CARE Ratings Ltd — Q4 FY26

CARE Ratings Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=wCWn155tDdA Published: 2 hours ago

0:00 Ladies and gentlemen, good day and welcome to the Care Ratings Limited Q4 FY26 earnings conference call. As a 0:08 8 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:18 18 seconds Should you need assistance during this conference call, please signal an operator by pressing star pin zero on a 0:25 25 seconds touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Mahul Pandya, MD and group CEO Care Ratings Limited. 0:37 37 seconds Thank you and over to you sir. Good afternoon everyone. 0:45 45 seconds On behalf of the entire carriage family, I extend a warm welcome to our quarter 4 and FY26 annual investors analyst call. 0:54 54 seconds I'm joined today by my colleagues Rivi our ED and head of business development plus CEO carriage global Nita our head 1:03 1 minute, 3 seconds rating criteria and regulatory affairs Janesh our group CFO Swati CEO carriage advisory 1:10 1 minute, 10 seconds CEO carriage analytics and soro CEO carriage Africa uh my colleague and our chief rating officer Sachin is on leave 1:18 1 minute, 18 seconds and unable to join this call. I trust each of you has had the opportunity to review our results. I would like to take 1:26 1 minute, 26 seconds you through the key highlights, the strategic context and our outlook before we open the floor for question. 1:33 1 minute, 33 seconds Before I turn to what has been a landmark year for carage, I want to say something that comes from the heart 1:41 1 minute, 41 seconds to every investor, analyst and stakeholder on this call. sincere thanks. As I reflect where Kadesh has 1:49 1 minute, 49 seconds come from and where we stand today, I'm acutely aware that none of this would have been possible without the trust you 1:56 1 minute, 56 seconds have placed in us. That trust is the most valuable asset on our balance sheet and we do not take it lightly. 2:05 2 minutes, 5 seconds Let me start by talking about the macroeconomic side. 2:09 2 minutes, 9 seconds Indian economy delivered a strong performance in FI26 reaffirming its status as one of the world's fastest growing major economies despite global 2:18 2 minutes, 18 seconds headwinds. Real GDP growth is estimated at 1.6% in FI26 powered by robust private consumption, 2:26 2 minutes, 26 seconds accelerated infrastructure spending and sustained services sector momentum. 2:31 2 minutes, 31 seconds A favorable monsoon supported agricultural output and rural demand while manufacturing and construction added further momentum. 2:40 2 minutes, 40 seconds Headline retail inflation for FI26 was 2.1% compared to 4.6% in FI25. 2:48 2 minutes, 48 seconds The supported growth inflation dynamic provided room for the RBI to ease policy rate by accumulating 100 business points 2:55 2 minutes, 55 seconds taking the policy rate to 5.25% by the end of FI Friday. 3:01 3 minutes, 1 second Fiscally, the government maintained its consolidation path while keeping capital expenditure at the center of its expenditure strategy. 3:10 3 minutes, 10 seconds Looking ahead, sustained reforms, domestic consumption and investment momentum are expected to support India's 3:19 3 minutes, 19 seconds progression towards becoming the third largest economy over the next decade. 3:24 3 minutes, 24 seconds Structurally making India and PL team are channeling investment into productive manufacturing capacity 3:31 3 minutes, 31 seconds building the foundation for the fixed bat region. However, the ongoing conflict in West Asia and uncertainty 3:39 3 minutes, 39 seconds around this resolution has introduced meaningful headwinds to the Indian economy. 3:45 3 minutes, 45 seconds Disruptions to global energy supply chains are expected to keep oil prices at elevated levels. Given India's high 3:52 3 minutes, 52 seconds energy input dependence, economy faces pressures through multiple channels, high frequency indicators such as core 4:00 4 minutes sector output and IIP growth in March 26 have pointed to some softening in the momentum. 4:07 4 minutes, 7 seconds Corporate bond issuances declined by 3.2% for the full year FI26 and by 11.3% in Q4 FI26. 4:15 4 minutes, 15 seconds Commercial paper issuances were marginally lower in Q4. So the full year showed a 1.2% 2% decrease. Bank credit 4:23 4 minutes, 23 seconds upstate however accelerated strongly growing at 16.1% in FI26 versus 11% in the previous year providing a meaningful 4:31 4 minutes, 31 seconds offset to the softness in the bond market. 4:34 4 minutes, 34 seconds Looking ahead to FI 27, we project India's real GDP growth to moderate to around 6.7% 4:40 4 minutes, 40 seconds assuming global koid prices average at around $90 per barrel for the full year. 4:47 4 minutes, 47 seconds This represents the downward division from from our pre-conlict baseline of 7.2%. 4:53 4 minutes, 53 seconds It challenge of a potentially weaker mountain amid arising delino probability and widening current account pressures 5:00 5 minutes from higher energy imports warrant careful monitoring. 5:05 5 minutes, 5 seconds Within this environment, the demand for credible independent credit risk opinions does not diminish. It grows. 5:13 5 minutes, 13 seconds Lenders, investors and regulators seek sharper analytical anchors precisely when certain certainty is kept. This 5:22 5 minutes, 22 seconds structural dynamic is at the heart of our franchise values and FI26 has reinforced it. As carriage enters FI27, 5:31 5 minutes, 31 seconds it does so on the back of strong foundations through innovation, disciplined execution and a steadfast commitment to its core values of 5:39 5 minutes, 39 seconds independence, stability and stakeholder trust. 5:42 5 minutes, 42 seconds Let me now turn to our business performance. FYI 26 marks milestone year for courage. 5:49 5 minutes, 49 seconds We deliver broad-based growth across our businesses with improvements in revenue, profitability and margins reflecting 5:56 5 minutes, 56 seconds both operating leverage and disciplined execution. 6:00 6 minutes Our core ratings franchise continued to scale by non-ratings and international businesses contributed meaningfully to 6:07 6 minutes, 7 seconds the growth. Importantly, this performance was achieved while maintaining our focus of analytical 6:14 6 minutes, 14 seconds rigor, independence and quality like growth, reinforcing the strength of our franchise and the trust we continue to enjoy among issuers, investors and regulators. 6:25 6 minutes, 25 seconds I'm happy to share that the board of directors has recommended a final dividend of rupes 14 per share at a face value of rupes 10 which will take the 6:33 6 minutes, 33 seconds total dividend declared for the year to rupees 22 per share. 6:38 6 minutes, 38 seconds Talking about our standalone business during FI26 our standalone domestic ratings business recorded income from 6:46 6 minutes, 46 seconds operations of rupes 387.72 crores representing a year on year growth of 15% supported by sustained momentum in 6:54 6 minutes, 54 seconds initial reading assignment across the market. 6:58 6 minutes, 58 seconds Operating profit stood at 187.39 cr reflecting a by increase of 21% with operating margin at 48% given by 7:06 7 minutes, 6 seconds operating leverage and dividend execution. 7:10 7 minutes, 10 seconds Profit after tax reached its highest level to date at rupees 174.39 crusting growth of 18% over the previous year with pack margin at 39%. 7:21 7 minutes, 21 seconds At the consolidated level, revenue from operations for FI26 stood at rupes 473.07 cringing fullear growth of 18%. 7:33 7 minutes, 33 seconds Performance was supported by healthy growth across domestic and overseas ratings businesses alongside contribution from the non-ratings vertical. 7:42 7 minutes, 42 seconds Operating profit amounted to rupes 197.39 cr reflecting a growth of 27% with operating margin at 42% indicating 7:50 7 minutes, 50 seconds meaningful scale benefits across the group. 7:54 7 minutes, 54 seconds Consolidated profit after tax reached an all-time high of rupes 173.69 cr reflecting a year-on-year growth of 24% over fi25 with a flat margin of 33%. 8:07 8 minutes, 7 seconds For fi26 the reading segment delivered revenue of rups 423.05 05 crores growing 17% on a year year-on-year basis and the 8:16 8 minutes, 16 seconds non-rating segment cross 50 crores in revenue growing 19% Y underlining the progress we have made in building 8:23 8 minutes, 23 seconds complimentary businesses alongside our core ratings franchise I want to pause here and give this 8:31 8 minutes, 31 seconds moment of context because the journey of the last four years tells a story that goes well beyond any single year's 8:37 8 minutes, 37 seconds number four years ago several of Our subsidiaries were loss making our non-ratings presence was nent and the 8:45 8 minutes, 45 seconds path to improving consolidated profit profitability was far from straightforward. 8:50 8 minutes, 50 seconds Today consolidated profit after tax spends at rupes 173.69 cr a significant growth in this year alone and a step 8:59 8 minutes, 59 seconds change in absolute profitability over the 4year period. That transformation has been driven by sustained growth in our core rating franchise. the 9:08 9 minutes, 8 seconds turnaround of our of our previously loss making subsidiaries and the discipline scaling of new business lines. 9:14 9 minutes, 14 seconds I want to particularly acknowledge capital which achieved break even during FI26 completing a meaningful turnaround from the losses of the prior year. 9:25 9 minutes, 25 seconds The agave.ai platform anchored on the philosophy of AI inside AI by the side has gained market traction. Kach Intell 9:33 9 minutes, 33 seconds and Kalisto over our credit infrastructure, intelligent credit monitoring and risk analytics platform are now live with clients. 9:41 9 minutes, 41 seconds The journey from loss to profitability reflects patient investment, product disapping 9:48 9 minutes, 48 seconds phase and so has been the story with carriage advisory as well which has consistently delivered profits. Now 9:58 9 minutes, 58 seconds the company subsidiaries reported encouraging progress across the board. 10:02 10 minutes, 2 seconds Carage Global IFSC has done very well in the first full year of operation. My colleague Revit shall elaborate on that. 10:10 10 minutes, 10 seconds Our international rating subsidiaries carriage Africa and carage Nepal continue to retain leadership positions in the respective market with over 100 10:18 10 minutes, 18 seconds rated clients with the four billions of dollars of debt rated in Africa and the highest market share in Nepal by number of 10:26 10 minutes, 26 seconds instruments rated ESD rating showed a significant fraction in FI26 and again shall cover in greater detail. 10:36 10 minutes, 36 seconds Perva, the past risk, fast return and risk verification agency conceptualized by SEBI and built in close collaboration 10:44 10 minutes, 44 seconds with carriage and the national stock exchange completed its pilot launch in December 2025 and went live commercially in May 2026. 10:54 10 minutes, 54 seconds Reiminit edge our structural analytics and benchmarking platform expanded its scope during the year to cover init 11:03 11 minutes, 3 seconds reflecting our ability to extend existing capabilities to evolving market structures while remaining anchored in our core analytical strength. 11:12 11 minutes, 12 seconds I would like to share something that reflects a meaningful shift in how carage operates and it is something we have been tracking quite closely as an 11:19 11 minutes, 19 seconds organization and that is on the technology front today around 60% of our people are 11:26 11 minutes, 26 seconds actively using enterprise AI tools as a part of their daily work that is not a target we are chasing that is where we 11:33 11 minutes, 33 seconds stand today in terms of how we are approaching this I would say our efforts are organized around five areas 11:41 11 minutes, 41 seconds We are investing in structured learning so that our people are genuinely equipped not just back to this capabilities. We are deploying AI agents 11:50 11 minutes, 50 seconds on repetitive task so that our analysts can direct their energy towards what truly matters judgment context and insight. 11:59 11 minutes, 59 seconds We are embedding AI into workflows in a step-by-step manner not disruptively but deliberately. And we have an internal 12:07 12 minutes, 7 seconds innovation lab that several of our best ideas have emerged from our own team. 12:13 12 minutes, 13 seconds The fifth area and I would say this is the one that matters most for an organization like ours is responsible AI. 12:21 12 minutes, 21 seconds Every AI application we use must be explainable, auditable and regulatory ready. In the ratings business, we can 12:30 12 minutes, 30 seconds only stand behind what we fully understand. That is a non-negotiable aspect for us. 12:37 12 minutes, 37 seconds Backed by a strong security infrastructure including zero zero trust architecture, API security and full DPDPX compliance. Our approach is simple one wide adoption with strong control. 12:49 12 minutes, 49 seconds That is the combination we believe will meaningfully strengthen our analytical quality and our operating efficiency and 12:57 12 minutes, 57 seconds that is the trajectory we would like to sustain going forward. Our rating quality metrics continue to reinforce our standing. 13:06 13 minutes, 6 seconds Our one year stability rates in the investment grade category for this 5ear period 2022 to 2026 are consistently at or above industry averages. 13:16 13 minutes, 16 seconds Our teams in rating economics and industry research published over 400 reports during the year a significant 13:23 13 minutes, 23 seconds increase. We hosted 31 sector specific webinars and participated in over 100 300 speaker and industry forum a 13:31 13 minutes, 31 seconds significant increase once again and so has the has been the increase in our media service. 13:39 13 minutes, 39 seconds I appreciate the continued engagement of our investors and analysts and I thank my colleagues and the entire parage team for their commitment and hard work 13:47 13 minutes, 47 seconds through the year. I would now request my colleagues to give a brief update on the respective domain. We will start with 13:55 13 minutes, 55 seconds giving an update on the domestic ratings business carriage global and carriage ESG followed by Smita on ratings quality 14:02 14 minutes, 2 seconds and performance and then Swati and Abish on carriage advisory and carriage analytics respectively. Over to you. 14:12 14 minutes, 12 seconds Thank you Mun and good afternoon to all listeners. Uh we are glad to report one more year of consistent growth in our standalone as well as overseas rating 14:21 14 minutes, 21 seconds operations in FI26. All the rating entities within the group has shown a strong performance with carage global ISSC limited recording its first full year of operations in FI26. 14:32 14 minutes, 32 seconds During the year Carage Global completed ratings on 45 province positioning us amongst the top 10 global rating agencies by way of country coverage. 14:42 14 minutes, 42 seconds Scare is global has been ahead of the curve in our foreign credit assessment with other global rating agencies actions in the past 18 months aligning 14:52 14 minutes, 52 seconds with our ratings for 21 countries of validation of the rigor and robustness of our methodology 15:00 15 minutes has still rated USD 8.5 billion worth of corporate debt with ratings assigned to 30 plus issuers including some overseas clients and covering 10 plus sectors. 15:12 15 minutes, 12 seconds Some of the region debt issuances have also got listed and have marked investors uh institutions banks reflecting increasing acceptance of our offerings. 15:23 15 minutes, 23 seconds We also took several important regulatory and structural steps. RBI accreditition for carriage global was 15:30 15 minutes, 30 seconds expanded to include non-resident corporates outside ISSC framework and risk weight recognition is now aligned 15:38 15 minutes, 38 seconds with other global credit rating agencies. We received the final ESG ratings license from ISKA, further 15:46 15 minutes, 46 seconds strengthening our regulatory footprint at Gib City. As a part of our outreach efforts, we have conducted four webinars 15:53 15 minutes, 53 seconds and published reports on topical subjects as well launched a publication titled edge sphere which deals with thematic topics. 16:02 16 minutes, 2 seconds Moving to carage ESG rating which has completed 19 new ratings during the year and has gained a 58% market share amongst category 1 ESG rating providers. 16:15 16 minutes, 15 seconds We are now enlisted with ECMA to offer third-party review services. While this market remains relatively nent 16:23 16 minutes, 23 seconds domestically, we continue to view ESG ratings as a long-term opportunity that will evolve as regulatory clarity and 16:31 16 minutes, 31 seconds market adoption deepens. We're also proud to have launched PRAA, a novel concept in increasing transparency and 16:39 16 minutes, 39 seconds providing a validated performance to the investor community. This initiative has been conceptualized by SEI and our role 16:47 16 minutes, 47 seconds is to refine and define methodology for calculation of return and dissemination of the validation validated reports through our website carepar.com. 16:58 16 minutes, 58 seconds We are supported by an oversight committee which has participation from market participants to help us design the methodology and operational 17:06 17 minutes, 6 seconds processes. Our clients here would be registered investment advisors, research analysts and algo providers. 17:16 17 minutes, 16 seconds Moving to the domestic rating business, we h we we continue to be aligned with our quality growth strategy and in that 17:23 17 minutes, 23 seconds context we onboarded over 300 clients in the single A and above category in FI26. 17:31 17 minutes, 31 seconds While we emulated in the securitization market debut in FY26, we have increased our volume of debt created. In our quest 17:39 17 minutes, 39 seconds to improve efficiencies by use of technology, we have our CRM software module which has gone live in the 17:46 17 minutes, 46 seconds current year. The module has digitized the entire process workflow for the business team and we expect the team to add value to the team. In the current 17:55 17 minutes, 55 seconds year, we continue to focus on outreach with sectoral knowledge sharing sessions organized with lenders, investors. Our 18:03 18 minutes, 3 seconds podcast series titled Insight Edge has gained good traction and has been well received by stakeholders. That's it from 18:11 18 minutes, 11 seconds my end and thank you so much over to you. Thank you. Good afternoon everyone. 18:17 18 minutes, 17 seconds I'll now take you through our rating performance. In line with the reported numbers, our rating performance has continued to be raised. Our stability 18:26 18 minutes, 26 seconds rate as you can see in our presentation has consistently improved across almost all investment grade ratings. Also, the 18:33 18 minutes, 33 seconds stability rate is higher when compared to the industry average in all the rating categories and is scoring the stability, reliability and strength of 18:42 18 minutes, 42 seconds our rating performance. Another reinforcement of our strong reading performance is in our default matrix as 18:48 18 minutes, 48 seconds available on our website for the one two and threeear cohorts across rating categories over the past 5 years per 18:55 18 minutes, 55 seconds year. In all the cohorts our reported shortcut cumulative default rate for the top three rating categories that is AAA 19:03 19 minutes, 3 seconds double A and A are the best in the industry. Importantly with this we are well placed with respect to the recent 19:10 19 minutes, 10 seconds RBI circular on capital charts. The centerpiece of RBI's revised guidelines is their requirement for banks to align the risk rate of their corporate 19:19 19 minutes, 19 seconds exposure with the actual rating performance of the saving credit rating agency based on prescribed benchmarks. 19:25 19 minutes, 25 seconds Our observed default rates are well within the RBI prescribed benchmark and this positions are rated favorably to me by all the relevant stakeholders. 19:34 19 minutes, 34 seconds Overall this not performance validates the quality growth strategy that we have been pursuing. I've touched upon by name 19:42 19 minutes, 42 seconds in the opening remarks. We have continuously driven our team to stay focused in our thought leadership and have conducted around 30 webinars and 19:50 19 minutes, 50 seconds released over 100 opinion pieces during FI26. These initiatives have been widely covered by leading media houses enhancing our visibility and 19:58 19 minutes, 58 seconds credibility. Beyond publications, our roundts and conferences have further strengthened our reputation as trusted thought leaders. Also, technology and 20:07 20 minutes, 7 seconds process enhancements remain central to our efficiency strategy. Multiple projects have been implemented to enhance the quality of analysis, 20:15 20 minutes, 15 seconds publications and outreach, enhancing our execution efficiency. Thus our consistent rating performance, industry thought leadership and technologydriven 20:24 20 minutes, 24 seconds efficiency together highlight our strong quality focus reinforcing trust with stakeholders. Over to you. 20:31 20 minutes, 31 seconds Yeah. Thank you. Uh good afternoon everyone. This is Swati uh here CEO for the advisory division at care edge advisory and analytics private limited. 20:44 20 minutes, 44 seconds Uh as you are aware CA advisory offers services in the area of sustainability, research and corporate advisory and for 20:51 20 minutes, 51 seconds the fiscal year 2026 we have continued our growth strategy and delivered growth across all business segments. 20:59 20 minutes, 59 seconds Our sustainability services practice witnessed strong momentum driven by higher number of sustainability and ESC 21:07 21 minutes, 7 seconds assignments. And in addition, our green bonds and sustainable finance third party review services gained enough traction amongst issuers and investors. 21:19 21 minutes, 19 seconds We have penetrated new sectors and also new areas of consulting within this domain. We and we continue to expand our 21:26 21 minutes, 26 seconds product suite in line with emerging regulations and global best practices. 21:31 21 minutes, 31 seconds Our industry research business continues to be driven from demand from the capital markets, increased traction from institutional investors and growing 21:40 21 minutes, 40 seconds customer demand for high quality sectoral and analytical insights. Our corporate advisory and PV business also 21:47 21 minutes, 47 seconds displayed good growth driven by enhanced capabilities, client relationships, empanelment and sector coverage. 21:55 21 minutes, 55 seconds Overall, our growth continues to be anchored in quality execution, domain expertise, actionable insights and 22:03 22 minutes, 3 seconds stronger market outreach positioning us well for sustained long-term growth. Yeah. Abish. 22:13 22 minutes, 13 seconds Hello. Uh this is Abhish, CEO for carriage analytics. Carage Analytics has uh transformed itself into a fintech and AI enterprise within the carriage group. 22:23 22 minutes, 23 seconds Combined with strong domain knowledge with AI native technology implementations, we are able to solve mission critical challenges across 22:31 22 minutes, 31 seconds lending, monitoring and regulatory compliance for financial institutions. 22:34 22 minutes, 34 seconds Our offerings are structured around three product families which is cred, excellent and calisto and all are 22:41 22 minutes, 41 seconds aligned to the core philosophy of AI inside and AI by the side. At the center of this ecosystem is a vira.ai which is 22:49 22 minutes, 49 seconds a unified AI platform powering intelligent co-pilot geni native workflows reusable LLM uh which can 22:57 22 minutes, 57 seconds orchestrate any journey for financial institutions and all our products are built on top of this edge a.AI AI platform. Our platform has gained strong 23:06 23 minutes, 6 seconds traction across India and park markets, driving new customer acquisitions in international geographies, successful enterprise implementations and growing 23:15 23 minutes, 15 seconds recurring revenue streams. In parl, our consulting factor growth continues to grow to deepen client relationships 23:22 23 minutes, 22 seconds across risk consulting, AI implementations, and data management services. We've sharpened our focus on executions, product adoptions, and operational efficiency. 23:32 23 minutes, 32 seconds Analytics has significantly improved margins and established a strong foundation for scale. 23:48 23 minutes, 48 seconds Thank you. And uh we can now open the line for questions. 23:53 23 minutes, 53 seconds Thank you very much. We will now begin with a question and answer session. 23:58 23 minutes, 58 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 24:05 24 minutes, 5 seconds If you wish to remove yourself from the question queue, you may press star then two. Participant, you are requested to use handsets while asking a question. 24:15 24 minutes, 15 seconds Ladies and gentlemen, we will wait for a moment while the question key assembles. 24:24 24 minutes, 24 seconds A reminder to all you may press star and one to ask a question. 24:31 24 minutes, 31 seconds We will take the first question from the line of Balachi Subraman from Capital. Please go ahead. 24:39 24 minutes, 39 seconds Uh good afternoon. Congrats on a great set of numbers and uh thanks for taking my questions. Uh my first question would 24:47 24 minutes, 47 seconds be you know some bit of color on uh uh what has driven the uh waiting revenue growth across the board. Uh I can see 24:55 24 minutes, 55 seconds your numbers are good so are that of your peers. Uh so but if you look at the macro data while there has been some 25:02 25 minutes, 2 seconds improvement uh over the last uh 3 four years uh but the kind of acceleration that we have seen in the last uh uh two 25:11 25 minutes, 11 seconds three years has been uh quite phenomenal. Uh so you know especially in your case what has been driving this? Is 25:19 25 minutes, 19 seconds it uh a rising contribution from surveillance income uh and you know some sense on you know um how bank loan 25:28 25 minutes, 28 seconds rating related revenue and uh you know uh bond market rating has uh kind of played out in terms of uh contributing 25:35 25 minutes, 35 seconds to your uh revenue growth. So some sort of you know quant quant quant quant 25:39 25 minutes, 39 seconds quant quant quant quant quant quant quant quantitative flavor on what has driven the growth would be extremely helpful. After that you know I will ask my followup. 25:47 25 minutes, 47 seconds Okay. Uh thanks you would like to answer. 25:52 25 minutes, 52 seconds Uh yes. Uh thank you Bali for this question. Um if you look at the lay of the land typically the bond market was a 25:59 25 minutes, 59 seconds bit slower this year in FY26. It started on a very good note in Q1 but it dipped later on. uh the bank loan uh rating 26:07 26 minutes, 7 seconds market was buoyant with 16.1% growth in bank credit to uh the segment that we look at as rating agencies. Um and 26:15 26 minutes, 15 seconds therefore this market was uh was good as compared to last year. Last year the same segment showed about 115% 26:23 26 minutes, 23 seconds kind of growth rate. So uh you know u definitely the bank loan market and uh you know while there was no growth in the bond market there a small 26:30 26 minutes, 30 seconds deceleration in the in the bond market in the current year that has helped the entire uh rating uh segment. Um as far 26:38 26 minutes, 38 seconds as uh you know blend of you know income is concerned. Uh both the surveillance as well as the initial 26:47 26 minutes, 47 seconds rating revenue continue to add to our u you know growth in the current year. Uh we have been saying in the past that you 26:55 26 minutes, 55 seconds know as far as the incremental ratings uh go uh we have got a good share good market share and we continue to enjoy 27:03 27 minutes, 3 seconds that good market share as we go along as as we build our surveillance book you know to a sizable and a meaningful uh 27:11 27 minutes, 11 seconds trajectory in the years ahead. Uh so that's it from meal. 27:17 27 minutes, 17 seconds Yeah thanks for this. uh but the general impression of that uh usually when uh bond market search well that is when the 27:25 27 minutes, 25 seconds rating agencies do better because there is a premium pricing that you can enjoy unlike say you know bank loan rating uh 27:34 27 minutes, 34 seconds which is you know fairly commoditized so have this dynamic changed in recent times uh you know I've been a little bit 27:42 27 minutes, 42 seconds curious about that uh so your observation is right bal typically ally the yields in the bond 27:49 27 minutes, 49 seconds market as far as waiting fees are concerned are better than in the bank loan market and they continue to be uh in in that same trajectory. Uh but 27:58 27 minutes, 58 seconds having said that you know uh there is a significant portion of rating revenue because as you know this is an annuity business so a significant portion of 28:06 28 minutes, 6 seconds rating revenue also comes from the surveillance uh revenue for all rating agencies. So in that sense you know uh 28:12 28 minutes, 12 seconds there um the incremental uh uh impact uh of the new business uh will that will 28:20 28 minutes, 20 seconds have to be seen in the light of uh uh the the kind of nature of business which is also an IOT business. 28:28 28 minutes, 28 seconds Got it. My second question would be on the outlook. While I know that uh you don't provide guidance but with you know 28:35 28 minutes, 35 seconds whatever uh macro challenges that are emerging because of the geopolitical situation uh has there been any uh on 28:44 28 minutes, 44 seconds the ground uh weakness you know as far as uh uh you know rating activity has 28:50 28 minutes, 50 seconds been concerned maybe it is uh early days but uh is there any you know some bit of 28:56 28 minutes, 56 seconds a uh pause in terms of uh uh corporate going aggressive on capital. Have has 29:03 29 minutes, 3 seconds there have there been a significant uh change in the sentiment for the worst? 29:09 29 minutes, 9 seconds I'll just transfer anything you can add to this. See Baji uh as you are pointing it out. This is still an evolving uh 29:18 29 minutes, 18 seconds impact that we need to keep on observing. 29:22 29 minutes, 22 seconds uh uh at this juncture nobody actually has uh uh any prognosis on how long the 29:29 29 minutes, 29 seconds conflict uh could be continuing. Uh which are uh the finally the significantly impacted factors as the on 29:37 29 minutes, 37 seconds the prison area analysis uh that would be a certain impact but how it would play out in the overall corporate domain 29:45 29 minutes, 45 seconds and how it could be impacting the overall borrowing programs of the corporates that remains to be seen. uh nobody has any concrete answers to that. 29:54 29 minutes, 54 seconds I think the uh one good aspect of uh India's corporate uh credit quality has 30:01 30 minutes, 1 second been the fact that over the years the deleveraging which had taken place has ensured that uh the cash flow impact 30:09 30 minutes, 9 seconds which could be there on uh uh many of the uh corporates uh is not something that could be leading to significant I 30:18 30 minutes, 18 seconds would say credit quality issues all of a sudden in the uh near future. 30:24 30 minutes, 24 seconds that's something which can play out to the benefit of India's corporate sector and the other aspect also has been that 30:31 30 minutes, 31 seconds the overall asset quality uh feature of the Indian banks that is also at relatively a healthy 30:39 30 minutes, 39 seconds layer. So a combination of these two would indicate that at least from the perspective of the ability to withstand 30:47 30 minutes, 47 seconds uh the headwind uh we are at a rel on a relative basis or comparative basis we are at a good position but if this thing 30:57 30 minutes, 57 seconds prolongs for a foreseeable future on which nobody has any control or like that any conjecture at this juncture it 31:04 31 minutes, 4 seconds will be too too premature. It's like a a space where we'll have to keep on observing and our credit quality our 31:11 31 minutes, 11 seconds credit ratio also for H2 that had moderated over H1 of FI26 which is also a reflection in terms of like the 31:19 31 minutes, 19 seconds upgrade to downgrade ratio that had got moderated. So I think how it will play out in H1 of FI27 and how the overall 31:27 31 minutes, 27 seconds kind of quality of the different sectors will play out it's it's an evolving game and uh neither we nobody else could be 31:35 31 minutes, 35 seconds having a very concrete asset and how it would be impacting the borrowing programs whether the corporates could put a pause on capital expenditure plans 31:42 31 minutes, 42 seconds whether there could be a greater focus for comprising of the economy from the government side as we have seen uh during the covid times um at this 31:51 31 minutes, 51 seconds juncture there are no answers to those questions. 31:54 31 minutes, 54 seconds You would like to add anything just covered it. Yeah. So, thanks Mo for the elaborate answer. 32:03 32 minutes, 3 seconds Uh one sorry between join the queue again. Sure. 32:12 32 minutes, 12 seconds Thank you. Before we take the next question, ladies and gentlemen, in order to ensure that the management will be 32:20 32 minutes, 20 seconds able to address all the questions from the participants in the question queue, we request you to kindly limit your questions to two per participant. If you 32:28 32 minutes, 28 seconds have a follow-up question, please rejoin the queue again. 32:32 32 minutes, 32 seconds We will take the next question from the line of Rajiv Mata from Yes Security. Please go ahead. Yeah. Hi, good afternoon. 32:40 32 minutes, 40 seconds Congratulations on very good set of numbers. So I have a few questions but I'll ask two questions right now and then I'll rejoin it. uh firstly uh in 32:48 32 minutes, 48 seconds this whole 15% domestic rating revenue grow in last year uh of course there's a big element of serving fee growth but 32:55 32 minutes, 55 seconds can we get to know what is the growth purely in the initial fee in FI26 because uh what I think what ma'am is 33:03 33 minutes, 3 seconds trying to make us understand is this that uh you know uh if there is any moderation at all it will reflect firstly in the initial reading free 33:10 33 minutes, 10 seconds growth and then it will reflect in the overall growth uh in the coming year uh so can we isn't understanding correct 33:17 33 minutes, 17 seconds and can then we have the growth in each way to see the revenue 33:24 33 minutes, 24 seconds well can take up on the overall IR FPS on this let me just first 33:32 33 minutes, 32 seconds point out that uh the structure of the rating industry also works in the fashion that in the 33:40 33 minutes, 40 seconds periods where uh there could be certain headwinds and like that the working capital requirements of reports also tend to increase. That would mean that 33:49 33 minutes, 49 seconds uh resorting to uh greater or higher band debt for funding the working requirements could also be there and 33:57 33 minutes, 57 seconds because the band from a working capital perspective also needs to be rated that uh just provides uh some cushion as far 34:04 34 minutes, 4 seconds as the industry's prospects are concerned and to that extent we have to just wait and watch how it plays plays 34:12 34 minutes, 12 seconds out right you like to add more to this yes so Rajiv you know we won't um uh 34:19 34 minutes, 19 seconds really uh be we'll be be able to kind of comment on what proportion is initial and what proportion is surveillance 34:25 34 minutes, 25 seconds because uh some of the um clientele that we have we've also mentioned earlier all also are within uh you know they have a 34:34 34 minutes, 34 seconds six seats for the year and it's very difficult to bifocate as initial or surveillance so it's uh it's a very difficult uh question for you for us to 34:43 34 minutes, 43 seconds answer and unfortunately not be able to answer this with qu any quantitative of data. 34:49 34 minutes, 49 seconds Got it ma'am. But you generally speak about the infinity market share in the initial rating market. Uh I want that 34:56 34 minutes, 56 seconds comment and second is you can also share the number of rated corporate the base how that has grown through the year. 35:03 35 minutes, 3 seconds Yeah. 35:05 35 minutes, 5 seconds Yeah. So uh in terms of the rated corporates we have about 5,200 plus uh rated entities in our portfolio. 35:15 35 minutes, 15 seconds Now um in terms of the uh market share by count or by debt we continue to uh uh 35:24 35 minutes, 24 seconds you know hold about a 24 25% market share in the incremental business which is there uh both by count as well as the 35:32 35 minutes, 32 seconds volume of debt rated but that is only I'm talking about the incremental uh debt which has come for ratings in the current year. 35:42 35 minutes, 42 seconds Correct. Correct. Yeah, that is what I want to resolve. Okay, I have more question. I'll come back with you. Thank you so much. 35:51 35 minutes, 51 seconds Thank you. We will take the next question from the line of Priyanka from Val Capital. Please go ahead. 35:59 35 minutes, 59 seconds Yeah. Uh so then I would like to know uh what would have been say revenue growth for India ratings in case we have to 36:08 36 minutes, 8 seconds look at the way uh uh via banks, NBFCs and say big corporates or maybe large corporates and mid corporates just to 36:16 36 minutes, 16 seconds appreciate the fact that we had a strategy laid down for uh for the growth uh to be accelerated via midc 36:24 36 minutes, 24 seconds corporates. uh so so just a just a data point or some references uh on on the on the India ratings group 36:34 36 minutes, 34 seconds uh I uh I don't understand the question can you please are you talking about India ratings as an entity India ratings 36:41 36 minutes, 41 seconds and business as an entity or what are you rating you talking India India's rating industry 36:49 36 minutes, 49 seconds I will rephrase this question and uh my question is on India ratings uh revenue for care. If you can bifurcate this 36:58 36 minutes, 58 seconds domestic domestic ratings revenue for care for care if you can bifurcate this. Yes. 37:05 37 minutes, 5 seconds Yes. Yes. If you can bifocate between banks uh NBS what has been the revenue contribution and the growth as well as 37:12 37 minutes, 12 seconds say large corporates and mid corporates uh revenue contribution in the growth. 37:17 37 minutes, 17 seconds Uh sorry Priyank we will not be able to give those bifurcations. 37:22 37 minutes, 22 seconds It's the aggregate level of reading revenue which is there in the public domain but this kind of a sector wise bifurcation is not possible for us to be given. 37:31 37 minutes, 31 seconds Sure. So uh let me try it again. The the essential point that I wanted to ask is uh given that we had a strategy laid 37:39 37 minutes, 39 seconds down to gain market share in mid corporates. We had a strategy laid down to increase the sales efforts in the mid corporate segment. Should that be enough 37:48 37 minutes, 48 seconds to for us to have a security or maybe a a fair judgment around growing India ratings faster than the industry. 38:01 38 minutes, 1 second Okay. Uh so you uh I presume that you're uh referring to growing the domestic ratings business uh faster than the industry, right? 38:11 38 minutes, 11 seconds Correct. 38:13 38 minutes, 13 seconds Yeah. Okay. So I think we uh we we have been uh quite clear in uh our strategy on this and largely speaking we have 38:21 38 minutes, 21 seconds been uh going at a pace which is uh faster than uh the overall rating industry growth I mean that's remains 38:27 38 minutes, 27 seconds our status stat position with uh uh some aberrations here or there uh across some quarters or like that because this is uh 38:35 38 minutes, 35 seconds this is not a business where you can always be expecting every single quarter to be a replica of the previous quarter or a corresponding quarter of the 38:43 38 minutes, 43 seconds previous here because the macro dynamics and how the different factors on which you could be having exposes they could change from different year to year to 38:52 38 minutes, 52 seconds year it can potentially change and the even the borrowing patterns of the different industries that can also undergo a change. So from that 38:58 38 minutes, 58 seconds perspective uh uh it could be a uh it has to be seen in that context right but our stated position remains that we'll 39:06 39 minutes, 6 seconds continue to outpace uh the overall industry growth and we'd like to stick to that. 39:13 39 minutes, 13 seconds Sure. And uh second question on the non-ratings part. Uh this segment as a 39:20 39 minutes, 20 seconds revenue contribution has remained around 10% of the total revenue. Somewhere uh down the line we had a vision to get 39:30 39 minutes, 30 seconds this revenue contribution to 20% of the total revenue which means that the segment has to accelerate the revenue growth significantly higher than the 39:38 39 minutes, 38 seconds ratings revenue growth. Now what we have observed is over last uh medium-term in the recent past this rating non-rating 39:46 39 minutes, 46 seconds revenue growth has uh decelerated in terms of growth. what has been the reason for that and what are your 39:53 39 minutes, 53 seconds thoughts around scaling this back to 20% uh what should be the timeline that we should think of it 40:01 40 minutes, 1 second okay uh I appreciate the directness and I think it's important to separate uh 40:08 40 minutes, 8 seconds uh three distinct sub businesses uh within what we call as the non-rating segment because they have a very 40:16 40 minutes, 16 seconds different uh and characteristically different uh growth profiles and very different challenges attached to each 40:24 40 minutes, 24 seconds analytics uh was a loss making uh vertical for us for uh several years and 40:33 40 minutes, 33 seconds as we invested in building the product platform uh during this year uh we have started getting traction on the same as 40:41 40 minutes, 41 seconds my colleague uh Abishek alluded to the edge avi which covers uh Fred Edge Intel edge and 40:49 40 minutes, 49 seconds into products, the platforms has now achieved market adoption and the business has reached the overall uh 40:57 40 minutes, 57 seconds carriage analytics business has reached uh closer to the break even in FI26. 41:02 41 minutes, 2 seconds That is the foundation for us. The next phase is scaling the revenue from a stable base and which takes time in the 41:10 41 minutes, 10 seconds bank and financial institution technologyled markets. 41:15 41 minutes, 15 seconds In this case, sales cycles are long, implementation is generally complex and the client stickiness is high, which means that it takes time to win. 41:26 41 minutes, 26 seconds But once we win the client, the revenue is recurring and durable. So we are in that growth phase journey. Now 41:35 41 minutes, 35 seconds turning to carriage advisory, which is the another vertical of capital now that has been growing profitably with a good 41:43 41 minutes, 43 seconds margin. industry research, ESG advisory, green bond third party reviews and the other advisor to advisory tools which uh 41:52 41 minutes, 52 seconds they are offering service offering they have been uh going at a fairly decent pace. Now that business because it is 41:59 41 minutes, 59 seconds scaling steadily also is in margin positive uh positive margin uh activity rate 42:06 42 minutes, 6 seconds in an overall sense it has given a good contribution at the overall level and also ensured that at overall entity level we have achieved the break even. 42:15 42 minutes, 15 seconds Now limitation in case of carriage advisory is not structural is that the individual ticket sizes uh in once again a highly competitive 42:24 42 minutes, 24 seconds consulting kind of a business are smaller and building a meaningful revenue base. It requires building a relatively large client portfolio over a 42:32 42 minutes, 32 seconds period of time and that also requires that you keep on building your expertise driven by human infrastructure to 42:39 42 minutes, 39 seconds commensurate and uh make you ready for exploiting the right opportunities. 42:44 42 minutes, 44 seconds uh you have to be ready for that and we are doing that thing systematically. 42:48 42 minutes, 48 seconds The third uh aspect of the non-rating business is carriage ESG uh ESG ratings and that is uh operating in a market that is still nent uh in the country. 42:59 42 minutes, 59 seconds Well, unlike credit rating uh which are regulationdriven, ESG ratings are currently market driven and largely voluntary. 43:08 43 minutes, 8 seconds So the issuers and the investor adoption is building but it is not yet at an inflection point. We have established a 43:15 43 minutes, 15 seconds leadership position with the 58% share among the category 1 ERP providers but converting that position into significant revenue at a scale it will 43:24 43 minutes, 24 seconds require some regulatory or market catalytic interventions which could still be developing. Irrespective of 43:31 43 minutes, 31 seconds that what we believe is that we are well positioned uh as and when this kind of catalysts arrive. So in an overall mix 43:39 43 minutes, 39 seconds uh when we are looking at the contribution of the and the growth of the non-ratings segments has grown by 19% faster than the group average. But 43:48 43 minutes, 48 seconds the reason that the percentage share has also not moved dramatically is also because of the fact that the rating business itself has grown very strongly 43:56 43 minutes, 56 seconds at 17% at a very high base which is a good problem to have at a company level at a group level. The lower core 44:05 44 minutes, 5 seconds business would have otherwise made the overall mix slightly more uh dramatic but that is not how we would like to get there. We'll like to keep on growing uh 44:13 44 minutes, 13 seconds the ratings as well as non-ratings businesses at a healthy pace. 44:17 44 minutes, 17 seconds So I think the in an overall sense uh we have reached a phase where our non-ratings businesses and especially 44:26 44 minutes, 26 seconds from the analytics and the advisory phase we have reached a phase where we can now uh look for uh an increased 44:33 44 minutes, 33 seconds acceleration in the coming quarters and the years because the most challenging phase of getting it back to profitability from a significant loss 44:42 44 minutes, 42 seconds level and we had losses in this entity to the extent of around 24 or crores 24 44:49 44 minutes, 49 seconds to 25 crores four years back and our primary focus had been and uh which is something which I have been uh repeatedly been stating in my investors 44:58 44 minutes, 58 seconds call was to concentrate and erect those losses the fact that we have done that successfully gives us now the confidence 45:05 45 minutes, 5 seconds of scing it further so this is what uh we are looking forward to in this vertical 45:12 45 minutes, 12 seconds appreciate sir uh just last thing on the dividend payout observation which has remained flat. Uh now I'm just referring 45:20 45 minutes, 20 seconds back to last year's conversation wherein we were looking out for certain accuracies but may not be fitting into the valuation metrics. Now the low no 45:29 45 minutes, 29 seconds further investments are required into ratings non-rating business. uh we are into a cash flow generation business 45:36 45 minutes, 36 seconds where the cash keep accumulating on the balance and it deteriorates the return ratio and the peers in our industry have 45:43 45 minutes, 43 seconds announced a significant buyback and returning back this cash to the rightful owners. Uh why would we would have not 45:50 45 minutes, 50 seconds even announced the buyback or or kept the dividend payout uh as a flat as last year. 45:59 45 minutes, 59 seconds Okay. see your sort of fair and direct question and I'll also answer it in the same period 46:07 46 minutes, 7 seconds the dividend uh we have been largely been uh consistently a dividend paying company and uh this year we have 46:14 46 minutes, 14 seconds increased it also right but having said that I appreciate your uh uh concern as far as uh inorganic acquisition is 46:22 46 minutes, 22 seconds concerned and in the absence of an inorganic acquisition what the capital allocation uh would mean. Let me just 46:29 46 minutes, 29 seconds focus on uh why the inorganic acquisition has not uh gone ahead so far. 46:38 46 minutes, 38 seconds We have been and shall remain actively involved in evaluating inorganic opportunities. The absence of a 46:46 46 minutes, 46 seconds transaction till date, it is not because of any inaction. 46:51 46 minutes, 51 seconds It is the result of applying a discipline filter consistently in our assessment. 46:57 46 minutes, 57 seconds Let me explain slightly what this kind of tra looks like. 47:02 47 minutes, 2 seconds We are looking for three things simultaneously. 47:06 47 minutes, 6 seconds Strategic fit with our core domain which is predict analytics and consulting services. 47:13 47 minutes, 13 seconds a target that is either in an adjacent product area we cannot build quickly enough organically or a geography where 47:21 47 minutes, 21 seconds a foothold matters and a valuation that reflects intrinsic value not any kind of a speculative premium. 47:29 47 minutes, 29 seconds finding all the uh three aspects in one opportunity and particularly in a market where valuations you will appreciate you are a market player in a market where 47:38 47 minutes, 38 seconds valuations in the fintech and analytics space have remained elevated has been genuinely difficult. 47:45 47 minutes, 45 seconds We have also been working through a natural sequencing and I'll be candidate in terms of admitting that before 47:52 47 minutes, 52 seconds pursuing inorganic growth we needed to stabilize and turn around the subsidiaries which were already owning 48:01 48 minutes, 1 second taking up something at a valuation and if it would have been a loss making and another turnaround story to be required it would have taken a significant management bandwidth. 48:12 48 minutes, 12 seconds Capital has now achieved break even. Our car global IFSC has gone from a concept to a globally recognized rating rating 48:20 48 minutes, 20 seconds agency in just 18 months. So that internal housing order work was the prerequisite for any responsible 48:28 48 minutes, 28 seconds external expansion that we could have thought of. 48:31 48 minutes, 31 seconds Now that our existing portfolio is performing, we are in a much better position to absorb and integrate an and any acquisition without distraction. 48:44 48 minutes, 44 seconds So the pipeline of conversations is live. I shall not set a deadline for transaction because a forced acquisition 48:52 48 minutes, 52 seconds at the wrong price or of the wrong asset would destroy more value than it creates. 48:59 48 minutes, 59 seconds We have seen that pattern often in this space with to be disciplined about it. 49:08 49 minutes, 8 seconds So in a nutshell what I can tell you is this. When the right opportunity presents itself at the right valuation and with clear analytical synergies we shall act decisively. 49:18 49 minutes, 18 seconds The capital is available our intent is clear and the discipline that I'm talking about is not an excuse. 49:27 49 minutes, 27 seconds It is the reason why our existing investments they are performing. So we shall remain committed in terms of 49:33 49 minutes, 33 seconds creating shareholders value through our organic and possible inorganic opportunities as and when we find the right fit. 49:45 49 minutes, 45 seconds Wonderful. Thank you sir. 49:50 49 minutes, 50 seconds Thank you. We will take the next question from the line of Deepak Ajira from IG India. Please go ahead. 49:59 49 minutes, 59 seconds Thank you and congratulation on good state of members. Um uh may I request you to be slightly louder? Uh your voice is through pain. 50:08 50 minutes, 8 seconds Okay. Okay. Now it is audible. Ah yes please. Yeah please. 50:12 50 minutes, 12 seconds Yeah. Yeah. So on the overseas whether it is interruption debug I would request you to please use the hardset mode and speak. 50:22 50 minutes, 22 seconds Yeah. Uh my question is on the overseas um rating uh whether it is Africa, Nepal, 50:30 50 minutes, 30 seconds what is um growth pro prospectus there because we see um a good potential from 50:38 50 minutes, 38 seconds the CARES rating because because of India rating uh agency present there and 50:44 50 minutes, 44 seconds um what's your outlook uh apart from the domestic rating? 50:55 50 minutes, 55 seconds Uh so uh I think it will be best for rei to take up this question. Rei 51:04 51 minutes, 4 seconds uh yeah thank you uh n uh so uh you know there are three overseas businesses uh that we have broadly. One is care ratings Nepal, second is K ratings 51:13 51 minutes, 13 seconds Africa and third is carage global limited. Uh care ratings uh Nepal is the market leader. We became the market leader last year. We continue to be the 51:21 51 minutes, 21 seconds market leader in the business this year also and as the country progresses we will be a very uh deeply entrenched 51:29 51 minutes, 29 seconds player into that market. Uh so we see it's it's a profitable operation which is um uh which is run very very 51:36 51 minutes, 36 seconds efficiently. Uh in K ratings Africa u we got last year a license to expand into South Africa and uh we also have got 51:45 51 minutes, 45 seconds rating licenses in two other geographies in the current year. uh so we continue to expand our uh reach in uh the African 51:54 51 minutes, 54 seconds uh domain and again that business has a very good and steady growth rate uh along with profitable operations. Uh as 52:02 52 minutes, 2 seconds far as carriage global ISSC is concerned uh this is a new business uh as I stated earlier this is the first full year of 52:09 52 minutes, 9 seconds operations. uh within the first full year of operations we've added about 30 plus clients across 10 plus sectors uh 52:16 52 minutes, 16 seconds and we've rated about 8.5 billion dollars worth of debt. Uh being in the nent stage of operations uh you know it 52:24 52 minutes, 24 seconds will require some time uh to get into the profitable operations zone but we are fully committed to uh expanding this 52:33 52 minutes, 33 seconds uh these operations beyond um you know uh the market that we currently operate. 52:38 52 minutes, 38 seconds uh and we are very confident that uh we will be able to achieve that in the uh in showing years. Uh maybe 52:45 52 minutes, 45 seconds I would also like to uh I'd also like to take Soro online uh to add to this. Sor can you uh give your comments? 52:56 52 minutes, 56 seconds Yes, thank you. Uh actually my name is Sori. I'm I'm heading ratings Africa. So we have established charts as a dominant 53:05 53 minutes, 5 seconds rating agency in Malaysia and in the last year we have uh seen a double digit growth and we have crossed 100 clients 53:12 53 minutes, 12 seconds in Malaysia. Uh we are expanding into various parts of Africa where there is a demand for local currency bond market. 53:19 53 minutes, 19 seconds So that is a key play like uh madame refi mentioned we have got a license in South Africa last year and we have also 53:28 53 minutes, 28 seconds got a license from the capital market of securities authority of Tanzania we also have it from Kenya. So we are seeing to 53:36 53 minutes, 36 seconds develop these markets while there are a lot of growth potential in the capital market side and the bank debted side which are untapped and we are trying to 53:44 53 minutes, 44 seconds uh work with the regulators, investors and various stakeholders like we have done in Malaysia with the backing from our Indian business. 53:53 53 minutes, 53 seconds Thanks. Yeah, we can move to the next question. Thank you. 54:03 54 minutes, 3 seconds Thank you. 54:05 54 minutes, 5 seconds We will take the next question from the line of Vun from Bandon Life. Please go ahead. 54:11 54 minutes, 11 seconds Uh uh thanks for the opportunity and uh congrats on a good set of numbers. Um my first question is on the ratings business. uh how do you see outlook for 54:20 54 minutes, 20 seconds ratings business uh over near to medium-term and also historically uh you know K had the highest share of revenue 54:27 54 minutes, 27 seconds coming from BR uh close to 65% of total rating revenue what I recollect uh how would this number have changed over last 54:35 54 minutes, 35 seconds two to three years and if activity in capital market uh markets further slows down do you think we are a little bit 54:42 54 minutes, 42 seconds better placed as BLR will continue to uh have its momentum 54:52 54 minutes, 52 seconds Uh yeah uh thank you Vun for the question. Uh we uh do not disclose our you know share between capital markets 55:01 55 minutes, 1 second and uh banking ratings. Uh so that's a question I'll unable be unable to answer. However, if you look at uh the 55:09 55 minutes, 9 seconds growth trajectory for the uh credit rating industry per se, um and this is a thing that we always share that if you 55:17 55 minutes, 17 seconds believe in the India growth story, if you believe that you know we will be the largest uh um you know highest growing 55:24 55 minutes, 24 seconds economy in the globe uh then in that case the uh requirement for credit um in the ecosystem will only grow and uh it 55:34 55 minutes, 34 seconds is in that context that you know we remain um optimistic on the growth of the credit rating industry and uh as a as a key participant in that industry. 55:44 55 minutes, 44 seconds We also are um uh you know optimistic on the growth trajectory that we would have in the uh future years. But putting a 55:52 55 minutes, 52 seconds number to it is a very difficult uh situation because as you as you rightly understand that there are business cycles uh and uh we are very much 56:01 56 minutes, 1 second aligned to those business cycles that emanate from a economy perspective. 56:09 56 minutes, 9 seconds Okay. Uh my second question is on the non-rating side. Uh can you share the ballpark revenue break up between analytics and advisory? And on the 56:18 56 minutes, 18 seconds analytic side, uh if you can share more color as to how businesses progress in terms of client traction, uh 56:25 56 minutes, 25 seconds profitability and strategic re relevance and where do you believe we have clear right to win versus uh uh products that 56:32 56 minutes, 32 seconds are there in the market today and uh also do you see analytics uh uh segment within overall non-rating piece uh 56:40 56 minutes, 40 seconds becoming a meaningful contributor to our grow uh going forward that is let's say EAG or advisory uh or we have killed 56:47 56 minutes, 47 seconds some distance away from some meaningful traction uh in the analytics. 56:56 56 minutes, 56 seconds Can you please continue uh to answer this? 57:02 57 minutes, 2 seconds Uh so um we really don't put out numbers uh differently for advisory and analytics division uh separately because 57:10 57 minutes, 10 seconds we it's it's the same company. So uh the number for the company was already shared by label earier. This year we've 57:17 57 minutes, 17 seconds crossed the revenue of 50 cr in this company. In terms of what's going to be the uh you know future levers for growth 57:25 57 minutes, 25 seconds for analytics I would ask Abishek to answer this uh followed by what are the levers that you see in advisories. 57:33 57 minutes, 33 seconds So uh from an analytics standpoint as I mentioned a platform aira.ai AI have gained traction with the clients. 57:41 57 minutes, 41 seconds Existing clients uh have started giving us more business for the products and services that they want from us and because of that good deal that has got 57:50 57 minutes, 50 seconds created other clients have joined uh today in that space. So our traction in the market that we operate has started 57:57 57 minutes, 57 seconds to increase and because of that our revenue numbers are going up. additional revenue from it. Existing clients continue to be on the upside and as you 58:05 58 minutes, 5 seconds as me said earlier that our business is where we acquiring a new client is is tough but then once you get into it then the annotated revenue continues to 58:14 58 minutes, 14 seconds happen for us. So that's that's where our revenue is growing we keep on adding one or two client in each geography uh year on year and then the annotated revenue just take the ball. 58:27 58 minutes, 27 seconds So for and something yeah uh yeah okay so on the advisory 58:34 58 minutes, 34 seconds business uh as you are aware we we uh run major three major verticles uh sustainability industry research and uh 58:43 58 minutes, 43 seconds structured solutions around corporates and I would say that all the uh all the segments are showing good growth uh and 58:49 58 minutes, 49 seconds as Mayul earlier outlined uh that it's that you know for an advisory business it's very important that you gain 58:57 58 minutes, 57 seconds credentials, you gain uh uh the the right kind of customers and you are able to you know kind of showcase your 59:04 59 minutes, 4 seconds capabilities. So we are our growth is primarily driven by the fact that over the last 3 four years that the kind of work that we put out uh in terms of our 59:13 59 minutes, 13 seconds delivery in terms of you know gaining the outreach and making the uh customers and the market aware that uh you know we 59:21 59 minutes, 21 seconds are a credible uh you know entity in the advisory business has you know kind of paid off the efforts. Uh so specifically 59:31 59 minutes, 31 seconds if you look at it our sustainability business has shown very good uh growth and has shown very good kind of you know clientele as well as performance. Uh we 59:40 59 minutes, 40 seconds are now also into climate risk. We are now also into uh you know we are one of the leaders in in the local market in 59:47 59 minutes, 47 seconds the third party review segment. Uh and we have some 80 plus sustainability reports out there in the market. And uh 59:56 59 minutes, 56 seconds in terms of the clientele also uh we are working with the top you know 250 plus the top 500 uh market cap companies both 1:00:04 1 hour, 4 seconds in the BFSA space as well as in the uh corporate space. We also work with a lot of uh private uh equity funds etc. Um in 1:00:15 1 hour, 15 seconds terms of um you know as an advisory business obviously the kind of insights that we uh gain from working with 1:00:22 1 hour, 22 seconds assignments gives us further levers to you know kind of offer new services and new solutions uh which are backed by 1:00:29 1 hour, 29 seconds analytical insights. Yeah that's it from Got it. And one last question on uh 1:00:38 1 hour, 38 seconds again on capital allocation uh you know keeping the inorganic opportunities aside what may highlight as the biggest 1:00:45 1 hour, 45 seconds constraint in increasing or maintaining the dividend payout because uh this year's payout is still much lower than 1:00:52 1 hour, 52 seconds uh what we paid out in FI23 and FI 24 uh which was much challenging period for the organization from where we stand today. So what is the biggest constraint in uh your view? 1:01:04 1 hour, 1 minute, 4 seconds I don't think there is any constraint to be put uh in that perspective right but 1:01:11 1 hour, 1 minute, 11 seconds I think with the FI23 and those years there would also not be a there will also not be the right uh 1:01:19 1 hour, 1 minute, 19 seconds you know comparable things in FI 23 and there was also component in terms of special 23 special division 1:01:27 1 hour, 1 minute, 27 seconds component also there was there to commemorate our 30 years of of operation so that cannot counted as a sort of a normal dividend payout scenario, right? 1:01:38 1 hour, 1 minute, 38 seconds So, we have uh generally been consistent and we have tried to increase and at the same time remaining completely mindful of uh the overall capital allocation to 1:01:47 1 hour, 1 minute, 47 seconds play out for the shareholders value creation. We remain uh committed for that and as I stated in in my earlier answer to one of the questions 1:01:55 1 hour, 1 minute, 55 seconds pertaining on the inorganic side. So we are uh having the cash on the balance sheet which is giving us the confidence 1:02:02 1 hour, 2 minutes, 2 seconds in terms of uh uh striking uh at the right format in terms of any meaningful deal coming at the right valuation. So I 1:02:10 1 hour, 2 minutes, 10 seconds think it will be a matter of time if we get this thing and act decisively as I had put it and we remain committed for that. 1:02:24 1 hour, 2 minutes, 24 seconds Okay. Thank you. 1:02:28 1 hour, 2 minutes, 28 seconds Thank you. We'll take the next question from the line of Rahul Gandari from Unifi Capital. Please go ahead. 1:02:36 1 hour, 2 minutes, 36 seconds Thank you for the opportunity and uh congratulations on the goods and numbers. So my question is regarding the pricing in the industry. So uh so within 1:02:46 1 hour, 2 minutes, 46 seconds the credit rating segment where is care in terms of pricing compared to other players uh both in 1:02:54 1 hour, 2 minutes, 54 seconds bank ratings and bond separately and how do you see this gap improving? 1:03:00 1 hour, 3 minutes I wish we would be aware about uh the competitors pricing all across because this is a space where uh you just have 1:03:07 1 hour, 3 minutes, 7 seconds to uh be be at it in terms of constant improvements as far as your pricing are concerned because it's very difficult I 1:03:14 1 hour, 3 minutes, 14 seconds mean we generally uh to ascertain uh from the clients also what would be the pricing level of uh the competition you 1:03:22 1 hour, 3 minutes, 22 seconds just have to be at it right and consistently growing the franchise growing your presence across the segments and as a full with rating 1:03:31 1 hour, 3 minutes, 31 seconds agency we have been able to do that I think that's a testimony to the way in which we have been operating and the results are showing for that and uh 1:03:39 1 hour, 3 minutes, 39 seconds continuously improving the pricing uh at an overall level that remains the K for our business uh and TD Rei and her 1:03:48 1 hour, 3 minutes, 48 seconds entire team so that's being closely monitored at the board level and they've been successfully been able to do that 1:03:56 1 hour, 3 minutes, 56 seconds right so would you like to add anything more to No, I think you adequately covered. Yeah. 1:04:05 1 hour, 4 minutes, 5 seconds And secondly on the uh secondly on the initiatives that are being taken to gain market share in uh you know the new 1:04:11 1 hour, 4 minutes, 11 seconds assurances segment. So what are these initiatives and uh how are you able to gain market share 1:04:20 1 hour, 4 minutes, 20 seconds uh from our uh overall uh uh competitive uh levers that could be available to us. 1:04:30 1 hour, 4 minutes, 30 seconds First is uh the focus on uh the high value segments that could be there in 1:04:36 1 hour, 4 minutes, 36 seconds economy. So uh our strategy remains in terms of deepening our presence in the 1:04:42 1 hour, 4 minutes, 42 seconds segments where the ratings uh carry the most weight that is the investor preference driven high deck weighted 1:04:49 1 hour, 4 minutes, 49 seconds sectors right as uh you would have seen in our investor presentation our stability rates for the AAA double A 1:04:57 1 hour, 4 minutes, 57 seconds kind of categories which are generally the categories which tap the capital market uh that has been pretty strong 1:05:05 1 hour, 5 minutes, 5 seconds and one of the strongest in the industry. So that quality track record is one of the most powerful business tools available to us uh to use to our advantage. 1:05:16 1 hour, 5 minutes, 16 seconds The second aspect uh is in terms of a full spectrum coverage also. So as we have been highlighting in the past in uh 1:05:23 1 hour, 5 minutes, 23 seconds the uh the annual call that we have reorganized our business development function into verticalized sector 1:05:30 1 hour, 5 minutes, 30 seconds focused structure. So uh first to ensure that no segment of the market is undercovered be it BSSI be it corporate 1:05:38 1 hour, 5 minutes, 38 seconds be it infra or midc corporate each dedicated coverage by our business team with measurable targets and we are also 1:05:47 1 hour, 5 minutes, 47 seconds another also has been the fact that we are the only credit rating agency with a full suite now which now includes 1:05:54 1 hour, 5 minutes, 54 seconds domestic ratings, global scale ratings, ESG ratings and OS ratings in the different geographies. So that breadth 1:06:02 1 hour, 6 minutes, 2 seconds of operation uh is also offering a genuine competitive advantage to us and plus now uh we are also uh uh uh into 1:06:12 1 hour, 6 minutes, 12 seconds the space of pervas. Well uh as a concept it is not related to credit rating but what why it matters is that 1:06:19 1 hour, 6 minutes, 19 seconds that is connecting us to a totally new trader of capital markets and in this process it strengthens our place in the 1:06:26 1 hour, 6 minutes, 26 seconds overall spectrum and of course one added lever which has come to our advantage now and which is a 1:06:34 1 hour, 6 minutes, 34 seconds new growth factor for us uh is uh our global skill offering. So we as David mentioned we are among the top 10 global 1:06:42 1 hour, 6 minutes, 42 seconds rating agencies uh as measured by sovereign country coverage with 45 so rated more than 8 billion of debt rated 1:06:51 1 hour, 6 minutes, 51 seconds within 18 months of operation and this is a segment that had no precedent in our history and it is growing fast. It's 1:06:58 1 hour, 6 minutes, 58 seconds a question question of combining all these levers to our advantage and keep on hoping for the growth opportunities. 1:07:08 1 hour, 7 minutes, 8 seconds That's it from my Thank you. 1:07:14 1 hour, 7 minutes, 14 seconds Thank you. We will take the next question from the line of Nihal Sha from Trudent Corporate Advisory. Please go ahead. 1:07:22 1 hour, 7 minutes, 22 seconds Yeah, thank you for the opportunity and congratulations of the setup. 1:07:26 1 hour, 7 minutes, 26 seconds Sorry to interrupt. Uh Nihal, you're not audible. Uh hello. Am I audible? Yes, please proceed. 1:07:34 1 hour, 7 minutes, 34 seconds Yes. Uh so thank you for the opportunity. Uh so my question was regarding the subsidiaries where you 1:07:41 1 hour, 7 minutes, 41 seconds like managed to get some 11 12% of a bit margins in this year if I'm not wrong. 1:07:46 1 hour, 7 minutes, 46 seconds How do we uh see the subsidiaries performing in the coming years as well? Do we see for the scope of margin expansion here? 1:07:59 1 hour, 7 minutes, 59 seconds uh I see see the uh let's look at the things from uh ratings versus the non-rating subsidiary. So rating 1:08:06 1 hour, 8 minutes, 6 seconds subsidiary a carriage Africa is a profitable venture. 1:08:11 1 hour, 8 minutes, 11 seconds It carriage Nepal is a profitable venture and continues to both of them continue to operate at healthy margins. 1:08:18 1 hour, 8 minutes, 18 seconds Right? Then we have uh carriage global. 1:08:22 1 hour, 8 minutes, 22 seconds Now carriage global is in a very nent stage and FI26 was the first full year of operations and we have done quite well uh within the first full year of 1:08:29 1 hour, 8 minutes, 29 seconds operations. Admittedly there is a loss and that is expectedly so that in a uh new line vertical line that you are 1:08:36 1 hour, 8 minutes, 36 seconds entering and especially when you are uh new in competition. So of course in the initial incubation stage there could be 1:08:44 1 hour, 8 minutes, 44 seconds losses but having said that I think the traction that we have gained that is given us a lot of confidence and to reach at the top 10 global uh reading 1:08:53 1 hour, 8 minutes, 53 seconds agencies in terms of the overall reading coverage that is that in itself is a testimony to the high caliber team that we have aggregated over there. So uh 1:09:01 1 hour, 9 minutes, 1 second from a margin perspective I think the reading business is they've been doing fairly well. Uh now turning to the non-rating subsidiaries. So capital has 1:09:09 1 hour, 9 minutes, 9 seconds just turned profitable right uh in uh this year. So this a complete turnaround story which was it was a lossmaking entity till last year and this year it 1:09:17 1 hour, 9 minutes, 17 seconds has posted profit right uh and within uh capital also both these vertical analytics and advisory they have 1:09:25 1 hour, 9 minutes, 25 seconds different product space and of service offerings so as to operate at different kind of margin level. I think what it 1:09:32 1 hour, 9 minutes, 32 seconds would be important to understand is that number one uh that the service offerings which we are uh which we have populated 1:09:40 1 hour, 9 minutes, 40 seconds over the last few years and which is giving us the results now should be delivering better margins in capital uh 1:09:48 1 hour, 9 minutes, 48 seconds as a whole uh going forward because it is just unprofitable now and we should be seeing better contribution coming 1:09:55 1 hour, 9 minutes, 55 seconds from that and uh the last thing the non-rating piece is ESG rating Now care ESG ratings as I mentioned the 1:10:04 1 hour, 10 minutes, 4 seconds kind of challenges with which we are operating over there but despite that it's largely voluntary kind of an assessment which corporates have to take 1:10:13 1 hour, 10 minutes, 13 seconds having said that to gain the kind of a market leadership which we mentioned going further in terms of uh 1:10:20 1 hour, 10 minutes, 20 seconds acceleration of the operations and like that I think in the future years we should be looking at the positive contribution coming from that also which 1:10:28 1 hour, 10 minutes, 28 seconds is currently loss making so I This is in a broader spectrum how the various subsidiaries in the ratings and the non ratings the place could be playing out. 1:10:38 1 hour, 10 minutes, 38 seconds Oh thank you. 1:10:51 1 hour, 10 minutes, 51 seconds Thank you ladies and gentlemen. Due to time constraint we will take the last question from the line of DA from air. 1:10:59 1 hour, 10 minutes, 59 seconds Please go ahead. 1:11:02 1 hour, 11 minutes, 2 seconds Yeah. Uh thank you sir. Uh congratulations on a good set of numbers. Uh if you could I I I it's a slightly related question on pricing 1:11:11 1 hour, 11 minutes, 11 seconds versus volume growth. If you could touch upon just the pricing and volume direction for initial ratings and maintenance across bank loans, bonds and 1:11:19 1 hour, 11 minutes, 19 seconds structured instruments and how do you see the overall growth for ratings playing out in the coming two three years? 1:11:28 1 hour, 11 minutes, 28 seconds Please take this question. 1:11:31 1 hour, 11 minutes, 31 seconds Uh yeah hi Dam. Um see uh pricing is a is a function of uh competition markets 1:11:41 1 hour, 11 minutes, 41 seconds and all. We are the uh you know second largest trading agency in India. So obviously you know uh um you know we're 1:11:49 1 hour, 11 minutes, 49 seconds doing something which is right on on every front. uh having said that it's very difficult for us to understand what 1:11:57 1 hour, 11 minutes, 57 seconds is the pricing which is given by competition uh to uh you know just suppose that against us so it's a very 1:12:05 1 hour, 12 minutes, 5 seconds difficult thing as you know alluded to by Nul also earlier if you can if you can just touch upon your sequential movements or your periodto period 1:12:13 1 hour, 12 minutes, 13 seconds movements and how it is correct yeah so on a end always is that you know on a sequential basis on a period-to- 1:12:20 1 hour, 12 minutes, 20 seconds basis we should improve on the advising and that's also the um you know K given 1:12:27 1 hour, 12 minutes, 27 seconds to the entire team and we we our entire endeavor is to move in that direction uh you know uh so in some periods we are 1:12:36 1 hour, 12 minutes, 36 seconds very successful in some periods we are moderately successful so that's how I would put it 1:12:43 1 hour, 12 minutes, 43 seconds so actually the question was that what has been the position in the current period on this front and uh particularly with regards to pricing and volumes for 1:12:52 1 hour, 12 minutes, 52 seconds initial ratings and maintenance across bank loans, bonds and structured instruments and how do you see it in the coming two three years? What has it been for now and how do you see it playing out going ahead? 1:13:02 1 hour, 13 minutes, 2 seconds So as of now we are favorably placed uh in terms of uh you know uh the traction that we are getting on a year-to-year 1:13:09 1 hour, 13 minutes, 9 seconds basis. uh but it's a it's a very um uh it's very difficult to tag uh pricing with the amount of debt rated because I 1:13:17 1 hour, 13 minutes, 17 seconds think that's where you're getting to because it's not really um there is no one to one relation that you can find 1:13:24 1 hour, 13 minutes, 24 seconds across the industry on the volume of debt rated and the pricing because it's a lot more intricate and the revenue has a part of surveillance has a part of 1:13:33 1 hour, 13 minutes, 33 seconds initial so it's a lot more intricate to kind of define and decipher in that fashion uh but suffice to say this is um 1:13:40 1 hour, 13 minutes, 40 seconds uh you know a a top priority for us to uh be present in terms of uh gaining a good market share both on the volume of 1:13:49 1 hour, 13 minutes, 49 seconds get rated as well as uh uh keep the pricing growing upwards. 1:13:54 1 hour, 13 minutes, 54 seconds Yeah. And uh finally we keep seeing that our outreach activities particularly the uh knowledge sharing and individual 1:14:02 1 hour, 14 minutes, 2 seconds interactions and all those things media boards have scaled up substantially in the past quarter and year. If you can just highlight or provide some flavor on 1:14:09 1 hour, 14 minutes, 9 seconds how this helps in our overall marketing endeavor and what kind of does it what kind of correlation it would have with let's say year-on-year growth in volumes 1:14:16 1 hour, 14 minutes, 16 seconds for us and our overall business that we can get. 1:14:20 1 hour, 14 minutes, 20 seconds This is the this is an analytical knowledge based industry. In a knowledge based industry you are just by how you 1:14:29 1 hour, 14 minutes, 29 seconds are disseminating that knowledge for the absorption and consumption of uh uh the stakeholders. 1:14:37 1 hour, 14 minutes, 37 seconds outreach is necessary from that context. 1:14:40 1 hour, 14 minutes, 40 seconds It is not a kind of a can say uh headline grabbing activity which is required which is required to be done. 1:14:47 1 hour, 14 minutes, 47 seconds It is an intrinsic activity as a part of the basic functioning. Unless and until your stakeholders uh your prospects uh 1:14:56 1 hour, 14 minutes, 56 seconds the different opinion makers in the market unless and until they see you coming out with any kind of a credible 1:15:03 1 hour, 15 minutes, 3 seconds assessment or a prognosis on the various sectors macro macroeconomic um industries so on and so forth 1:15:10 1 hour, 15 minutes, 10 seconds including on how the credit outlooks and like that. So from that perspective uh your positioning as far as the overall industry is concerned that will not be 1:15:18 1 hour, 15 minutes, 18 seconds gaining traction and for which outreach activity becomes an intrinsic part of our functioning. So that is the way in 1:15:26 1 hour, 15 minutes, 26 seconds which we have been uh giving a lot of uh focus on this and kudos to the team the 1:15:33 1 hour, 15 minutes, 33 seconds way in which they have taken up this aspect and uh I think the quarter the last quarter or a year is not an 1:15:40 1 hour, 15 minutes, 40 seconds operation. And it has been a consistent focus which is delivering the results and that results in terms of uh the uh 1:15:48 1 hour, 15 minutes, 48 seconds the future prospects the different opinion makers the investors gaining confidence in uh uh our capabilities of 1:15:56 1 hour, 15 minutes, 56 seconds understanding their factors. Our uh capability in terms of understanding structures our capabilities in terms of 1:16:02 1 hour, 16 minutes, 2 seconds having the right can say prognosis as far as how the different sectors are moving in the economy. how the stresses could be emanating in different sectors. 1:16:13 1 hour, 16 minutes, 13 seconds So these are the ways in which you establish your knowledge leadership and that results ultimately uh to uh the 1:16:21 1 hour, 16 minutes, 21 seconds overall business momentum. It's a combination of the pull and push strategies which are there and the business push is given by the business 1:16:29 1 hour, 16 minutes, 29 seconds team the analytical team uh with uh this kind of outreach and with knowledge dissemination that is the way in which the positioning of particular reading 1:16:38 1 hour, 16 minutes, 38 seconds agency happens across the spectrum and gives the overall flip to the entire effort. So please look at it from that that angle. 1:16:48 1 hour, 16 minutes, 48 seconds Sure. And just one last question that uh we have all these multiple verticles that we spoke of the various geographies 1:16:55 1 hour, 16 minutes, 55 seconds as well as parva and uh the IPO grading and analytics can we highlight like over the next 3 to five year period any two 1:17:04 1 hour, 17 minutes, 4 seconds or three verticals over here which can become meaningfully large like at least 5 to 10% of revenues or higher of the rating base that we already have currently. 1:17:14 1 hour, 17 minutes, 14 seconds uh say it will not be possible in terms of highlighting or singling out any particular verticals but what I can say is again it has to be looked from 1:17:22 1 hour, 17 minutes, 22 seconds ratings and the non-rating uh business perspective ratings ratings business generally across the globe they 1:17:30 1 hour, 17 minutes, 30 seconds would always be regulated businesses and different geographies depending upon how the debt markets play out in u uh those 1:17:38 1 hour, 17 minutes, 38 seconds geographies would be having a different dimension attached to the kind of growth which could really emanating in uh so if you are operating in a particular 1:17:46 1 hour, 17 minutes, 46 seconds geography which is fast growing the tech markets are uh growing very fast in that case the traction that comes from that 1:17:54 1 hour, 17 minutes, 54 seconds uh operations in that geography is much faster as compared to that some other market could potentially be slow uh and 1:18:01 1 hour, 18 minutes, 1 second in certain aspects let's say drawing our example from aishas when we started I mean the debt markets the debt capital 1:18:08 1 hour, 18 minutes, 8 seconds market was practically non-existent so it would it also meant that We first educate the participants over there and 1:18:16 1 hour, 18 minutes, 16 seconds then try to build up. And today we are at a phase where not only is the debt market improved significantly with our intervention, it has also replicated 1:18:24 1 hour, 18 minutes, 24 seconds into the fact that we have almost near the center market share in terms of operations over there. So that's the way 1:18:32 1 hour, 18 minutes, 32 seconds in which this aspect they play out. In case of the non-mitting businesses again it's a question in terms of like how you keep on identifying the opportunities, 1:18:41 1 hour, 18 minutes, 41 seconds how you keep on positioning your products and service offerings, how you have the early wheels uh and the satisfied customers getting translated 1:18:50 1 hour, 18 minutes, 50 seconds to your future uh uh incremental businesses coming from uh uh those clients. So uh things are contingent on 1:18:58 1 hour, 18 minutes, 58 seconds that. So both the verticals the ratings and the non-ratings they have different dimensions and I think uh the teams are 1:19:06 1 hour, 19 minutes, 6 seconds fully co cognizant and uh uh ready for exploiting the opportunities as we keep on uh growing uh this vertical. 1:19:17 1 hour, 19 minutes, 17 seconds Thank you very much ladies and gentlemen. We will take that as a last question and with that concludes the question and answer session. I now hand the conference to Mr. 1:19:27 1 hour, 19 minutes, 27 seconds Panda MD and grip CEO care ratings limited for the closing comments. Thank you and over to you sir. 1:19:36 1 hour, 19 minutes, 36 seconds To conclude FI26 was a year of strong quality performance for cares 1:19:44 1 hour, 19 minutes, 44 seconds which broad-based growth across businesses while remaining firmly anchored in analytical rigor independence and discipline. 1:19:52 1 hour, 19 minutes, 52 seconds As we look ahead, our focus remains on building on this momentum, deepening our technology and AI 1:19:59 1 hour, 19 minutes, 59 seconds capabilities to further enhance analytical depth, efficiency, and scalability. 1:20:05 1 hour, 20 minutes, 5 seconds Further, growing our international franchise and expanding the relevance of our non-rating businesses through consistent delivery and client trust shall be our focus. 1:20:16 1 hour, 20 minutes, 16 seconds None of this progress that we have made would have been possible without the commitment and professionalism of our team whose judgment and integrity continue to be our greatest strength. 1:20:28 1 hour, 20 minutes, 28 seconds We remain committed for creating sustainable long-term value for our shareholders by consistently reinforcing trust capability and the 1:20:37 1 hour, 20 minutes, 37 seconds institutional strength of the carriage franchise. With this, I would like to thank everyone for joining this call today. I hope we've been able to address 1:20:47 1 hour, 20 minutes, 47 seconds your queries. For any further information, kindly get in touch with us or with strategic growth advisors, our investment relations advisor. Thank you. 1:20:58 1 hour, 20 minutes, 58 seconds Thank you members of the management. On behalf of Care Ratings Limited, we concludes this this conference. Thank 1:21:05 1 hour, 21 minutes, 5 seconds you all for joining us and our disconnect. I