Anand Rathi Share and Stock Brokers Ltd — Q4 FY26

Anand Rathi Share and Stock Brokers Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=SAPdBGfnkAg Published: 4 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Anand Bati Share and Stock Brokers Limited Q4 FY26 earnings 0:09 9 seconds conference call. As a reminder, all participant lines will be in the listen on the remote and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during this 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. Dwakar Pingi from EY. Thank you and over to you Mr. 0:40 40 seconds Thank you Sally. Uh good morning everyone and welcome to the field 4 and FI26 earnings call of Anandra Shares and 0:47 47 seconds Stockus Limited. The company has published its results and has uploaded the investor presentation on exchanges yesterday and you can also find it on 0:56 56 seconds the company's website. Before we start a disclaimer, some of the statements made in today's earnings call may be 1:04 1 minute, 4 seconds forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties which can cause actual results to be profitable to those anticipated. 1:13 1 minute, 13 seconds These statements are based on management beliefs and assumptions made by information currently available to management. Audiences are here cautioned not to place undue reliance on these 1:21 1 minute, 21 seconds forward statements while making investment decisions. 1:24 1 minute, 24 seconds On that note, let me introduce you to the management participating in today's conference calls. We have with us Mr. 1:30 1 minute, 30 seconds Pep Gupta, chairman and managing director, Mr. Risha, hold director, Mr. Tarak Sha, the chief 1:37 1 minute, 37 seconds financial officer and other members of the team. 1:42 1 minute, 42 seconds Without further ado, I'd like to hand over the call to Mr. Gupta for his opening remarks and uh thank you over to your colleagues. 1:52 1 minute, 52 seconds Thank you, Dakar. 1:54 1 minute, 54 seconds Good morning to all and thank you for joining Anindra stock brokers limited earning call for the last quarter in full year end date 31st March 2026. 2:06 2 minutes, 6 seconds I'm joined on this call by Mr. R Kishor Rutra whole time director Tarak Shar chief financial officer and few other members of our team. 2:17 2 minutes, 17 seconds We will begin with an overview of company's financial and operating performance. 2:22 2 minutes, 22 seconds After which we will open the flow for questions. 2:26 2 minutes, 26 seconds As we all know FI26 was a challenging year for global economies and financial markets. The 2:35 2 minutes, 35 seconds world was dealing with multiple headwinds at the same time ongoing geopolitical tensions, shifting global 2:42 2 minutes, 42 seconds trade dynamics including tariff related uncertaintities and fastpaced technological shift that disputed established business models. 2:52 2 minutes, 52 seconds is the year progress. 2:54 2 minutes, 54 seconds These pressures intensified with fresh bouts of ad adverse news including the recent West Asia conflict further weakening risk appetite. 3:07 3 minutes, 7 seconds Global investors turned risk off in their outlook leading to sustained FI outflow and heightened volatility across markets. 3:18 3 minutes, 18 seconds Unsurprisingly, this combination of factor weighed heavily on investor sentiment resulting in Indian capital 3:26 3 minutes, 26 seconds market entering a phase of consolidation after several year of strong performances. 3:32 3 minutes, 32 seconds While short-term disruption and periods of moderations are inevitable, the long-term structural derives of Indian market remains firmly intact. 3:45 3 minutes, 45 seconds The steady rise in DMH account from 15.14 cr in March 24 to 22.2 cr by 3:54 3 minutes, 54 seconds February 26 clearly reflects sustained retail participation and market penetration. 4:03 4 minutes, 3 seconds Similarly, asset under management in mutual fund industry rose from 65.74 4:09 4 minutes, 9 seconds lakh cr as on March 25 to approximately 82 02 lakh cr by February 26 4:19 4 minutes, 19 seconds representing 24.8 year onyear basis increase. This growth 4:26 4 minutes, 26 seconds underscores the continued financialization of household savings and a rising preference for market linked investment avenues. 4:37 4 minutes, 37 seconds In parallel, TB has been proactive in introducing a series of regulatory measures aimed at 4:46 4 minutes, 46 seconds strengthening risk management framework, curbing excessive leverage, enhancing 4:52 4 minutes, 52 seconds investor protection, and improving the ease of doing business in capital market transactions. 4:59 4 minutes, 59 seconds While some of these reforms may have necessitated short-term adjustments and led to some near-term discomfort for a 5:08 5 minutes, 8 seconds few participants, they are critical in laying the foundation for a more transparent, resilient, and sustainable capital market ecosystem over a long period. 5:22 5 minutes, 22 seconds Overall, we believe that the industry is moving in a constructive direction. 5:28 5 minutes, 28 seconds Although near-term conditions have clearly remained uneven, over time the market is likely to favor 5:36 5 minutes, 36 seconds firms that combine strong compliance standards, digital delivery and diversified revenue streams. 5:45 5 minutes, 45 seconds Coming to our company, financial year 26 has undoubtedly been a memorable year 5:52 5 minutes, 52 seconds marked by several significant achievements. 5:57 5 minutes, 57 seconds We complete our IPO in September 25 raising rupees 745 cr from investors. 6:05 6 minutes, 5 seconds These funds were used to significantly strengthen our business notably for our working capital requirements. 6:12 6 minutes, 12 seconds We received a corporate agency license to distribute insurance product in the same financial year. Since then, we have 6:21 6 minutes, 21 seconds commenced distribution of both life and health insurance products to our clients, greenlighting a few source of 6:29 6 minutes, 29 seconds feebased income for the company during the year. 6:33 6 minutes, 33 seconds And last but not the least, we continue to remain focused on enhancing client servicing and satisfaction by adopting 6:41 6 minutes, 41 seconds new initiative aimed at delivering superior customer experiences and long-term value creation for all our stakeholders. 6:51 6 minutes, 51 seconds As of March 31st, 2026, our total assets under custody stood at approximately 6:59 6 minutes, 59 seconds 944, and 155 uh million uh represented a 7:07 7 minutes, 7 seconds growth of about 16% uh year on year. Our margin trading 7:13 7 minutes, 13 seconds facility books to debt at around 11,019 million up by about 61% yearonear 7:22 7 minutes, 22 seconds while our asset under management stood at an approxim approximately 77,876 7:31 7 minutes, 31 seconds million reflecting a growth of about 21% year one year basis for the quarter ended March 31st 2026. 7:40 7 minutes, 40 seconds Six. Our consolidated revenue from operations stood at about 2,557 7:48 7 minutes, 48 seconds million AITA and AITA at about 113 million and patented at about 460 million over 416 million. 8:01 8 minutes, 1 second For the full year for financial year 26, our consolidated revenue from operation is stood at about 9,322 8:10 8 minutes, 10 seconds million abda at 3,796 8:17 8 minutes, 17 seconds million and packed at about,293 million. 8:24 8 minutes, 24 seconds Our AITA margin for quarter 4 26 stood at 43%. 8:33 8 minutes, 33 seconds While pet margin stood at about 16%. 8:38 8 minutes, 38 seconds For the full year 26 aba margin was 41% and pat margin was about 14%. 8:49 8 minutes, 49 seconds I'm pleased to inform that we propose a dividend of rupees five per share subject to approval from shareholders. 9:00 9 minutes Our diversified revenue model continues to be key strength of the company. While broking and related services remains a 9:08 9 minutes, 8 seconds primary revenue drivers, the contribution from non-broking business such as margin trading facility and distribution income has increased steadily. 9:19 9 minutes, 19 seconds This reflects our strategic focus on building a more balanced and resilient business model. One that is not solely 9:28 9 minutes, 28 seconds reliant on market linked broking revenues, but is increasingly supported by stable and UT linked income streams. 9:38 9 minutes, 38 seconds Our strategic direction remains clear and unchanged. As guided earlier, we are fully focused on maintaining a balance 9:46 9 minutes, 46 seconds revenue mix with a targeted revenue split of 5050 between uh non-broking and 9:53 9 minutes, 53 seconds broking segments and growing both the segments at a steady growth rate. This 10:00 10 minutes approach is central to improving the overall quality, sustainability and predictability of our earning over long term. 10:11 10 minutes, 11 seconds During financial year 26, we made steady progress across multiple strategic priorities. 10:18 10 minutes, 18 seconds First, we continued a scale continued to scale our distribution business in a structured and steady manner. We have 10:27 10 minutes, 27 seconds expanded our offering across a wide range of financial products including mutual funds, PMA, Aif, structure 10:34 10 minutes, 34 seconds products, bond, and more recently insurance. Our distribution income for the full year for financial year 26 is 10:44 10 minutes, 44 seconds amounted to 1,129 million, reflecting a strong yearon-year 10:51 10 minutes, 51 seconds growth of about 44.1% for the full year. This growth reflex improved cross-selling across our client 11:00 11 minutes base as per our focus approach to grow our distribution business. 11:05 11 minutes, 5 seconds Our objective is to address the broader financial needs of our clients. Our approach has consistently been 11:13 11 minutes, 13 seconds relationshipled rather than productled with a focus on understanding clients evolving financial goal and 11:21 11 minutes, 21 seconds serving them in a more holistic and long-term manner. 11:25 11 minutes, 25 seconds Second, we continue to strengthen our margin trading facility franchise supported by improved capital position 11:33 11 minutes, 33 seconds following our IPO and disciplined approach to risk management. We were able to scale the NPF book while maintaining controls. 11:42 11 minutes, 42 seconds Importantly, we closed the year with zero NPA in the portfolio, reflecting our continuous 11:49 11 minutes, 49 seconds under underwriting standards and a strong focus on assess quality. As of 11:55 11 minutes, 55 seconds March 26, our um MTA book stood at about 11,019 million 12:03 12 minutes, 3 seconds representing robust yearon-year growth of approximately 61%. 12:09 12 minutes, 9 seconds Third, we remain focused on investing in our tech delivery platform, processes and people. As highlighted earlier, our 12:18 12 minutes, 18 seconds operating model is physical in nature, combining relationshipled service and robust digital capabilities. 12:26 12 minutes, 26 seconds This allow us to effectively serve both assisted and self-directed clients. In parallel, we continue to strengthen our 12:34 12 minutes, 34 seconds technology platforms, process automation, and internal tools to improve customer engagement and enhance overall team productivity. 12:45 12 minutes, 45 seconds If we take a step back and view the company in a broader context, our underlying philosophy has remained consistent. 12:54 12 minutes, 54 seconds We are focused on building long-term customer relationships, increasing share of wallet through relevant cross-selling opportunities 13:03 13 minutes, 3 seconds and creating a stable growth oriented business with a more balanced mix of broking and non-broking revenues. We 13:11 13 minutes, 11 seconds also looking at expanding our geopolitical network by strengthening our branch network and business partner ecosystem. 13:20 13 minutes, 20 seconds This will help in strengthening our presence in emerging tier 2 and tier three markets where growth is more eminent in present Baharat. 13:30 13 minutes, 30 seconds Our objective remains unchanged to grow both our broking and non-broking business in a disciplined manner, 13:38 13 minutes, 38 seconds improve the quality of predictability of revenues, deepen customer engagement across product and continue building a 13:47 13 minutes, 47 seconds company capable uh of delivering consistent and long-term values. 13:54 13 minutes, 54 seconds With that, I will now hand over the call to Mr. Rub Budra our whole time director who will take you through the financial 14:02 14 minutes, 2 seconds and business performance in greater detail. Thank you and over to you Mr. Rudra. 14:11 14 minutes, 11 seconds Thank you Praiji G and good morning everyone. I will now take you to our financial and business performance for 14:18 14 minutes, 18 seconds the quarter and the full financial year ended March 31st 26. 14:25 14 minutes, 25 seconds During quarter 426, our consolidated revenue from operations is at 2557 14:33 14 minutes, 33 seconds million. EV data for the quarter was 113 million while profit after tax is at 416 14:41 14 minutes, 41 seconds million. This represents yearon-year growth of 28.1% 14:47 14 minutes, 47 seconds in revenue, 51.4% 4% in Ebida and 125.7% 14:53 14 minutes, 53 seconds in PAT. EBIDA margin for the quarter was a healthy 43.2% while PAT margin stood at 16.2%. 15:04 15 minutes, 4 seconds For the full year 26, consolidated revenue from operation is stood at 9,322 15:11 15 minutes, 11 seconds million reflecting yearon-year growth of 10.2%. 15:16 15 minutes, 16 seconds EB data is stood at 3,796 million and PAT at 1,293 15:22 15 minutes, 22 seconds million translating into growth of 21.9% and 24.8% respectively. 15:30 15 minutes, 30 seconds EB data and P margin for the full year were 40.7% and 13.8% respectively. 15:39 15 minutes, 39 seconds Turning to the segmental revenue mix, the contribution from the broking segment comprising broking and related 15:46 15 minutes, 46 seconds services and the non-broking segment comprising interest income from MTF, distribution income and other income was 15:55 15 minutes, 55 seconds 47% and 53% respectively for quarter 4 26. For the full year 26, the mix is 16:03 16 minutes, 3 seconds stored at 51% for broking and 49% for non-broking. 16:08 16 minutes, 8 seconds Within the broking segment, revenue from broking and related services stood at 121 million in quarter 426, reflecting year-on-year growth of 14.5%. 16:21 16 minutes, 21 seconds For the full year 26, broking revenue stood at 4755 million representative representing a 16:29 16 minutes, 29 seconds slight dip of 6.8% compared to the previous year. Within broking we continue to maintain a healthy balance 16:36 16 minutes, 36 seconds between equity cash equity derivative and other segments. This reflects our philosophy of encouraging on investment 16:45 16 minutes, 45 seconds focused approach among our client rather than speculative trading. Over the full year 26 the revenue mix across equity 16:54 16 minutes, 54 seconds cash fendo and other segments stood at 51% 41% and 8% respectively. For quarter 17:03 17 minutes, 3 seconds 426 the corresponding mix was 49% 41% and 10%. 17:10 17 minutes, 10 seconds I will now briefly touch upon our non-browing business segments. 17:14 17 minutes, 14 seconds We continue to actively distribute a wide range of financial products including mutual funds, EMS, AIF, 17:22 17 minutes, 22 seconds insurance, bonds, structure products, and fixed deposits. As of March 31st, 17:29 17 minutes, 29 seconds 26th, asset under management stood at 77,876 million, representing healthy growth of 21% yearonear. 17:39 17 minutes, 39 seconds Distribution income for quarter 4 26 stood at 353 million while for the full 17:47 17 minutes, 47 seconds year 26 it amounted to 1129 million reflecting a strong year-on-year growth of 34.3% 17:55 17 minutes, 55 seconds for the quarter and 44.1% for the full year. This growth reflects both on 18:02 18 minutes, 2 seconds expanding product market and improved cross-selling across our client base. 18:08 18 minutes, 8 seconds Our MTF book continued to scale in a disciplined manner and stood at 11,9 18:14 18 minutes, 14 seconds million as of March 31st 26 registering a strong year-on-year growth of 61%. 18:21 18 minutes, 21 seconds As shared in earlier calls, we have guided towards achieving on M2 MTF book size of 15,000 million by financial year 18:30 18 minutes, 30 seconds 26. Participant may recall that we had reached the MTF book of 12,317 18:37 18 minutes, 37 seconds million as of December 25. However, we saw a downfall in MTF book by 10.53% 18:46 18 minutes, 46 seconds in quarter ended March 26. The main reason behind this are as follows. 18:53 18 minutes, 53 seconds Changes in RBI policy for capital market intermediate treaty. That change in policy reduced the avenues available from the banks to meet the working 19:01 19 minutes, 1 second capital requirement of the company. As a result, we had to control our growth in MTF book. If we look at the market 19:09 19 minutes, 9 seconds conditions, this quarter ended March 26, markets were bearish. The nifty has 19:16 19 minutes, 16 seconds fallen by almost 15% and resultant investor sentiment have become adverse. 19:22 19 minutes, 22 seconds As a result, investors became cautious and we have also become cautious about creating new positions and continuing 19:30 19 minutes, 30 seconds existing positions which impacted our MTF book. Despite all this, our interest 19:37 19 minutes, 37 seconds income from MTF book stood at 432 million during quarter 4 26 and 1,515 19:45 19 minutes, 45 seconds million during full year 26, which translates into a healthy 50.2% 32% yi 19:52 19 minutes, 52 seconds growth for quarter 4 and 32.6% yi growth for the full year. I'm pleased 20:00 20 minutes to report again that we continue to maintain zero NPH on our MTF book as of March 31st 26 once again reflecting our judicious underwriting practices. 20:12 20 minutes, 12 seconds The book also remains granular with approximately 61% of the outstanding exposure coming from clients with 20:19 20 minutes, 19 seconds individual balances below 1 cr. Client loyalty and long-term relationship building continue to be a key strength of our operating model as of March 206. 20:32 20 minutes, 32 seconds Approximately 42% of our active clients have been associated with us for over five years. In addition, 83% of our 20:40 20 minutes, 40 seconds active clients are over 30 years of age, a demographic we consider particularly attractive as it typically 20:48 20 minutes, 48 seconds correspondence to higher investable surplus, more mature investor behavior and demand for a broader range of 20:55 20 minutes, 55 seconds financial products. Our people remain a critical enabler of our relationship, researchbacked and technology enabled 21:03 21 minutes, 3 seconds business model. As of March 31st, 26, our employee base stood at 2,214, 21:11 21 minutes, 11 seconds representing a net addition of 132 employees year on year. We view talent as a strategic asset, continue to invest 21:20 21 minutes, 20 seconds in building highquality teams to support our long-term growth objective. Turning to our balance sheet, our debt recruit 21:27 21 minutes, 27 seconds ratio stood at 0.62 as of March 31st, 26 compared to 1.8 8 as of March 31st 25. 21:36 21 minutes, 36 seconds This reflects a meaningful improvement in our capital structure and provide us with enhanced financial flexibility to 21:43 21 minutes, 43 seconds support growth particularly in a scalable business such as the MTF while maintaining prudent leverage levels. 21:51 21 minutes, 51 seconds With that update, we can now open the pure pool for questions. Thanks. 21:57 21 minutes, 57 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 22:05 22 minutes, 5 seconds star and one on the touchstone telephone. 22:09 22 minutes, 9 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use handset while asking a question. 22:19 22 minutes, 19 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 22:31 22 minutes, 31 seconds A reminder to all, you may press star and one to ask a question. 22:49 22 minutes, 49 seconds We have the first question from the line of Sri Patel from Eyesight Private Limited. Please go ahead. 22:57 22 minutes, 57 seconds Uh good morning to the team. Uh I have two questions. My first question to Mr. 23:02 23 minutes, 2 seconds Gupta is uh how do you plan to guide the company's broking and wealth management over the next uh few quarters? Uh 23:11 23 minutes, 11 seconds especially in terms of bringing in new clients, expanding advisory module and using digital platforms to improve the 23:18 23 minutes, 18 seconds investors uh uh investors experience. That's the first question. I'll ask a second question after. Thank you. 23:28 23 minutes, 28 seconds Okay, thank you for the question. Uh to be really frank with you, if you really see we do have in our group a wealth 23:37 23 minutes, 37 seconds management company separately than this company over here this company is by and large focusing towards broking and 23:44 23 minutes, 44 seconds distribution of products. But having said that as a philosophy we are addressing all the investment need of a 23:52 23 minutes, 52 seconds specific customer uh from from all respect whatever investment needs of a customer by way of 24:00 24 minutes providing them various different investment products suitable to that particular investor. And what we are 24:08 24 minutes, 8 seconds trying to do we have created a basket of products suitable to a specific customer segment as we are catering to uh almost 24:17 24 minutes, 17 seconds all category of customer. We have created a basket and providing them along with the broking uh uh platform 24:26 24 minutes, 26 seconds which is being provided to those who are interested in uh probably broking directly by themselves or in on on 24:36 24 minutes, 36 seconds investment side or probably trading on investment based trading not future and 24:42 24 minutes, 42 seconds options largely. So that's our focus in this particular company. In terms of uh you know answering your question on on 24:51 24 minutes, 51 seconds technology side, we are strengthening that platform day in day out trying to provide that platform in such a way that 24:58 24 minutes, 58 seconds all the deliveries which which are going to be there as an relationship manager on the marketplace is going to be 25:05 25 minutes, 5 seconds available on our platform digital platform. Right now uh broking is already there which we are constantly 25:14 25 minutes, 14 seconds improvising and if you really look at our broking uh customer base number almost 60% of the customers are already 25:23 25 minutes, 23 seconds uh pl you know working on our digital platform. In terms of distribution, mutual fund is also available and we 25:31 25 minutes, 31 seconds will keep on adding our other distribution uh product uh product for the distribution side on on digital 25:39 25 minutes, 39 seconds platform. So so so as I said uh initially our focus is based on digital where you know complete delivery on 25:48 25 minutes, 48 seconds digital platforms are going to be available so that execution ease is available for the customer. At the same 25:55 25 minutes, 55 seconds time our relationship managers are going to go speak to customer have a touch base and understand pure have a clear 26:05 26 minutes, 5 seconds understanding about the customer is also going to be there. 26:09 26 minutes, 9 seconds Thank you. My second question to Mr. uh Tarak Shah uh as you oversee the company's financial health, how is 26:16 26 minutes, 16 seconds Anandati preparing to manage risks in broking and advisory business such as uh 26:23 26 minutes, 23 seconds market uh volatility or any compliance uh compliance uh change compliance 26:30 26 minutes, 30 seconds changes and uh any credit risk you know uh while keeping the profitability stable and uh growth on track. Just want 26:37 26 minutes, 37 seconds to understand your plan of action. Thank you. Yeah, I think Rufi can take it probably. 26:44 26 minutes, 44 seconds Yeah. 26:46 26 minutes, 46 seconds Yeah. Yeah. Yeah. So, thanks for asking this particular question. So, there are two approach which we have always 26:55 26 minutes, 55 seconds followed in our particular I can say this particular company as well as overall group. So first of all we try to 27:01 27 minutes, 1 second always see that how we can go into a I can say business where customer interest should be protected protected at a first 27:09 27 minutes, 9 seconds first level that is the first object and second we are conservative in terms of our approach towards the risk management side a simple example I can share with 27:18 27 minutes, 18 seconds you like MTA product which is a leverage product from the regulator side and in that particular product the regulator has defined a basket of almost I can say 27:27 27 minutes, 27 seconds 2,000 plus stocks in terms of the MTF availability at our end we have restricted this particular basket with our internal committee towards this 27:36 27 minutes, 36 seconds selection of the stock to less than 1,000 stocks in total and many of the stocks where we have increased the margins as compared to whatever exchange 27:44 27 minutes, 44 seconds is charging in form of the MTF book we we are conserative and we have increased the margin level from oversight so we are keep on doing our internal risk 27:52 27 minutes, 52 seconds management in such a tight way that whatever regulator is allowing even we are controlling further towards that particular thing and because of all things like we have highlighted in terms 28:00 28 minutes of our uh NPA so far in MTA book we are running this particular business since last 8 years uh 8 years plus and NPA is 28:09 28 minutes, 9 seconds zero and towards the I can say the other part to the compliance and all those things we ensure that all the rules and 28:18 28 minutes, 18 seconds regulations whatever exchange they are prescribed those should be followed and even in those rules or regulations also wherever the possibilities there to 28:26 28 minutes, 26 seconds further I can say strengthen we keep on working towards uh that particular aspect. Uh in overall basis we are also part of the QSB broker at the exchange 28:35 28 minutes, 35 seconds level and at our end I can say exchange vigilance exchange surveillance is also always there comparatively more tighter than the normal I can say other category 28:43 28 minutes, 43 seconds of the broker. So combining all these things we are always conservative towards uh these all aspects. Last important aspect which is related to in 28:51 28 minutes, 51 seconds terms of the net equity ratio because you have asked the financial and health related things. So you might have observed in the numbers which we have shared our debt equity ratio also we 28:59 28 minutes, 59 seconds have reduced significantly and currently it's just at a6 kind of uh level and our endeavor is there that we want to 29:07 29 minutes, 7 seconds restrict ourselves up to max 1.5 kind of debt equity ratio. I hope I have clarified your uh question. 29:16 29 minutes, 16 seconds Thank you and best of luck. 29:23 29 minutes, 23 seconds Thank you. A reminder to all the participants, you may press star and one to ask a question. 29:37 29 minutes, 37 seconds A reminder to all you may press star and one to ask a question. 29:47 29 minutes, 47 seconds Uh while the question to your is here I'm just going to kind of chip in with one question more on the uh segmentation 29:55 29 minutes, 55 seconds between two businesses. Uh my question to uh Mr. Musta is uh does the guidance of let's say uh we've talked about the 30:02 30 minutes, 2 seconds 50/50 between broking and non grouping segments. Now how do you see that uh kind of shaping up uh you know given the uh you know general condition of the 30:10 30 minutes, 10 seconds market and things like that? do you how do you look at that kind of uh uh progressing over the next couple of years? 30:18 30 minutes, 18 seconds Uh thank you Dakar. uh actually if you really look at we have already I mean in today's uh uh uh I mean in this year's 30:26 30 minutes, 26 seconds uh uh you know performance we can see 51% is coming from broking 49% from distribution but we are not happy with 30:34 30 minutes, 34 seconds this kind of a scenario because we have seen uh a good amount of traction in distribution side which has grown by 30:41 30 minutes, 41 seconds almost 44% in distribution side but uh you know if we really look at broking and other in broking side it is not really grown in that particular patient. 30:52 30 minutes, 52 seconds So what we are trying to see over a period of time we are going to be happy and I'm sure we will be able to achieve that 50 50% kind of a scenario uh and we 31:01 31 minutes, 1 second will maintain that by looking at that both the segment which is broking and non-broking should able to grow at a 31:10 31 minutes, 10 seconds specific steady growth. So what we are seeing as broking should also grow constantly continuously year on year 31:17 31 minutes, 17 seconds basis in a revenue term and non-broking should also grow constantly continuously yearon-year basis right now for first 31:25 31 minutes, 25 seconds few years I personally believe that our non-broking should be able to grow somewhere around 40 to 44 45% growth 31:33 31 minutes, 33 seconds which we have shown right now this year also and in and broking site since it is a market denominated factor but still we 31:42 31 minutes, 42 seconds will be able to grow uh somewhere around 15% or so uh in a broking revenue that's what we are trying to achieve and we 31:50 31 minutes, 50 seconds will be able to achieve and we are trying to work towards it based on that particular growth factor I personally feel that overall revenue number what we 31:59 31 minutes, 59 seconds are trying and aiming to achieve is somewhere around 15 to 20% growth yearon-year basis thank you that helps maybe I'll just 32:06 32 minutes, 6 seconds chip in one more uh before the other participants come in how should we think of the MTF fields going forward uh given 32:15 32 minutes, 15 seconds are the spread sustainable or they expect uh some competitive pressures to come in because there seems to be a bit 32:22 32 minutes, 22 seconds of competition a lot of brokers coming into this particular segment. So what's uh Arand's take on this particular part of the business? 32:32 32 minutes, 32 seconds uh I think uh this is a part and partial of you know looking at pressure coming by competition delivering at a lower 32:40 32 minutes, 40 seconds ease kind of or generating lower ease or delivering at a low interest to various 32:46 32 minutes, 46 seconds different customer as of now at we are not facing uh much of a you know pressure on that count because there is 32:55 32 minutes, 55 seconds already a good pent-up demand available with us and we will keep on addressing the two things as Mr. Rukra in our 33:04 33 minutes, 4 seconds address has already you know elaborated that the whole funding requirement requires uh the whole MTF book expanding 33:13 33 minutes, 13 seconds MTF book requires uh uh you know capital and right now we were present I mean in 33:20 33 minutes, 20 seconds last quarter because of various RBI guidelines though it is being postponed to another quarter but the requirement 33:27 33 minutes, 27 seconds of margin was greater and we were preserving cash for addressing those kind of a requirement which were earlier 33:35 33 minutes, 35 seconds being met by various different uh you know bank financing or and BFC financing. uh over a period of time we 33:44 33 minutes, 44 seconds will be again achieved to get those funding and financing from various different routes and again the extra or 33:51 33 minutes, 51 seconds spare funding available uh for the company will start expanding our MTA group that's how we are trying to probably address that issue in terms of 34:00 34 minutes ease I think uh there might be a possibility but as of now we are trying to maintain those eels which we have 34:09 34 minutes, 9 seconds been able to generate so far and we believe we will be able to uh achieve that yield uh because very minuscule 34:16 34 minutes, 16 seconds percentage of customers are utilizing the MTA book as of now with us and we do 34:23 34 minutes, 23 seconds have requirement and demand in the marketplace which can be addressed by us. 34:29 34 minutes, 29 seconds That's helpful. Uh so maybe you can take the uh participants with you next please. 34:38 34 minutes, 38 seconds Thank you. 34:40 34 minutes, 40 seconds A reminder to all the participants. You may press star tal one to ask a question. 34:46 34 minutes, 46 seconds We will take the next question from the line of Swana Mukharji from BNK securities. Please go ahead. 34:53 34 minutes, 53 seconds Hi sir, thank you for the opportunity and congrats on a good set of numbers. U couple of questions from my side. So 35:00 35 minutes first of all in the broking uh revenue you highlighted that uh you focus towards the 50 o% kind of a growth. So 35:08 35 minutes, 8 seconds in your growth strategy, I just wanted to understand that do you expect this to uh play out as a function of market beta 35:17 35 minutes, 17 seconds that you know as we move towards a more normalized situation uh from where we are in the geopolitical scenario or uh I 35:25 35 minutes, 25 seconds mean how how would you be thinking in terms of say active client etc and what are you doing to maybe uh uh you build 35:34 35 minutes, 34 seconds upon that part uh of uh the business that you know active clients visa with the number of trades that they are putting in or the value that they are 35:43 35 minutes, 43 seconds putting in. So that is my first question. Secondly, when you're broking business uh if you could highlight how much of the uh you know mix is from the 35:51 35 minutes, 51 seconds derivative side and how much is on the cash side and if there is a futures element to that if any impact you are 35:57 35 minutes, 57 seconds seeing because of the ST increase. Uh and uh thirdly sir u uh in in terms of 36:05 36 minutes, 5 seconds the uh in terms of the RBI uh uh you know regulation change related to the uh 36:13 36 minutes, 13 seconds prop book of uh broker. So just wanted to understand if we have any exposure like that and if so what is the 36:20 36 minutes, 20 seconds proportion and uh what are our thoughts on that. Yeah this will be my question sir. Thank you. 36:27 36 minutes, 27 seconds Thank you for your uh questions. 36:30 36 minutes, 30 seconds Uh typically I'll start addressing uh point by point on your on your questions. You asked about the broking 36:39 36 minutes, 39 seconds revenue. Technically if you really look at it our focus is how to probably stabilize the broking business. I mean 36:46 36 minutes, 46 seconds if you really see across the board we do have cash market broking business and derivative market 36:54 36 minutes, 54 seconds broking business. And if you really look at derivative market broking business again there is a split of you know 37:02 37 minutes, 2 seconds future and options market in equity side uh you know commodity side market which is a commodity volumes and third is 37:10 37 minutes, 10 seconds currency market. Now we always our endeavor is always to take and address the needs of investments 37:19 37 minutes, 19 seconds uh rather than heavy trading and over leverage trading because in derivative largely if you really go and see uh you 37:26 37 minutes, 26 seconds know options and fender markets are largely uh leverage positions and that should be given or that should be 37:35 37 minutes, 35 seconds utilized that platform should be used by those kind of investor who understand that space Well and that's why we say if 37:44 37 minutes, 44 seconds you understand really well you must become active in in that particular segment. Having said that from our 37:51 37 minutes, 51 seconds expertise I think we always try to create product we always try to create strategies to you know look at 37:59 37 minutes, 59 seconds investments needs why I'm saying that if you really look at our you know share revenue mix which is your second uh 38:07 38 minutes, 7 seconds question also between cash and uh you know derivative it is split into 50/50 38:14 38 minutes, 14 seconds so we are largely denominated looking at cash market segment broking business. 38:20 38 minutes, 20 seconds And then if you really look at derivative businesses, we again started focusing and trying to see how we can 38:27 38 minutes, 27 seconds create a hedge position or we can create a position where probably your uh you know uh losses are limited and you are 38:36 38 minutes, 36 seconds not overleveraging yourself for the customer and those kind of a positions we are allowing to take a customer. So having said that we are focusing on 38:45 38 minutes, 45 seconds commodity businesses where probably arbitrage kind of opportunity can be utilized and used by the customers and guiding them if they are convinced they 38:54 38 minutes, 54 seconds are executing those kind of a trades on those platform. Similar situations are there in future and option se segment 39:01 39 minutes, 1 second also. As a result, most of the time even if our derivative books are there, I 39:08 39 minutes, 8 seconds think they are growing with a specific pace and growing under a specific pace and do not really hampering because of 39:17 39 minutes, 17 seconds you know various different regulations which are coming in act because in with us most of our customer I'm not saying 39:25 39 minutes, 25 seconds all of our customer but a large portion of our customers are using these uh you know activities ities and they are 39:33 39 minutes, 33 seconds already calculating their cost and based on that if you know markets are providing the opportunity they are 39:40 39 minutes, 40 seconds executing trades and we feel that is happening. So that's how we are trying to manage our revenue mix. That's how we 39:48 39 minutes, 48 seconds are trying to make our broking revenue more stable so that you know the market 39:55 39 minutes, 55 seconds you know eventualities do not really hamper. We create a scenario pessimistic, optimistic and reasonable 40:02 40 minutes, 2 seconds and based on that we are trying to constantly work towards it. Obviously we have not reached to a level where we can 40:09 40 minutes, 9 seconds create a balance but we are constantly working towards it to reach to a balance uh broking revenue which can be uh you 40:18 40 minutes, 18 seconds know less impacted from the market volatility. Now coming back to your RBI book on a prop side just to clarify you 40:27 40 minutes, 27 seconds in our this company we do not deal with proprietary book. We do not have a single pie or a proprietary uh activity 40:35 40 minutes, 35 seconds in this book. So that rules and regulations are not at all impacting us in this company. I hope I have addressed all the things. 40:44 40 minutes, 44 seconds Yes sir. Understood sir very clear. 40:46 40 minutes, 46 seconds Thank you for the detail. Yeah, just to add to that uh sir u in terms of uh the 40:54 40 minutes, 54 seconds AUM side which I have highlighted in my communication also that AUM side even in last financial year which was really 41:01 41 minutes, 1 second tough from the I can say market perspective where market was down on a I can say the full year basis if I will 41:08 41 minutes, 8 seconds talk then it's down by almost 4%. Then also we were able to enhance our total a month amount to book inside that asset 41:15 41 minutes, 15 seconds under custody. We were able to increase by 16%. And because of I can say that particular increase we are having a 41:24 41 minutes, 24 seconds particular I can say confidence level where we will able to grow going forward uh in this particular current market scenario also 41:32 41 minutes, 32 seconds right sir. So uh I mean just to clarify I mean I think this is I think a great data that you have highlighted. wanted 41:39 41 minutes, 39 seconds to understand that this like uh e EU that you have increased because you know how much can we attribute to maybe say 41:46 41 minutes, 46 seconds active client increase and how much can we attribute to say organically uh the uh you know individual books have grown 41:55 41 minutes, 55 seconds uh these aums which we are talking about that aum or a uh that increases there from the I can say more from our 42:04 42 minutes, 4 seconds existing client base uh at the same time we are continuously adding new client base also uh total I can say total number of client side if I will say then 42:13 42 minutes, 13 seconds we have increased last financial year or total client base by 12% in total number uh active client base surely last year the activity level was little bit down 42:21 42 minutes, 21 seconds so it was almost I can say slightest or two 3% down but the positive part is in terms of one side the total number of client has also been announced and 42:29 42 minutes, 29 seconds second side the AUM from even existing client is also increasing on constant basis understood sir very clear thank you 42:37 42 minutes, 37 seconds thank Thank you so much. Thank you and all the best for Thanksgiving. 43:03 43 minutes, 3 seconds A reminder to all, you may press star and one to ask a question. 43:23 43 minutes, 23 seconds Thank you very much ladies and gentlemen. As there are no further questions from the participants, I now hand the conference back to the 43:31 43 minutes, 31 seconds management for closing comments. Over to you, sir. 43:38 43 minutes, 38 seconds So thank you uh investors uh thanks a lot for participating in this uh earning call. uh as I said our endeavor is 43:48 43 minutes, 48 seconds always going to look at investors viewpoint investors 43:56 43 minutes, 56 seconds interest along with our customer interest because we do follow a policy of customer centric and we are 44:03 44 minutes, 3 seconds customercentric and our policy is to look after the customer's interest first our investors interest first and simultaneously grow the company over a 44:11 44 minutes, 11 seconds period of time so we'll keep on doing that we'll be happy to answer any kind of a question which is coming in anyone's mind. Uh separately also Mr. 44:20 44 minutes, 20 seconds Rubra and Mr. Taraksha uh can probably address uh if required separately. 44:26 44 minutes, 26 seconds Thanks for this uh thanks for your participation. 44:32 44 minutes, 32 seconds Thank you members of the management on behalf of Anandati Share and Stock Brokers that concludes this conference. 44:39 44 minutes, 39 seconds Thank you all for joining us and you disconnect alliance. Thank you.