Billionbrains Garage Ventures Limited — Q3 FY26

Billionbrains Garage Ventures Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=VX8ajfFAVG0 Published: 3 months ago

0:00 Good afternoon ladies and gentlemen. 0:03 3 seconds Welcome to Billion Brains Garage Ventures Limited, popularly known as Grow Q3 FI26 earnings conference call. 0:12 12 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the management's 0:19 19 seconds remarks. Please note that this call is being recorded. Additionally, please note that this earnings call is 0:26 26 seconds scheduled for a duration of 45 minutes and we will be starting directly with a Q&A session. If you wish to ask a 0:33 33 seconds question, please use the raise hand feature available on your Zoom dashboard. We will announce your name on the call and unmute your line post which 0:42 42 seconds you can proceed with your question. We will wait for a minute while the question Q assembles. I now hand the call over to Nikil from Kotekch 0:50 50 seconds Institutional Equities. Thank you and over to you Nikil. 0:56 56 seconds Hi, thanks Michelle. Uh good evening everyone and welcome to the 3QFY26 earnings conference call for Billion 1:04 1 minute, 4 seconds Trains Garage Ventures Limited best known to investors and users as Grow. We have the senior management with us today 1:11 1 minute, 11 seconds who will respond to your questions on the quarter's financial performance. On behalf of Kota institutional equities, I would like to thank the management for 1:19 1 minute, 19 seconds giving us the opportunity to host this call. Joining us in the call today from grow are Lalit Keshre, co-founder and 1:27 1 minute, 27 seconds CEO, H Jen, co-founder and COO, Nir Singh, co-founder and CTO, Ishan Gansal, 1:35 1 minute, 35 seconds co-founder and CFO, and Lis Bmani group head finance and Kunal Raj Singh Chabra, head of investor relations. 1:44 1 minute, 44 seconds As always, the remarks may include forward-looking statements which should not be interpreted as guarantees of future performance. With that, let me 1:52 1 minute, 52 seconds hand over the conference to Punal. Thank you and over to you. 1:57 1 minute, 57 seconds Thank you Michelle and Nil. Good evening everyone and welcome to the call. Our results and shareholders letter have 2:04 2 minutes, 4 seconds been published on the exchanges and as well as uploaded on the company's IR website. Before we begin, I would like 2:11 2 minutes, 11 seconds to remind the attendees that some statements or comments made on the call by the management which reflect the outlook or are deemed as forward-looking 2:20 2 minutes, 20 seconds may involve risks and are not subject to any review. Such statements of comments are not guarantees of future performance 2:28 2 minutes, 28 seconds and the actual results may differ. With that, we can begin with the Q&A. Uh Michelle, please go ahead. 2:35 2 minutes, 35 seconds Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask questions may click on the 2:43 2 minutes, 43 seconds raise hand icon. Before asking the question to the management, please introduce yourself providing your name and your organization name. Please limit 2:52 2 minutes, 52 seconds yourself to maximum of two questions so we can accommodate as many as possible. 2:58 2 minutes, 58 seconds Ladies and gentlemen, we will wait for a moment while the question cue assembles. 3:16 3 minutes, 16 seconds The first question is from Supratim Duta. 3:21 3 minutes, 21 seconds Please accept the prompt. Introduce yourself and proceed with your question. 3:25 3 minutes, 25 seconds Hi everyone. Um you know this is Suprretim from Jeff. Um thanks for the opportunity. I have two questions. I mean know starting with the partnership 3:34 3 minutes, 34 seconds or you know the stakes sale to state street on the AMC side you know if you could give us some color around you know how you see this partnership playing out 3:41 3 minutes, 41 seconds over the next 5 years what's the road map for the AMC business and while it has scaled up fairly significantly post 3:49 3 minutes, 49 seconds your acquisition just wanted to understand how is this state street partnership going to be an inflection point for this business and where do you 3:57 3 minutes, 57 seconds see this um you know break even and you know move over the next five years. So you know that would be helpful. And moving to you know my second question 4:05 4 minutes, 5 seconds which is on the wealth piece um you know that you're developing. 4:09 4 minutes, 9 seconds Wanted to understand why is the fifth term revenue you know if I back it out it seems like it's only 29 crores for this quarter. So we just wanted to 4:18 4 minutes, 18 seconds understand you know the run rate last year was somewhere around 40 crores per quarter. So you know has there been any change or is it being reported 4:25 4 minutes, 25 seconds differently? Um you know so if you could give some color on that and again there you know on the wealth piece um you know how are you seeing that build out over 4:33 4 minutes, 33 seconds the next you know five years you know what are the how are you going to differentiate with offerings that are already there in the more in the market 4:41 4 minutes, 41 seconds you know that would be very helpful thank you uh yeah so I'll uh take that thanks for 4:52 4 minutes, 52 seconds uh both the questions u so on the investment that we are uh making in the asset management business 5:01 5 minutes, 1 second uh and especially the partnership with the the state street uh we see that the asset management in general in in India 5:09 5 minutes, 9 seconds is a huge potential and a very very high growth uh left in the next few decades and uh state street being one of the 5:18 5 minutes, 18 seconds world's largest brings a lot of global practices that helps us build the business in India uh it's very early stage uh In our asset management also uh 5:27 5 minutes, 27 seconds we have launched almost two two and a half years back and we've seen very good growth in terms of new customers coming in uh and the EM has also grown uh 5:35 5 minutes, 35 seconds steadily uh but there's a lot of capability that we need to build over time and this partnership will help us build that quicker it'll uh help us 5:42 5 minutes, 42 seconds build with a lot more uh credibility uh and also be able to have lot of global access for the Indian investors and 5:51 5 minutes, 51 seconds likewise for the uh foreign investors for our product. So this is the thought process with which we want to go ahead 5:57 5 minutes, 57 seconds with uh now and the broad uh contours will they will get to know more in future and we'll talk about them. 6:07 6 minutes, 7 seconds Sure. 6:08 6 minutes, 8 seconds Uh on the on the wealth side uh again we just recently October is when we uh consolidated the uh acquisition. So 6:15 6 minutes, 15 seconds there's a lot of work going on on the wealth side uh from a strategy point of view. how we built it, how we are building both uh for the existing grow 6:24 6 minutes, 24 seconds customers and for a lot of affluent customers who want to come in for these services. Uh but very early stage for uh us to talk about what will be the differentiator and how will it play out. 6:35 6 minutes, 35 seconds We are working on different different uh parameters on that. Uh from a uh P&L point of view, I think this 6:42 6 minutes, 42 seconds consolidation will continue. I mean there's some time with still there a lot of integrations are happening and uh we are we will it's a very small uh both 6:51 6 minutes, 51 seconds ways uh you know uh as compared to the overall panel of uh grow so we will start uh specifying the details and the 7:00 7 minutes transitions in the near waters got it and you know if I could just squeeze in one more on that you know wealth piece you know what is the kind 7:08 7 minutes, 8 seconds of you know synergies you know on the cost side that you expect hers you know now that you know it's been integrated and you haven't you know seen the business for you know 2 3 months you 7:17 7 minutes, 17 seconds know so see uh a lot of synergies in the wealth business in general uh but also 7:26 7 minutes, 26 seconds depends on how the scaleup happened. So to today we see uh you know uh lot of affluent customers on grow are requiring 7:34 7 minutes, 34 seconds those services which we are not offering now with this acquisition we are able to uh plan how we will be offering it to them. So customer acquisition cost when 7:43 7 minutes, 43 seconds it comes to grow customers using these services becomes almost uh zero for us. 7:48 7 minutes, 48 seconds But having said that it will not be 100% uh you know uh the same customers it will also be growth coming in from the 7:55 7 minutes, 55 seconds other channels. So it will evolve over time and probably you know sometime once we have done the integration completely 8:02 8 minutes, 2 seconds and we are able to scale it is when we can uh talk about the colors of how the cost and the uh how like the different kind of cost will look in this business. 8:12 8 minutes, 12 seconds Sure that's helpful. Thank you. Sure. Thank you. 8:22 8 minutes, 22 seconds We'll take the next question from Sukrit Patil. Please accept the prompt, introduce yourself and proceed with your questions. 8:32 8 minutes, 32 seconds Mr. Patel, please unmute yourself. 8:37 8 minutes, 37 seconds As there is no response, we will move on to the next question which is from Madwan S. Please accept the prompt, 8:44 8 minutes, 44 seconds introduce yourself and proceed with the question. Quarter the revenue was increased. 8:52 8 minutes, 52 seconds Earning also was earning but also increased whether you have any but expenses also increase but net profit 9:00 9 minutes lower than last quarter revenue increases net profit reduces but EPS higher. Is there any plan to distribute dividend or final div? 9:13 9 minutes, 13 seconds Sir uh just to clarify this uh the profit on quartertoquarter actually increased on yearon-year basis there is 9:23 9 minutes, 23 seconds a decrease actually and that's what uh is primarily because of uh one of uh 9:30 9 minutes, 30 seconds reversal of uh uh uh that happened in the last year so on a quarterto quarter 9:36 9 minutes, 36 seconds basis actually there is a increase any plan to declare that dependent at 9:44 9 minutes, 44 seconds all because you have not declared any div. 9:48 9 minutes, 48 seconds Sir, we have just got listed uh 3 months back uh and we are still in a very high 9:56 9 minutes, 56 seconds growth phase. We are still building new businesses where we have raised money in the IPO also to invest in those 10:04 10 minutes, 4 seconds businesses and once our growth uh uh uh is probably letting us uh give more div 10:12 10 minutes, 12 seconds give dividend also we will start giving dividend but we are not expecting to give dividend in the near future. 10:22 10 minutes, 22 seconds Okay. Thanks. Thanks. 10:26 10 minutes, 26 seconds Thank you. A reminder to all the participants that you may please click on the raise hand icon to ask questions at this time. The next question is from 10:35 10 minutes, 35 seconds Mayang Kagarval. Please accept the prompt, introduce yourself and proceed with your question. 10:42 10 minutes, 42 seconds Hey, hi. Thanks for the opportunity. Uh congratulations team for the great set of numbers. M Araal from T mutual fund. 10:48 10 minutes, 48 seconds So uh you started comating that back I think in September we and now it's 4% of the our overall topline. Can you just uh 10:56 10 minutes, 56 seconds elaborate some how is the number of users there and how the market share uh we have achieved in commodities. 11:05 11 minutes, 5 seconds So uh from a user perspective I think it is already there in the uh shareholders letter that we published. So we have uh 11:15 11 minutes, 15 seconds already uh more than one lakh customers on the commodity side. uh from a uh if 11:22 11 minutes, 22 seconds you look at from a revenue perspective we are at a 4% of our base but uh market share is still we are figuring out what 11:31 11 minutes, 31 seconds is the right way of calculating the market share because uh in uh uh equity 11:37 11 minutes, 37 seconds segment we get a premium turnover uh is available from exchanges but in case of commodities actually the premium 11:46 11 minutes, 46 seconds turnover is not yet available. So hence our market share we are not able to actually assertain uh but on a a notional basis we will be 11:55 11 minutes, 55 seconds still uh at a double digit number at least. 12:00 12 minutes Oh okay I think it's available on daily basis similarly to exchanges I think yesterday was 10,500 crores. Uh okay go 12:08 12 minutes, 8 seconds ahead. Uh and I got the answers for community and secondly uh on this AMC 12:15 12 minutes, 15 seconds strategic investor can you just you want to increase the passive number of passive products or just it's because 12:22 12 minutes, 22 seconds you want to make the global uh assets investable for the Indian user. Can you just give more clarity on where would be the focus of this 12:31 12 minutes, 31 seconds strategic and what kind of board seats would they get? 12:37 12 minutes, 37 seconds And uh what kind of employee would you be bringing in from them? Can you just elaborate some more color on that? 12:48 12 minutes, 48 seconds Yeah, sure. So uh see it's not a specific uh lot of these things are part of the strategy to scale uh I think uh 12:55 12 minutes, 55 seconds as an asset management uh company the focus is going to be to scale the AUM and also the user base. So in India 13:03 13 minutes, 3 seconds there's a lot of uh behavioral changes also happening amongst the retail investors. Uh some of the passives are becoming important or uh there there is 13:11 13 minutes, 11 seconds a interest for the global also. So all these are the these are the like products that AMC will keep on building and scaling as and when the users uh 13:20 13 minutes, 20 seconds demand. So with the partnership it gives us an advantage to have those global practices and the knowledge base which we can share and we can build on the 13:28 13 minutes, 28 seconds solutions for Indian context per se. So that's the the rational out there. Uh sorry, what was your second question? 13:36 13 minutes, 36 seconds Uh how many board seats would they get? 13:38 13 minutes, 38 seconds Uh the decision making, voting rights, whatever. Uh just some more clarity on that. 13:46 13 minutes, 46 seconds Yeah. Yeah. So some of the details I think we'll we've uploaded uh on the this thing along with the the lease. Uh the others we'll keep on sharing because 13:54 13 minutes, 54 seconds a lot of these things are also subject to the approvals from the regulators. So uh we'll have to apply to SEB with all these counters once they approve then 14:02 14 minutes, 2 seconds the final uh discussion points will uh come out from there and any such kind of more strategic initiatives in the other or business segment like wealth. 14:13 14 minutes, 13 seconds No so in in in general uh any kind of M&A we look at is uh to be able to build uh capability uh which we don't have or which will take uh longer time for us. 14:25 14 minutes, 25 seconds So today we don't have anything uh other than this that uh is going on. Okay. Thanks. Thanks a lot. 14:35 14 minutes, 35 seconds Thank you. The next question is from Pra Jen. Please accept the prompt. Introduce yourself and proceed with the question sir. 14:43 14 minutes, 43 seconds Yeah. Hi everyone. Can you am I allowed clear enough? 14:46 14 minutes, 46 seconds Yes sir. You're loud and clear. Please proceed. 14:48 14 minutes, 48 seconds Hi. Hi. uh you know just uh on the on the question on this you know uh AMC bits. So there are two parts right one 14:57 14 minutes, 57 seconds is fresh money infusion and the other is uh uh you know the stake sale by the parent entity. Now how do you plan to 15:05 15 minutes, 5 seconds utilize the the stake sale cash flow? 15:13 15 minutes, 13 seconds Yeah. So there see the the uh business right now is on a growth and a growth state and it is needing cash and we have 15:22 15 minutes, 22 seconds spent some uh investments we've already made in the last two years. So the cash that we generate will be uh requiring to 15:30 15 minutes, 30 seconds scale the business itself. So that's the that's the primary use case of that. 15:37 15 minutes, 37 seconds Um so uh uh is there any um you know because this is a pretty decent size of 15:43 15 minutes, 43 seconds money uh so you know do you looking at organic stuff as well again like we have done in the past. 15:51 15 minutes, 51 seconds So it does give us an opportunity to do that and if okay right opportunity comes we will we'll have uh enough cash within the chat 15:59 15 minutes, 59 seconds management business to be able to scale inorganically also. 16:03 16 minutes, 3 seconds Okay. Uh the other question was on the wealth management piece. uh you know I know it's early days uh but you know from an integration perspective where we 16:12 16 minutes, 12 seconds are have we kind of uh started uh reaching out to affluent c the our affluent customer base offering them we 16:20 16 minutes, 20 seconds have launched that app right uh but you know where is the integration and uh how do you think that you can scale that up 16:28 16 minutes, 28 seconds uh in the near term should we see any traction in the next quarter where are we in terms of you know in that journey 16:35 16 minutes, 35 seconds right So still uh yes so still a little early uh in the integration part because this 16:44 16 minutes, 44 seconds is a full-fledged business and we are integrating lot of these pieces uh while the app and uh some of the experiences are built but they will take time to 16:52 16 minutes, 52 seconds scale. This is a this is going to be a uh this will take some time for the integration but wealth business uh we'll keep on uh building uh on the grow 17:01 17 minutes, 1 second customers also and as well as the existing earthw business that it had. So both of these businesses will continue 17:08 17 minutes, 8 seconds uh scaling and quarteron quarter we should see uh the scale up and the growth going on from them. 17:15 17 minutes, 15 seconds Okay got that. Uh Ishan just any just ask question I Isan uh uh any impact of the uh new labor laws which is there or 17:23 17 minutes, 23 seconds which is yet to come on the P&L in any form. 17:26 17 minutes, 26 seconds So uh there is I think already uh roughly 2 and a half to 3 crores of provisioning that we have already taken for that from a gratitude perspective. 17:36 17 minutes, 36 seconds Uh and this is based on some assumptions. Obviously as more clarity comes this number might kind of change in the future as well. 17:47 17 minutes, 47 seconds Got that. Thank you. I wish you all the best. 17:51 17 minutes, 51 seconds Thank you. The next question is from Hershal. 17:55 17 minutes, 55 seconds Please accept the prompt. Introduce yourself and proceed with your question. Hi Sean. Uh I hope I'm audible. 18:03 18 minutes, 3 seconds Yes sir, please proceed. 18:04 18 minutes, 4 seconds Okay. Uh I had a few questions. one is uh the fact that when we look at the order per day in the uh equity 18:12 18 minutes, 12 seconds derivative and the stock segment both so obviously there has been sharp uptick in the sense that on derivative side I think on an active user base order per 18:21 18 minutes, 21 seconds day uh for us now is 5.4 4 million and at the same point of time on stock also it is more like 2.3 million orders per 18:29 18 minutes, 29 seconds day. Uh that number is actually uh now back to the 3Q levels which we had. uh 18:36 18 minutes, 36 seconds if you can help us throw some light that on the stock side uh do you think that 18:43 18 minutes, 43 seconds uh I think is is there any uh any any specific factors which has been driving this growth on a per day basis and how 18:52 18 minutes, 52 seconds has the trend been and the second point was that when I look at the realization on the stock side I think we were continuously seeing an improvement uh 19:01 19 minutes, 1 second some back calculation showed 18 rupees per order on stock side held by the MTF but if I look at CQ numbers that number 19:08 19 minutes, 8 seconds has taken a dip to 16 rupees per order on the stock side. If I take 20 rupees per order on derivative now if MTF book would have increased the contribution 19:16 19 minutes, 16 seconds would have increased and the realization is also higher then what am I missing in the realization figure? 19:23 19 minutes, 23 seconds Yeah. So let me take the first one. uh so uh if you look at uh in last quarter I think uh this commodities especially 19:33 19 minutes, 33 seconds gold and silver also helped in kind of bumping bumping it up and then IPOs also happened a lot of IPOs happened in the 19:41 19 minutes, 41 seconds last quarter which also helped in the order per day on the stock side. So stock will have the commodity also. I 19:48 19 minutes, 48 seconds thought that the number of stock orders will it include? No. 19:52 19 minutes, 52 seconds So this is talking about ETFs. Uh okay. 19:56 19 minutes, 56 seconds So ETFs are part of stocks uh revenue uh or stocks orders effectively because it's also a part of cash segment. 20:04 20 minutes, 4 seconds Uh and the second piece that you talked about somewhere I think uh we uh look at it offline but our estimation is that 20:12 20 minutes, 12 seconds our yield actually has improved. uh on the stock side also in this quarter. 20:19 20 minutes, 19 seconds Uh so on a blended basis I agree that 19.6 has gone to 19.9 just that if probably on the derivative orders I take 20:27 20 minutes, 27 seconds it as a 20 rupee per order then the value figure showed a 16.2 to number that that can't be possible right we if 20:36 20 minutes, 36 seconds 19.9 and unless that 1900 is 20 then that right right right right right right 20:40 20 minutes, 40 seconds right right right right right right 20:41 20 minutes, 41 seconds right right right right right right 20:49 20 minutes, 49 seconds thanks thank you the next question is from Nidh chen please accept the prompt introduce 20:55 20 minutes, 55 seconds yourself and proceed with the question thanks I'm from industry uh My question is on customer acquisition cost. Uh so 21:04 21 minutes, 4 seconds last quarter there was a increase in customer acquisition cost. This quarter there is a decline. Uh what is driving that? Uh and how do we calculate this 21:12 21 minutes, 12 seconds stack? Is it on transacting users or it is on a gross customer basis? These are the two. 21:19 21 minutes, 19 seconds Yeah. So uh see better way to look at uh CAC because ours is a very seasonal uh 21:26 21 minutes, 26 seconds uh spend. Our acquisition and marketing expense are seasonal across the year spread out and we are little opportunist in when the time is right then we spend 21:35 21 minutes, 35 seconds more and that is always worked for us to reduce and keep the CAC within the guard list as a annual basis. So the best way 21:42 21 minutes, 42 seconds to look at CAC number is on an annual basis. So last year we had some branding spends and this year uh we did not. So 21:50 21 minutes, 50 seconds you will see a difference in the CAC but at an annual basis you will see that the overall spends are very consistent from what last year to this year uh we've 21:58 21 minutes, 58 seconds spent from an absolute number point of view uh on the yeah so that's pretty much on the the 22:05 22 minutes, 5 seconds way we uh look at the acquisition uh in how do we calculate the CA what yeah 22:12 22 minutes, 12 seconds sorry yeah CA is uh s overall spins that we do for marketing across the different constants whether it's a brand or performance or content 22:20 22 minutes, 20 seconds uh that is the total cost and the new customers that we acquired on our platform. 22:25 22 minutes, 25 seconds Uh new transacting users new transacting users. So the difference between the way we do uh I mean we take 22:31 22 minutes, 31 seconds once the user has done one transaction in one of the products uh not the DMAT it is one transacting user. 22:39 22 minutes, 39 seconds Sure. Sure. Uh thank you. That's it. 22:42 22 minutes, 42 seconds Thanks m thank you. The next question is from Deepanjan Goss. Please accept the 22:51 22 minutes, 51 seconds prompt. Introduce yourself and proceed with the question. Hi uh hope I'm audible here from city. 22:58 22 minutes, 58 seconds Uh a few questions from my side. Uh first uh you know if I look at the uh quarter pointter shift in the broken 23:06 23 minutes, 6 seconds transacting users uh versus active users overall on the platform. uh I think it has fared relatively better compared to 23:14 23 minutes, 14 seconds the last maybe few quarters. So just wanted to get some sense of the activation ratios of customers you know uh customers would have probably gone a 23:22 23 minutes, 22 seconds little soft over the past few quarters or months have you what sort of activation levels or reactivation levels are you seeing amongst those existing customers? Uh that's the first question. 23:34 23 minutes, 34 seconds Uh second in terms of your uh product distribution and wealth journey um you know you you'll probably launch a few more products or kind of integrate the 23:42 23 minutes, 42 seconds products that system already has uh what would be the top two or three products that you would want to monetize let's say apart from the existing ones over the next let's say two to three 23:51 23 minutes, 51 seconds years and any plans to monetize the mutual fund uh you know active customer base or captive customer base that you 23:58 23 minutes, 58 seconds have. Uh so those were the two questions uh two data keeping questions. Uh one if you could provide the employee data as 24:06 24 minutes, 6 seconds of uh December uh end uh and second uh this is a followup to one of the previous participants question uh are 24:13 24 minutes, 13 seconds you including the broking revenue from system uh under your broking revenue head from a classification perspective. 24:24 24 minutes, 24 seconds Too many questions. Uh uh dependent I think let I remember the last ones. I'll start with the last ones first. Uh this 24:32 24 minutes, 32 seconds uh broking revenue from wisdom as of now is part of wisdom only. So we haven't clubbed yet uh when we are showing the split. Uh that will probably once the 24:41 24 minutes, 41 seconds integration is done we'll be able to probably do that. Uh second uh on the employee I think we have to get back. I 24:48 24 minutes, 48 seconds think it's not top of our mind. uh on the other thing like you talked about the activation I think one way to look 24:54 24 minutes, 54 seconds at is the uh broking transacting user number that we published and if you look at divided by the active users that we 25:03 25 minutes, 3 seconds published you will see there is upread that so roughly this number was more closer to 60% earlier now it's closer to 25:10 25 minutes, 10 seconds like 67 68% now uh and that is primarily because last quarter uh we talked about 25:17 25 minutes, 17 seconds like uh gold silver was doing Well, so some of the customers got activated because of that. Some of the customers got activated, reactivated like you 25:25 25 minutes, 25 seconds said, right? Because of the IPOs and stuff as well. Uh and then uh there is a acquisition also uh that we uh 25:33 25 minutes, 33 seconds acquisition of users which was significant in this quarter compared to the last quarter that also kind of contributed to that ratio to be slightly 25:41 25 minutes, 41 seconds better uh compared to the earlier quarters. 25:46 25 minutes, 46 seconds And uh I can uh give the employee uh data. So previous quarter we had 14 uh 25:54 25 minutes, 54 seconds 50 approximate employees. Uh this quarter end we are 1350. So we've reduced the it by 100. This doesn't include the employees on the fisdom 26:02 26 minutes, 2 seconds which is just uh October onwards is when uh the consolidation has happened. 26:09 26 minutes, 9 seconds Got it. if you could uh just spell out the uh product road map for the wealth strategy and maybe one or two products that you would like to kind of monetize 26:17 26 minutes, 17 seconds over the next two to three years bearing what exists. 26:26 26 minutes, 26 seconds Yeah. So uh under the wealth umbrella there are a lot of products uh so there is a mutual fund uh regular plan itself 26:35 26 minutes, 35 seconds that they already have uh good aum which is a monetized mutual fund uh which is already existing uh and then there are 26:43 26 minutes, 43 seconds PMS AI if uh there are distribution of uh some private uh unlisted products and 26:50 26 minutes, 50 seconds also insurance. So the early days traction is a lot more on the mutual fund side and the AIF and PMS but there 26:57 26 minutes, 57 seconds are also other products that will keep on uh coming up as per the needs and we'll continue scaling these product ranges based on the user and based on 27:05 27 minutes, 5 seconds every investors have a different preference. Got it. Uh thanks and all the best. Thank you. 27:14 27 minutes, 14 seconds Thank you. The next question is from Gorov Single. Please accept the prompt. 27:19 27 minutes, 19 seconds introduce yourself and proceed with your question. 27:23 27 minutes, 23 seconds Um, hi. Uh, thanks for taking my question from I'm sorry, sir. Your audio is muffled. 27:33 27 minutes, 33 seconds Uh, can you use Yeah, your audio is not clear, sir. Uh, hi. Can you hear me? 27:40 27 minutes, 40 seconds Yes, please proceed. 27:42 27 minutes, 42 seconds Yeah, just a couple of questions. So one is um uh since there's a lot of focus on uh retail losses uh has there been any 27:52 27 minutes, 52 seconds change uh over the last one year uh in terms of retail offes on our platform 28:00 28 minutes that we have seen because in couple of talks given by KB chairman I think they 28:06 28 minutes, 6 seconds did mention they'll look at how the previous measures have impacted retail losses and the ratio of derivative cash 28:14 28 minutes, 14 seconds and then decide if anything else is needed. So on our platform have we seen any change in uh retail losses on 28:23 28 minutes, 23 seconds derivative? That's my first question and second is I was looking at a bit margin on a life like for like business excluding system that has expanded quite 28:31 28 minutes, 31 seconds a bit like 60% plus now so just stylistically when we have to think of 28:38 28 minutes, 38 seconds opex growth can you share like what is how much of a cost is variable versus 10 roughly how much should the fixed cost 28:46 28 minutes, 46 seconds grow over a two threeear time frame just to try to understand the margin progression better. Thank you. 28:54 28 minutes, 54 seconds Got it. So let me take these questions. 28:56 28 minutes, 56 seconds Uh I'll take the second one first. Uh the Aida margin if you look at it is expanding because the revenue has grown 29:03 29 minutes, 3 seconds significantly and our variable cost uh is roughly like uh 10 or the 10% is 29:10 29 minutes, 10 seconds roughly the variable cost. Rest all is more on the fixed nature and that two uh the growth is primarily comes either 29:18 29 minutes, 18 seconds through appraisals which is we people is the largest piece in that and appraisals and then second is inflation basically 29:26 29 minutes, 26 seconds uh because on the marketing side that kind of increases that cost. So both of these costs basically you can say will 29:33 29 minutes, 33 seconds grow roughly 10 to 20%. Uh if revenue grows faster we'll be able to deliver higher aida in the future as well. Uh 29:42 29 minutes, 42 seconds second uh on the uh the customer losses side. So the way to look at is it's as a 29:50 29 minutes, 50 seconds user on grow as a is actually buying multiple products. So it's a platform where actually customer is investing in mutual fund stocks or some of them are 29:59 29 minutes, 59 seconds doing derivatives as well. But when we look at the user as a whole we see majority or when I say majority like 80 30:06 30 minutes, 6 seconds 90% of them actually make profits. uh there are uh very few customers who make losses. Uh and derivatives as a like a 30:16 30 minutes, 16 seconds derivative only customers are probably very similar comp as industry where probably uh similar ratios as what uh 30:25 30 minutes, 25 seconds sevi is also publishing in terms of losses. Uh but that number is like less than.3% today. uh and that is uh uh 30:34 30 minutes, 34 seconds probably will even lower in the future uh because customer keeps on uh adding more and more products in their portfolio. 30:46 30 minutes, 46 seconds Thank you. Maybe one more question if I may. I understand we have several new products that we want to monetize. So 30:53 30 minutes, 53 seconds our hands seem very full in the next two three years. Um but u maybe a little bit more medium-term there are a lot of 31:01 31 minutes, 1 second these like uh products that exist outside India which are not uh in India like payment for order flow crypto 31:09 31 minutes, 9 seconds prediction market securities lending uh if if you look at like global broker edge companies. So over medium terms like u of course like next two three 31:17 31 minutes, 17 seconds years I understand we have our hands full but what can be done what cannot be done over medium term when we confer 31:25 31 minutes, 25 seconds just over let's say five years so I think uh all the products that you just talked about are not really legal 31:33 31 minutes, 33 seconds or not in the regulated space uh as of now uh and hence we have taken a conscious call not to do all of these 31:41 31 minutes, 41 seconds products with the exception of SLVM which we think is currently in a very nent stage. Once SLBM becomes slightly 31:50 31 minutes, 50 seconds more uh uh kind of baked in as a product probably we'll start looking at SLBM as one of those uh options that you kind of 31:57 31 minutes, 57 seconds highlighted and rest I think will depend on when 32:04 32 minutes, 4 seconds regulator kind of take a call on regulating them post that only we will probably launch it on grow. 32:12 32 minutes, 12 seconds Thank you for my question. 32:18 32 minutes, 18 seconds Thank you. The next question is from Abhishit Sakar. 32:22 32 minutes, 22 seconds Please accept the prompt. Introduce yourself and proceed with your question. 32:27 32 minutes, 27 seconds Hey. Hi, this is Abhijit from KCH. Uh I hope I'm audible. Uh my first question you know ties in with Goro's one of question one of the questions on AITA. 32:36 32 minutes, 36 seconds Now I'm thinking you know how to think about uh a bita margin progression given that most of the incremental uh revenue 32:43 32 minutes, 43 seconds growth seems to be coming from you know cross-selling products to the existing customers right and given that you know 32:50 32 minutes, 50 seconds one of the largest cost is u cost to grow and that starts to slow down right on the expanded revenue base. So is is 32:58 32 minutes, 58 seconds there like an AITA margin beyond which you would want to be more aggressive uh in marketing or towards some other initiators? 33:07 33 minutes, 7 seconds So again we don't look at aida as a like a metric that we want to drive. This is more of an output. The way we look at is 33:16 33 minutes, 16 seconds basically that if marketing is giving us enough like a LTV from the customer then 33:23 33 minutes, 23 seconds uh with a kind of a reasonable CA we will probably start spending more but when if you look at in last like uh 12 33:32 33 minutes, 32 seconds to 18 months market hasn't been that great and hence the new acquisition in the industry level has actually slowed down. So this is not a good time to 33:41 33 minutes, 41 seconds actually invest more but this is a good time to actually probably do more optimizations and focus more on uh 33:49 33 minutes, 49 seconds cross-ell or like you said but idea is to kind of again launch more products get more more and more customers and 33:56 33 minutes, 56 seconds having those customers having multiple products on the platform so that over a period of time you build a relationship with the customer and they become like 34:05 34 minutes, 5 seconds captive to you. uh the acquisition will always be happening but it will depend more on the market less on our aid. 34:15 34 minutes, 15 seconds Got it. And uh one more sort of a number question is that uh you know we don't get to see uh like what's the 34:23 34 minutes, 23 seconds dematitions at a broker level but uh would you have any idea you know what would be your current market share in terms of gross uh demat editions? 34:33 34 minutes, 33 seconds So uh so we don't actually uh focus on the DMAT number because according to us 34:40 34 minutes, 40 seconds that is like a vanity metric. We feel uh looking at NTU number and NSE publishes 34:47 34 minutes, 47 seconds ATU numbers also which are also a good uh way to kind of measure uh publicly uh publicly available data. That's how the new users are actually getting added. 35:02 35 minutes, 2 seconds Got it. Uh that's all I had. Thank you so much. 35:08 35 minutes, 8 seconds Thank you. The next question is from Pranut Sha. Please exit the prompt. 35:12 35 minutes, 12 seconds Introduce yourself and proceed with the question. 35:16 35 minutes, 16 seconds Hey, I hope I'm audible. Uh thanks for taking my question. Uh so just a couple of questions over here. One is on like you seen a very significant rise on the 35:25 35 minutes, 25 seconds premium ADA on the FNO segment uh per active user. So could you give us some color on which cohort of customers 35:33 35 minutes, 33 seconds when were these acquired who were contributing to such a massive rise in your PMAT per customer and the second 35:40 35 minutes, 40 seconds question is on your 915 platform uh could you give us some sense on what is the contribution to act active users and order flow from coming from this 35:48 35 minutes, 48 seconds platform and how much is the per transacting user order flow higher on this platform versus your mobile app. 35:58 35 minutes, 58 seconds Got it. So I think uh the first one is easier. So basically if you look at it what happened during uh uh after the 36:05 36 minutes, 5 seconds regulations lot of the customers who were doing smaller transactions actually stopped doing those transaction because 36:13 36 minutes, 13 seconds number of expiries reduced the ticket size also went up because the lot size went up and hence uh you look at what 36:21 36 minutes, 21 seconds happened was the only the customers who were doing larger transaction larger turnover or more number of transaction actually stayed on the platform And this 36:31 36 minutes, 31 seconds we have seen across the bucket. So if you do uh like I think nse provides this data where you they talk about customers 36:38 36 minutes, 38 seconds actually doing a turnover of less than 10,000 10,000 to one lakh and so on. In that what we have seen is the top cohort 36:47 36 minutes, 47 seconds which is where customer is doing let's say more than 10 lakh to 1 cr or more than 1 cr. So actually 10 lakh is the 36:54 36 minutes, 54 seconds number that we look at more than 10 lakh customers actually has significantly increased in terms of absolute amount 37:01 37 minutes, 1 second also versus the customers who were actually doing less than 10 lakh of turnover actually reduced. So but the obviously the absolute quantum below 10 37:10 37 minutes, 10 seconds lakh per more so the absolute number still looks lower but uh the cohort which was doing larger transaction actually increased. 37:19 37 minutes, 19 seconds So I Isan just one followup over here like I meant on when were these cohorts acquired. So there's 1.45 million active customers like are any of these ones who 37:28 37 minutes, 28 seconds came into like what propos and beyond earlier? So you so we don't have a like a number for it but it is a 37:36 37 minutes, 36 seconds good mix of you can say the new as well as the older customers because uh some 37:43 37 minutes, 43 seconds of the we already had like more almost 2 million customers who were active on uh FTO site today we have 1.47 47 large 37:53 37 minutes, 53 seconds part of that is actually existing customers. There is a roughly you can say probably 20% of them would have been acquired in the last year or or so. 38:05 38 minutes, 5 seconds Okay. And 80% would be 2024 and earlier 2024 and earlier. Correct. 38:12 38 minutes, 12 seconds Got and the second one on the 915 platform. Uh so 915 is as of now in a very early 38:20 38 minutes, 20 seconds stage. So we have very limited set of users and there is a like a cross also. 38:25 38 minutes, 25 seconds So a lot of people who use 915 also use grow. So there is a it's very difficult for us to attribute at this scale what is the delta that is getting created. 38:35 38 minutes, 35 seconds But I think with uh next quarter we'll have more data and we'll come back to you on this. Understood. Thanks. 38:47 38 minutes, 47 seconds Thank you. The next question is from Rahul Manut. Please accept the prompt, introduce yourself and proceed with your question. 38:55 38 minutes, 55 seconds Uh hi, Ian. Yes sir, please proceed. 38:59 38 minutes, 59 seconds Yeah. Uh congratulations team for the amazing sets of numbers. Uh I am Rahul Manu. So I have one question regarding the AMC business. So we have recently 39:08 39 minutes, 8 seconds like today we have mentioned that we have uh got the funding from stage three. So my question is regarding uh this only that how we plan to utilize 39:17 39 minutes, 17 seconds this and what is the long-term ambition where the current uh the product mix is majorly broking and very like uh 39:25 39 minutes, 25 seconds minuscule for AMC. So how does the management plan to utilize this and what is the long-term ambition of the AMC business like where do we look uh towards it? How do we look towards it? 39:38 39 minutes, 38 seconds Yeah. Uh yeah thanks R for the question. 39:40 39 minutes, 40 seconds we we had like couple of questions we answered on the the same uh transaction 39:46 39 minutes, 46 seconds but uh just briefly uh I'll repeat sin things uh see um the asset management is 39:54 39 minutes, 54 seconds a small business today for us while we see the opportunity in India is pretty huge and it'll take a lot of investments to be able to build that and scale there 40:03 40 minutes, 3 seconds so that's the you know part of the proceeds going to be useful for that and also if there is some inorganic opportunity that comes uh it's the right 40:11 40 minutes, 11 seconds time we'll be able to use some of the funds. From a ambition point of view of course you know uh we we have the ambition to make it make the asset 40:19 40 minutes, 19 seconds management business also really big and to be able to have a significant impact in the overall industry. So with the 40:26 40 minutes, 26 seconds partnership also gives us some global uh best practices, knowledge, access to different products and tools and we'll 40:34 40 minutes, 34 seconds be able to utilize few of them to be able to build what we uh set our asset management for. 40:41 40 minutes, 41 seconds Got it. Got it. Uh so one last question does management also plan to invest here like um in terms of like we have raised 40:48 40 minutes, 48 seconds it from the stage sheet but do we also plan to invest additionally in this business? 40:56 40 minutes, 56 seconds So uh the uh no we continue we have been investing as a like from a parent company to the asset management. Now 41:04 41 minutes, 4 seconds this the the cash which is coming in is coming through primary and secondary. Uh we we are also doing primary from uh our parent company in the asset management. 41:13 41 minutes, 13 seconds Then the transaction proposed transaction once upon approval from the regulators uh will uh have primary secondary will leave uh enough capital 41:22 41 minutes, 22 seconds in the AMC for it to grow and scale and in future if required then obviously uh the parent company will uh invest more. 41:32 41 minutes, 32 seconds Got it. Got it. Thank you so much. Thanks. 41:37 41 minutes, 37 seconds Thank you. The next question is from Gorav Jen. Please accept the prompt. 41:42 41 minutes, 42 seconds introduce yourself and proceed with your question. 41:46 41 minutes, 46 seconds Uh hi this is Goro from ICA Predential Mutual Fund. Just one question from my side. We understand there is this uh 15% 41:54 41 minutes, 54 seconds open interest limit that a single broker can hold in an exchange. If you can help us understand what is that limit for us 42:01 42 minutes, 1 second on BSE and NEC and how should we be thinking about the same? 42:06 42 minutes, 6 seconds So this limit is actually same for everyone. uh but we are not hitting this limit uh in the last quarter we haven't 42:14 42 minutes, 14 seconds hit this limit uh and we see that there is a significant gap still uh because this limit is not applicable at a 42:22 42 minutes, 22 seconds aggregate so this is applicable at a uh like a uh in time basis at a contract level 42:29 42 minutes, 29 seconds and uh uh on nifty and on sens where large part of the volumes uh happens uh 42:36 42 minutes, 36 seconds we haven't yet hit that limit in the last quarter. So the limit is exchange wise, right? 42:45 42 minutes, 45 seconds And not specific contract or specific uh indices, right? 42:51 42 minutes, 51 seconds No, no, it is at a contract level because open interest is the contract. 42:59 42 minutes, 59 seconds Got it. And and how far would we be if you can help us understand? I think we'll be probably half of it. 43:07 43 minutes, 7 seconds Okay. Okay. Thanks. That's all. 43:12 43 minutes, 12 seconds Thank you. The next question is from Madhur Sharma. Please accept the prompt, introduce yourself and proceed with your question. 43:21 43 minutes, 21 seconds Uh hi, this is Madur from Buffer Securities. So um I just wanted to understand how are you thinking about uh 43:29 43 minutes, 29 seconds MTF? I mean uh this quartet has grown quite well and is already contributing 6% to total revenue. So um for next one 43:38 43 minutes, 38 seconds two years uh how do you think it can further grow? I mean how much contribution can come from this product? 43:46 43 minutes, 46 seconds So uh the way I think historically it has grown is roughly 600 crores we are adding almost every quarter. Uh I think 43:55 43 minutes, 55 seconds this momentum is continuing uh from lastuh three quarters and I think we see that momentum to continue in the future as well. 44:03 44 minutes, 3 seconds uh this depends a lot on uh volatility specific to some of the stocks which are there in MTF approved list. So if any 44:12 44 minutes, 12 seconds stocks move significantly uh upwards this actually uh increases the kind of 44:19 44 minutes, 19 seconds book for that particular stock. So we if the the similar market continues I think we will probably be doing a similar 44:27 44 minutes, 27 seconds number but if the market kind of becomes uh uh even started growing faster 44:34 44 minutes, 34 seconds probably or more broader base probably we might have a growth which is faster as well. So because the growth in last 44:41 44 minutes, 41 seconds one year is primarily in small some pockets not like broad-based that we have saw like couple of years ago. So if 44:49 44 minutes, 49 seconds broad-based kind of rally comes probably it can grow even faster. Understood. Understood. Thank you. 45:00 45 minutes Thank you. Ladies and gentlemen, please note that we'll be taking few questions more. The next question is from Shwa 45:08 45 minutes, 8 seconds Sharma. Please accept the prompt, introduce yourself and proceed with the question. 45:14 45 minutes, 14 seconds Um sir hope I'm audible. Yes ma'am please proceed. 45:20 45 minutes, 20 seconds Yeah. So sir my first question is what are the plans for business diversification going forward and 45:27 45 minutes, 27 seconds whether the current growth trajectory is sustainable and also what level of impact is expected from increasing competition. 45:39 45 minutes, 39 seconds So the way to look at uh uh the diversification piece is that all the new businesses are growing faster than 45:46 45 minutes, 46 seconds the existing business and hence the diversification will keep on happening till there is a faster growth for the new businesses and we see that our 45:54 45 minutes, 54 seconds market share in all the new businesses is very nent today and as we gain market share their contribution to revenue will 46:01 46 minutes, 1 second also keeps on growing. The second piece on the growth level is I think there is a two part of the growth. One is gaining market share and the second is the 46:10 46 minutes, 10 seconds growth of the market itself. And the third piece actually is us launching more products. So I think we can control 46:17 46 minutes, 17 seconds two of them uh in some ways. Uh but market is what uh will define how the 46:24 46 minutes, 24 seconds overall growth happens. But uh like you said I think market share is where we are talking about the competition and we've been able to gain market share 46:32 46 minutes, 32 seconds across all matrices uh in uh last quarter as well as earlier as since I think probably last few years and we 46:42 46 minutes, 42 seconds think it can continue in the future as well. uh we don't see any uh any like 46:49 46 minutes, 49 seconds there is lot of competition already there but there is no significant change that is happening in competition as such that will warrant any kind of reaction 46:59 46 minutes, 59 seconds and the uh I think that answers your competition question also hopefully okay so as we see the competition and uh 47:08 47 minutes, 8 seconds HT HFT and FNO segment is intensifying so how do you plan to differentiate your 47:15 47 minutes, 15 seconds tech infrastructure to ensure zero latency and high reliability for pro traders. 47:25 47 minutes, 25 seconds Do you want to take this? 47:26 47 minutes, 26 seconds Yes. So we are not into I think you talked about HFT. We are not into HFT and all. uh uh as of today uh the speed 47:35 47 minutes, 35 seconds that customers are expecting we are meeting those expectations and uh since none of our customers are into HFT or 47:42 47 minutes, 42 seconds MFT space I I I think that is not required towards reliability side I think that's a very good question 47:50 47 minutes, 50 seconds because a large part of our bandwidth goes into making sure that we empower our customer in all situations even if 47:57 47 minutes, 57 seconds there's a you know uh some tech bridge and so for which we have launched Grow light using which uh all our customers 48:05 48 minutes, 5 seconds can as the name suggests it's a very lighter version of grow. You can't do many other things but you can see your positions and you can square them off. 48:14 48 minutes, 14 seconds So if markets are going not in your favor you are free to uh take actions from there. So this empowers them even 48:21 48 minutes, 21 seconds in those situations. So these are the things we uh we did in this quarter. 48:28 48 minutes, 28 seconds Okay. Okay. Got it. Thank you so much sir. That's all from my side. Yeah. 48:31 48 minutes, 31 seconds Thank you ladies and gentlemen. This will be the last question for today from Sichu 48:38 48 minutes, 38 seconds Phillip. Please accept the prompt, introduce yourself and proceed with the question. 48:45 48 minutes, 45 seconds Hello. Uh am I audible? Yes ma'am. 48:48 48 minutes, 48 seconds Please proceed. Uh yeah. So um I just uh wanted to know uh what are the broader 48:55 48 minutes, 55 seconds you know plans on the wealth management space. As you said these are still early stages but just uh uh you know just a 49:03 49 minutes, 3 seconds broader aspect how you plan to grow the business. 49:10 49 minutes, 10 seconds Uh yeah I'll uh take that. So um see we discussed last time also there are a lot of customers on our own platform who 49:17 49 minutes, 17 seconds have become affluent and they need these products. So our uh goal on that front is to give them access to both the 49:24 49 minutes, 24 seconds products which are for the uh HNIS and also the service like a wealth management and an advisory service. So this uh will continue uh like once we 49:33 49 minutes, 33 seconds start uh building the journey and scaling it up uh on the existing business itself. We see a lot of growth potential which will built by giving uh 49:42 49 minutes, 42 seconds very uh powerful technology and products which can be used by the well partners and also by the SNI customers to track 49:49 49 minutes, 49 seconds and to kind of consume and the advisory and the wealth products will be distributed through these two experiences 49:57 49 minutes, 57 seconds right so um at what stage are we now as in when do we expect this revenues to 50:04 50 minutes, 4 seconds come in from which year or from which quarter just So yeah so already uh the existing uh 50:12 50 minutes, 12 seconds business that we acquired is uh revenue is generating there are a lot of customers which are existing on them. So this will once the integration is uh 50:20 50 minutes, 20 seconds like little ahead in uh terms of building the right experience for the grow customers as well as uh building the right technology and the right 50:29 50 minutes, 29 seconds products for the existing customers and the existing channels of growth. we'll start seeing the uh growth faster than 50:36 50 minutes, 36 seconds what it is organically. Uh there is still some time once it's meaningful in terms of overall uh contribution on the 50:43 50 minutes, 43 seconds grow uh PNL we'll start separating and sharing the details about it. 50:50 50 minutes, 50 seconds Okay, thank you so much. 50:54 50 minutes, 54 seconds As that was the last question for today, I now hand the conference over to Mr. Kunal Rat Singh for closing comments. Thank you and over to you sir. 51:03 51 minutes, 3 seconds Thank you Michelle. Uh appreciate everyone for joining the call today and for any further questions or clarifications uh please uh feel free to reach out to us. Thank you so much. 51:15 51 minutes, 15 seconds Thank you members of the management. On behalf of Grow that concludes this conference. Thank you for joining us and you may now exit the meeting. Thank you.