow up maybe I mean uh if I look at your this year I mean 27:56 27 minutes, 56 seconds you started with around 1630 employees you went up to around 1 1700 plus and now you're back to 1650 uh despite the 28:03 28 minutes, 3 seconds business momentum you know picking up so uh what should we I mean what what is really getting captured in this employee 28:10 28 minutes, 10 seconds count number so we always see this is always there are there would be always some ongoing 28:17 28 minutes, 17 seconds vacancies at RM level etc. at the the bottom of the pyramid as well as we always keep on optimizing uh our 28:25 28 minutes, 25 seconds employee strength uh and also keep on uh improving the productivity levels by way of uh uh implementing the new tax 28:34 28 minutes, 34 seconds solution etc etc. So I think uh to 50 employees plus minus will keep on happening always uh depending on the 28:42 28 minutes, 42 seconds optimization also also we also onboard certain se certain se segment of the the business 28:50 28 minutes, 50 seconds offroll people then they come on the on board roughly about 80 to 100. Got it. Uh thank you and all the best. 28:58 28 minutes, 58 seconds Yeah. Yeah. 29:03 29 minutes, 3 seconds Thank you. Participants who wishes to ask a question, please press star and one. 29:10 29 minutes, 10 seconds Next question is from the line of Sarna Burkharji from 361 Capital. Please go ahead. 29:17 29 minutes, 17 seconds Hi sir, good afternoon and thank you for the opportunity. Uh three questions from my side. First one answer on this uh 29:24 29 minutes, 24 seconds regulatory impact. So I just wanted to ask that uh and will we be getting some clarity on you know what is the uh full 29:33 29 minutes, 33 seconds extent of the impact because we are already uh in in the uh third week of 29:40 29 minutes, 40 seconds April uh and uh I mean I think uh so would it be like that we will have an 29:46 29 minutes, 46 seconds idea as we close April or it be like that you know optimization will continue for few months uh uh as we move in 29:56 29 minutes, 56 seconds there. So if you could give some clarity on that. Uh secondly 30:02 30 minutes, 2 seconds in terms uh customers uh how has the movement been during the quarter? The 30:08 30 minutes, 8 seconds reason why I asked is that in the SIP uh uh slice 30:16 30 minutes, 16 seconds growth that we are seeing in terms of those as well as new SIP administration that uh is not reflecting so much in terms of the contributing SIP account. 30:25 30 minutes, 25 seconds So I just wanted to understand the dynamics there that are our existing customers uh opening uh you know 30:33 30 minutes, 33 seconds incremental SIPs or uh you know how is it playing out in terms of uh onboarding uh say new to ABS AMC customers. uh and 30:43 30 minutes, 43 seconds also if you could uh help us understand that in terms of this uh incremental SIP uh flow growth that has happened uh 30:52 30 minutes, 52 seconds during this uh quarter uh which channels are providing that is this coming from online channel or any other kind of 31:00 31 minutes distribution uh partner who we have added if you could give some color on that. Uh and lastly sir uh also if you 31:08 31 minutes, 8 seconds could share the ease by asset plus that would be very yeah so as far as the u as far question 31:18 31 minutes, 18 seconds concern with respect to the optimization running so see this is um after multiple round of discussion when the first 31:26 31 minutes, 26 seconds circular came and the final circular came uh all of you would have known and as an industry we worked with sebi and 31:35 31 minutes, 35 seconds brought it to a scenario be aware it will have least impact including the broking form with deal with on the equity side. So in fact I was personally 31:42 31 minutes, 42 seconds involved in in in in ensuring that rather not ensuring working with the other team members of the industry to 31:50 31 minutes, 50 seconds see to it that it has least impact. So that's the broader approach in which we did and whatever the final that has come 31:58 31 minutes, 58 seconds the way we have worked out at this point of time is from profitability point of view um uh we will try and make it 32:07 32 minutes, 7 seconds neutral uh if not positive uh as for the distribution concerns and we are any case in a in a scenario where we have 32:16 32 minutes, 16 seconds always been ensuring that the distributed partner should work very closely that why we kept the commission structure in a manner it remains 32:25 32 minutes, 25 seconds somewhat attractive for them in order to grow our business. There will be some marginal reductions could come. So that's way broadly I'll see it without having too much impact as far as them 32:34 32 minutes, 34 seconds concerned. The way we we are currently working out is from our uh profitability point of view uh somewhat neutral uh 32:43 32 minutes, 43 seconds kind of model. That's why we're working on it. that way we are looking at building the whole uh plan and and as far as the as far as the SAP is 32:52 32 minutes, 52 seconds concerned um of course we have seen some of cancellations uh this quarter maybe I would say increased cancellation during the period 33:00 33 minutes of volatility uh it used to be somewhere around about 40 to 50% for industry I'm talking about it went up to about 92% for industry in 33:08 33 minutes, 8 seconds fact uh our SAP cancellations were actually lower than industry I would say uh at the same time this normally 33:16 33 minutes, 16 seconds happens any kind of volatile period we do see cancellation increasing but that in my way is not so generally worry part 33:26 33 minutes, 26 seconds if resistations have not come down quite significantly if resistation remains somewhat strong when our number 33:33 33 minutes, 33 seconds is about 6.71 lakh again 5.4 four in the previous quarter is is the trend that we see. So therefore this is something uh 33:42 33 minutes, 42 seconds one good big achievement I would say as industry all have done including ourselves making SAPs agnostic to the market volatility. In fact uh I myself 33:51 33 minutes, 51 seconds was during the volatile period keep harping on the importance of not canceling SAPs. In fact I came with a mantra it's called if you have an SAP 34:00 34 minutes continue SAP. If you cancelled SAP start your SAP. We never invest in SAP start SAP some we actually came out to the 34:07 34 minutes, 7 seconds company during that period it's also being appreciated by people because during the W period giving guidance to the investors is extremely important in 34:15 34 minutes, 15 seconds fact we are the one all around the place in in reemphasizing importance of SAP in fact that has been appreciated by a lot 34:22 34 minutes, 22 seconds of our partners and investors that is actually batting the front foot in promoting SAP which hopefully should help us in building our SAP that's one 34:31 34 minutes, 31 seconds as far as the uh as far as the uh the channel concerns in fact you have seen digital of course remains a dominant 34:39 34 minutes, 39 seconds component no doubt uh MFDs you have seen improvement uh during the current quarter due to the high engagement coming from our sales team because 34:47 34 minutes, 47 seconds improvement on performance the narrative gives a more confidence for them to actually go out in the market not having a fear of reaching out that something is 34:55 34 minutes, 55 seconds helping our sales team actually go out in the market talk about with lot of proud that yes we are doing well so that is helping us in improving our 35:02 35 minutes, 2 seconds contingent coming MFDs after long way to go no doubt. Second is product coming as part of approved list of banking channels also is improving the 35:10 35 minutes, 10 seconds contribution both the flows and sips and third of course is the uh ND channel before ND channel direct team channels 35:18 35 minutes, 18 seconds also we are seeing an improvement on the direct team channels both the space as well as the PF and trust we also have channels coming in the institutional 35:26 35 minutes, 26 seconds space that phases also we are seeing STPs now contributions coming in fact last quarters 35:34 35 minutes, 34 seconds uh some of the an institutional customer who primary invest in equity as well had had uh in equity when the market fell so 35:44 35 minutes, 44 seconds that broadly I see it as far concerned I'll just give it to Praep to give you so uh yields in equity category are 35:53 35 minutes, 53 seconds around 62 60 62 63 basis points and that side it is around 24 to 25 basis points 36:00 36 minutes liquid is around 12 to 13 basis points ETF is around six basis response. 36:07 36 minutes, 7 seconds Okay sir, understood. Uh thank you for the detailed answer and uh yes sir I think uh really uh uh you know great set 36:15 36 minutes, 15 seconds of numbers on the SIP side. Uh so uh so just one followup if I may uh in terms 36:21 36 minutes, 21 seconds of uh the month of April. So just wanted to understand that uh you know how are we seeing the month of April now that 36:30 36 minutes, 30 seconds you know the volatility has kind of uh reduced a bit uh and that the markets have also uh uh started to show some 36:38 36 minutes, 38 seconds encouraging signs. So just wanted to understand uh you know how you are seeing incremental uptake uh in the month of April. 36:47 36 minutes, 47 seconds Sure. So I think March quarter I think there was also pressure on fixed income side due to the rupee volatility as well 36:55 36 minutes, 55 seconds as interest rates banks are under tremendous pressure to raise deposits that did have an impact as well the fixed income 37:02 37 minutes, 2 seconds flow is concerned. In fact post RBI giving more liquidity and the borrowing calendar is more key towards the short 37:10 37 minutes, 10 seconds end rather than the longer end. As as again bond markets have come back to normal liquidity come back normal flows also come back to normal. In fact as I 37:18 37 minutes, 18 seconds speak our number come back more close to about 445 in terms of running number. So that's 37:25 37 minutes, 25 seconds something an overall business I would say. As far as equities concerns um we did have a conference normally we have in the beginning of every year uh we we 37:34 37 minutes, 34 seconds run a conference uh taking all our distribution partners uh to one locations. We lock ourselves to talk about what we have done last year and 37:43 37 minutes, 43 seconds what we intend to do next year. In fact, we got a reasonably good response coming from distributors from across representation of India and um and and 37:52 37 minutes, 52 seconds that's something uh got a feeling that everyone wants to actually add and accumulate during the fall period rather than uh rather than 38:01 38 minutes, 1 second reducing the expense. That's one feeling I got. So therefore this in my view assuming these about 400 distributors participate in our conference assuming I 38:09 38 minutes, 9 seconds take that as a voice of representation of the whole community uh probably we should see uh the flow is not getting 38:16 38 minutes, 16 seconds impacted uh given the fact market also come back quite nicely uh from our side we are seeing improved uh contribution I 38:25 38 minutes, 25 seconds don't want this too early for me to give that number but I'm seeing an improved uh fractions uh in fact I must mention post our conference 38:33 38 minutes, 33 seconds that we had last week entirely sales force have become extremely confident in order to improve their own productivity in every market. 38:43 38 minutes, 43 seconds So that is why you put it. 38:47 38 minutes, 47 seconds Understood sir. This is all very helpful. Thank you so much sir and all the best for 27. 38:55 38 minutes, 55 seconds Thank you. The next question is from the line of HD from Premi Invest. Please go ahead. 39:02 39 minutes, 2 seconds Hi sir. Uh am I audible? Yes you are. Yes you are audible. Yeah. Hi. 39:08 39 minutes, 8 seconds Hi sir. Hashid here. Uh sir just wanted to I joined a bit late. Maybe you got covered it. But uh what was the equity 39:15 39 minutes, 15 seconds yields which you mentioned sir? Uh equity segment yield. Yeah. Yeah. 39:22 39 minutes, 22 seconds So equity yields were 60 to 63 basis points and that it was 24 25 basis points like 12 to 13 basis point. 39:32 39 minutes, 32 seconds Okay. Sir when I look at the equity at least if I back calculate uh broadly so there is a good uh around two three 39:39 39 minutes, 39 seconds basis point yield reduction uh which which would have happened this quarter uh so I think if if I take every other 39:48 39 minutes, 48 seconds thing constant then probably a three basis point decline uh in the equity segment uh is it should I is it anything 39:56 39 minutes, 56 seconds particular to do here no so there's no specific season. I think this is uh the function of 40:04 40 minutes, 4 seconds telescoping pricing uh as well as mix of products. Uh so both these things will 40:11 40 minutes, 11 seconds have impact on this versus u if you see for last year we had also uh actually in the earlier call we have said last year 40:19 40 minutes, 19 seconds we had some reversal because of the regulatory changes. So if you see from last year to this year there is a marginal drop of two to three basis 40:28 40 minutes, 28 seconds points I think otherwise it could continue. So just so just on the sequential part itself and uh wanted 40:36 40 minutes, 36 seconds to check that probably it looked like the declined uh 40:44 40 minutes, 44 seconds okay so you are saying yeah within equity you are saying there could be more uh uh passive so basically index funds etc would have increased that 40:52 40 minutes, 52 seconds would have led to that yes yes so product mix yeah yeah in the core product there's no there's no there's no fall of course as 41:01 41 minutes, 1 second I mentioned See some of the funds are also bit growing in size to the extent the telescoping price impact very much but that I would say that is one 41:09 41 minutes, 9 seconds component of it but otherwise even a growing passive is also get added to that segment. 41:16 41 minutes, 16 seconds Got it. Got it. So just the other point you mentioned that the impact of the uh TR revisions you would want to keep uh 41:24 41 minutes, 24 seconds the distributor also that you would want the distributor commission not being impacted. uh but uh and then you said that we also want to ensure that our our 41:33 41 minutes, 33 seconds business is neutral in terms of the economics but how can that billing do [clears throat] you expect that we should take we will be have to taking 41:41 41 minutes, 41 seconds some hit uh no just to just to clarify that a we did some of math just back math we just did 41:51 41 minutes, 51 seconds let us assuming scenario that uh we're able to uh make it uh somewhat neutral 41:59 41 minutes, 59 seconds or negative say let us assuming for the distribution partners what the impact it will come uh given our current the brokerage structure we have we have 42:08 42 minutes, 8 seconds current distribution structure that we have so I would say we would be in the I would not say too high I'll not say not 42:15 42 minutes, 15 seconds too low as well I think we are little above say med I can say compared to industry people therefore we felt that what the impact will come that is 42:24 42 minutes, 24 seconds assuming uh the two three basis points is actually runs at the cost of uh to the to the distribution side. uh then we 42:32 42 minutes, 32 seconds felt the impact is very marginal uh right from the people who get a larger am versus a smaller am and for us also 42:41 42 minutes, 41 seconds given the given the uh fact this has come we also relooked at some of our cost structures how we can improvise it therefore we looked at across the board 42:50 42 minutes, 50 seconds how we can actually ensure that impact is less is also coming from the fer as I mentioned earlier in the call that what 42:57 42 minutes, 57 seconds was said and then uh the initial fear which was there when the first circular came at final circle when it came uh in that call also I mentioned it will be 43:05 43 minutes, 5 seconds more or less neutral uh if not highly positive so that's that we continue to maintain that this has to get evolved in 43:12 43 minutes, 12 seconds my view therefore we cannot say this is exactly work because anyway once this is done implemented we'll come back to a 43:20 43 minutes, 20 seconds normal distribution structure uh which normally we keep about 60 70% is the distribution structure we'll come back to the model therefore we should not get 43:28 43 minutes, 28 seconds confused in terms of who will get impact and who will get benefit benefiting. We have ultimately come back to the the distribution model. 43:35 43 minutes, 35 seconds Understood. Sir, one last question. If I look at our my net equity flows across all the active funds basically uh I 43:43 43 minutes, 43 seconds think last year if I assume that in the interim we had some higher redemptions from the older schemes uh then we had 43:51 43 minutes, 51 seconds some higher redemptions in the online uh uh BP. So just so are we because of the performance now being much more stable 44:00 44 minutes and a larger track record uh of stable performance. Uh is is it is it fair to 44:07 44 minutes, 7 seconds assume that right now we are at a stage that on a monthly basis we are getting 250 300 cr of net inflows as a bare 44:16 44 minutes, 16 seconds minimum. Right now I think just trying to understand that have we reached a point that net of redemptions we are now 44:23 44 minutes, 23 seconds right now at a point that 250 300 cr month monthly inflows are more predictable inflows which we can get every month. 44:32 44 minutes, 32 seconds Yes I think the trend is there I think clearly I think you articulated nicely in terms of how we are shipping up. In 44:39 44 minutes, 39 seconds fact um so I don't normally say last year flows actually two times higher than the previous year flow in terms of flows. So that's again nothing but an 44:48 44 minutes, 48 seconds effort that we are doing it. So as I mentioned in my opening remark whatever steps we have to take in order to bring 44:56 44 minutes, 56 seconds in uh the the the the talent side where we have to improvise it and uh responsibility is changing and so on so 45:03 45 minutes, 3 seconds forth each of the areas uh the focus that we brought in all of them started paying even uh it takes some time for people to get adjusted and started 45:11 45 minutes, 11 seconds living. In fact uh when I mention about 88% of the funds today in Q1 Q2 is all I think is the outcome of what we see when 45:19 45 minutes, 19 seconds the product is coming but approved list is also the function of how uh now is coming in the radar with the rest of the competition so on so forth I think we 45:28 45 minutes, 28 seconds are going in the right direction I would say so I at the the cost of so is is 200 300 45:35 45 minutes, 35 seconds cr number which we have already now at a stage that now that is the base minimum monthly flows we are there at or you 45:44 45 minutes, 44 seconds think that still we are not at 250 300 core it's still maybe few months we get it but it's not that number which we have reached on a more steady state 45:51 45 minutes, 51 seconds basis as of now yeah I would probably say the number will be much higher than what you're indicating 45:59 45 minutes, 59 seconds so I don't want to say right now but I would we would probably push for higher than these numbers understood understood this is helpful thanks 46:08 46 minutes, 8 seconds yeah thank you Next, sorry. The next question is from the line of Magna Lutra from Incredities. Please go ahead. 46:18 46 minutes, 18 seconds Yeah. Hi, thank you sir. Just one question is sir you mentioned on the banking front we are uh we've got some approval from some products. So can we 46:27 46 minutes, 27 seconds get some more color on that and how do we see the strategy in the banking channel changing? I understand it's a small proportion of the even channel. 46:36 46 minutes, 36 seconds Sure. Sure. See I think we the way we look at our banking channel is uh was a large key partners for mutual fund it's 46:44 46 minutes, 44 seconds basically starting from HDFC bank access bank and IC bank standard bank and uh 46:52 46 minutes, 52 seconds and and and the other uh smaller bank we can say IDFC bank and others bank of bod distributors while we used 47:01 47 minutes, 1 second to always presence uh but I think each one of them have to generate in terms of volume coming in and that we are seeing it across each of the channels. Second 47:10 47 minutes, 10 seconds is uh second is uh like HDSC bank they are titled as product recommendation after the uh after the 2019 financial 47:19 47 minutes, 19 seconds market crisis. So they don't promote more than three or four products in part of the list. In fact I'm happy to say uh two of our products is part of the 47:26 47 minutes, 26 seconds recommendation list. Uh that's something uh is also helping us because our engagement is good, connectivity is good and product coming on recommendations it 47:34 47 minutes, 34 seconds leads to increase in flows. That's something we are saying and we have seen KC Bank is also part of our wealth management team and retail team of KC 47:43 47 minutes, 43 seconds bank do for us. In fact two three of our two of our products as part of the recommendation list as I understand there are constraints we cannot give 47:50 47 minutes, 50 seconds more than two products per fundous under the performance selection I'm happy to say these are some of the product coming what are there recommendation list 47:59 47 minutes, 59 seconds people and ways of performance improvement engagement their own conviction and understanding of what we are doing uh would deliver the the much 48:07 48 minutes, 7 seconds desired outcome so that the way we are pushing it and this is something would uh help us in keeping that momentum I'm continuing. 48:18 48 minutes, 18 seconds Got it. On the flows part uh would the banking contribution be materially different than the specifically on the equity assets? 48:28 48 minutes, 28 seconds I would say materally different from the past there was flows had come down quite significantly from this channel uh because the product was not part of the 48:36 48 minutes, 36 seconds recommendation list. So now with the engagement being there that product coming recommendation would lead to actually uh increased flows of course 48:45 48 minutes, 45 seconds even pushing the sales team to take full advantage of high engagement with the team which I think the team is also doing it and MFDs they they have the 48:53 48 minutes, 53 seconds regular flows we have deep connections even MFDs when we connect we don't look at them only as our distribution alone we actually add lot of value addition we 49:01 49 minutes, 1 second give by providing uh guidance and we run program called legacy leap. We run a program called Falcom in order to 49:10 49 minutes, 10 seconds encourage the next generation of the distribution partners who have long ass with distribution partners for 30 years and old generation wants to develop the 49:17 49 minutes, 17 seconds next generation. In fact we as a fun take a lot of leads in gener helping the next generation to build the business. 49:25 49 minutes, 25 seconds uh all such things we are doing it in order to ensure our traditional channel ML channel improves while the organic 49:32 49 minutes, 32 seconds channel continues to get better and direct is something we have made an investment uh last one one and a half years we making investment on direct 49:39 49 minutes, 39 seconds team but also we bringing more sharpness in terms of improving the numbers and and then the last piece actually is the digital channel last year I still 49:48 49 minutes, 48 seconds remember we got close to about 20 customer added to the online channels in some of our funds like PS equity fund and few others 49:56 49 minutes, 56 seconds that segment also we are um [clears throat] we are pushing ourself as to how we can increase the contribution from the digital channel as 50:03 50 minutes, 3 seconds well. So all around this kind of char focus I'm sure each of the channel is start contributing uh uh better than the 50:11 50 minutes, 11 seconds previous year that should help in terms of kids building the momentum. 50:17 50 minutes, 17 seconds Great. Great sir. And lastly on the product pipeline, what would be uh on the equity side? 50:25 50 minutes, 25 seconds Yeah. One of course we are we have already filed that's something which will which will launch very soon and 50:33 50 minutes, 33 seconds second under the new category we have looked at some of the merit for having what is the coll cycle kind of funds we 50:42 50 minutes, 42 seconds are looking at we're also looking at some of the read init fund gives approval that's something we are looking at it and that is is a part of the part 50:51 50 minutes, 51 seconds of our regular exercise in fact we're also looking at our Gib City uh Gib City uh product uh I must mention that we we 51:00 51 minutes were the launch in Gib City uh product invest in emerging market without knowing whether how the emerging market is going to do in fact that fund has 51:09 51 minutes, 9 seconds done exceedingly well giving good experience to investors giving about 30% $3% return on our near basis that's something it was a closure fund we are 51:17 51 minutes, 17 seconds now looking at launching the open fund in the gift city we have this plan all these in place as for the domestic concern in addition to life cycle fund 51:25 51 minutes, 25 seconds what I mentioned about I think fund well but we not seeing much growth uh deserving growth I would say that's 51:33 51 minutes, 33 seconds something again we are pushing it got recorded so thank you that's all from my end 51:41 51 minutes, 41 seconds yeah thank you ladies and gentlemen that was the last question for today I now hand over the conference over to 51:49 51 minutes, 49 seconds management for closing comments Thank you. Thank you. Thank you uh everyone for joining uh for this call. 52:03 52 minutes, 3 seconds And with this we conclude our Q4 FI26. 52:10 52 minutes, 10 seconds Thank you ladies and gentlemen on behalf of Ada Sunlife EMC Limited that concludes this conference. Thank you for joining us.