Anand Rathi Wealth Limited — Q2 FY26

Anand Rathi Wealth Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=pDo_Tj_LCYw Published: 7 months ago

0:04 4 seconds Ladies and gentlemen, good day and welcome to Anendraati Wealth Limited Q2 NH1 FI202526 0:12 12 seconds earnings call. As a reminder, all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions 0:20 20 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star 10 on your 0:29 29 seconds touchstone phone. I now hand the conference over to Mr. Fio Aziz, joint CEO and Anand Dwarti Wealth Limited. 0:38 38 seconds Thank you and over to you Mr. Feros. 0:41 41 seconds Thank you so much SNali. Uh good afternoon everyone. Uh thank you uh everyone for joining the earnings conference call for the quarter and half 0:49 49 seconds year ended 30th September 2025. Today on the call we have with us group CFO Mr. 0:55 55 seconds Jugar Mantri, product and research head Mr. Chaitan Shanoi, our CFO Mr. Rajesh Bhutra and head of investor relations 1:03 1 minute, 3 seconds Mr. Vishal Sanangi. I'm very pleased to share that uh we have delivered the 16th quarter of consistent and market 1:11 1 minute, 11 seconds agnostic performance despite the challenging environment with Nifty declining about 34% during the during both the quarter and the full year. 1:20 1 minute, 20 seconds I want to take a moment to highlight the remarkable journey. When we launched our IPO around four years ago, our AUM was about 30,200 crores and in just about 1:30 1 minute, 30 seconds four years, we have added more than double that amount reaching to our total AUM of 9,1 91,568 crores at the end of September 2025. 1:40 1 minute, 40 seconds During the quarter FY26, equity mutual fund net flows increased uh by 101% year-onear to62 crores as compared 1:49 1 minute, 49 seconds to,025 last year same quarter when the sentiment was significantly better uh last year than this year. So makes us 1:58 1 minute, 58 seconds believe that buying uh when when the sentiment is bad creates a lot of value for our clients and that uh numerically seems to be established in this quarter. 2:08 2 minutes, 8 seconds FY uh sorry H1 FY26 our market share in equity mutual funds net flows to debt 2.33% 2:16 2 minutes, 16 seconds in the category three of AMP's uh publishing numbers. So of course quite a few people uh were skeptical about 2:25 2 minutes, 25 seconds penetration and market share when it comes to uh because of direct as a competitor during our IPO and subsequently over 4ear period. In fact, 2:34 2 minutes, 34 seconds if you see our market share has gone up from.16% in FY20 uh to 2.33% 2:42 2 minutes, 42 seconds of the net flows in India has come in active funds through us. 2:49 2 minutes, 49 seconds H during the quarter 2 FY26 total net flows increased by 28% uh to 3,2 crores 2:57 2 minutes, 57 seconds as compared to 2336 crores. So the overall net flow was also reasonably healthy. Hence, H1 uh FY26 total net 3:06 3 minutes, 6 seconds flow rose for rose by 20% to 6,826 crores compared to 5,700 crores last year. Same period of half year. In our 3:15 3 minutes, 15 seconds flagship private wealth business during the last 12 months, we have added about 1,800 plus families on a net basis bringing our total number of clients to 12,781. 3:27 3 minutes, 27 seconds And client attrition numbers have been uh client attrition numbers in terms of a loss remain low at a second decimal of 3:36 3 minutes, 36 seconds 0.9% for the quarter 1 FY26 and.18% for FY uh 26 the full half year half 3:45 3 minutes, 45 seconds year reconfirming reaffirming the trust our clients place in our uncomplicated client-centric approach 3:52 3 minutes, 52 seconds digital wealth business which is a B2B business registered an AM growth of 21% yi and reached to 2211 crores and the 4:01 4 minutes, 1 second number of clients increased by 20% to 6,570. The OFA business which is our SAS platform has 6,790 subscribers with 4:10 4 minutes, 10 seconds platform assets of about 1.59 lakh crores as of 30th September 2025. 4:17 4 minutes, 17 seconds Uh now I request G to give business highlights for the quarter which went by. After him I will give highlights of the financial performance. You can see all Q. 4:29 4 minutes, 29 seconds Thank you so much Fusby. Good afternoon friends. 4:35 4 minutes, 35 seconds Let me take you all through Q2 FY26 consolidated financial performance first. Our consolidated total revenue 4:43 4 minutes, 43 seconds for the Q2 FY26 stood at rupees 307 crores compared to rups 250 crores in Q2 FY25. 4:54 4 minutes, 54 seconds registering a healthy 23% year-on-year growth. Our profit after tax is stood at 5:02 5 minutes, 2 seconds rupees 99.89 crores registering a 31% yearon-year growth compared to rupees 76 crores in Q2 FI25. 5:15 5 minutes, 15 seconds profit after tax margin for Q2 FI26 was at 32.5% 5:23 5 minutes, 23 seconds which has improved from 30.6% for Q2 FI25. 5:30 5 minutes, 30 seconds Now I will take you all through H1 of FI26 financial results. During first 5:39 5 minutes, 39 seconds half of financial year 2026, our consolidated total revenue grew by 19% yearonear to rupees 591 crores from 5:48 5 minutes, 48 seconds rupes 495 crores for H1 F uh financial year 25 5:56 5 minutes, 56 seconds profit after tax increased by 29% yearonear to rupees 194 crores from rups 6:03 6 minutes, 3 seconds 150 crores for H1 FI25 profit After tax margin was 32.8% for H1 FI26 6:13 6 minutes, 13 seconds improved from 30.2% for H1 FI25. 6:19 6 minutes, 19 seconds In the first half of FY26, the company has already crossed 6:26 6 minutes, 26 seconds 50% mark and achieved 50.3% of its fullear revenue guidance of rupes 6:34 6 minutes, 34 seconds 1,175 crores and 52% of pet guidance of rups 375 crores. 6:43 6 minutes, 43 seconds We have reported strong return on equity or roe of 45.5% 6:50 6 minutes, 50 seconds on annualized basis for H1 financial year 26. Continuing our policy of rewarding shareholders, the board of 6:58 6 minutes, 58 seconds directors have declared 120% in in dividend resulting translating to rupees 6 per equity 7:08 7 minutes, 8 seconds shares. Now I request hereby Sapnali to open the floor for question and answer. 7:15 7 minutes, 15 seconds Over to you Sapnali. 7:20 7 minutes, 20 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 7:28 7 minutes, 28 seconds star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 7:37 7 minutes, 37 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question to assembles. 7:56 7 minutes, 56 seconds The first question is from the line of Akash Sha from AJ W. Please go ahead. 8:05 8 minutes, 5 seconds Hi sir. Uh am I audible? Yes sir. 8:11 8 minutes, 11 seconds So hello. Yes Akasha we can hear you. 8:18 8 minutes, 18 seconds So just one question for myself. Uh actually uh our RM attrition has increased but we have still managed to 8:25 8 minutes, 25 seconds retain most of the AUM part. Uh so but typically what I have seen in this industry is uh when RM moves out uh they tend to take a larger portion of their 8:34 8 minutes, 34 seconds clients. So I want to understand what we are doing differently or what client retention controls do we have in place that help us minimize the risk of failing loss. 8:45 8 minutes, 45 seconds uh Akasha uh see firstly uh RM attrition in our company is reasonably low like I had told you last time around uh on the 8:54 8 minutes, 54 seconds call I don't know whether you were there uh we had some uh cultural issues with a few people in one of the locations so we 9:01 9 minutes, 1 second had to let go of two and the other two uh left themselves so uh these four attrition pieces which you see in this 9:09 9 minutes, 9 seconds H1 are largely from one location uh that's 0.1 And uh point two uh when an 9:17 9 minutes, 17 seconds RM leaves uh basically what happens is there is a certain motivation of the RM 9:24 9 minutes, 24 seconds to leave but the client centricity if I exhibit that the client is better off 9:31 9 minutes, 31 seconds here because we try and deliver a risk adjusted return of 4 to 6% Jensen's alpha there are very few companies in 9:38 9 minutes, 38 seconds the country who have a Jensen's alpha published on the overall AUM. Now for example if you want to calculate the 9:46 9 minutes, 46 seconds Jensen's alpha of Anandati wealth we are now listed this is our 16th quarter you can get to know the mark to market gain which I've had every quarter you can 9:54 9 minutes, 54 seconds calculate that nifty mark to market and find out the risk which is beta in the public domain you can find out what is the total profit we have made in public 10:03 10 minutes, 3 seconds domain mark to market for the last three three and a half years so if you look at Jensen's alpha so what am I trying to get to is if I told a client if if the 10:13 10 minutes, 13 seconds RM is leaving and if you want to move with him what is the Jensen's alpha of the other company which he is joining and that Jensen's alpha is not there so 10:21 10 minutes, 21 seconds it becomes easier to retain a client of course RM has the strongest relationships and it should always be like that we should not be technologyled 10:30 10 minutes, 30 seconds but yeah we've been able to retain about 79% of the four people so far of the assets 10:38 10 minutes, 38 seconds we had that's why you see an attrition number client attrition number 18 to.1. 10:46 10 minutes, 46 seconds All that's okay sir. Understood. Just just one last question sir. Uh I mean are uh guidance of one lakh cr. So uh is 10:55 10 minutes, 55 seconds it still intact or uh are we trying I mean can we increasing the guidance? 11:02 11 minutes, 2 seconds So we not increase the guidance because AUM are on a specific date. If 31st March of FY 26 is not so good then the 11:10 11 minutes, 10 seconds AUM could be this way or that way. So we'll retain the guidance of one lakh cr. It's an aspirational number. We are at 9, 91,568. 11:18 11 minutes, 18 seconds We'll keep that as one lakh. We always like to undercommit overd deliver. In that same theme or the belief we would like to retain it like that especially 11:26 11 minutes, 26 seconds an AUM number you would not want to up it because it's very difficult for any of us to predict what 31st March 2026 will be like. 11:36 11 minutes, 36 seconds Okay. What? 11:38 11 minutes, 38 seconds And what assumptions are baked in for market performance versus organic inflows? 11:44 11 minutes, 44 seconds But it was one lakh cr. It was an aspirational number. We started last year we were at 75,000. We are at 956 11:50 11 minutes, 50 seconds 568 crores. We assume 10% market growth generally. Uh but uh the net flows have been very good and that's why uh it's 11:59 11 minutes, 59 seconds been good. So it we assume 9 to 10% market growth generally when we beginning of the year. 12:07 12 minutes, 7 seconds Thank you sir. Thank you sir. All the rest. Thank you sir. 12:13 12 minutes, 13 seconds Thank you. The next question is from the line of Bhavin Pandi from MK Investment Managers Limited. Please go ahead. 12:22 12 minutes, 22 seconds Hi, good afternoon team. Uh I hope I'm audible. Yes sir. 12:27 12 minutes, 27 seconds Yeah. Uh congratulations on a set of numbers and uh and 12:35 12 minutes, 35 seconds what do you think you know once a sort of crosses one lakh two lakh K the beta effect would come in when we look at growth. So how do we look at growth you 12:44 12 minutes, 44 seconds know once the beta effect comes in? Uh secondly perspective on flows from the existing families and new client 12:51 12 minutes, 51 seconds additions. Have we seen the mix change where you know new families are contributing more and third what's the overall outlook on the markets uh given 13:00 13 minutes the way uh we have seen a lot of consumption coming about uh great what was your first question 13:09 13 minutes, 9 seconds sorry I missed the first uh main effect main effect coming right now we are almost at 1 lakh K maybe two years down the line you'll get two lakh 13:18 13 minutes, 18 seconds k so how do we look at the growth numbers that 25% % growth that we we're kind of looking at but it's coming about 13:25 13 minutes, 25 seconds very quickly with uh 28 30% growth on a y basis for the second wave of growth it would 13:34 13 minutes, 34 seconds would it be slightly lower we still maintain the 25% kind of a growth uh number thank you for the question now I got the 13:42 13 minutes, 42 seconds question but since the base effect you're absolutely right we've been waiting for a critical mass for whatever right or wrong we had assessed that the 13:50 13 minutes, 50 seconds critical mass in mutual fund AUM for example is 50,000 crores of regular AUM so out of which 46 47,000 crores was 13:58 13 minutes, 58 seconds mutual funds for us so critical mass at a total level like you said close to 90,0001 lakh cr is one but in individual 14:06 14 minutes, 6 seconds uh there are very few wealth management outlets which have been able to reach 50,000 crores of aum in their distribution assets so we always thought 14:14 14 minutes, 14 seconds that was critical mark once you get to critical mark uh you're collecting a certain kind of client see what is different about Anandraati is we don't 14:22 14 minutes, 22 seconds take everybody who has short-term mind, long-term mindset, greedy mindset. We filter our clients very very clearly that we'll be able to 13 to 15% with a 14:31 14 minutes, 31 seconds beta of points is with Nifty. If you are very aspirational, you please uh go the full circle. You'll realize that it is 14:37 14 minutes, 37 seconds 14 15% compounded over 10 15 years. Very good. So point is absolutely right. 14:44 14 minutes, 44 seconds Critical this business is all about critical mass. uh because uh HMIs love to go with larger outputs. That's why 14:51 14 minutes, 51 seconds quite a few wealth management outputs implate their AUF so that they can create a very good pull from a client standpoint. So people count my assets in theirs by taking an advisory agreement 15:00 15 minutes of four lakh rupees. They're counting 200 200 crores. So point is yes critical mass is important. This business is all about mass and time. Uh so will we 15:08 15 minutes, 8 seconds increase the rate of growth? I don't think so because with the base being larger the quantum of rupee value is 15:15 15 minutes, 15 seconds higher but percentages may not increase because one lakh percent growth uh so will we be able to 15:23 15 minutes, 23 seconds sustain that growth the answer is a big yes will it be easier to sustain that growth the answer is a big yes after reaching critical will you be able to 15:30 15 minutes, 30 seconds attract more like-minded clients the answer is yes but will we up our guidance of growth numbers no we are 15:38 15 minutes, 38 seconds only working day and night to increase the chance of growth rather than the growth itself. If I have given or my my 15:46 15 minutes, 46 seconds boss Mr. Rahul who is also my professional guru has given a guidance that 15:59 15 minutes, 59 seconds uh results with just 16 so far. So no upping the percentage up the probability that's what it will do. Second, new 16:07 16 minutes, 7 seconds families and fresh clients both have seen some reasonable numbers. Uh what's 65 is existing currently and 35 is new. 16:16 16 minutes, 16 seconds Why is it 65 35? It could also be 50/50. 16:18 16 minutes, 18 seconds But we are very relaxed when we attract a client. We don't tell him management. We say 8 we will if we do 16:28 16 minutes, 28 seconds our bit then there's no reason why you will not give me a large portion. So only thing we filter is whether you've got a million dollar plus to give us if 16:35 16 minutes, 35 seconds you so chose to we let him start with 1 cr. Uh so the ratio is 6535 because we don't put a gun on the head to start 16:42 16 minutes, 42 seconds big. We we think that if we deserve we will get it. HNI is a smart community is the hypothesis that's the split 2/3 and 16:51 16 minutes, 51 seconds 1/3 and uh yeah and I think getting references people are now taking pride that's the critical mark our clients are taking pride to say that we deal with 16:59 16 minutes, 59 seconds them and they're referring their friends and their confidence has come up on us so that's why first time we ever touched 17:06 17 minutes, 6 seconds uh two 200 uh client acquisitions in a single month in September 17:14 17 minutes, 14 seconds Okay, that is really helpful. Uh and you market given the way we are seeing consumption boosts and government initiatives and the films. 17:23 17 minutes, 23 seconds Yes. Uh sorry I I I mean to that question. Uh we personally think that when it comes to market are are we 17:30 17 minutes, 30 seconds answer try and answer simpler questions whether in the next three years will nifty give more than median return. 17:36 17 minutes, 36 seconds Median return of nifty is 11.12 median return mean return is 13.514. 17:42 17 minutes, 42 seconds uh we expect in the next three years Nifty will deliver 90% chance of a greater than median return on Nifty. One second comes second question we ask 17:51 17 minutes, 51 seconds ourselves is what are the odds that there could be a catastrophic fall. Uh the probability of a catastrophic fall is near zero because we believe that 17:58 17 minutes, 58 seconds everybody is light on the market. Margin funding books are light. Uh FI short positions are 92%. Uh FI's net flow over 18:06 18 minutes, 6 seconds the last four and a half years after COVID is zero. BIS are sitting on inflows. 29,513 crores has come into 18:12 18 minutes, 12 seconds September FIP. So mutual fund of course a lot of mutual fund analysts would be on this call. So point I'm 18:20 18 minutes, 20 seconds trying to make is DII is loaded with money. FI is already sold. FYI in future market is negative. Margin funding books of top five brokers are not at the peak. 18:28 18 minutes, 28 seconds So catastrophic falls are unlikely even if US tried their best for our markets to fall. That's why resilience is there. 18:35 18 minutes, 35 seconds So lowest negligible probability of a catastrophic fall. What do I mean by catastrophic fall? more than 15% fall um 18:42 18 minutes, 42 seconds and the median return probability is upwards of 90 so uh and with that kind of an assumption can I deliver 13 to 15% 18:50 18 minutes, 50 seconds for my client with 6 beta that's my calculation on the objective of numerical delivery 19:05 19 minutes, 5 seconds and good luck good luck thank you for your great patience Thank you. The next question is from the 19:15 19 minutes, 15 seconds line of Arun Gopal, an individual investor. Please go ahead. 19:23 19 minutes, 23 seconds Good. I hope I'm audible. Yes, sir. You're audible. 19:28 19 minutes, 28 seconds Yeah. I really appreciate anat statistical approach to the market which is so uncertain. So that statistical 19:36 19 minutes, 36 seconds approach gives a lot of confidence as an investor and as well as a client of them. I've got three questions basically 19:44 19 minutes, 44 seconds is one is uh we wanted to know the revenue stream and the product mix between the revenue stream uh between mutual funds and structured products. 19:54 19 minutes, 54 seconds And the second question is uh now a lot of emphasis has been placed on structured products which are with the 20:02 20 minutes, 2 seconds market competence which sounds logical because plan B is now right time to be activated because the market has 20:10 20 minutes, 10 seconds powering around. So I wanted your view on that. Uh and the third one is where 20:17 20 minutes, 17 seconds where do you and the team see Anandra in the next five years? 20:22 20 minutes, 22 seconds See coming by. Thank you Aruna for your question. Uh NFSP uh revenue stream we had guided that we 20:32 20 minutes, 32 seconds will get to 50/50 over a period of time. Uh and we are working uh extensively for a revenue stream to be balanced SB50 and the 20:40 20 minutes, 40 seconds others 50. Uh have we gotten there? May not be. We might be at how much shall we 43 44 somewhere somewhere in the 43 44 kind of 20:49 20 minutes, 49 seconds range. We are we are trying to get to 50/50. So that's what long-term it'll be is the prayer and our effort and to do 20:57 20 minutes, 57 seconds that what what gives credibility to the statement you would see a 2.33% uh market share in net flow uh uh for 21:06 21 minutes, 6 seconds the first half year and we have lacks and lacks of IFAS in India we have NDS national distributors banks all of them 21:13 21 minutes, 13 seconds uh have brought in a net flow of 97.5 for example and Anandraati 382 RM 386 now have brought in 2.33% 21:21 21 minutes, 21 seconds of net flow in active equity neutral that's called so that tells you whether we'll get to 50/50 or at least I'll be 21:29 21 minutes, 29 seconds attempting to do 50/50 and an earnest attempt is being made that's point one second market uh should I put money in 21:37 21 minutes, 37 seconds the market or SP we generally don't tilt ourselves either way like my portfolio is 65% equity mutual fund 35% structures 21:44 21 minutes, 44 seconds wherever there's a gap if I got a bonus if I strategy felt generous uh and he gave me a bonus I would split it 35 or 21:51 21 minutes, 51 seconds whatever is the gap in my uh proportions of the strategic allocation. If we do that mechanically without getting biased 21:59 21 minutes, 59 seconds on the recency, recent performance, quite a few of our clients sometimes get carried away when the markets do very well. They're averse to structure product. When the markets are bad, they are averse to uh equity mutual funds. 22:10 22 minutes, 10 seconds But we try and uh guide them mathematically. That's why you see 2,000 crores 2,65 crores has come in equity in 22:17 22 minutes, 17 seconds the last quarter. So makes me feel happy that the market 22:28 22 minutes, 28 seconds So, so we try and not gravitate towards either. Do we uh plan B do we very uh very strongly recommend? The answer is yes. People say why do you recommend? 22:38 22 minutes, 38 seconds Quite a few competitors say structured products are vested interest. Okay. But if you look at the,59 structure products which have matured from December 2020 22:47 22 minutes, 47 seconds have given the maximum possible return they could have given. So we use all Monte Carlo simulator all our understanding of derivative to design a product which is not the most attractive 22:56 22 minutes, 56 seconds to see but more than probabilities they estimate. So from for the last 5 years almost all products which have matured 23:04 23 minutes, 4 seconds which is,59 which is almost one every working day the same kind of products of course all of them have given the maximum possible return because there's 23:13 23 minutes, 13 seconds a lot of technical uh expertise which the product team brings. So that's the market and SP nifty the mutual fund and 23:20 23 minutes, 20 seconds SP split. What do we see ARWL uh in five years from now from an Anandra shareholder standpoint? uh uh we plan 23:30 23 minutes, 30 seconds for September 2030's revenue like yesterday with this September 2030 revenue how much of that is done for me if I have to grow my business in uh next 23:39 23 minutes, 39 seconds 5 years at 20% I need 236 crores revenue in September 30 if I grow my business 23:45 23 minutes, 45 seconds revenue at 25% I need uh 289 crores how does that break up between trail and structure products which will mature 23:53 23 minutes, 53 seconds five years from now u you would see that uh there's an implied 18 19% growth which we plan for 5 years 24:00 24 minutes from now. So that's from a shareholder standpoint. Revenue of September 2030 because structure products mature at 24:08 24 minutes, 8 seconds double the money and there's a rollover option. So that's uh on the revenue side. Now comes to from a client side we have a target of making 1 lak 25,000 24:16 24 minutes, 16 seconds crores of marktomarket gain for our clients. If I have 91,000 crores, if I grow money at 14 15%, I can get a mark 24:23 24 minutes, 23 seconds to market gain for my clients of 90,000 crores on the current assets. If I collect 1,300 crores, 1400 crores every month, then I end up collecting almost 24:32 24 minutes, 32 seconds 90,000 crores again over the next 5 years. That also can give me a mark to market at 14 15% or 40,000 crores. So 24:39 24 minutes, 39 seconds our aspiration for the client is that answer. 24:48 24 minutes, 48 seconds Yeah, that does answer my first and the third question very clearly. But I just wanted you to uh throw some more light on structured product because a lot of 24:56 24 minutes, 56 seconds this a lot of the new clients who are coming in on boarding onto the structured product they look with a lot of skepticism into the product or it's 25:05 25 minutes, 5 seconds probably they don't understand the way it works or uh uh they find it as a hidden agenda. So sometimes on the on if 25:13 25 minutes, 13 seconds it can be explored a little more structured product as a a safer product a plan B on your 25:20 25 minutes, 20 seconds investment horizon how it works out that would be a little helpful for all the other people who are sitting on the fence and then trying to see which way 25:29 25 minutes, 29 seconds they go. Yeah. Gopal's uh structure product is nothing but a bond. 25:37 25 minutes, 37 seconds A bond which does not fix your return. 25:40 25 minutes, 40 seconds It gives you a variable return depending on the underlying which in this case is nifty right. So what risk do you carry? 25:48 25 minutes, 48 seconds Nifty risk market risk is most explicit in this product. If nifty delivered this this is what you will get. So 5 years later you have to turn on TV and see for 25:57 25 minutes, 57 seconds example what is Nifty? What do you what is the liability of the product towards you? The second risk is how is the money 26:04 26 minutes, 4 seconds kept? The promise is one thing promiser is the next. If the promiser is alive is when he will fulfill the promise. How is 26:11 26 minutes, 11 seconds the money which Anandraati global finance has deployed? You will see 63% of that money is in investments in demand account. So so that I'm sure my 26:20 26 minutes, 20 seconds colleagues will take you through if you have had that discussion. Secondly, of course people competitors have always been uh predicting our default for the 26:29 26 minutes, 29 seconds last 13 years. uh so but if you look at how the money has been deployed uh you will realize that an NBFC is managed and 26:38 26 minutes, 38 seconds uh very very carefully uh and without any greed on MI can can have uh very very good uh uh credit risk management 26:47 26 minutes, 47 seconds and that's what we proud of and if you look at the scores of the NBFCs which we filter there are about 9,500 NBFCs so we 26:54 26 minutes, 54 seconds do bottom up try and have these three filters on all the NBFCs and we have currently been able to approve only two of them one is anati global finance and 27:02 27 minutes, 2 seconds another is for external yeah thank you very much me goal sir sorry sorry my my memory 27:11 27 minutes, 11 seconds doesn't serve me right vishal who is our investor relationship head prompted me that we did a uh threepart series for 27:19 27 minutes, 19 seconds everyone to understand treadbear uh and that's uh you can always uh get it from vishal gi uh and uh and and that's a 27:29 27 minutes, 29 seconds very exhaustive. We are planning to do more series if people want to understand. Secondly, definitely definitely I'd love to get the series from Thank you very much. Thank you very much. 27:40 27 minutes, 40 seconds If you can see the mail or Yes, it will be put on our website. 27:48 27 minutes, 48 seconds Okay. Thank you very much. I'll pick it up from the website. Thank you. Thank you. 27:59 27 minutes, 59 seconds Thank you. The next question is from the line of Jotihi from Capita. Please go ahead. 28:09 28 minutes, 9 seconds Hi uh congratulations. 28:12 28 minutes, 12 seconds Uh I think my question was earlier asked. I think throughout the years the the biggest strength or one of the biggest strength has always been the 28:18 28 minutes, 18 seconds acetation rate and uh if my observation has been right uh it it is going down the team management how do you how do 28:26 28 minutes, 26 seconds you uh plan about uh working on this and working towards this 28:32 28 minutes, 32 seconds uh uh joti uh uh Mr. Joti right Joti Joesh 28:40 28 minutes, 40 seconds if you look at attrition uh of course there will be some attrition here or there uh but when we 28:48 28 minutes, 48 seconds look at our revenue like I told you how we plan the revenue of 2030 September because all our structure products have 28:55 28 minutes, 55 seconds a rollover right now okay it means that the revenue if I have done x amount of structure 29:01 29 minutes, 1 second product sale in September 2025 give or take sepmber about 2030 the same thing will mature with a certain 14 15% return 29:10 29 minutes, 10 seconds which means let's assume 15 for the moment for argument sake then if I collect 100 crores this this year uh September 5 years later there's 200 29:18 29 minutes, 18 seconds crores to mature right it is very uh it's lesser effort for a person to roll that over for the next 5 years and not 29:27 29 minutes, 27 seconds exercise the production so my revenue streams if at a company level are reasonably stable because we have a 29:34 29 minutes, 34 seconds trail revenue revenue for an RM also it isn't like we were doing this we were doing some math for one of the RMs whom we intern we call Singum okay uh so his 29:44 29 minutes, 44 seconds trail revenue is 19 lakhs 19 lakhs uh in the next 5 years if his AUM double then he has 38 lakhs of revenue in September 29:52 29 minutes, 52 seconds 2030 uh and his structure product sale for last month was 4 crores so he if that matures is 8 crores he has eight more 30:00 30 minutes crores to mature then so his total revenue for September 2030 80% % is done sitting today. So will will an RM has 30:09 30 minutes, 9 seconds either the company has to inreat an RM or somebody who's got private equity money wants to throw four times the salary and then later pressurize him he 30:18 30 minutes, 18 seconds can leave but most sensible people will automatically look at uh getting a uh trail income and putting that business 30:26 30 minutes, 26 seconds on autopilot. So these attrition numbers which you see are uh not going to last. 30:31 30 minutes, 31 seconds There are some some differences we have on the cultural side. I don't want to spell out the specific reason of letting go of two people and their friends, two 30:40 30 minutes, 40 seconds more people letting gone uh on the call I had highlighted last time as well. So you can expect some attrition where 30:48 30 minutes, 48 seconds there are cultural misfits but not an exor is my belief. 30:54 30 minutes, 54 seconds Thank you so much once again. Congrats to the entire team on this. 31:03 31 minutes, 3 seconds Thank you. The next question is from the line of Priyam from Thrietra Asset Managers. Please go ahead. 31:11 31 minutes, 11 seconds Uh hi, thank you for the opportunity. Uh so my question is that uh are our if you look at our yield to assets uh they are 31:18 31 minutes, 18 seconds much much better than you know every on the street and frankly that is because of our strength of the structure 31:25 31 minutes, 25 seconds products. uh my my question is that you know as the AUM increases to you know five years down the line or 10 years down the line to say three lakh crores 31:33 31 minutes, 33 seconds or four lakh crores uh obviously I'm I'm expecting that you know structured products uh would be one 31:40 31 minutes, 40 seconds one and a half lakh cr at that time my my question sir is that uh in in this product we are essentially not taking a market risk we're taking some credit 31:49 31 minutes, 49 seconds risk and as in as this category grows is there enough good credit available A and B um do you think that the yield on 31:58 31 minutes, 58 seconds structured products will remain the same or will it come down as as we see growing? Thank you. 32:05 32 minutes, 5 seconds Yes. So I missed your name. I'm so sorry. 32:08 32 minutes, 8 seconds Uh Priam Sha Pam Shab fund is uh the when you call yield yield is always peranom 32:16 32 minutes, 16 seconds right. So if I look at yield both mutual fund gives me 1.09% postg,000 products which matured in structure 32:24 32 minutes, 24 seconds products. If I calculate as per market value in the same method how mutual fund gets calculated my yield is somewhere between 1.15 and 1.17. So yield wise 32:33 32 minutes, 33 seconds both are identical recognition wise they could be different. One second if structure product becomes a 1 lakh cr 1 32:41 32 minutes, 41 seconds and a half lakh cr is there enough good credit anati global finance our confidence there is 99.99% because of 32:49 32 minutes, 49 seconds the kind of management and their liquidity of the balance sheet do I have so many NBFCs who are ready to manage it 32:57 32 minutes, 57 seconds in a way liquid way the way anamati global finance managers the answer is no there are so many NBFCs who want to take money in structured product but I don't 33:05 33 minutes, 5 seconds feel likely Right. 33:12 33 minutes, 12 seconds I'll give you structured product returns. Why 14% of anati? I'll give you 17%, 18% with the same product specs. 33:19 33 minutes, 19 seconds So, but is this business scalable to 1 lakh cr or 1 and a half lakh cr? You can believe it or not my judgment yes very 33:27 33 minutes, 27 seconds very easily. Now, why so is a separate story. Most of the things which somebody will just see as an output would not have credibility. But yeah that's how it 33:35 33 minutes, 35 seconds is. So but yeah one in one one and a half lakh two lakh cr two and a half lakh cr this industry can grow very easily. So that's my judgment. 33:44 33 minutes, 44 seconds Sure. And so just a follow-up question uh do we are we are focused on all of our areas but going ahead do you think 33:53 33 minutes, 53 seconds that u we'll be more focused on on the equity part or will it just be uh as it is right now or any new product on the 34:02 34 minutes, 2 seconds angle it'll only be focused our focus is single-minded obsession I will call it 34:10 34 minutes, 10 seconds client's objective that's my obsession as a company everyone who's there says that let's assume if the client wants to deliver 34:18 34 minutes, 18 seconds 14% return with 7 beta which is the simplest way to achieve it if equity mutual funds can't do it I'll replace them with PMS 34:26 34 minutes, 26 seconds if PMSs can't do it I'll replace it with AIS but the focus is client's objective that's about it and if you are able to 34:35 34 minutes, 35 seconds deliver for the client if our hypothesis the client is smart he will give me lot more penetration capability into his 34:42 34 minutes, 42 seconds wallet and his clients So, so we keep checking on whether I'm missing out or not missing out. So, what 34:50 34 minutes, 50 seconds I can do is everything what wealth management companies other companies do I can do because nobody stops me doing an AI. But can other wealth management 34:58 34 minutes, 58 seconds outfits survive on only two product lines? Difficult. 35:02 35 minutes, 2 seconds The converse is not true. I can do whatever which helps my odds of achieving a certain objective. So, that's the focus. 35:11 35 minutes, 11 seconds Sure. Thank you. My might seem very idealistic but yeah that's okay. 35:23 35 minutes, 23 seconds Thank you. The next question is from the line of Sonic Sha from S PMS. Please go ahead. 35:30 35 minutes, 30 seconds Yeah. Hi uh hello everybody in the team big big hi. So thanks once more for this stupendous performance. Really need to 35:39 35 minutes, 39 seconds congratulate each one of you. Thank you so much. Uh thank you sir. Yeah. Yeah. 35:44 35 minutes, 44 seconds Uh so my my thoughts is around this you know I think uh you know we have we have worked out how we scale up employees in 35:52 35 minutes, 52 seconds the organization. We have got a process in the in the organization that is really commendable. Similar applies to even clients as well in terms of 36:00 36 minutes inclusion etc. One point I want to make uh to you is in terms of our structured products. Now you know the three-part 36:09 36 minutes, 9 seconds series you know Vishal and his team they nicely explain everything u the the the AUM that we have in structured products 36:17 36 minutes, 17 seconds as I seen from the presentation is 27% of our in structured products roughly about 24,700 so let's round it off to 36:26 36 minutes, 26 seconds 25,000 crores uh so we are we are really diversified whether in terms of dependency on one 36:35 36 minutes, 35 seconds employee or one client we are totally you know insulated from any vagaries on that front but in terms of the 36:44 36 minutes, 44 seconds structured products our concentration risk is high in terms of you know the Anunnati global financials just 36:52 36 minutes, 52 seconds highlighting so if we can uh look at diversifying as I made some three different options where the 37:00 37 minutes diversification can happen and in due course of time all the senior management including chan and all and take a call 37:07 37 minutes, 7 seconds but just wanted to share the names you know in terms of NBFCs we have all these guys Bajad Finance Tata Capital Mo 37:15 37 minutes, 15 seconds Finance Sham HTV they're all established that's one category of NBFC which can be approached explain this thing and 37:24 37 minutes, 24 seconds eventually this relationship can be developed so that we diversify from VR financial the global finance the second set is the global bankers like cities 37:33 37 minutes, 33 seconds and HSBC or GP mountain etc and the third is the broking community which are now listed. So the likes of Moira dol 37:42 37 minutes, 42 seconds kotak and nuama. Um I I believe in the past we have had such in structured producting with nuama and edwise. So u 37:51 37 minutes, 51 seconds just wanted to share how we can minimize this so-called risk in maybe my mind 37:58 37 minutes, 58 seconds investor's mind or the longevity point of view. Uh that was the thought which I wanted to share with you. would like to hear from you please. 38:08 38 minutes, 8 seconds Thank you Sunila. Your your suggestions are always very valuable. I think the three-part series was also your 38:15 38 minutes, 15 seconds suggestion if I remember right. Uh I'm very very grateful to you. Absolutely. 38:20 38 minutes, 20 seconds Your concern is well noted. Is diversification on the cards? The answer is a big yes. uh have we approved one 38:28 38 minutes, 28 seconds more just now again uh nuama like you mentioned uh since you mentioned I'm mentioning they are again there on the 38:35 38 minutes, 35 seconds platform uh then coming to which direction of diversification which you suggested the problem with uh one is 38:43 38 minutes, 43 seconds Kalpes are you there okay okay he's hearing uh so um so anyway so 38:51 38 minutes, 51 seconds Kalpes who did the three-part series will tell you how we look at eval valuating from the 9,000 our first criteria is at least half the money 38:59 38 minutes, 59 seconds should be invested rather than lent because when you have derivative possessions you need to have extensive 39:07 39 minutes, 7 seconds margin always at all points in time if the margin is 10 rupees 20 rupees you should have 50 rupees out of your total money collected so that's one uh now of 39:17 39 minutes, 17 seconds course these big names which you said they are very very good names if they start issuing such products I would be the first one uh to actually approve them the problem is structured product. 39:26 39 minutes, 26 seconds Any company which can borrow uh at 8% 7% without doing too much would not want to 39:33 39 minutes, 33 seconds do all this manup to borrow at the same rate right uh that's my only challenge 39:43 39 minutes, 43 seconds right I'll do a mutual fund placement trade why will I take 500 crores from you or 300 crores every month for the next 20 months so that's one challenge 39:52 39 minutes, 52 seconds okay so if sun if you suggest I'll do another one part series or a two-part series which says how do you evaluate uh 40:00 40 minutes what are the three four filters which we use how do we use z score to evaluate actually we have we had approved two of them both of them went through trouble 40:09 40 minutes, 9 seconds much before we exited right because uh that's because of kalpia who heads this division has been heading this division for 13 years now and so his assessment 40:18 40 minutes, 18 seconds of credit risk helped us get out of two other issuers well before they went into I'm not going to name 40:25 40 minutes, 25 seconds uh but the one of them was called AAA unfortunately. 40:29 40 minutes, 29 seconds Okay. Okay. Right. But we will do this one part series and we are looking at diversification. Point noted so you will hear some more news from us. 40:36 40 minutes, 36 seconds Sure. Sure. Thanks. Thanks so much for all the efforts and please continue scing higher. Thank you so much. 40:45 40 minutes, 45 seconds Sure. 40:50 40 minutes, 50 seconds Thank you. The next question is from the line of Mahek from MK Global. Please go ahead. 40:58 40 minutes, 58 seconds Uh yeah, hi. Thank you for the opportunity. 41:00 41 minutes Uh most of my questions have been answered. Uh there's two questions. uh so if I look at the net inflows uh the 41:08 41 minutes, 8 seconds equity MF inflows as a portion of the overall inflows constitutes around 70% uh roughly uh for Q1 Q2 F26 as compared 41:17 41 minutes, 17 seconds to 52% for the uh earlier quarter that is Q1 F26 so uh could you give any 41:24 41 minutes, 24 seconds particular reason for that and uh secondly uh if I look at your finance expenses that have increased uh 41:31 41 minutes, 31 seconds sequentially uh by around 21%. So what could be the reason for that? So these are my two questions. 41:39 41 minutes, 39 seconds Firstly, what number you said? Great. 41:41 41 minutes, 41 seconds You've noticed that. I'm glad that you did. This just proves to uh or at least uh adds credibility to Sunil Surf 41:49 41 minutes, 49 seconds statement saying that you're process driven when it comes to clients. You're process driven in terms of people growth. Now, now that's the data which you have said when the markets are down. 41:59 41 minutes, 59 seconds Let's assume one of my client has 100 rupees with me. If he gets 20 more rupees, if I have to divide this 6535, 42:08 42 minutes, 8 seconds 13 rupees needs to go into mutual fund and and uh 7 uh 7 six rupees 7 rupees needs to go into structure products. 42:18 42 minutes, 18 seconds When the market is down, the gap in mutual fund becomes larger because the other portion 100 rupees 65 35 when the market is down 65 has become 60. 42:28 42 minutes, 28 seconds Structure has not fallen. So where is the gap more? The gap is in mutual funds, right? So when you allocate money 42:35 42 minutes, 35 seconds as per a process rather than a top of- mind recall, it's easier to sell a structure product last quarter because mutual fund last year performance year. 42:47 42 minutes, 47 seconds But if you go as per the gap sheet of where the gap has emerged when the markets are down, you'll buy more mutual funds. And last to la last year same 42:55 42 minutes, 55 seconds quarter markets were up. If you remember on 26th of September 2024, Nifty was at 26,270 43:03 43 minutes, 3 seconds which was the peak. Okay, peak it established in the last quarter same year. That time I only had a larger only 43:10 43 minutes, 10 seconds 52% going into mutual fund because the mark to market was higher does it I was I able to articulate what I'm trying to 43:18 43 minutes, 18 seconds say. Yeah. Yeah. I I got it. Got it. 43:32 43 minutes, 32 seconds Got it. Got it sir. And secondary on. Yes sir. Go ahead. 43:40 43 minutes, 40 seconds Yeah I was telling secondly on that finance expense it see finance uh Mr. 43:47 43 minutes, 47 seconds Mah what happens that wherever as and when the lease rentals get renewed. So like this year there 43:57 43 minutes, 57 seconds were larger number of lead rental get got renewed and as per India 11 uh under 44:05 44 minutes, 5 seconds India 116 part of the lease rental has to be booked under finance charges and that is why the largely like whatever 44:14 44 minutes, 14 seconds finance charges which has been booked around 2 and a half cr rupees in the first half uh is on account of the uh 44:22 44 minutes, 22 seconds renewal of the lease rentals and uh Uh I think uh we have taken some car loans uh 44:31 44 minutes, 31 seconds of about uh 10 cr rupees last year uh 20 cr rupees. So there is a increase of the 44:38 44 minutes, 38 seconds cost on that uh uh car loan also uh on account of that. So that is the reason uh finance charges have gone up. 44:49 44 minutes, 49 seconds Got it. Got it. Thank you so much for your goods and all the rest. Yeah. Okay. Okay. 44:58 44 minutes, 58 seconds Thank you. The next question is from the line of Shinik Ma from Indo Ads. Please go ahead. 45:09 45 minutes, 9 seconds Hi, can you hear me? Yes sir. 45:14 45 minutes, 14 seconds Hi Fros. Uh congratulations once again for fantastic results. My question was a little more on the longevity front. 45:23 45 minutes, 23 seconds uh the way the company has performed in the last few years. Do you see this performance without any new platforms to 45:31 45 minutes, 31 seconds be created continue in the next two to three years as well and primarily focusing on you know how you're 45:39 45 minutes, 39 seconds delivering on deep pad growth and also very high ROE do you see this uh in in the same manner going forward? 45:49 45 minutes, 49 seconds Uh yes shik uh one is of course god only the time will unfold but our attempt is 45:56 45 minutes, 56 seconds to keep the roe high. We've also seen that you've given a fix in dividend on an increased number of shares. Uh second 46:04 46 minutes, 4 seconds from a predictability standpoint we believe that the four engines we believe of course uh so many externally may not 46:12 46 minutes, 12 seconds be able to believe that there are four cylinders to this growth shika. One is if I deliver very good performance to the client risk adjusted of course not 46:20 46 minutes, 20 seconds just return then my revenues go up uh automatically that's called the implied growth there is an imp 46:37 46 minutes, 37 seconds Then you have that implied growth. Then you have your existing RMs who can manage 6,000 clients extra more than what we have today. So no plant new plant in we have more number of clients. 46:47 46 minutes, 47 seconds So RMs also do well. They get more clients uh and they feel more satisfied when the other family clients effort. 46:53 46 minutes, 53 seconds That's the second thing capacity utilization. Third is penetration. Most of our clients we since we don't push them. So these three cylinders plus the 47:01 47 minutes, 1 second new RMS we already know who are our next 100 RMs. Of course, our AM attrition has been high. We're trying to adjust that. 47:08 47 minutes, 8 seconds Uh but uh since we don't do lateral hires, my cost of a new RM building his life is immense patience and very low 47:18 47 minutes, 18 seconds cost. I you would see that lateral hires are not even 8 10% of our total last 100. That means that 47:31 47 minutes, 31 seconds right. So, so all these four legs of growth, new RMS, existing RM, new clients, existing clients or monies 47:39 47 minutes, 39 seconds which are outside and the client growth put together in our firm belief uh is for long periods of time 20 to 25. But 47:48 47 minutes, 48 seconds with the base going up would I say that if the last 16 quarters our median growth is 33. Mean is how much? 47:57 47 minutes, 57 seconds Mean is also 33. This quarter is 31. Can these 30s normalize to in the 2025 range as the values become bigger as a base? 48:07 48 minutes, 7 seconds The answer is yes. 48:11 48 minutes, 11 seconds Okay. So you don't there is any need for uh new drivers like international 48:17 48 minutes, 17 seconds markets or any other diversification that is really required to to sustain this kind of growth. 48:25 48 minutes, 25 seconds uh to one is uh I think our RMS we didn't go and give them targets right so they dream well they dream well they 48:34 48 minutes, 34 seconds they don't have a geographical uh uh restrictions so can a cling today IM is actually acquiring a client in Abu Dhabi 48:43 48 minutes, 43 seconds who's been referred sitting here in India the answer is yes so coming back to what all do we need to do to sustain this there are several things does it 48:51 48 minutes, 51 seconds mean that I have to start other businesses for that may or may not be are we doing uh more on the gift city side we took an approval yesterday from 48:59 48 minutes, 59 seconds the board uh that would be there in the minutes uh are we doing domestically for NRI investing in structure products are we doing something the answer is yes are 49:07 49 minutes, 7 seconds we help we are trying to solve the pik issue with US NRIs the answer is yes have we applied for vin licensed representative yes license yes do I see 49:16 49 minutes, 16 seconds these as as uh ideas to protect growth no I see them as the right things to do. 49:24 49 minutes, 24 seconds What we see as protection of growth is to reinvest in some four five things. We are in reinvesting in technology. You will see that we are doing a beta test of a app called uncomplicated by ARWL. 49:36 49 minutes, 36 seconds Trying to make technology our strength. 49:38 49 minutes, 38 seconds Investing in HR, investing in operations. These things we will do. So will we sustain the margin of 46% PBT? 49:44 49 minutes, 44 seconds That's not the intent. We'll reinvest back to ensure that the probability of the 20 25% keeps increasing with each passing day. So that's the strategy. So 49:53 49 minutes, 53 seconds do we need more thing? Yes. But are we worried about the 2025? No. Do we have to strengthen seven seven several 50:01 50 minutes, 1 second vertical strengthen right? Just try and say let's do new stuff. 50:09 50 minutes, 9 seconds Does it answer sir? Right or wrong that's what we discuss in our office. Yeah absolutely. 50:25 50 minutes, 25 seconds Thank you. 50:27 50 minutes, 27 seconds The next question is from the line of Pra Jane from Motilal Oswald. Please go ahead. 50:33 50 minutes, 33 seconds Uh yeah. Hi sir, congrats on good set of numbers. Uh so just on this uh the distribution of financial products part 50:41 50 minutes, 41 seconds which is largely the structured products is there a seasonality because generally we look at Q3 and Q4 run rate in terms 50:50 50 minutes, 50 seconds of revenues is lower than Q2 and Q1 but we've seen it in FI24 as well as FI25. 50:57 50 minutes, 57 seconds Now is there a seasonality the way it kind of works in this segment? 51:03 51 minutes, 3 seconds Uh uh uh so you're saying Q1 and Q2 is higher Q3 and Q4 is lower? 51:09 51 minutes, 9 seconds Yes. And that's we've seen in FI24 as well as FI25. 51:14 51 minutes, 14 seconds No, there's no seasonality. What happened is there could be now for example uh an RM is given the freedom to plan 51:23 51 minutes, 23 seconds his business one. Okay. So it could be different energy levels in the first half and the second half marginal. But second is like quite a few analysts were 51:31 51 minutes, 31 seconds worrying worrying and making me worried saying that maturities. 51:37 51 minutes, 37 seconds So the seasonality if there was any was when we moved after COVID in August 2020 51:44 51 minutes, 44 seconds we learned that we did one mistake that if you make a three-year product and then at the end if he doesn't get the return he was provisioning a great 51:52 51 minutes, 52 seconds return but then he got back capital I can say sir you got that capital during the peak of covid isn't that good enough you could have bought nifty at 7,500 but 52:01 52 minutes, 1 second that still doesn't suffice so we moved from 3 year to 5 year in August 20 which implied that my maturities from August 23 to August 25 were dried up because we 52:11 52 minutes, 11 seconds were doing we had moved to 5 years. So that was one of the seasonalities that was because we took the right call of moving from 3 to 5 years and that was 52:19 52 minutes, 19 seconds actually very good otherwise I would have had some maturities where there wouldn't be so much gain for the client as of now. So that's the only seasonality I can think of. 52:27 52 minutes, 27 seconds Unfortunately, unlike most people's prediction that my mutual fund market share will go down because I don't do surpass symbolic and my structure 52:35 52 minutes, 35 seconds product will also be very difficult to do but that August 25 period is over. 52:43 52 minutes, 43 seconds Right. Right. And so generally you know uh uh you've been kind of delivering stellar returns on even this portfolio 52:52 52 minutes, 52 seconds right structured portfolio to structured products portfolio. Uh and why is it that you kind of want to grow this 53:01 53 minutes, 1 second business at a slower relatively slower pace versus mutual funds? 53:07 53 minutes, 7 seconds Not at relatively slower pace sir. If I look at 6535 which is the location you will come to. So that's now we have 53:15 53 minutes, 15 seconds we're not growing at a solo phase now I think one of our% 53:23 53 minutes, 23 seconds 27% in mutual fund is in structure products. So when I allocate money, if the client has chosen 25% in structure 53:31 53 minutes, 31 seconds products, 10 in debt and 65 in equity, which is a 14% expected return 53:38 53 minutes, 38 seconds with a beta of about.5 or 13% expected return with a beta of 0.5. I will go with the proportions chosen. So I'm not 53:46 53 minutes, 46 seconds trying to doctor my product allocation as per the revenue I need or my belief in a product. I'm again marrying it back 53:54 53 minutes, 54 seconds to my client's objective. There are several clients we said we will not take your money. If he says he said we not interested in selling a 54:02 54 minutes, 2 seconds product you don't tell me the full assets it becomes difficult for me to address even 10% of it. So so uh coming 54:10 54 minutes, 10 seconds back to the question I'm not either trying to grow one leg or another leg. 54:14 54 minutes, 14 seconds I'm putting in lot of effort to bring more money in equity mutual funds when the market is down 54:21 54 minutes, 21 seconds which implies the market bounce back client n now you see September number in industry ironical and I feel sad as a 54:29 54 minutes, 29 seconds industry participant the net flow in September is 30,000 crores total and sip 54:36 54 minutes, 36 seconds is 29,500 isn't that that is the month you would 54:44 54 minutes, 44 seconds buy the average of nifty is 24,700 54:47 54 minutes, 47 seconds [Music] 54:49 54 minutes, 49 seconds right people buy what people sell what what is what people buy that's exactly opposite you have to do clients will always be attracted with their heart 54:57 54 minutes, 57 seconds because it hurts them to see no return for one year when gold has become 55%. 55:02 55 minutes, 2 seconds So you have to counsel them and say sir please don't have recently biased. That's the biggest pitfall of investing. 55:08 55 minutes, 8 seconds So I'm not saying I will sell more mutual funds. I will sell more mutual funds at the right time because I am plugging in gaps rather than selling what sells. 55:18 55 minutes, 18 seconds Trying to let me correct myself trying my best to am I succeeding everywhere? The answer is a big no. Am I five on 10? The answer 55:25 55 minutes, 25 seconds is yes. Will we improve? God knows. But will we try? Yes. Right. 55:32 55 minutes, 32 seconds So this question another question is on global your Anandraati global finance 55:38 55 minutes, 38 seconds limited. Uh the gross NPA in that books on FI24 was 2.15%. 55:46 55 minutes, 46 seconds While it kind of improved significantly to 600%. I don't I don't know whether this is a platform to be asked that question. What drove that improvement? 55:53 55 minutes, 53 seconds Uh any thoughts or any color that would be helpful? The Anandrai Global Finance is the one of the best credit I have 56:01 56 minutes, 1 second seen in my professional career. I had been into a structure product from June 2006 where Reliance on their PMS 56:08 56 minutes, 8 seconds platform issued a metal product. From there on if there is any credit which you now of course this is a microscopic 56:15 56 minutes, 15 seconds question saying that NPA it is the meticulous management encompassed in a adjusted debt score you 56:24 56 minutes, 24 seconds can calculate how by alman score alman 1964 Edward Alman score all of the learner people here would have known and 56:33 56 minutes, 33 seconds that's a very good predictor of default risk and they've improved every single time that's how meticulously it's managed So of course there is a lot of 56:42 56 minutes, 42 seconds lending also given to Anandrai wealth limited clients which is against mutual funds. So 3 to 4,000 5,000 crores is 56:51 56 minutes, 51 seconds lent to our own clients against mutual funds. Okay which I to my mind is like the most safest lending. So if you of 56:58 56 minutes, 58 seconds course you Google would be the best one to answer. Sorry why am I taking it away from Google sir who do you want to take this question? 57:06 57 minutes, 6 seconds No, we have been maintaining the GNPA and net NPA uh under 1%. 57:15 57 minutes, 15 seconds And uh the number 2.6% I think what is reference that that pertains to uh postcoid it was 22 23 not in 24 it was 57:25 57 minutes, 25 seconds 2.6%. It was about 1.26% which has come down to 6%. 57:32 57 minutes, 32 seconds in financial year 2025 but anyway if uh you need any clarification or exact 57:39 57 minutes, 39 seconds number you can get in touch with Vishal he will share with you the data the only good thing which we have been doing in 57:45 57 minutes, 45 seconds NBSC is that philosophically whatever balance sheet breakup which is there about 60% 65% which we have in 57:55 57 minutes, 55 seconds government securities and AAA bond and the lending which we have done one of the major principles which we following is we don't take any undue risk and all 58:04 58 minutes, 4 seconds our portfolio is secured portfolio. We we are not doing any unsecured lending over there and uh the business we are in 58:12 58 minutes, 12 seconds is not the lending it is the collection business. The whole focus is on that and that is what ensure that our net NPA is 58:19 58 minutes, 19 seconds one of the best in the industry at point4%. 58:23 58 minutes, 23 seconds Got that last question from my side. uh uh any question any any guidance on how 58:31 58 minutes, 31 seconds should we look about cost going ahead into FI27 uh 26 full year and FI27 in terms of employee cost and overhead. 58:41 58 minutes, 41 seconds So basically looking at how the margins should kind of pan out. 58:47 58 minutes, 47 seconds Uh yes the margins see we the one uh one ka we love is the employee cost. Okay, employee it's like we call it the ma 58:55 58 minutes, 55 seconds kaja because it is getting credited into individual's bank accounts. So that is a very formuladriven thingy. Okay. And that formula has not changed for the 59:04 59 minutes, 4 seconds last 18 and a half years now. So that is a very static cost when when people who are not in the bonus category get into bonus category there is some degree of operational efficiency possible there. 59:15 59 minutes, 15 seconds Second is we have always kept a benchmark. 59:28 59 minutes, 28 seconds and pc this is this the number which we internally want to keep it sacrosan the answer is yes so till that time you like 59:36 59 minutes, 36 seconds to reinvest but can you expect a margin of 30 32 33% on pat for the next couple of years yes but 30 is what is my 59:43 59 minutes, 43 seconds mandate otherwise Rakkesh sir will be thank Thank you so much. 59:52 59 minutes, 52 seconds Yes, sir. 59:56 59 minutes, 56 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Fedos Ais for closing comments. Over to you sir. 1:00:08 1 hour, 8 seconds Yes. Thank you so much everyone. Uh I'm sure you're tired hearing my voice but yeah I am again there to give you a conclusive remarks. I'm so grateful to 1:00:16 1 hour, 16 seconds you to patiently listen to us, patiently trust us over the last 16 quarters. I 1:00:22 1 hour, 22 seconds pray that this Diwali season 2082 I'm somewhat is the best for you so far and uh and uh may you have a great week 1:00:31 1 hour, 31 seconds ahead and uh if you have any questions whatsoever please feel free to reach Mr. 1:00:36 1 hour, 36 seconds Vishali our investor relationships headshi who's been our CFO for several years and 1:00:44 1 hour, 44 seconds uh happy Diwali and to all of you thank you jula to join in and thank you Jani and to be a part of this call and thank 1:00:52 1 hour, 52 seconds you so madam thank you so much thank you very much on behalf of 1:01:01 1 hour, 1 minute, 1 second Anandraati wealth limited that concludes this conference thank you for joining ing us. And you may now disconnect your lines.