Anand Rathi Share and Stock Brokers Limited — Q3 FY26

Anand Rathi Share and Stock Brokers Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7zMfKmI06us Published: 4 months ago

0:00 Ladies and gentlemen, good day and welcome to the Anand Rati Share and Stock Brokers Limited Q3 and 9 months 0:07 7 seconds FY26 earnings call. As a reminder, all participant lines will be in the listenonly mode and there will be an 0:15 15 seconds 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 star then zero on your Touchstone phone. Please note that 0:29 29 seconds this conference is being recorded. I now hand the conference over to Mr. Dwagar Pinglay from EY. Thank you and over to you sir. 0:39 39 seconds Uh thank you so much Alerik. Uh good afternoon everyone and welcome to the Q3 FI26 results of Anandra Shares installed 0:47 47 seconds Limited. The company has published it results and has uploaded investor presentation exchanges and you can also find on the company's website. 0:56 56 seconds Before we start a disclaimer some of the statements made in today's earnings call may be forward-looking in nature. Such 1:04 1 minute, 4 seconds forward-looking statements are subject to risk and uncertainties which could cause actual results to be stopped and work anticipated. 1:11 1 minute, 11 seconds Such statements are based on management beliefs and assumptions made by information currently available to the management. 1:18 1 minute, 18 seconds Participants are cautioned not to place unreliance on these forward looking statements while making investment decisions. 1:24 1 minute, 24 seconds On that note, let me introduce you to the manager participating in today's conference call. We have Mr. Prair Gupta, chairman and managing director, 1:32 1 minute, 32 seconds Mr. Roishra, oldtime director, Mr. Tarak Sha, chief financial officer. 1:39 1 minute, 39 seconds Without further ado, I'd like to hand over the call to Mr. Pup and thank you. 1:47 1 minute, 47 seconds Good afternoon to everyone. 1:51 1 minute, 51 seconds Wish you all and your family members a very happy and prosperous new year and thank you for joining us for our earning 1:59 1 minute, 59 seconds call for the quarter and 9 month ended December 2025. 2:05 2 minutes, 5 seconds I'm delighted to inform you that we had yet another successful quarter behind us 2:12 2 minutes, 12 seconds reinforce in reinforcing our endeavor to deliver consistent growth and long-term value for all our stakeholders. 2:21 2 minutes, 21 seconds I'm joined with uh Mr. Lup Kishor Budra whole time uh director, Mr. Tarak Sha, 2:29 2 minutes, 29 seconds chief financial officer along with me on this call. We all begin 2:35 2 minutes, 35 seconds with an overview of company's Q3 and 9 months performance and then open the floor to the questions. 2:44 2 minutes, 44 seconds The Indian capital markets had a rough ride in financial year 26. With the Sensex and Nifty delivering lackluster 2:53 2 minutes, 53 seconds gains underperforming other significant global prayers, there were pressure from sustained 3:02 3 minutes, 2 seconds selling by foreign investors citing concerns over weak earnings, stretched valuations 3:10 3 minutes, 10 seconds and currency volatility which resulted in benchmark indexes remaining subdued despite brief midyear rallies. 3:19 3 minutes, 19 seconds Despite this backdrop, our business continued to grow. As of December 25, I am delighted to report that our total 3:28 3 minutes, 28 seconds assets under custody stood at,058 billion growing at a healthy rate of 3:37 3 minutes, 37 seconds about 48% compared to corresponding period last year. We also witnessed a 3:44 3 minutes, 44 seconds heavy growth in our MTF book which stood at 12,317 million 3:52 3 minutes, 52 seconds up by a robust 46% from 8,429 million last year. 4:01 4 minutes, 1 second We are on track to achieve book size of about 15,000 million by the end of this 4:08 4 minutes, 8 seconds financial year. Our total assets under management grew 32% Y and stood at about 4:17 4 minutes, 17 seconds 83,688 million which is up from 63,357 4:26 4 minutes, 26 seconds million in the same period last year reflecting our client's contribute uh continued confidence 4:35 4 minutes, 35 seconds and our commitment to prudent financial stewardship. 4:42 4 minutes, 42 seconds All of this led to our total consolidated revenue from operations standing at 2,482 4:50 4 minutes, 50 seconds million for quarter 3 financial year 26 representing a 21% yearon-year basis 4:58 4 minutes, 58 seconds growth. Iita 8,12 million representing a 5:04 5 minutes, 4 seconds 32% YI growth and a healthy AITA abitita margin of 41%. 5:13 5 minutes, 13 seconds And our patch stood at about 370 million 5:19 5 minutes, 19 seconds representing a 72% YI growth and 15% pack margin. 5:27 5 minutes, 27 seconds Our diversified revenue model continues to be one of our biggest strength. 5:33 5 minutes, 33 seconds Broking and related services which includes brokerage income, depository income and interest on delay 5:42 5 minutes, 42 seconds payments continues to remain our core business driver which is contributing 5:48 5 minutes, 48 seconds about 52% of the quarterly revenue at 1287 million. However, the contribution 5:57 5 minutes, 57 seconds from non-broking business which consist of our distribution business and margin trading facility 6:05 6 minutes, 5 seconds business continues to rise steadily enhancing the quality and predictability of our earnings. Our distribution income 6:14 6 minutes, 14 seconds stood at 251 million during quarter 3 financial year 26 which is representing a healthy growth of about 38%. 6:26 6 minutes, 26 seconds Y while our interest on MPF stood at about 438 million surging by as much as 6:34 6 minutes, 34 seconds about 46% YI on a 9 month basis our income from 6:42 6 minutes, 42 seconds broking and related services stood at about 3,554 6:47 6 minutes, 47 seconds million while our interest on MPF income stood at about,083 6:54 6 minutes, 54 seconds million and our distribution income is stood at about 776 million. 7:02 7 minutes, 2 seconds Coming to operational aspect, we had an active client base that is the 7:09 7 minutes, 9 seconds segment of clients from our total client base from whom we earned revenue of our 7:15 7 minutes, 15 seconds 158 one lakh 58,61 clients in quarter 3 financial year 26. 7:24 7 minutes, 24 seconds The depth of our relationship is a key strength of our company. I'm happy to report that of the 55% of our active 7:33 7 minutes, 33 seconds clients remain engaged with us over 3 years during 9 months of financial year 26. 7:42 7 minutes, 42 seconds 80% of our active clients fail in the age bracket of over 30 years, which is a 7:49 7 minutes, 49 seconds key age demographic that translates into a greater investable corpus and more 7:57 7 minutes, 57 seconds investment maturity often needing multiple investment product and advice. 8:04 8 minutes, 4 seconds Finally, our balance sheet continues to strengthen. The debt equity ratio as of 8:10 8 minutes, 10 seconds December 31st, 2025 has moved to 0.59 down from 2.36 8:19 8 minutes, 19 seconds as of December 31st, 2024, showcasing our progress towards a more 8:26 8 minutes, 26 seconds efficient and resilient capital structure of the company. 8:32 8 minutes, 32 seconds I now hand over our whole time director Mr. Ru Bhutra to take us through the financials. Thank you and once again happy new year. 8:43 8 minutes, 43 seconds Thank you Praijit and good afternoon everyone. I will now take you through our financial and business performance 8:50 8 minutes, 50 seconds for the quarter and the 9 month period ended 31st December 25. During quarter 3 financial year 26, our total 8:59 8 minutes, 59 seconds consolidated revenue from operation stood at 2,482 million reflecting y growth of 21.5%. 9:10 9 minutes, 10 seconds EVA at 1,12 million reflecting yearon-year growth of 31.5%. 9:18 9 minutes, 18 seconds And PAT stood at 370 million reflecting year-on-year growth of 71.8%. 9:26 9 minutes, 26 seconds The quarter 3 immediata margin was 40.8%. 9:31 9 minutes, 31 seconds While the CAT margin stood at 14.9% growing 423 BPS sequentially 9:40 9 minutes, 40 seconds on a 9mon basis our consolidated revenue from operation stood at 6765 9:48 9 minutes, 48 seconds million while IDA and PT stood at 2,685 million and 877 million respectively. 9:59 9 minutes, 59 seconds Coming to a segmental breakdown of our revenue. The mix between broking segment comprising income from broking and 10:07 10 minutes, 7 seconds related services and the non-booking segment comprising interest from MTF and distribution income was 52% and 28% 10:17 10 minutes, 17 seconds respectively for quarter 3 financial year 26 and 53% and 27% for the 9 month 10:25 10 minutes, 25 seconds per year. The total active client for the 9 month period December 31st 25 is 10:32 10 minutes, 32 seconds stood at 1 lakh 97,937 clients within the broking segment for quarter 3 10:40 10 minutes, 40 seconds financial year 2026. The revenue mix between the equity cash segment and FNO and other segment stood in a 10:49 10 minutes, 49 seconds 50/50 ratio. The number of active clients in the broking segment during the quarter is stored at 96,851 11:00 11 minutes representing a 4.9% increase quarter on quarter and a 6.5% increase year on year. Out of these 11:09 11 minutes, 9 seconds clients, 96.8% 8% that is 93,771 11:16 11 minutes, 16 seconds clients actively traded in the equity care segment alongside their participation in other segments like Fendo currency and commodities. 11:26 11 minutes, 26 seconds Our MCF book continued to grow steadily surging 46.1% yearon year and 13.6% 6% quarteron 11:36 11 minutes, 36 seconds quarter and stood at 12,317 million as of December 11:43 11 minutes, 43 seconds 31st 25. The MTF facility which enable clients to leverage their investment for potentially enhanced returns while 11:52 11 minutes, 52 seconds managing risk remains a key component of our comprehensive investment solutions. 11:58 11 minutes, 58 seconds Interest income from our MTF book stood at 438 million during quarter 3 12:06 12 minutes, 6 seconds financial year 26 representing a healthy jump of 20.4% quarteron quarter and 45.7% 12:14 12 minutes, 14 seconds yearonear. I'm delighted to highlight that we continue to have zero MPs on the 12:20 12 minutes, 20 seconds MTF book and out of our total book 61.4% 4% 12:26 12 minutes, 26 seconds outstanding as on December 31st 25 was from clients whose outstanding were less than 1 cr. 12:36 12 minutes, 36 seconds As of December 31st 25, our total year under distribution services stood at 53,688 12:44 12 minutes, 44 seconds million with a healthy 32.1% jump year on year. During our quarter 2 earning 12:51 12 minutes, 51 seconds call, we shared an update on the acquisition of the corporate agency license in the insurance booking space 12:59 12 minutes, 59 seconds which adds an additional revenue stream for the company. We have also appointed 13:06 13 minutes, 6 seconds senior leader to drive the insurance business and strengthen the team positioning us for improved performance in coming quarters. 13:18 13 minutes, 18 seconds Our wide geographical range and particular our ability to go beyond the top cities to serve clients is something 13:25 13 minutes, 25 seconds that we are proud of at Anati. As much as 71% of our total active clients are 13:32 13 minutes, 32 seconds from tier 2 and tier three cities. As of December 31st 25, we had a pan India 13:39 13 minutes, 39 seconds footprint across 353 cities. So 97 own branches where we have opened five new 13:46 13 minutes, 46 seconds branches during last quarter and total 1,243 business partners are there. Finally, we 13:54 13 minutes, 54 seconds continued to attract good talent and grow our employee base and had 2,231 14:00 14 minutes employees as of December 31st 25 which is representing net addition of 223 14:08 14 minutes, 8 seconds employees by wide basis. With that update now I would like to open the floor for Q&A session. 14:16 14 minutes, 16 seconds Thanks Alri you can go ahead with the question. 14:20 14 minutes, 20 seconds Thank you sir. We will now begin the question and answer session. 14:25 14 minutes, 25 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. 14:32 14 minutes, 32 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 14:40 14 minutes, 40 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question cue assembles. 14:50 14 minutes, 50 seconds The first question comes from the line of sutrit Patil from eyesight fin trade. 14:56 14 minutes, 56 seconds Please go ahead. Uh team my name is Sukrut Patil. Uh my first I have two questions. The first question is uh both 15:04 15 minutes, 4 seconds questions are a forward-looking ones. Uh my fourth question is as India's capital markets evolve rapidly and uh new retail 15:13 15 minutes, 13 seconds uh participation is also seen how is Anandati positioning itself to capture the next wave of investor demand 15:21 15 minutes, 21 seconds particularly in areas uh like uh AIdriven uh advisory uh or wealth wealth 15:29 15 minutes, 29 seconds tech platforms um or any differentiated product uh offerings. things coming uh 15:37 15 minutes, 37 seconds down the line. Uh could you share how you see the firm's role evolving over the next uh one to two years in shaping the investor? 15:48 15 minutes, 48 seconds So yeah, thank you. That's my first question. I'll ask my second question after this. 15:52 15 minutes, 52 seconds Okay. Thank you, Suk. Uh let me explain you. I think uh if you really see and we have been constantly 16:01 16 minutes, 1 second talking that our model is a kind of a physical model and on a physical model what we are trying to do it's more of a 16:09 16 minutes, 9 seconds relationship management businesses and we are dealing with investment related activities of any customer and when I'm 16:17 16 minutes, 17 seconds talking about that what we are largely driving the total investment basket of a 16:24 16 minutes, 24 seconds specific person and trying to address the need of investments of a specific person or a customer to whichever 16:32 16 minutes, 32 seconds category and giving them investment product whether it is direct equity, mutual fund, PMS, AIF, bond etc. Right. 16:43 16 minutes, 43 seconds So, so, so, so, so it's it's more of a model where we are also having a digital 16:50 16 minutes, 50 seconds model as well as on ground relationship management through our people model, RM model which is which is being built up and which we are trying to pursue that. 17:00 17 minutes Yes, you are absolutely right. uh the investor uh fraternity overall is increasing and expanding and those 17:09 17 minutes, 9 seconds people who want assistance guidance through our relationship manager and wants to have a long-term view on 17:16 17 minutes, 16 seconds investments and wants to invest for a long-term uh cycle are the right customer and to those kind of a customer 17:23 17 minutes, 23 seconds we are tapping and you will find that 30 year and above we have got a population of about 85% in our customer base that 17:33 17 minutes, 33 seconds itself shows that those people who are serious about investments are coming and is staying and sticking with us. 17:40 17 minutes, 40 seconds Similarly, another data which we keep on addressing that with us more than 3 years kind of a scenario there are about 17:49 17 minutes, 49 seconds 65 plus percentage uh uh which is which is which is 60% uh customers which is there with us. So that's what we we are trying to address. 18:00 18 minutes Now coming back to the address of AI welltech platform or more specifically how we are dealing with a digital space 18:09 18 minutes, 9 seconds on a digital platform. All our deliveries are available on a digital platform. One is on for broking side, 18:16 18 minutes, 16 seconds one is from distribution side. Right now two platforms are there and we are constantly upgrading those platforms. We 18:24 18 minutes, 24 seconds are incorporating AI tools also in those platforms over a period of time and we do have a plan over a period of time how 18:31 18 minutes, 31 seconds we can bring those two platform into a one single delivery. So that work is constantly happening by our technology 18:40 18 minutes, 40 seconds team. Now these platforms are available to all our customers whether they are assisted or those customers who wants to 18:49 18 minutes, 49 seconds come and independently uh you know trade or independently work which is called in normal term uh is DIY 18:58 18 minutes, 58 seconds customer. So they can come and probably execute trade if a customer is well aware which product he has to buy and 19:06 19 minutes, 6 seconds probably look at it. So the we we keep on strengthening our deliverable platforms. Over there we are also 19:14 19 minutes, 14 seconds incorporating this AI tool into our other other activities for our other activities. For example, since uh we do 19:23 19 minutes, 23 seconds have RM and since we do have certain amount of dealers at our branches who are addressing the needs of our customer. So we are we are working and 19:33 19 minutes, 33 seconds improvising our processes along with an AI also we are putting that AI tools 19:39 19 minutes, 39 seconds which we are working on that AI will help us to understand what kind of a interaction happening between our 19:47 19 minutes, 47 seconds customer and these dealers or RM and how we can improvise that uh scenario uh and 19:54 19 minutes, 54 seconds improvise the skills of our RMS as well as understand our customer uh well that what he is expecting and how he is 20:02 20 minutes, 2 seconds trying to address or probably look at various different product. So that's how we are trying to use these AI tools into 20:10 20 minutes, 10 seconds the system. So we are well aware of it and we are trying to we are constantly working on it and improvising our processes and systems in that fashion. 20:20 20 minutes, 20 seconds Thank you. 20:22 20 minutes, 22 seconds Just actually Yeah Mr. Yeah. 20:28 20 minutes, 28 seconds Yeah. Yeah. Uh my my second question is regards to uh margin uh you know with uh rising competition and margin pressure 20:37 20 minutes, 37 seconds in broking uh what forward-looking steps are you taking to optimize cost structures while still investing in uh technology and client acquisition. 20:49 20 minutes, 49 seconds Specifically, how do you see operating leverage playing out over the next few quarters? And what and what benchmarks 20:58 20 minutes, 58 seconds are you setting for sustainable margin expansion? Thank you. 21:04 21 minutes, 4 seconds Yeah. So typically if you really see these days uh I mean from a regulatory perspective 21:10 21 minutes, 10 seconds or even otherwise uh like a lots of regulatory requirements are there lots of compliances which are to be met and 21:18 21 minutes, 18 seconds lots of work which can be automized and reduce the people. So AI as well as 21:26 21 minutes, 26 seconds technological advancement is going to help to reduce our cost further and on which again as I said we are constantly 21:35 21 minutes, 35 seconds looking at it. Many of our processes have been automized so that we are trying to reduce the cost and putting 21:44 21 minutes, 44 seconds those manpower manh hours towards generating revenue or probably skillful 21:52 21 minutes, 52 seconds work which they can probably uh execute and give us different kind of analysis 21:59 21 minutes, 59 seconds on an constant or instant basis. So that's how we are upgrading our technology platform on support function 22:07 22 minutes, 7 seconds side also and working on it. BJI would you like to add something over there? 22:12 22 minutes, 12 seconds Yeah one important thing Mr. Sukra out of our total broking revenue almost 40% part is coming directly where client is 22:21 22 minutes, 21 seconds executing at his own level. So by that way we were able to reduce our total manpower requirement related to dealers. 22:29 22 minutes, 29 seconds So for execution part we were able to reduce at the same time you have mentioned that how you will able to optimize the existing resources in terms 22:36 22 minutes, 36 seconds of the business generation. So there the team members where they were what the I can say comparatively I can say better 22:44 22 minutes, 44 seconds productivity management in terms of they are able to sell now the multiple products to the same client because client relationship is already there in 22:51 22 minutes, 51 seconds place. So our existing team members the dealers they are getting a spare time to sell to additional product to the client and our idea is that that how we can 22:59 22 minutes, 59 seconds ensure that each and every client on regular basis would have at least three product from us by that way it will improve one side our revenue and productivity of the team members. Yeah. 23:10 23 minutes, 10 seconds Uh uh I just have uh extension to the question. Can I can I ask can I ask my question? 23:18 23 minutes, 18 seconds Go ahead please. Uh yes the just yeah uh yeah thank you. So just touching 23:25 23 minutes, 25 seconds based on the last last part you know which actually makes sense wherein you are saying the client themselves are uh you know putting the trades or executing 23:35 23 minutes, 35 seconds the orders. anything specifically you are doing or you will be doing in the coming days you know that that will 23:41 23 minutes, 41 seconds enhance this process more and you know uh so it helps the client to take his own uh uh calls in uh executing trades 23:53 23 minutes, 53 seconds anything the company is doing to you know enhance this particular uh tactic 23:59 23 minutes, 59 seconds yeah so I think apart from providing an execution platform most of our individual or daily kind of a research 24:07 24 minutes, 7 seconds is also available to customers. So a customer who is completely used to the the technological world on app more 24:16 24 minutes, 16 seconds specifically mobile app if he's used to and he's conversent with all the cluelessly work on these app he can 24:24 24 minutes, 24 seconds definitely go through research the calls look at our calls and based on that he can execute the trade in terms of 24:32 24 minutes, 32 seconds broking size in terms of distribution or a non-broking side he can easily 24:39 24 minutes, 39 seconds you know access and see which are the kind of compare and see which are the kind of a product which are good and 24:46 24 minutes, 46 seconds useful as per his requirement and then execute uh uh uh the trade over there or 24:53 24 minutes, 53 seconds execute or invest his money into various different products. Right now only mutual fund is available but gradually all other products are going to come on 25:01 25 minutes, 1 second the in place. So that's how uh uh uh we are going to to work and yes this is happening to a certain extent and this 25:10 25 minutes, 10 seconds is also going to uh work on overall basis. 25:17 25 minutes, 17 seconds Thank you. The next question comes from the line of Aman Dugar from Noama Wealth Management. Please go ahead. 25:26 25 minutes, 26 seconds Uh hello sir. Uh firstly congratulations on a great set of numbers and thanks for taking my question. Uh just had a few question regarding the revenue line 25:35 25 minutes, 35 seconds item. So uh the interest income is reported at 1132 million. Now this includes 438 million from MPS and 25:43 25 minutes, 43 seconds estimate around 285 million would be from like the delayed interest like the TS book. So which leaves around 48 25:50 25 minutes, 50 seconds million from interest learn like in US exchange. So is am I right in understanding these numbers? 25:59 25 minutes, 59 seconds Yes. 26:06 26 minutes, 6 seconds Yeah, you you are rightly mentioned it's a 438 which is there from the MTF and the delayed payment which is there that 26:14 26 minutes, 14 seconds is there uh it is 183. Yeah, you are right in terms of your understanding. 26:25 26 minutes, 25 seconds Yeah. Uh so uh I mean if I just include this broking income like you know 1287 million I add MTF distribution and this 26:33 26 minutes, 33 seconds other interest income uh it adds to only 2384 million but the reported revenue is 2.82 million. So I'm having this 100 26:41 26 minutes, 41 seconds million cap in this uh it is the other income which is coming 26:49 26 minutes, 49 seconds in terms of the interest on the FD from our margin FD which are there with the regulator. So we are we have the around 48. 27:03 27 minutes, 3 seconds Yeah. 27:04 27 minutes, 4 seconds Right. So it include the I can say both the client FD as well as over FD which is kept for the margin. 27:13 27 minutes, 13 seconds Okay. 27:15 27 minutes, 15 seconds Uh so income from operation largely please continue. Income from operation 27:24 27 minutes, 24 seconds is largely from whatever funds is being deployed for operation is being considered and interest being generated in different different mode is being considered as an income from operation. 27:39 27 minutes, 39 seconds Okay. Uh and lastly on this uh what is your take on this distribution segment like we see it declining sequentially? 27:46 27 minutes, 46 seconds Is it just because purely how the equity market has been or is there something else and have you started earning LIG commission commission? 27:57 27 minutes, 57 seconds So LIGI commission we have started generating but that consist consists of a very municipal part because as you 28:06 28 minutes, 6 seconds know last quarter only we procured the license and started the activity the selling and marketing had started 28:13 28 minutes, 13 seconds happening but there are lots of compliance and process related requirement since this agency is being 28:20 28 minutes, 20 seconds recently procured. We have to go slow on that. And now as uh being mentioned in 28:27 28 minutes, 27 seconds our address that senior people team and other people is in place now they are fully geared. This whole system is fully 28:35 28 minutes, 35 seconds geared and we are expecting good amount of revenue generation during this last quarter quarter four which is a key main 28:44 28 minutes, 44 seconds period for LIG which is January, February and March. So from this month or this quarter we are expecting good 28:51 28 minutes, 51 seconds amount of revenue from there also. That is point number one. Now coming back to your question on distribution side. 28:59 28 minutes, 59 seconds Basically what had happened last year there are aggressive marketing on certain products by our teams because 29:09 29 minutes, 9 seconds last quarter was a little bit you know subdued quarter from a broking angle and people were started looking at various 29:17 29 minutes, 17 seconds different businesses and trying to look at distribution. So the we have been able to work on certain AIF PMSs that is 29:26 29 minutes, 26 seconds where and mutual fund that is where the revenue has been generated. And the second thing because of one another 29:34 29 minutes, 34 seconds reason whatever AUM which has been garnered in this quarter obviously on mutual fund you know you will be able to generate revenue over a period of time. 29:44 29 minutes, 44 seconds So you will see the impact of those AVM which is being collected in this quarter in next two quarters which is in 3 to 6 29:51 29 minutes, 51 seconds months from year onwards. And by and large if you really see the the the revenue on in distribution is directly 30:01 30 minutes, 1 second correlated with the market value. And if you really look at last quarter whole of a quarter markets were little bit 30:08 30 minutes, 8 seconds subdued pricing was little less. So that market impact is also happening in 30:14 30 minutes, 14 seconds overall revenue side. So that's the more advant that's that's how one should look at it. But if you really look at it our 30:23 30 minutes, 23 seconds AUM that is constantly and consistently increasing. If you really look at it 30:30 30 minutes, 30 seconds from a from a from a continuous revenue that is continuously uh you know uh uh 30:37 30 minutes, 37 seconds uh growing on AUM side even in last quarter we have grown in terms of our AUM into mutual 30:47 30 minutes, 47 seconds fund PMS by 8%. And on the bio basis we have group by 32%. So AUM side we are 30:54 30 minutes, 54 seconds continuously growing as Prag has rightly mentioned since in last quarter the revenue especially in terms of the 31:01 31 minutes, 1 second existing AUM which was there naturally that AM the value has not increased or something in fact it has reduced to some extent and naturally on that basis the 31:09 31 minutes, 9 seconds trail revenue which was less in last quarter but overall basis in mutual fund despite that we are able to grow in terms of our distribution revenue side. 31:21 31 minutes, 21 seconds Great. Uh, thanks and that's from my head and all the best. Thank you. Thank you. 31:29 31 minutes, 29 seconds The next question comes from the line of Arab Butachari from Finage Analytics. Please go ahead. 31:38 31 minutes, 38 seconds Yeah, good afternoon sir. 31:40 31 minutes, 40 seconds Congratulations on a good set of numbers. Uh, I have two questions. Uh, one is on the I'm I'm sorry. Can you can you speak a 31:48 31 minutes, 48 seconds little loudly? We are not being able to hear you. 31:52 31 minutes, 52 seconds Okay sir, u congratulations on the good set of numbers. Uh I just wanted to know 32:00 32 minutes that since you have mentioned that industry is facing uh significant and 32:09 32 minutes, 9 seconds um sorry to interrupt you're still not audible. Could you please use uh your phone on your handset mode in case if you're using the speaker? Thank you. 32:21 32 minutes, 21 seconds Yeah. Am I audible now? Yes, please go ahead. 32:25 32 minutes, 25 seconds Yes. Uh sir, I wanted to know that the regarding the headwinds that the industry is facing uh how would you 32:33 32 minutes, 33 seconds expect to maintain this kind of margins uh going forward and also the second question would be that uh regarding the 32:41 32 minutes, 41 seconds uh broking segment that you have mentioned as 51%. Would you be maintaining this uh going forward or are you going to reduce this because this 32:50 32 minutes, 50 seconds particular segment does not do very well because of the industrial uh the industry regulators. 32:58 32 minutes, 58 seconds So typically if you really see uh we have been continuously talking and our 33:05 33 minutes, 5 seconds endeavor is that first we are going to bring our revenue mix to a 50/50% level 33:12 33 minutes, 12 seconds along with the desired growth path which we are trying to set for ourselves in both the businesses both the revenue 33:19 33 minutes, 19 seconds streams which is broking as well as non-broking and having said that with a specific amount of growth in broking 33:28 33 minutes, 28 seconds side and a specific amount of growth in non-broking side which is distribution and other products. So, so, so that's 33:36 33 minutes, 36 seconds how we are trying to see that how we can stabilize our re revenue mix in such a 33:43 33 minutes, 43 seconds way that you know our revenue do not impact because of do not directly or heavily impact because of market 33:52 33 minutes, 52 seconds volatility because as you know even if at a 50% broking revenue if sharp change or sharp downfall is happening in 34:00 34 minutes broking side or a market side your revenue will get impacted on a broking side. So we are trying to see that angle 34:08 34 minutes, 8 seconds and for that uh since beginning we have been talking that by end of March 27 we 34:15 34 minutes, 15 seconds will see that we will be able to reach to that level for each number one and post that we will start working and 34:23 34 minutes, 23 seconds evaluating how and up till what stage we have to probably constantly work upon it. Having said that our endeavor is to 34:32 34 minutes, 32 seconds grow on both the segment which is broking and non-broking and that's how we are trying to bring the productivity and stability in our revenue stream. 34:42 34 minutes, 42 seconds So apart from that one important thing which I want to highlight cash market is always I can say our key focus delivery 34:49 34 minutes, 49 seconds business is always the key focus and there the important part like you have mentioned if there will be a downfall or 34:57 34 minutes, 57 seconds something will be there. So last quarter if I will compare it with the uh quarter prior to that the exchange volume has 35:06 35 minutes, 6 seconds increased by 3% only whereas our volume has increased by 11%. So effectively we are trying to improve our market share 35:13 35 minutes, 13 seconds also towards that particular car. So by improving that particular market s we will try to maintain the growth momentum and along with this MTA book which we 35:20 35 minutes, 20 seconds are continuously expanding that is supporting us in terms of that particular delivery based business and by expanding that particular MT book again it's giving us a consistent kind 35:29 35 minutes, 29 seconds of a interest income or limp which is helping us in terms of maintaining the momentum which is there in our growth currently. 35:40 35 minutes, 40 seconds Okay. Okay. And uh I would like to continue one last question regarding the guidance. Uh most of your interviews you have not given any guidance since the 35:48 35 minutes, 48 seconds IPO. Would you be giving any margin guidance uh for this uh particular fiscal year? 35:56 35 minutes, 56 seconds At the moment we are not giving any kind of a guidance. We are not talking. 36:00 36 minutes What we are trying to say I think the major thing which we are talking is on two count. One is our AUM on a distribution book which we are trying to 36:09 36 minutes, 9 seconds acquire or uh to reach somewhere around 9,500 to 10,000 cr and in terms of our 36:16 36 minutes, 16 seconds MTF book we are trying to reach to about,500 cr uh so we have already uh uh achieved 36:25 36 minutes, 25 seconds uh 1232 cr by December 25 in MTR book and in terms of we have reached 28,000 400 CR. 36:38 36 minutes, 38 seconds Okay. Thank you. Thank you, sir. Thank you. Thank you. 36:42 36 minutes, 42 seconds Thank you. A reminder to all participants, you may press star and one to ask a question. 36:53 36 minutes, 53 seconds The next question comes from the line of Nyan Gaba from Nyan Securities. Please go ahead. 37:05 37 minutes, 5 seconds Please go ahead with your question and unmute yourself in case if you're on mute. 37:10 37 minutes, 10 seconds Hello sir. First of all congratulations for these robust numbers. Am I audible? 37:17 37 minutes, 17 seconds Thank you l Yeah. Yeah you are audible. Please go ahead. 37:24 37 minutes, 24 seconds So I wanted to ask Please go ahead. 37:42 37 minutes, 42 seconds You're not audible. 37:46 37 minutes, 46 seconds Uh I requir the next question comes from the line of 37:54 37 minutes, 54 seconds Janum from Jen from JN Wealth. Please go ahead. I want to ask one basic question to you. 38:01 38 minutes, 1 second Have all one-time first from the new labor code been fully booked or should we expect any further impact? 38:09 38 minutes, 9 seconds Sorry. 38:11 38 minutes, 11 seconds So, so just to share with you about labor close, we are not going to get impacted because of a simple reason. we 38:19 38 minutes, 19 seconds are already following whatever changes is being decided and given uh you know 38:25 38 minutes, 25 seconds proclaimed in this new level laws. So uh I believe it's not going to impact uh uh to us. 38:34 38 minutes, 34 seconds I'll ask you two more basic questions on the business. Uh first one is what steps are you taking to reduce the impact of 38:41 38 minutes, 41 seconds market volatility on your business and which parts of the company are most insulated during volatile market conditions and the second one is which 38:50 38 minutes, 50 seconds emerging segments or client categories are you expecting to drive material revenue growth from over the next few 38:57 38 minutes, 57 seconds years and do you plan to expand your physical presence in tier 2 and tier three cities to capture growth from uh lower ticket clients. 39:09 39 minutes, 9 seconds Uh thank you Janam. Uh if you really hear and look at uh uh our overall communication 39:16 39 minutes, 16 seconds uh yes uh we are doing all the thing what you are trying to say. Uh we are and our presence is largely in tier 2 39:25 39 minutes, 25 seconds tier three cities and we are constantly working towards it. In fact we have increased our branch network. Five 39:33 39 minutes, 33 seconds branches have been increased and opened in last fin uh last uh quarter and most 39:40 39 minutes, 40 seconds of them are in north India and tier 2 tier three cities that's how we are expanding uh in terms of addressing uh 39:48 39 minutes, 48 seconds which category of client so almost all category of customers are being addressed in this company but if you 39:55 39 minutes, 55 seconds really look at it we are looking for a overall total investment need of a specific customer for all the category 40:03 40 minutes, 3 seconds of customer whether it is retail, MNI, HNI or you know corporate or NRI or 40:10 40 minutes, 10 seconds institutional. So that's how this whole uh company delivery is. So I believe I have answered all your question or what 40:18 40 minutes, 18 seconds was the first question market volatility? 40:21 40 minutes, 21 seconds Yeah. So in terms of market volatility if you really see I have addressed that we are trying to match our revenue mix 40:30 40 minutes, 30 seconds in certain manner through which we are trying to address the market volatility because most of the time it is the 40:38 40 minutes, 38 seconds market denominated revenue which is brokerage which get impacted based on the market volatility. in terms of you 40:47 40 minutes, 47 seconds know when we start creating and we have already started creating a huge book from an annuity side so the more nut 40:55 40 minutes, 55 seconds income we will be able to garner and generate the more AUM is being garnered towards nut income generating side uh we 41:02 41 minutes, 2 seconds are going to probably reduce the market volatility from overall perspective and that's what we are doing and I have explained that in my earlier questions 41:11 41 minutes, 11 seconds how we are doing and what exactly the steps which we are taking going forward Thank you uh Jam. 41:18 41 minutes, 18 seconds Thank you sir. Thank you sir. 41:20 41 minutes, 20 seconds And one more uh basic question is what what capex plans are you thinking to support uh tech upgrades for one lakh 41:29 41 minutes, 29 seconds plus daily active users amid uh t plus zero elements. 41:38 41 minutes, 38 seconds So if you really look at our you know overall uh scenario we constantly investing in various different 41:47 41 minutes, 47 seconds technologies and systems wherever it is being desired and required. So right now if you really look at it about 2% kind 41:56 41 minutes, 56 seconds of a 1 and a half to 2% kind of a investments going towards uh you know technology side and we will constantly 42:05 42 minutes, 5 seconds and continuously invest in the technology in the same fashion same way. Thank you sir. Thank you. 42:15 42 minutes, 15 seconds Thank you. The next question comes from the line of aruk day an individual investor. Please go ahead. Good afternoon. 42:24 42 minutes, 24 seconds Yeah, Mr. Arup. Good afternoon. 42:27 42 minutes, 27 seconds My question is on capital allocation. If I if I look at your balance sheet for uh 42:34 42 minutes, 34 seconds H1 FI26, there is more than rupees 3,000 crores lying as bank balance. uh how do you 42:43 42 minutes, 43 seconds plan to allocate this capital and will it be deployed into the MTF book or used? 42:54 42 minutes, 54 seconds Yeah sir you are mentioning about the bank balance that bank balance is mainly into abd which are given to exchange for 43:02 43 minutes, 2 seconds the margin purpose it include our own money as well as it's the client money both things on the combined basis which 43:10 43 minutes, 10 seconds is compulsory to be kept. So out of this particular thing nothing can be allocated to anything else. It is the funds which we require to do upstreaming 43:19 43 minutes, 19 seconds to the exchange on regular basis. So this is related to that particular part. 43:23 43 minutes, 23 seconds As far as concerned with the MTF book, we can utilize out of our capital and borrowed money which we are doing completely separate than this and that 43:31 43 minutes, 31 seconds activity is going on currently also. So this uh 2,000 cr which may further may increase once we will increase the cliental business margins and other 43:39 43 minutes, 39 seconds things that may further increase but that will be measured in form of everywhere we are able to generate the interest income on that. 43:48 43 minutes, 48 seconds Okay. Okay. Thank you. 43:50 43 minutes, 50 seconds Thank you. The next question comes from the line of Aman Dogar from Noama Wealth Management. Please go ahead. 43:59 43 minutes, 59 seconds Hi, thanks for taking my question again. 44:01 44 minutes, 1 second Uh just one question on the finance cost front. We see a sequential decline. Is there anything to read on the same because the MD book is doing healthy? 44:11 44 minutes, 11 seconds Um yeah. 44:16 44 minutes, 16 seconds So yeah Mr. If you have asked rel you have asked related to the reduction of this particular thing as you know we 44:24 44 minutes, 24 seconds went for IPO and we have generated the money entirely coming into the company side. So naturally immediately after receipt of that particular money we will 44:32 44 minutes, 32 seconds able to reduce some of our loans and you can see that our net equity ratio which was earlier there 2.3 plus kind of level 44:41 44 minutes, 41 seconds that has reduced now to 58. So effectively automatically the lawn book which has been reduced and because of that our finance cost in turn is also 44:49 44 minutes, 49 seconds reducing simultaneously. So I hope it's clear to you now. 44:56 44 minutes, 56 seconds Perfect. Thank you. 44:59 44 minutes, 59 seconds Thank you. A reminder to all participants please press star and one to ask a question. 45:10 45 minutes, 10 seconds Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the management for the closing remarks. 45:20 45 minutes, 20 seconds Thank you investors once again for your participation. Each one of you have really asked intelligent and nice 45:28 45 minutes, 28 seconds questions which I'm really really delighted to answer. Uh if any further question feel free to be in touch with 45:35 45 minutes, 35 seconds our investment relationship team. they will be happy to address them and have a 45:42 45 minutes, 42 seconds nice day and nice journey from here onwards. Thank you. Thanks a lot. 45:47 45 minutes, 47 seconds Thank you sir. Ladies and gentlemen, on behalf of Anand Rati Share and Stock Brokers Limited, that concludes this conference call. Thank you for joining 45:55 45 minutes, 55 seconds us. And you may now disconnect your lines.