Canara Robeco Asset Management Company Ltd — Q4 FY26

Canara Robeco Asset Management Company Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=woK7oIy7QRk Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good morning and welcome to the Q4 and full year 2026 earnings conference call of Caner Robico 0:09 9 seconds Asset Management Company. As a reminder, all participant lines will remain in the listenon mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the 0:24 24 seconds operator by pressing star then zero on your touchtone telephone. 0:29 29 seconds Please note that this conference is being recorded. 0:33 33 seconds I will now hand the conference over to Mr. Arun Prakash from Ad Factors PR for opening comments. Thank you and over to you Aron. 0:41 41 seconds Yeah, thank you. Uh good morning to all participants who have joined the call. A very warm welcome to our Q4 and full year 2026 earnings conference call. To 0:50 50 seconds guide us through the results today, we have the senior management team of Canada Robeco Asset Management Company Limited led by Mr. Reparula 0:58 58 seconds uh MD and CEO, Mr. Ashwin Purohit the CFO, Mr. Mr. Atit Kurakia, head of corporate development and MIS and Mr. 1:07 1 minute, 7 seconds Golov Goyel head of sales and marketing. 1:10 1 minute, 10 seconds Before we begin, I would like to state that some of the statements made in today's discussion may be forward-looking in nature. The actual results may vary as they are dependent 1:18 1 minute, 18 seconds on several external factors. With that stated, I would now like to hand over to Mr. Rajnish to share his opening remarks. Thank you and over to you sir. 1:28 1 minute, 28 seconds Well, thank you. Uh good morning to everybody. Uh thank you for joining this call today. Uh we trust you've reviewed our results and presentation. I will 1:36 1 minute, 36 seconds begin with a brief perspective on the broader industry environment followed by key trends in the Indian mutual fund landscape and then cover our performance 1:43 1 minute, 43 seconds for the quarter. Uh on the industry side, the quarter was characterized by elevated volatility across global and 1:52 1 minute, 52 seconds domestic markets largely influenced by geopolitical developments and macro uncertainties. 1:58 1 minute, 58 seconds Benchmark indices declined meaningfully during this quarter with Nifty correcting approximately 15% during this period. Broader markets particularly mid 2:07 2 minutes, 7 seconds and small caps also witnessed meaningful corrections. Despite this, the mutual industry continued to show relative 2:14 2 minutes, 14 seconds resilience supported by strong domestic participation and structural flows. 2:20 2 minutes, 20 seconds In terms of industry, AU and growth trends, uh the industry quarterly average AUM stood at approximately 81.5 2:27 2 minutes, 27 seconds lakh cr for Q4 FY26 affecting approximately 21% year-on-year growth. 2:34 2 minutes, 34 seconds Those sequential growth remained muted at approximately 0.7% due to macro uncertainties. 2:41 2 minutes, 41 seconds In terms of flows and SIP momentum, one of the most encouraging trends continues to be the consistency of flows through SIPs. SIP contributions remain robust 2:49 2 minutes, 49 seconds with monthly inflows crossing 32,000 crores for the industry in March 2026, which is an all-time high. Zip AUM 2:56 2 minutes, 56 seconds crossed rupees 15.1 lakh cr as of March 2026 comp contributing approximately 20% of the total mutual fund assets. 3:07 3 minutes, 7 seconds This highlights the discipline and stickiness of the retail flows even during volatile market conditions. 3:13 3 minutes, 13 seconds In terms of the overall industry and despite near-term volatility impacting markettomarket valuations, the industry 3:21 3 minutes, 21 seconds continues to exhibit strong structural flows, continued retail participation, diversification across asset classes, 3:29 3 minutes, 29 seconds improving geographical penetration, expanding investor base. 3:35 3 minutes, 35 seconds Overall, the industry is becoming more resilient and structurally stronger over time. Coming to the company uh CR AMC 3:43 3 minutes, 43 seconds key operational highlights as of March 31st 2026 our closing AUM stands at approximately 3:49 3 minutes, 49 seconds 1.07 lakh crores up by almost 3.2% yearonear supported by a base of over 50.8 lakh investor folios across India. 3:58 3 minutes, 58 seconds Our quarterly average volume also grew 154% year-onear to close approximately at rupees 1.17 lakh cr a testament to 4:07 4 minutes, 7 seconds our disciplined investment philosophy and enduring trust of our investors. Our growth has been wellrounded driven by a 4:14 4 minutes, 14 seconds healthy equity to tech mix of approximately 91 to 9% 4:22 4 minutes, 22 seconds individual investors centric investor base contributing approximately 86% and institutional investors 14% of our assets. 4:31 4 minutes, 31 seconds Progress has also been fueled by a robust and growing distribution ecosystem [clears throat] of over 56,000 empanel and partners and we've grown our 4:39 4 minutes, 39 seconds branches to 29 branches from 23 of last year. This growth has been further supported by the increasing adoption of 4:46 4 minutes, 46 seconds our digital platforms enabling seamless investor engagement across geographies while also driving operational efficiencies and scalability. 4:55 4 minutes, 55 seconds In terms of financial highlights, coming through our financial performance, FY26 and six, our continued focus on sustainable and profitable growth in 5:03 5 minutes, 3 seconds FY26, our revenue from operations stood at 424.9 cr as compared to 364.5 cr in 5:09 5 minutes, 9 seconds FY25, representing a 17% year-on-year growth. In FY26, total income stood at 5:17 5 minutes, 17 seconds rupees 454.6 6 cr compared to 43 cr in FY25 representing a growth of 13% 5:24 5 minutes, 24 seconds year-onear profit after tax for FY26 stood at 203.8 cr compared to 190.7 in 5:32 5 minutes, 32 seconds the previous year marking a robust 7% year-on-year growth. Uh with this uh I was I will actually open the floor for questions. Thank you. 5:44 5 minutes, 44 seconds Thank you ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 5:53 5 minutes, 53 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 6:01 6 minutes, 1 second are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 6:13 6 minutes, 13 seconds Ladies and gentlemen, a reminder if you wish to ask a question, please press star and one. 6:22 6 minutes, 22 seconds We take the first question from the line of Nlesh Dshi from Prospero Tree. Please go ahead. 6:30 6 minutes, 30 seconds Uh good morning sir. Thank you for the opportunity. Uh sir uh there are around 6:35 6 minutes, 35 seconds 52 MC. So what exactly we are doing? uh what other AMC are not doing to differentiate our business and to 6:44 6 minutes, 44 seconds attract the more investor and to grow our AUM. 6:51 6 minutes, 51 seconds Thank you very much actually it's a good question uh one of the things about this industry is 6:58 6 minutes, 58 seconds that the regulator expects you to have the same kind of product. So if you look at product categorization, it ensures 7:06 7 minutes, 6 seconds that every AMC has to have similar products so that the investor can actually choose which is a better 7:13 7 minutes, 13 seconds product for them and the way investors choose better products is consistency and return and performance and trust 7:21 7 minutes, 21 seconds that they have in the AMC. So to me uh it's a relatively a simple business. You got to keep it simple. You can introduce 7:29 7 minutes, 29 seconds products but within the product framework that the regulator has but you need to deliver performance over time. 7:34 7 minutes, 34 seconds Uh so to me that is going to be the key going forward. You can always bring in new innovative products but it can always be copied by the industry. So you got to understand that ours is a 7:43 7 minutes, 43 seconds commoditized business in more ways than one and the true differentiator will be the trust you're able to build with your investors and performance over time. 7:52 7 minutes, 52 seconds So so our performance will be the differentiate factor from other AMC. Is it correct performance and the way you service your 8:00 8 minutes clients both investors as well as distributors but now there are such 52 MC which provide the same commodity type business 8:09 8 minutes, 9 seconds everybody every every mutual fund has the flexi fund equity oriented large cap midcap small cap hybrid so can we launch 8:18 8 minutes, 18 seconds some scheme where the we can attract the more NR and more funds like the some mutual some AMC like the motil 8:27 8 minutes, 27 seconds has launched the NASDAQ contract or S&P 500 which provide the Indian citizen to invest in the foreign market. Same way 8:34 8 minutes, 34 seconds can we launch the some scheme where the NRI or foreign investor can invest through Canada. 8:42 8 minutes, 42 seconds Well, there are options that are available. uh while other AMC's may choose different product strategies to grow their business uh we will choose 8:51 8 minutes, 51 seconds strategies that we think best fit our risk profile as well as the interest of our investors. Yes, it is a possibility for us to do. So it's an aspect that we 8:59 8 minutes, 59 seconds keep looking at and it's something that we will continue to look at going forward as well. 9:04 9 minutes, 4 seconds So another thing see our our most of the schemes are equity oriented and the large aum from the equity portion. So 9:12 9 minutes, 12 seconds should we not launch some some even even in the equity basket some index fund or ETF or some in the la last year there 9:21 9 minutes, 21 seconds was the gold ETF and silver ETF has outperform for the main mutual fund can we launch do you think some scheme must 9:28 9 minutes, 28 seconds be available lets the investor participate through Canada Robocco also that's again a good question u you know 9:37 9 minutes, 37 seconds these are cyclical you know uh products um you you would realize that 9:44 9 minutes, 44 seconds commodities typ typically follow a cycle. They're not all weather uh outperformers. We like to be in a category which can be which can 9:52 9 minutes, 52 seconds outperform over a longer period of time and not be very cyclical. So yes, there are opportunities to look at index funds. There are opportunities to look 10:01 10 minutes, 1 second at commodity funds. uh but right now we are focused on the main aspect which is the mutual fund and and the kind of uh 10:08 10 minutes, 8 seconds spaces that we have uh to bring in some new products and new innovations there. 10:13 10 minutes, 13 seconds So we will focus on the mutual fund space. The other is about being an active fund manager versus a passive fund manager. Currently we on the active 10:21 10 minutes, 21 seconds space. Index funds tend to be part of the passive space. We currently are on the active space. It doesn't mean that we will not do passives in the future 10:30 10 minutes, 30 seconds but currently we are focused on the active space. 10:33 10 minutes, 33 seconds And sir my last question so I understand that the last year was not good for the Indian equity market and so um the 10:40 10 minutes, 40 seconds growth may be lower but is ourum bit the industryum growth rate or we are below the industry growth rate. 10:50 10 minutes, 50 seconds Well ours is an equity focused fundhouse. So 91% of our funds are equity oriented. Uh in periods where 10:58 10 minutes, 58 seconds markets actually have a negative return, we will we will slightly underperform. 11:03 11 minutes, 3 seconds But periods when markets do well, we will do very well as compared to the industry. That's the nature of our AUM. 11:09 11 minutes, 9 seconds It's it's it's actually designed that way because we certainly believe that seven out of 10 years equity will outperform every other asset class. 11:15 11 minutes, 15 seconds That's the basic principle on which this asset allocation has been designed. Thank you. Thanks. Thank you sir. 11:23 11 minutes, 23 seconds Thank you. 11:25 11 minutes, 25 seconds Thank you. We take the next question from the line of Lat Moan there from Aquarius Securities. Please go ahead. 11:33 11 minutes, 33 seconds Yeah. Hi sir, good morning. So just two three questions. Uh so first you on the revenue side like this quarter we have seen that our revenue yields have 11:40 11 minutes, 40 seconds improved to like 39 basis points as compared to 35.5. Um like what were the reasons for the same and also could you 11:47 11 minutes, 47 seconds provide uh segment wise also? Uh second question would be like like post this uh uh April uh TE change from April onwards 11:56 11 minutes, 56 seconds like what like how much of an impact are we seeing in our books and um and is it a positive impact also because of the 12:04 12 minutes, 4 seconds TER change and last bit is on the expenses side. So like we have seen like the employee expenses have normalized to 12:10 12 minutes, 10 seconds around 23 24 K. Uh so should we take this as a quarterly run rate from here on or like um how should we think about this number? 12:18 12 minutes, 18 seconds Yep. Thank you. 12:19 12 minutes, 19 seconds Okay, I'll take the first part of the question which is with respect to the yield. Uh so actually uh you're right that this quarter we saw an increase 12:28 12 minutes, 28 seconds while we are also still investigating the reasons for it but our um uh we believe that it is likely because of 12:35 12 minutes, 35 seconds expensive assets going out of the system and uh the replaced by uh cheaper assets. So that's one of the reasons uh in terms of the split uh for the 12:44 12 minutes, 44 seconds financial year FI26 uh equity aum contributed yield was about 37 pips uh 12:51 12 minutes, 51 seconds fixed income was about 30 bips uh liquid was about 3 pips and then on overall basis we were at about 35 pips. Uh 13:00 13 minutes talking about the second question with respect to BER and the impact thereof. 13:06 13 minutes, 6 seconds Yeah. So, so as you're aware that there has been a structural change the TER has now been replaced by BER uh and the GST 13:14 13 minutes, 14 seconds component is is uh separate. We are still evaluating impact uh of that and are are talking to our key distributors 13:22 13 minutes, 22 seconds to see how best we can share that impact between the two of us. So there's still an evolving situation with us. Uh at at 13:31 13 minutes, 31 seconds worst we will be neutral uh on this. At best we probably may gain a couple of basis points employ. 13:41 13 minutes, 41 seconds And just last on the employee expenses right. 13:45 13 minutes, 45 seconds So uh with respect to uh employee benefit expenses you have said that whether the new normal will be 23.7 cr or not which is there in the quarter 4. 13:55 13 minutes, 55 seconds Actually I would like to say that with the condition of whatever the income we have drawn upon and the increments and 14:03 14 minutes, 3 seconds the other uh you have factored in the last year the 23 cr is is is is the new normal but hence forward it will be a 14:11 14 minutes, 11 seconds forward-looking statement but when the uh income will increase the the the number of employees the increment rate and other things will going to follow. 14:21 14 minutes, 21 seconds So the first quarter we will going to show you the non not what will be the new normal actually but right now it is 23.7 looks like a normal s 14:30 14 minutes, 30 seconds but you need to also factor in that that we are increasing our branch presence across the country. Uh there are some 14:38 14 minutes, 38 seconds regulatory related uh costs that that are going to get built in as well. So you should expect some increase in the 14:45 14 minutes, 45 seconds uh employee costs. Uh the way we like to look at uh employee cost or total cost is our cost to income ratio. We like it to be between 40 and%. 14:56 14 minutes, 56 seconds That's the range we look at. So that's how you need to build your model. Sure. Yep. Thanks sir. 15:05 15 minutes, 5 seconds Thank you. We take the next question from the line of Bened Sharma from Pam Capital. Please go ahead. 15:13 15 minutes, 13 seconds Uh thank you. So my question was already answered. Uh I tried to get out of you but I couldn't. So sorry. 15:21 15 minutes, 21 seconds Okay. Thank you. 15:24 15 minutes, 24 seconds Thank you. We take the next question from the line of Anoj Kasha from A3 Capital. Please go ahead. 15:31 15 minutes, 31 seconds Hello. Good morning. 15:35 15 minutes, 35 seconds Yes, please go ahead. Uh uh sir as an company I want to know your future perspective like your peers like the is 15:43 15 minutes, 43 seconds ICICI amc focusing on like PMS also af 15:51 15 minutes, 51 seconds and just and the other stuff just to increase the mark the margins because I think that the nature of that business 15:58 15 minutes, 58 seconds are margin creative. So as a company are you looking to venture into those sphere in the in the future? 16:06 16 minutes, 6 seconds Well, we like to believe that that all options will be available to us going going forward. But one of the things you need to also factor in that whenever you 16:15 16 minutes, 15 seconds diversify, you extend resources into new areas, you also basically increase the risk that you take as an 16:24 16 minutes, 24 seconds organization. So you need to understand that anything that you do especially in our our kind of business there's a risk associated with it. We always evaluate 16:33 16 minutes, 33 seconds the trade-off between the risk and the opportunity that is there and then strategize accordingly. Currently, we believe that it is better for us to 16:40 16 minutes, 40 seconds focus on the mutual fund space itself and that's where we want to put our resources in. Uh each each asset manager 16:48 16 minutes, 48 seconds uh will have their own strategy and and and there's no right or wrong strategy. It's a question of what's good for you. 16:54 16 minutes, 54 seconds Uh at Caner Robico we believe keeping it simple focused on things that matter uh keeping the client at the center of what 17:02 17 minutes, 2 seconds we do is what's important for us. We do not want to diversify in a in a big way and and very quickly 17:10 17 minutes, 10 seconds because there are risks to be managed as we go along. But yeah these are opportunities as you said that are available for us in future. Uh I also 17:18 17 minutes, 18 seconds believe there is no first mover advantage in this industry. You could be the first one to launch a product and I've said this before but if you don't have performance they you won't get 17:26 17 minutes, 26 seconds assets beyond the point and uh you could be the last one in the industry to launch the same product but if you have performance you will naturally get uh 17:34 17 minutes, 34 seconds assets as well. So to us it's about being well calibrated uh in terms of strategy. 17:41 17 minutes, 41 seconds Yeah. Yeah. So very very helpful sir. 17:44 17 minutes, 44 seconds Sir, one more question sir and like sir uh you are like southbased uh company like more of your parent was in 17:52 17 minutes, 52 seconds Bangalore. So you uh do you can tell your strategy like to what to diversify your geographical mix like north south 18:01 18 minutes, 1 second like south to your dominated mode. How about what about north east and west? What's the strategy? 18:07 18 minutes, 7 seconds Well actually let me just try and you know uh put things in perspective. We are actually a Mumbai based and headquartered out of Mumbai. One of our 18:15 18 minutes, 15 seconds JV partners or one of our one of our shareholders uh Kendra Bank is southbased. So hence and because Canada is part of our name a lot of people 18:24 18 minutes, 24 seconds think that we are headquartered out of the south. We are not. We are actually headquartered out of Mumbai. We do have uh very good and even spread across all 18:31 18 minutes, 31 seconds regions norththeast west. Even east is something that in terms of a geographical spread we actually have a good uh mix of of places where we are 18:40 18 minutes, 40 seconds well represented. Uh yes we do have a higher brand recall in the south and that's because of one of the shareholders uh being uh headquartered 18:49 18 minutes, 49 seconds out of there but we are and continue to be a pan India uh kind of organization. 18:55 18 minutes, 55 seconds We're building pan India. Our ambition is to be uh you know a mutual fund of choice for every single Indian household and that's what we want to do. 19:04 19 minutes, 4 seconds Thank you sir. Thank you sir. Sorry for some errors. Thank you. 19:08 19 minutes, 8 seconds Not at all. Not at all. Please uh I'm I'm glad you asked the question. Thank you. 19:15 19 minutes, 15 seconds Thank you. We take the next question from the line of Nihal Sha from Prudent Corporate Advisory. Please go ahead. 19:23 19 minutes, 23 seconds Uh yes, thank you for the opportunity. 19:25 19 minutes, 25 seconds So uh my question was on the other expenses like they've gone up by around 34 35% in this quarter and for the year as well they were up around 24%. 19:36 19 minutes, 36 seconds So uh how do we see these uh things growing moving ahead uh despite our 19:41 19 minutes, 41 seconds revenue only growing around mid uh I would like to highlight upon the 19:50 19 minutes, 50 seconds other expenses there is a one-time expenses included because we have a NFO in the last quarter in fact in the March 19:58 19 minutes, 58 seconds so uh some of the expenses advertisement and marketing expenses related to that NFO and we are having a regulatory and 20:08 20 minutes, 8 seconds uh other risk related cost which are one time in nature which are factoring in the quarter four of the uh financial 20:17 20 minutes, 17 seconds year. So uh uh the new norm or the new normal will not be this much there will be slightly a reduction in uh the expenses as you will find out. 20:29 20 minutes, 29 seconds Okay. So like the last quarter was around 16 15.7 cr. That should be the normal I guess 20:37 20 minutes, 37 seconds uh because there will be a increase in the turnover. So so there will be a some more expenses will be there in the financial year in the coming forward. So 20:45 20 minutes, 45 seconds you can't say oh 16 will be a new normal but I would like to say the one time expenses were included in this particular quarter sir. 20:54 20 minutes, 54 seconds Okay. Thank you. Thank you. Thank you. 20:59 20 minutes, 59 seconds Thank you. We take the next question from the line of Hendra Pradhan from Maximal Capital. Please go ahead. 21:07 21 minutes, 7 seconds Hi sir hope I'm audible. Uh so so my question is uh related to our like flows. Uh so what was the like you know 21:16 21 minutes, 16 seconds March uh you know inflow to our equity category uh you know industry if you can give some color to that. 21:22 21 minutes, 22 seconds Uh so so the flows data is not uh there in public domain. So we are unfortunately not able to share that but what we can say is that we uh we were in 21:32 21 minutes, 32 seconds line or better than the industry when it comes to the flow. uh but uh we will not be able to spell out the number but a quarter quarter and quarter like 21:40 21 minutes, 40 seconds from December to March uh there has been a page right I mean uh but we see that you know across largely uh yeah yeah yeah 21:49 21 minutes, 49 seconds in terms of the flows we doing better than uh year so our flow market has been better than the industry 21:57 21 minutes, 57 seconds for the for the quarter sorry our flow market gain has been better than the industry is Is that understanding correct? 22:06 22 minutes, 6 seconds Maintain I I think we maintain more or less are the same share as such. Okay. 22:13 22 minutes, 13 seconds If I got it correctly, our yield is 57 bits for the equity uh categories, right? 22:21 22 minutes, 21 seconds No, no, no. It's 35 35 bips total. 37 bips is on equity oriented schemes. 30 Okay. 22:28 22 minutes, 28 seconds 37. 22:31 22 minutes, 31 seconds Oh sir um compared to correct me if I'm wrong like you know uh equity yields are slightly higher for uh you know the 22:38 22 minutes, 38 seconds other AMC's so is it like you know uh based on the uh maturity of our schemes 22:45 22 minutes, 45 seconds or you know something else kind of you know goes into this yield I mean u uh could it increase from here on it's 22:54 22 minutes, 54 seconds completely related to the market performance and no we have a different perspective on yield While it's an important metric, 23:02 23 minutes, 2 seconds it's not the most important metric for us. Uh for us, PAT PA is the most important metric uh in in in that sense. 23:11 23 minutes, 11 seconds Uh yield just to give you an example. I mean, if your phone that you have uh the manufacturer once he sells the phone, 23:20 23 minutes, 20 seconds the yield on that phone is is it's is basically the person get the manufacturer gets that. If it's 100 rupees, they get 100 rupees. But there 23:27 23 minutes, 27 seconds is no annuity income based on on on that particular phone. Our business is slightly different. So if as long as the money stays every year I will be 23:36 23 minutes, 36 seconds actually get annuty on that. So the yield to me is not that significant. uh you know you also need to realize that 23:45 23 minutes, 45 seconds you will have uh uh opportunities in the marketplace where you you could grow 23:51 23 minutes, 51 seconds aumum and and and for that uh naturally the TER also um comes down because of telescopic pricing so all that impacts 23:59 23 minutes, 59 seconds it uh for us we are comfortable with eels being in the range of 32 to 40 that's the range we look at uh but we 24:06 24 minutes, 6 seconds focus more on PA and and it it will be right to assume that most of our revenue within the 24:13 24 minutes, 13 seconds equities come from MF only and we are not planning to launch any ETFs or any SIFS um anytime soon 24:23 24 minutes, 23 seconds not in in the in the near term uh because that will only that will help you grow the AUM but it'll impact the overall yield 24:31 24 minutes, 31 seconds right right and so on the finally on the expenses side uh u I mean uh you mentioned there were some one-offs on 24:38 24 minutes, 38 seconds the in the other expenses you can quantify you know what are the one-offs the regulatory and the code related 24:47 24 minutes, 47 seconds well some one-offs are related to the labor code some one-offs are related to some employee costs and there are some 24:55 24 minutes, 55 seconds which are related to uh technology investments that we've made to support the regulatory environment 25:02 25 minutes, 2 seconds okay but but it it would kind of you know uh normalize uh by next quarter is that correct I think it's best to wait for the next 25:09 25 minutes, 9 seconds quarter of uh you know numbers uh and that would help us you know uh give you further guidance on it. 25:16 25 minutes, 16 seconds Sure. Sure. Okay sir. Thank you. 25:21 25 minutes, 21 seconds Thank you ladies and gentlemen. A reminder if you wish to ask a question please press star and one. 25:29 25 minutes, 29 seconds We take the next question from the line of Sharma from HDFC securities. Please go ahead. 25:35 25 minutes, 35 seconds Yeah. Hi sir. Thanks for the opportunity. So I have two three questions. So first question is on your uh core revenue. So can you please quantify how much is the revenue which 25:44 25 minutes, 44 seconds we have received from OnX in terms of the investment advisory fees for the quarter 4 and for the full year FI26 and 25:51 25 minutes, 51 seconds how should we think about this stream of revenue for the years to come. Uh secondly your employee cost has declined considerably g as compared to quarter 3. 26:00 26 minutes So can you please let us know what's the employee what is this because of the reduction in the employee headcount or is there something else and uh lastly 26:07 26 minutes, 7 seconds coming to your uh business uh business uh flows if I look at your SAP flows have been going down every quarter for the last three quarters even the SIP 26:16 26 minutes, 16 seconds folios have gone down and uh if and and how how is that trending for the month of April and what are we doing to revive 26:25 26 minutes, 25 seconds this SIP flows so this would be my questions so Let me just answer from from from the 26:31 26 minutes, 31 seconds last question first on the SIPs. Uh SIP is an important constituent uh for us. 26:37 26 minutes, 37 seconds It contributes roughly one-third of our AUM. Uh we we we 26:43 26 minutes, 43 seconds are aware that that there is a a trend u in terms of uh SIPs but we also understand the reasons for it. So for 26:51 26 minutes, 51 seconds example, ELS as a scheme has has uh SIPs in it but because of the changes in 26:58 26 minutes, 58 seconds taxes that that will see some challenges going forward across the industry. But in terms of going forward what we are 27:05 27 minutes, 5 seconds planning to do is actually set up uh sales teams dedicated to SIPs. So that we are doing that across five locations and we'll expand it further if needed. 27:16 27 minutes, 16 seconds But uh we are putting resources behind this initiative and you will see in the next uh 6 months uh a directional change 27:22 27 minutes, 22 seconds in in the way uh the SIP book will grow for us. I'm going to pass it on to At the other two questions. So uh on the other question with respect to the 27:31 27 minutes, 31 seconds advisory fees uh this quarter wise pickup is not provided in the split. 27:37 27 minutes, 37 seconds However, I can give you a guidance that more than 90% of our uh fees comes from the management side. uh our uh annual 27:45 27 minutes, 45 seconds report will eventually contain the split also so that will be reflected in that and the other question with respect to employee cost ash 27:54 27 minutes, 54 seconds yeah you spoke about employee benefit expenses has been reduced from 26 cr to 23.7 cr so there is a one-off expenses 28:02 28 minutes, 2 seconds has been sitted in the last years but it is better to look at uh the yearly cost which is uh been increased by 21% from 28:11 28 minutes, 11 seconds 88.5 K to 107.1 K there is does the second assumption which you have said is whether there is a reduction in the 28:19 28 minutes, 19 seconds employee or is there a reduction in the cost no it is not the employee has increased the branches has increased and 28:27 28 minutes, 27 seconds we have given a normal uh uh incremental rate so so that assumption is not 28:33 28 minutes, 33 seconds correct sir this is the uh clarification 28:40 28 minutes, 40 seconds okay so So Raja as you mentioned that we are facing some stress on the ELSS scheme which we have wherein we have 28:47 28 minutes, 47 seconds seen some discontinent so that scheme contributes almost 8% of our uh overall equity AUM. So that seems to be a bigger 28:55 28 minutes, 55 seconds task. So so would you do you think that we would be able to arrest that uh uh that EUM depletion in that scheme or 29:02 29 minutes, 2 seconds we'll be launching new schemes or new funds uh to to to counter that EU erosion? Well, not all AUM in that 29:10 29 minutes, 10 seconds scheme is through SIPs. I was only addressing the SIP portion there. So, so there is the 8% that you talk about is 29:17 29 minutes, 17 seconds not entirely SIP. I was just giving you an insight into why the SIP for us uh u is looking on a downward trend. It's 29:26 29 minutes, 26 seconds because we see some of these factors which are more macro related. 29:30 29 minutes, 30 seconds So, if there's a change in in in the tax and and impacts people and they will take steps to ensure that they mitigate that. So I was just trying to um uh 29:39 29 minutes, 39 seconds address that. But for us, SIPs uh are are a strategy that across our funds. It it all depends on the risk profile of 29:47 29 minutes, 47 seconds the investors. There are some people who would like to do a SIP in a small cap fund where they are willing to take a higher risk and there are others that may go for a balance advantage fund 29:56 29 minutes, 56 seconds which which is more uh more moderate risk profiles. So I will not isolate ELSS. I was just giving you an example in terms of uh ELSS. 30:06 30 minutes, 6 seconds So I will not take that as an you know that that EUM is under threat. 30:10 30 minutes, 10 seconds Okay. Uh sir lastly your SIPUM has declined more than the overall EUM. 30:15 30 minutes, 15 seconds Usually it is believed that the SIP AUM is much more stickier but we have not seen that kind of trend uh in your case for the for the last quarter. So so how 30:24 30 minutes, 24 seconds to should we read about that? Is this primarily related to some scheme level performance or any is there any other reason as well? 30:32 30 minutes, 32 seconds Well it's more mark to market. You know the the equity market is 15% down and sips are generally in equity related funds then you got to see whether the 30:40 30 minutes, 40 seconds AUM has declined by more than 15%. If it is not then you know it's only mark to market. Okay. Thank you. 30:50 30 minutes, 50 seconds Thank you. We take the next question from the line of Ankit Daramshi from RNM Capital Trust. Please go ahead. 30:59 30 minutes, 59 seconds Hi, good morning. Thanks for the opportunity. um just the followup question on the same ships declining 31:07 31 minutes, 7 seconds um I guess our B30 AUM also declined quarter and quarter so I understand you just refer that due to the market uh 31:15 31 minutes, 15 seconds challenges it's it's a structural issue but uh uh what is the strategy going forward that we are going to uh kind of 31:25 31 minutes, 25 seconds uh initiate or execute for further growth in the B30 penetration uh you You just mentioned that we are 31:33 31 minutes, 33 seconds going to have dedicated team but can you put some more color on it and uh uh there was one more fund I mean we we had 31:40 31 minutes, 40 seconds announced that we'll be uh launching two funds so one one N5 has already been launched last quarter and what are the 31:46 31 minutes, 46 seconds plans for the uh second uh NFO on the NFO u we we will be launching 31:57 31 minutes, 57 seconds another NFO in the next uh four to five months uh we have already got uh board approvals for the next fund but uh but 32:05 32 minutes, 5 seconds they still need to go through a process of getting the regulatory approval before we are able to announce it. Uh so that's on the on the fund. We typically 32:12 32 minutes, 12 seconds try and do uh about two funds a year and that should be the power four core even for this finan this financial year. 32:21 32 minutes, 21 seconds Um yeah I think there were two questions one was on the B30 and the second was on SIP and I just wanted to add to what Rajesh said when you look at from a B30 32:29 32 minutes, 29 seconds perspective uh it is largely you know Q4 mark to market impact you know which has happened also I'm sure you'll appreciate that when you look at the overall assets 32:38 32 minutes, 38 seconds of uh uh you know for us it is predom means you know dominated by equity so to that extent uh you know from a March 32:47 32 minutes, 47 seconds perspective we got impacted but it is in line when you look at from an industry perspective also there is a similar uh impact on the B30 in the market as well 32:56 32 minutes, 56 seconds uh on SIP what you know Resh has also shared uh in terms of that is a core to our strategy when we look at in terms of 33:04 33 minutes, 4 seconds SIP across we have a very healthy book across the products so uh clearly I think we are very confident in terms of growing that we are putting up that's 33:13 33 minutes, 13 seconds code to our strategy and we are putting up uh you know in terms of uh working with our partnerships to grow that 33:20 33 minutes, 20 seconds entire book uh and this is something which you know as the dedicated initiative also which we are taking uh will help us to grow that business from 33:28 33 minutes, 28 seconds a ELSS perspective what RNish mentioned is was one part of it uh but we have uh in fact very healthy growth at few you 33:36 33 minutes, 36 seconds know other product as well so uh when you will see more market volatility you will see some kind of uh you know emotional uh of course reactions from 33:44 33 minutes, 44 seconds the investors in terms of responding to that market volatility but structurally we continue to be in our growth grow journey and that remains core to our strategy. 33:53 33 minutes, 53 seconds So, so we have been able to retain the market share across 30, right? I mean that's one of our strength. Uh yeah. Yeah. 34:03 34 minutes, 3 seconds Okay. Thank you. 34:08 34 minutes, 8 seconds Thank you ladies and gentlemen. A reminder if you wish to ask a question please press star and one. 34:16 34 minutes, 16 seconds We take the next question from the line of Nleshi from Prosper Cree. Please go ahead. 34:23 34 minutes, 23 seconds Thank you. Thank you sir for the providing the second time opportunity. 34:27 34 minutes, 27 seconds Sir, you just mentioned that the performance of the scheme is one of the differentiate factor from other AMC and 34:34 34 minutes, 34 seconds the performance of the any particular schemes depends upon the market condition as well as the selection of the particular stock. And the for the 34:42 34 minutes, 42 seconds selection of the stock thorough research is required and fund manager skill is required. So can you throw some lights 34:48 34 minutes, 48 seconds on the fund managers uh and research team composition and and experience? 34:56 34 minutes, 56 seconds Yeah. Yeah. In fact, we believe that we have one of the strongest uh fund management teams uh that are there in the industry. 35:04 35 minutes, 4 seconds uh we spend a lot of time and effort uh in in in in making sure that that the team 35:12 35 minutes, 12 seconds is is well uh in terms of covering various sectors we have a full coverage of of of the sectors through the 35:20 35 minutes, 20 seconds research analysts and in terms of fund management team we have a good balance between experience as well as uh uh 35:27 35 minutes, 27 seconds track record that that the fund managers have. uh our CIO uh for equities uh has been with us for over 10 years and has 35:35 35 minutes, 35 seconds uh over 18 years of work experience. Uh so very very strong team in there. Uh 35:42 35 minutes, 42 seconds having said that uh we also believe there's a process you need to follow and you need to stick to that discipline going forward uh through market cycles. 35:51 35 minutes, 51 seconds So there will be periods where you could uh underperform and that's true for any fund house and there are periods that 35:58 35 minutes, 58 seconds you will outperform uh as well but it's consistency of performance risk adjusted returns and making sure you have 36:05 36 minutes, 5 seconds liquidity during stress times. Uh those are important criteria. So sometimes you may even wish to sacrifice a bit of your performance to keep liquidity just in 36:13 36 minutes, 13 seconds case investors need to retain. So there's a lot of things that go into uh while managing the fund and we have a very strong and capable team that does that. 36:23 36 minutes, 23 seconds Sure. So do we have a in-house research team or are we relying on the outsourcing? No, we have an in-house research team. 36:30 36 minutes, 30 seconds Uh but the inhouse research team also gets qualitative inputs from outside research but we have a very strong in-house research team. 36:41 36 minutes, 41 seconds And sir, last question. The few questions were asked regarding the SAP and this is my suggestion from my side. 36:48 36 minutes, 48 seconds Sir, generally LIC launch the awareness scheme or awareness to restart the LIC 36:56 36 minutes, 56 seconds premium those who have discontinued the LIC premium. So can can we launch some scheme where the we can reactivated the 37:04 37 minutes, 4 seconds SIP close account or to disc those who have discontributed the SIP? 37:10 37 minutes, 10 seconds Well, actually something very topical and I'm very glad you brought it up. We just three days ago launched that on a digital platform. Uh a very nice 37:18 37 minutes, 18 seconds campaign uh aimed at investors who for whatever reason have paused their SIS. 37:26 37 minutes, 26 seconds Okay. Thank you. Thank you. All the best, sir. That's all from the mic. Thank you, sir. 37:32 37 minutes, 32 seconds Thank you. We take the next question from the line of Ano Kashab from A3 Capital. Please go ahead. Uh hello uh 37:41 37 minutes, 41 seconds sir yes I wanted to know in percentage terms can you share the data set like what are what total number of contributions like we as a company we 37:49 37 minutes, 49 seconds receive what are d what is the percentage of digital mode we getting from like what is the 80% 37:58 37 minutes, 58 seconds so the digital uh aum 28% of our eum comes from the digital channel uh so that is the number that is there for the 38:07 38 minutes, 7 seconds digital uh the direct channel and majority of that will be the digital format. 38:14 38 minutes, 14 seconds And sir, one more sir and uh uh can you share that? Can you share the data sir like the percentage of accounts which 38:22 38 minutes, 22 seconds which are 5 years old, 10 years old, 13 years old like we do not have that off hand. Uh we will try and see if we can share it later. 38:32 38 minutes, 32 seconds Okay. Thanks. 38:36 38 minutes, 36 seconds Thank you ladies and gentlemen. If you wish to ask a question, please press star and one. 38:47 38 minutes, 47 seconds As there are no further questions from the participants, I now have the conference award to Mr. Rajnice Narula for his closing comments. 38:58 38 minutes, 58 seconds Well, to conclude, the quarter was characterized by heightened market volatility. However, the mutual fun industry and our business have demonstrated strong resilience supported 39:06 39 minutes, 6 seconds by structural growth drivers. Our priorities remain clear. We will aim to deliver consistent risk adjusted return 39:13 39 minutes, 13 seconds and performance, deepen retail and SIP franchise, expand our pro product offerings and leverage technology to 39:22 39 minutes, 22 seconds enhance investor experience. At the same time, we will remain focused on cost discipline, operational efficiency and long-term value creation for all our stakeholders. 39:32 39 minutes, 32 seconds With a strong foundation, disciplined execution and a structural growing industry, we are well positioned to deliver sustainable growth over the long term. 39:40 39 minutes, 40 seconds We are building an institution that we believe will survive time. So, thank you very much. 39:47 39 minutes, 47 seconds Thank you. On behalf of Canada Roco Asset Management Company, that concludes this conference call. Thank you for joining us. And you may now disconnect 39:55 39 minutes, 55 seconds your