Cartrade Tech Limited — Q3 FY26

CarTrade Tech Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Vyg54ex355o Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the car trade tech limited Q3 and 9 months FY26 earnings conference 0:08 8 seconds call organized by MUFG in time India private limited. As a reminder, all participant lines will be in the listenonly mode and there will be an 0:17 17 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:24 24 seconds operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now 0:32 32 seconds hand the conference over to Mr. Aryan Sumra from MUFG in time. Thank you and over to you sir. 0:40 40 seconds Thank you. Good afternoon everyone. I welcome you all to the Q3 and 9 month FI26 earnings conference call for Carter 0:48 48 seconds Tech Limited to discuss this quarter's financial and business performance. We have from the management Mr. Vinay Sangi, chairman and managing director. 0:56 56 seconds Miss Anisha Bandari, executive director and CFO. Before we proceed with the call, I would like to mention that some of the statement made in today's call 1:04 1 minute, 4 seconds may be forward-looking and may involve a risk and uncertainties. For more details, kindly refer to the investor presentation and other findings that can be found on the company's website. 1:14 1 minute, 14 seconds Without further ado, I would like to hand over the call to the management for the opening remarks and then we can open the floor for Q&A. Thank you and over to you, sir. 1:23 1 minute, 23 seconds Thank you and good afternoon to everybody and welcome to the uh Q3 FI26 earnings call. Uh I'd like to slide 1:30 1 minute, 30 seconds start by slide uh three which has been shared uh you know on the investment deck uh which talks about the company over the last 3 years as you can see 1:38 1 minute, 38 seconds here over the last three years from FI23 to FI26. If you look at the company the revenue CAGR has been 32% EBITDA CR has 1:46 1 minute, 46 seconds been 112% and the profit CAGGR has been 83% over 3 years. So you can see the consistency in performance and that's 1:54 1 minute, 54 seconds why we want to bring it out quarter after quarter 3 years almost 12 quarters and you can see the consistency in the company's delivery and performance and the execution capability. If you look at 2:03 2 minutes, 3 seconds the center block it shows that our cash reserves have gone back to 1145 crores um and and and the first time you can also see the return equity reached 2:11 2 minutes, 11 seconds double digits. which is a very very strong business performance from the company from where it was and if you look at the last block where the shareholder value if you see the EPS 2:21 2 minutes, 21 seconds CAGR has been 92% over the last 3 years and of course the share price is up 94% in the last three years during this phase. So the numbers to look for are 2:29 2 minutes, 29 seconds the PAT CAGR 83% the EPS CAGR of 92% and the share price CGR for 94% over the 2:37 2 minutes, 37 seconds last three years. If you look at and we move to the quarter of the Q3 results and you go to slide four, you'll see car 2:45 2 minutes, 45 seconds trade has achieved its highest ever revenues at 228 crores in any quarter ever in our history. IBIDA has gone up 2:52 2 minutes, 52 seconds by 56% to 78 crores. It's by far our highest everida. Not only the highest 2:59 2 minutes, 59 seconds IBIDA by far, it's also almost 15 crores more than the previous quarter. EBIDA is up 23% even sequentially from the 3:08 3 minutes, 8 seconds previous year previous quarter right so 56% 56% year-on-year growth 23% sequential Q on Q growth to 78 crores 3:17 3 minutes, 17 seconds we've been talking about margins for many quarters with you and you can see now margins have gone up to 37% which is getting bestin-class in the country now 3:24 3 minutes, 24 seconds and it shows the unit economics and the leverage we have in our business if we go to the revenue EBIDA exponential growth and 3:33 3 minutes, 33 seconds profit after tax has come at 62 crores uh which is up 35% year-on-year and this is primarily due to a extraordinary item 3:41 3 minutes, 41 seconds of the labor code provision as per the new regulation being provided of 6 and a half crores during the quarter otherwise profits would of course be up by 49% if 3:50 3 minutes, 50 seconds you look at after you include the labor code impact we continue as I said 150 million users yearly users in all our three platforms the consumer group has 3:58 3 minutes, 58 seconds grown by 27% uh ebidas are 55% and uh uh um and of course we achieved a 4:05 4 minutes, 5 seconds 43% margin on IBIDA and the consumer group which is of course now getting you know at a very very high rate of margins 4:13 4 minutes, 13 seconds and we've talked about how we have the the unit economics and the leverage in this business over the quarters last few quarters the remarketing business uh 4:21 4 minutes, 21 seconds profit is up by 68% revenue is up by 12% eida is up 23% and as well uh as well 4:29 4 minutes, 29 seconds margins in the remarketing group 30% now ox highest 7 revenue in the history uh in this quarter it's up 18% PAT is up 4:37 4 minutes, 37 seconds 37% in OX orbit and OX also now reached a 37% EBIDA margin ratio if you look at 4:44 4 minutes, 44 seconds slide five uh you can obviously continue to be the number one automotive platform use product platform vehicle auction platform in the country uh traffic is up 4:53 4 minutes, 53 seconds to 85 million MAUs uh during the quarter 95% organic traffic continues uh au 5:00 5 minutes vehicles auctioned at the rate of 1.9 9 million vehicles a year. Uh we talked about the revenue at 22 228 crores. It's highest ever in our history. Um adjusted eBidas is 101 crores. It's a cash proxy. 5:12 5 minutes, 12 seconds It's the first time it's lost 100 crores in a quarter. So you can say 101 crores of cash generation during the quarter. 5:18 5 minutes, 18 seconds PAT is 62 crores. That I said the pat would be at 68 crores if not for the neighbor code. Um and and a cash balance 5:26 5 minutes, 26 seconds continues to be 1145 crores as we've talked earlier. If we go to slide six and look at the consolidated results of 5:32 5 minutes, 32 seconds the company, uh revenue is up 18%. Um operating revenue is up 19%. EBIDA is up 5:40 5 minutes, 40 seconds 56% margin out here on a consolid basis of 37% up from 33% last quarter sequentially. So for I mean we see fond 5:49 5 minutes, 49 seconds base point increase in margins sequentially just quarter on quarter and from last year's margins of 28% we've landed up at 37%. 5:58 5 minutes, 58 seconds PBT is up 58%. 6:01 6 minutes, 1 second Um before exceptional items, PBT post exceptional items up 46% and PAT is up 35%. If you look at the 9mon results of 6:10 6 minutes, 10 seconds the company, revenue is up 24%, EBID up 77%, the 9mon margins come at 32%. 6:18 6 minutes, 18 seconds And the pack is at 74% up, PBT is up 70 87% up for the nine months. So you see 6:25 6 minutes, 25 seconds the growth in both margins uh profitability of course and the revenues over a 9-month period which shows the consistency in the performance of the 6:33 6 minutes, 33 seconds company. If you go to slide seven look at the consumer group um for the quarter revenues up 27% we talked about eBay up 6:41 6 minutes, 41 seconds 55% eBay margin has reached 43% and even sequentially if you look at EB better up 6:47 6 minutes, 47 seconds six cr just in this one business um and margins have gone from 40 to 43% 6:54 6 minutes, 54 seconds sequentially over last year margins gone from 35% to 43%. 7:00 7 minutes PBT as I said is up 43% and and if you look at the 9-month numbers uh the consumer groups done extremely well with a 32% growth in revenue 106% growth in 7:09 7 minutes, 9 seconds IBIDA and a 74% growth in PBT with a 51% growth in PAD if you look at the remarketing uh business there's a 12% 7:18 7 minutes, 18 seconds revenue growth and a 68% profit growth during the quarter margins for the first time crossed 30% in the remarketing 7:25 7 minutes, 25 seconds business and if you look at the 9-month figures 22% up in revenue revenue, 57% increase in IBIDA and an 80% growth in 7:34 7 minutes, 34 seconds PAD for the year. So the remarketing business has had a very good year in the first 9 months of the year. If you look at OX, OX has had its highest ever 7:42 7 minutes, 42 seconds revenue in a quarter. It's crossed 61.7 crores, 58 crores in operating revenue, which is up 18%, profitability orbit is 7:50 7 minutes, 50 seconds up 70%. Ox margins will be 37% now. Um and and Pat is up 37%. and PBT is up 73% 7:59 7 minutes, 59 seconds there is a tax pre uh now Olex has exhausted its uh you know carry forward uh it tax shelters and and of course now 8:08 8 minutes, 8 seconds in this quarter taxes been paid in Olex as well um but yes uh PBT is up 73% we 8:14 8 minutes, 14 seconds look at the 9mon data uh Olex is eidas up 63% and profit after tax is up 92%. 8:21 8 minutes, 21 seconds So this is a very you know been a very strong quarter for us. We feel very very optimistic about all the three businesses. Just to highlight all three 8:29 8 minutes, 29 seconds business achieved the highest of revenue. Uh all three businesses have achieved the highest of our margin. Uh so we feel very very optimistic. 8:35 8 minutes, 35 seconds Business has been very strong uh in in all the three businesses. We are even more optimistic about the current quarter Jan to March and feel very 8:42 8 minutes, 42 seconds optimistic that uh obviously our uh you know our numbers will get better and better from here. um the business or the market seems to be in in in in 8:51 8 minutes, 51 seconds especially the new card industry or the used card industry uh or or the used product industry seems to be uh you know 8:57 8 minutes, 57 seconds growing and and and naturally we feel um optimistic about the current quarter and the and the quarters coming ahead. This is what I had to say. I'm happy to take 9:06 9 minutes, 6 seconds any questions now and clarify all your questions and doubts. 9:11 9 minutes, 11 seconds Thank you very much. We will now begin with the question and answer session. 9:15 9 minutes, 15 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 9:23 9 minutes, 23 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 9:35 9 minutes, 35 seconds The first question is from the line of Sachin Digshit from JM Financial. Please go ahead. 9:42 9 minutes, 42 seconds 79. Congratulations on this. Thank you. 9:45 9 minutes, 45 seconds Thank uh my first question is with regards to this USDA right? Uh so there is obviously some chatter about how it 9:53 9 minutes, 53 seconds can potentially impact Indian auto industry. Uh do you have any views on that? Uh if anything like how does it 10:01 10 minutes, 1 second impact cartridges consumer businesses at all? 10:04 10 minutes, 4 seconds Yeah. Are you talking about the EU 40% tariff on vehicles? Is that the question? 10:09 10 minutes, 9 seconds No no no. the the this mother of all trade deals that you have signed uh with EU in terms of free trade agreement. I 10:18 10 minutes, 18 seconds I've not obviously studied in great detail. It's only been you know a day old but but you know I I the one the one thing which might affect or help the 10:26 10 minutes, 26 seconds consumer group are two things. One is if you know tariffs or or or or or duties on imported uh European vehicles comes 10:34 10 minutes, 34 seconds down it could lead to further demand in the new car industry uh which of course could benefit the consumer group and the other could be there could be opportunities to bring other such 10:42 10 minutes, 42 seconds vehicles in uh directly even by it could be a business opportunity for the consumer group considering the reach of consumers and the distribution of of 10:50 10 minutes, 50 seconds cartridge tech as a group. Um so obviously we'll try to examine if there are opportunities where uh consumers here wanting cars from the EU you know 10:58 10 minutes, 58 seconds could use platforms like car or or others uh you know for that need. So it's something we'll have to watch and see you know what the potential of this 11:06 11 minutes, 6 seconds is but it's too early to say at this point. Thank you. 11:09 11 minutes, 9 seconds All right. Uh my second question is on Oxis right obviously you did highlight uh in the previous earnings call that momentum is ticking. We saw that we 11:18 11 minutes, 18 seconds improved growth rate by roughly 150 basis points. If I look on a Q& basis 16.6 and to 18.1 11:25 11 minutes, 25 seconds uh do you see further momentum here? Uh and on the same line on cost side we saw that actually both employee and other 11:32 11 minutes, 32 seconds cost decline in KQ. Uh what is uh resulting in this decline if you can? 11:38 11 minutes, 38 seconds Um yeah you're talking about Ox cost or overall cost? 11:42 11 minutes, 42 seconds Yeah cost. Yeah, we definitely see the growth rate of OEX uh uh going up uh from uh the current growth rate uh in 11:50 11 minutes, 50 seconds this quarter. Uh so we do feel that you will see that uh uh even further uh and and more amplified the growth rates 11:57 11 minutes, 57 seconds going up in Ox number one. We feel very strong about the business uh uh both the automotive and the nonotive side of it. 12:04 12 minutes, 4 seconds So yes, you will see uh in our opinion uh a higher growth rate on Ox the revenue side uh costs are I would just 12:11 12 minutes, 11 seconds say stable. uh there may be some minor fluctuations on manpower and other cost but generally stable uh we don't see any 12:18 12 minutes, 18 seconds real serious decrease in cost or we don't see any increase in cost either they're just stable I would say no less 12:26 12 minutes, 26 seconds understood understood just one final question on on the new auto side if I can uh take that right so sure last 12:33 12 minutes, 33 seconds quarter obviously we had a billion 37 odd% growth uh on this business uh this quarter that is dropped to 27 but still 12:41 12 minutes, 41 seconds very very healthy No doubt there is must have also been some basis that that would have played out compared to 3QFI25. 12:48 12 minutes, 48 seconds Um how do we look this look at this ahead right? Do we still believe this is roughly a mid20s to maybe a 30 sort of a 12:55 12 minutes, 55 seconds growth or uh or there is potential for this to maybe inch down further by let's say a few percentage points 13:03 13 minutes, 3 seconds the the growth rate actually the first 9 months is 32% right in this business um right uh there is a bit of base effect of last 13:10 13 minutes, 10 seconds year to Q3 to Q3 previous year uh but generally it's 32% over 9 month period we see no reason why that you know um I 13:19 13 minutes, 19 seconds we feel quite confident the actually the new car industry in the last two months has done extremely well. Um and like we said we obviously beneficiaries of the 13:26 13 minutes, 26 seconds car industry itself. Um so we we do see that definitely sustaining the growth rate. Um I'm not able to give guidance 13:35 13 minutes, 35 seconds whether it's higher or lower but but yeah generally we don't see any reason for um you know the growth rate to come down at all. I mean we feel very optimistic about the new car business. 13:45 13 minutes, 45 seconds Got it. Thank you so much and all the best. Thank you. Thank you. Thanks. Thanks. 13:49 13 minutes, 49 seconds Thank you. The next question is from the line of Chadhad Beda from Numura. Please go ahead. 13:56 13 minutes, 56 seconds Yeah. Hi sir. Thanks for the hi. Thank you. 13:59 13 minutes, 59 seconds Uh sir, first question is again on the Ox side uh I mean uh we had talked about multiple initiatives on the growth side 14:08 14 minutes, 8 seconds which we had taken in quarter three uh across allied buyers and two or three more product initiatives getting rolled out. So can you just talk about how has 14:17 14 minutes, 17 seconds been the acceptance what percentage of our user base have accepted that just to understand sort of how the growth momentum uh should pick up in the coming quarters uh some more details on that. 14:30 14 minutes, 30 seconds Yeah the elite by actually done extremely well in the last quarter uh is um was really commercially fully launched in the last quarter and we feel 14:38 14 minutes, 38 seconds very good about uh the adoption of the plat of of of the elite buyer program. 14:42 14 minutes, 42 seconds We also feel that this will become a very large revenue opportunity uh for uh OX in the many coming quarters and 14:51 14 minutes, 51 seconds years. Um we're already seeing a very high traction uh in the last 30 40 days of the early buyer program and it will 15:00 15 minutes in our opinion uh uh you know as I said in the coming quarters impact uh the revenues very favorably. number one uh 15:07 15 minutes, 7 seconds other products like verification uh like we said is likely to be launched in the next 30 days or so um uh which uh which 15:15 15 minutes, 15 seconds are a completely new product to further enhance you know customer experience on trust and safety on the platform. So 15:23 15 minutes, 23 seconds that will get launched you know sometime in the next 30 days. So we feel optimistic about that as well. Uh but the growth rate continues also to be in 15:30 15 minutes, 30 seconds existing products on B2C uh charges for dealers or C2C consumer charges etc etc. 15:36 15 minutes, 36 seconds So overall feel very optimistic about the revenue potential of OX and the growth rates you know which are going to come in the quarters ahead. 15:44 15 minutes, 44 seconds Got it sir. But sir if I look at the visitors I mean monthly visitors for OX uh it's it's sort of has seen some 15:53 15 minutes, 53 seconds softness compared to last quarter. Is it something more seasonal or anything more here uh to look at? There was a very slight seasonality uh I would 16:01 16 minutes, 1 second say in September and uh you know uh uh uh September and a little bit of uh you know end of December but generally 16:09 16 minutes, 9 seconds traffic has been stable uh of ox uh user engagement has been stable traffic has been stable very very stable. 16:16 16 minutes, 16 seconds Got it sir. And so lastly on this uh margin profile for the ox I mean we have seen sort of uh a lot of cost benefits also coming in in the current quarter. 16:27 16 minutes, 27 seconds So is there any one thing one of cost thing which has come or do you think this 35 36% margins which we have done 16:34 16 minutes, 34 seconds for the quarter I mean as we see a pick up in growth yeah we think the margin will probably improve honestly I mean like in all our businesses the leverage is high right is 16:43 16 minutes, 43 seconds revenue I don't think cost increasing so if revenue goes up uh margin will improve as we've said quarter after quarter in all our businesses 16:51 16 minutes, 51 seconds got it sir thanks a lot sir I'll come back in the thank you thanks thanks thank you the Next question is from the 16:57 16 minutes, 57 seconds line of Diia Brwani from White Whale Partners. Please go ahead. Sure. 17:06 17 minutes, 6 seconds Hi, can you hear me? Hi. I can hear you. Yeah. 17:09 17 minutes, 9 seconds Yeah. Uh here. Uh just a couple of questions. Uh first one was on uh you know during the quarter we uh were 17:18 17 minutes, 18 seconds pursuing the car deal and then kind of uh um you know did not pan out. So can you just maybe spend a few minutes just 17:26 17 minutes, 26 seconds explaining the rational thought process and how we walked away from it? 17:32 17 minutes, 32 seconds Uh yeah I think uh um we we did announce that we were pursuing the transaction and um we uh then uh towards uh you know 17:41 17 minutes, 41 seconds after studying it at that point decided that at for that specific period decided to put on hold. I think I think the 17:49 17 minutes, 49 seconds reasons uh mostly were around understanding you know uh obviously the potential in our own business seemed so high that we said listen this is the 17:57 17 minutes, 57 seconds right time for that or not. Um we continue to be very optimistic with the new car industry which is what the acquisition was about. Um and we 18:05 18 minutes, 5 seconds obviously continue to be um um you know optimistic about Ox and all other businesses. So the amount of 18:12 18 minutes, 12 seconds opportunities within the company itself we felt uh it is better to hold any inorganic 18:19 18 minutes, 19 seconds uh uh opportunity at that point. Uh um and uh yeah that's what that's the reasons why we studied it and then we 18:26 18 minutes, 26 seconds said it's better to put on weight uh at that point of time. Um I just want to also highlight to the all in the 18:33 18 minutes, 33 seconds earnings call that also in our uh results we have provided some diligence cost uh which is also factored into the quarter 3 results which you've seen uh 18:42 18 minutes, 42 seconds the results and the margins are after all uh some diligence cost which got incurred it's in the expenses uh of the company already accounted. So yeah. 18:51 18 minutes, 51 seconds Okay. Got it. Uh and then then just uh on the previous question on in terms of the consumer growth um I think you 18:59 18 minutes, 59 seconds maintain I mean you spoke that you expect to sustain this kind of growth level that you've seen over the nine months. I just wanted to understand a 19:07 19 minutes, 7 seconds little better in terms of the drivers of this growth. You know I mean when there's a slowdown I guess the OEMs and the dealers need to kind of push more 19:15 19 minutes, 15 seconds and so they increase the marketing expense. uh but when you know the industry is going through a better phase I mean you know would that kind of 19:23 19 minutes, 23 seconds marketing sense sustain and so to that extent can we still maintain this kind of growth or not so the industry has gone through a very good phase in October December 1st and 19:31 19 minutes, 31 seconds also uh you know the entire last three months industry has grown rapidly um it's had unprecedented growth and volumes in the car industry um I just 19:40 19 minutes, 40 seconds like to highlight that you know we're beneficials of growth in car sales obviously we will benefit we're also beneficials when manufacturing diesel spend money more 19:48 19 minutes, 48 seconds money on digital which has been a long secular trend. Um we also benefit in car arpoo and prices go up uh uh in terms of 19:56 19 minutes, 56 seconds arpoos which means people move towards a bigger vehicle like an SUV. So we benefit multiple multiple ways. We also gain market share because we're the most 20:04 20 minutes, 4 seconds cost effective way uh for a dealer or a manufact large large number of almost all car buyers in the country coming to our 20:12 20 minutes, 12 seconds platforms. So clearly there's a dependence and high relevance the industry has towards platform like carval and bike or overheads for that 20:21 20 minutes, 21 seconds matter for used cars. Uh so obvious in any situation whether the industry is uh you know down which we've seen over the 20:28 20 minutes, 28 seconds last year and a half or when the industry is growing rapidly as you seen the in the last quarter our growth rates have been maintained and grown further 20:37 20 minutes, 37 seconds even. So you know we've also shown and and and and and disclosed in previous in in a previous quarter the last threeear 20:45 20 minutes, 45 seconds trend of growth where the industry goes up and down and we found that irrespective of that caral out or the consumer group growth rates have stayed 20:54 20 minutes, 54 seconds extremely extremely robust during all those phases. 21:01 21 minutes, 1 second Got it. So I guess this is more of a structural shift from like uh maybe offline to digital spend and then within 21:08 21 minutes, 8 seconds that away from let's say Google towards platforms like it is offline to digital spend it is growth in the industry it is growth of 21:15 21 minutes, 15 seconds ARPOS uh in cars it is different kinds of cars being sold like if you see today 50 more than 50% of cars sold SUVs so 21:23 21 minutes, 23 seconds it's it's it's many many things altogether but but but by and large there's a big shift to spending on platforms like carval where the 21:31 21 minutes, 31 seconds relevance for manufacturers and dealers to spend is very very high. 21:36 21 minutes, 36 seconds Understood. Uh just one last question was on the operating leverage. So now if I were to just look at our consumer and 21:43 21 minutes, 43 seconds Olex I mean I think we average around 40% plus margins uh you know how are you seeing like you 21:51 21 minutes, 51 seconds know if you continue with this 25 30% let's say growth rate uh you know I mean your expenses have pretty much not grown uh you know for the nine months. 22:01 22 minutes, 1 second Is there any kind of areas we need to invest into or will expenses remain at similar levels in terms of 22:08 22 minutes, 8 seconds We think expenses are stable. They're not likely to see any fluctuation or any incremental change um at all. 22:17 22 minutes, 17 seconds So they're not likely to change. Uh we we've always said that um our margin will keep growing, right? and and and I 22:25 22 minutes, 25 seconds think we've reached uh uh 37% in that group, 43% in the consumer group. We think they'll go further. 22:34 22 minutes, 34 seconds Got it. So essentially all the growth that comes through a very large part of it will continue to pass through. 22:38 22 minutes, 38 seconds That's correct. That is correct. That is correct. That's the that's just the nature of the business. Yeah. 22:45 22 minutes, 45 seconds Okay. All right. Thanks so much. Thank you. 22:50 22 minutes, 50 seconds Thank you. The next question is from the line of Nishid Jalen from Access Capital. Please go ahead. 22:58 22 minutes, 58 seconds Yeah. Hi. Hi V. Hi Nisha. Congrats. Hi. Congrats on good set of numbers. 23:03 23 minutes, 3 seconds Right. My question is obviously industry tailwinds are there and now that you have studied caro also. Uh just wanted 23:11 23 minutes, 11 seconds to understand on consumer side of the business. Do you think a part of the growth is also driven by market share uh 23:18 23 minutes, 18 seconds side of the things right? How is it kind of kind of panning out right and while operating leverage will be there in our business for sure and globally there are 23:27 23 minutes, 27 seconds companies which makes a 50% plus margins also so is it is it will it be incorrect to assume that in the next 2 three years 23:34 23 minutes, 34 seconds if the growth continues you could also be a 50% plus kind of a margin sorry what's the last part I think the last part 23:42 23 minutes, 42 seconds basically what I was saying was that if the growth rate continues over the next two three years these margins could expand from 40 odd% to 50% plus basically 23:50 23 minutes, 50 seconds What should we look at as the incremental aida margin on the revenues right because your incremental costs are lower in a way right so how should we 23:58 23 minutes, 58 seconds look at especially the oilex and the consumer business because that's where the the benefits will be much more substantial 24:06 24 minutes, 6 seconds yeah two parts one is uh the first part which is the uh growth in the car industry itself um you know with after 24:12 24 minutes, 12 seconds since the GST um we've seen the car industry grow uh our growth rates if you see at 32% % were even before the GST 24:21 24 minutes, 21 seconds reduction took place. So clearly we benefit we're beneficial we're beneficiaries of car growth rates. We also benefit when growth rates have been more muted for the car industry itself. 24:31 24 minutes, 31 seconds Right? So because our growth rates have been high in both cases. So we see that uh the reason that is the case is because uh consumers come to a platform 24:39 24 minutes, 39 seconds like carval or others to uh fulfill a need of buying a car or finding a car etc etc and and because of the number of 24:48 24 minutes, 48 seconds consumers and and the relevance to consumers which a platform like carval has manufacturers and dealers uh need to 24:55 24 minutes, 55 seconds be obviously u uh spending more on platforms like ours compared to others that could be offline advertising that 25:03 25 minutes, 3 seconds could be you know Google it could be or Facebook or other horizontal platforms and also direct vertical competitors because we feel we're far more efficient 25:11 25 minutes, 11 seconds than our competitors are. So I think you're seeing a a fact of that uh that we are gaining market share number one. 25:19 25 minutes, 19 seconds Number two, you also see a the a factor of um you know industry level uh growth 25:27 25 minutes, 27 seconds and move towards digital and like I said number three is also a product mix where uh as you see in the last three four years in India there's a huge shift 25:35 25 minutes, 35 seconds towards SUVs by itself right so the RUS of cars have basically gone up as well all these factors do matter and you know 25:42 25 minutes, 42 seconds clearly our job is to make sure that uh the consumer coming on our platform our product and and and and and and 25:49 25 minutes, 49 seconds improvements or development cycle continue so that consumers keep coming and you know uh growing on the platform 25:56 25 minutes, 56 seconds and that's what we're focused on. Um so that's the first part of the question. 26:00 26 minutes Um the second was of course uh you I mean over the last 10 12 quarters we've demonstrated to you that costs uh in 26:08 26 minutes, 8 seconds companies like this are uh stable. Uh we see no reason for that to change in the coming quarters. Um and therefore yeah 26:15 26 minutes, 15 seconds margins as increased revenue a lot of that margin a lot of that revenue will go to margin and and I think if you see the last 3 years margins gone from 9% to 26:25 26 minutes, 25 seconds 37% as a company as consolidated company um so I don't see a reason for that I think the the trend will just continue 26:33 26 minutes, 33 seconds margin will continue to grow yeah just one followup uh you did talk about that the R2 going up right so R2 26:41 26 minutes, 41 seconds going up the benefit is indirect as in the industry revenues goes up and the ability of OEMs to spend more on goes up. Is that the indirect benefit which 26:50 26 minutes, 50 seconds comes to you or something else which is there? 26:53 26 minutes, 53 seconds It it it does benefit where uh the car prices the suppose the average uh uh rather than small cars or or sedans SUVs 27:01 27 minutes, 1 second which are higher price sell it benefits all stakeholders right anybody in the chain it benefits correct it benefits because the industry 27:10 27 minutes, 10 seconds revenue goes up and the ability of the industry the industry in the industry spend goes up I would say yeah absolutely yeah yeah yeah 27:17 27 minutes, 17 seconds and and and so sorry I I think you answered it but I missed out on the Rolex side right you you have uh started 27:25 27 minutes, 25 seconds to taken a lot of initiatives to monetize to elit buyer and seller and all sort of thing. Sorry if you have commented earlier I missed out but where are you? 27:34 27 minutes, 34 seconds No no no we we actually elite buyers did extremely well in the last you know quarter for us. Uh we feel very very optimistic that this will become one of 27:41 27 minutes, 41 seconds our flagship revenue earners in the coming quarters and years ahead. Um number one. Number two, even existing 27:48 27 minutes, 48 seconds revenue uh uh drivers have gone up or ch or improved. Uh UX has improved, customer engagement has improved. Um the 27:56 27 minutes, 56 seconds growth rates of course of the of revenue have grown. We've achieved higher revenues. But on top of it, we feel the growth rate of revenue go even up further. I mean and margins and low will 28:04 28 minutes, 4 seconds also increase further. We feel pretty confident of that. 28:07 28 minutes, 7 seconds And and on the on the used car side of the business, right now you are monetizing more from dealer subscription and now very recently elit buyer elit 28:14 28 minutes, 14 seconds seller program. any plans to get into more value added services also like a financing or an insurance or a service 28:22 28 minutes, 22 seconds or some warranty whatsoever right because that financing is something we're working very closely on on a fintech perspective 28:29 28 minutes, 29 seconds um but like I said we'll be a marketplace company we're not uh we're not like to take any risk or balance sheet risk or lending risk ever so this 28:38 28 minutes, 38 seconds is like a marketplace model where we're working very closely with couple of very big banks and NBFCs on launching products on used car financing. I think 28:47 28 minutes, 47 seconds in the next few quarters you'll see products like that launched for used cars where a relevance and is very very high. If you see uh data which we've 28:55 28 minutes, 55 seconds disclosed in the past where 65% of all used cars sold in India listed on OX um you know more than a million and a half 29:02 29 minutes, 2 seconds used car buyers come to every month more than a million half used car buyers come to Ox and Carval together. uh in the 29:09 29 minutes, 9 seconds last quarter uh uh we also actually earlier this month and we publicly disclosed that as well uh we for the first time combined 29:17 29 minutes, 17 seconds um the carval ox offering for all dealers in India. So we launched a subscription for dealers which is 29:26 29 minutes, 26 seconds combined of olex and carval to increase the base for both companies. So there are many many use initiatives going on and you'll see a lot of the results coming in the next few quarters around 29:34 29 minutes, 34 seconds the use side of the business both in fintech side as well as in the core use business. 29:39 29 minutes, 39 seconds Got it. Got it. Okay. Uh thanks for the answers and all the best in the future. Thank you. 29:45 29 minutes, 45 seconds Thank you. The next question is from the line of AIT Agava. Please go ahead. 29:52 29 minutes, 52 seconds Yeah. Good morning Sami. Good morning. 29:55 29 minutes, 55 seconds Yeah. Congratulations for excellent set of numbers. So with 1,145 cr of cash on the balance sheet like how could investors think about capital allocation priorities in the next two years. 30:06 30 minutes, 6 seconds Uh yeah it's a it's a good question at this point you know the only we are also generating like you've seen 100 crores a quarter right I mean we showed the 30:13 30 minutes, 13 seconds adjusted bit number. So it's a 1145 the bank plus 100 crores of cash every quarter at this rate as as profitability 30:20 30 minutes, 20 seconds grows even the cash generated would grow. uh we have almost no cap no capex in the company um and uh you know almost 30:28 30 minutes, 28 seconds no need uh from an investment standpoint in our current business all our businesses are high margin businesses um so the intent would be of course uh to 30:36 30 minutes, 36 seconds look at whether any organic opportunities come in the future and we've been very good at uh you know acquisitions uh in the past uh we've 30:44 30 minutes, 44 seconds we've done multiple you know successful acquisitions so part of the use if if at all we come across an opportunity would be that um you know And obviously the 30:53 30 minutes, 53 seconds long-term intent would be to return money to shareholders. 30:57 30 minutes, 57 seconds Answer one more question connect the employees like are there any talent constraints in data science, AI pricing models or data analytics that could require higher future investments? 31:06 31 minutes, 6 seconds Uh we we've actually um made a lot of investments it goes in our operating cost. Uh a large part of our manpower 31:13 31 minutes, 13 seconds cost is uh product engineering design uh AI talent etc etc. So a lot of investments are being made these margins 31:21 31 minutes, 21 seconds and these costs are after making those investments. We every you know we are first a technology company before 31:28 31 minutes, 28 seconds everything else. So so this is part of what we do every day. A large part of our team is product engineering design 31:35 31 minutes, 35 seconds and AI talent. So um we're building products for Rolex carval sil every single day every single day. So and new 31:42 31 minutes, 42 seconds products as well. We also created Carter Laboratories which builds only new cutting edge products uh you know a few 31:49 31 minutes, 49 seconds months ago. So so these investments are done uh and they're part of the operating cost in the company. Thank you for answering my question sir. All the best for the future. 31:58 31 minutes, 58 seconds Thank you. Thank you. 32:00 32 minutes Thank you. The next question is from the line of Siddhad Ba from Namura. Please go ahead. Yeah thanks for the followup sir. 32:08 32 minutes, 8 seconds U sir quick question on the remarketing business. uh if I look at uh the volumes 32:15 32 minutes, 15 seconds for cart trade and the auctions seems that the conversion has dropped a bit compared to the last quarter any particular reason uh what is happening 32:24 32 minutes, 24 seconds here and no no it is only in the last quarter and I'll tell you specifically in the used car industry or the used vehicle industry uh new vehicle uh prices came down in 32:33 32 minutes, 33 seconds September with the GST reduction um used vehicle pricing took some time to correct itself I think it took two three months to correct because um you 32:42 32 minutes, 42 seconds know those are more subjective by nature. Uh so a lot of the sellers uh tend to be waiting back and saying listen uh am I going to get a better price and 32:50 32 minutes, 50 seconds and when they realize that juice car pricing has changed forever then they start selling. So it's a bit of a delayed process and maybe that's why 32:57 32 minutes, 57 seconds you're seeing a slight conversion uh difference. Uh that's primary due to price reduction on the new car side which affects and impacts the used car industry as well. 33:07 33 minutes, 7 seconds So this conversion then I mean normal scenario should pick up in the coming quarters. 33:11 33 minutes, 11 seconds Yes absolutely absolutely it's already better. It's already better. So yes that's okay. Okay. And on this growth side for the remarketing also I think the last 33:19 33 minutes, 19 seconds few quarters we had seen a very strong uh growth uh obviously with the low base but now going ahead do you think there 33:27 33 minutes, 27 seconds can be further acceleration to this or this is a run rate we should assume for this business? 33:32 33 minutes, 32 seconds Um no I think we should continue to grow. We feel strong about the business and we do believe that uh normally Q4 is much better than Q3 for this business. 33:41 33 minutes, 41 seconds So we do feel the growth rates uh and the absolute numbers should get better. 33:45 33 minutes, 45 seconds Understood. And the last clarification I think you have mentioned about 1.8 cr of uh due diligence cost in the standalone consumer business. That's correct. 33:53 33 minutes, 53 seconds Uh so that should be uh there in the console numbers as well, right? 33:57 33 minutes, 57 seconds It's in both numbers. Yes, in both numbers. Okay. Sure. Thank you, sir. Thank you. 34:03 34 minutes, 3 seconds Thank you. The next question is from the line of Anjali Bajaj from Nari Investments. Please go ahead. 34:11 34 minutes, 11 seconds Good morning sir for giving me opportunity. 34:14 34 minutes, 14 seconds Other income from all its India business declined frequently in the quarter 3 compared to quarter 2. Could you please explain the key reason for this drop? 34:24 34 minutes, 24 seconds Sure. Uh Anisha you want to explain this? Hello. 34:31 34 minutes, 31 seconds Hello. Hello. concern. Yeah. Hello. 34:37 34 minutes, 37 seconds Yeah. You want to explain the other income o in X? 34:40 34 minutes, 40 seconds Yeah. So, uh as we had disclosed in the previous quarter, the quarter two we had a other income right back in OX which 34:48 34 minutes, 48 seconds was disclosed in a detailed note in the financial statement itself. In Q3 we do not have any uh right back which is there which is why there is a dip in the 34:55 34 minutes, 55 seconds other income. Uh the way to look at it is also the Q3 is a normalized other income and in Q2 because the right back was uh there was a special item in there. 35:04 35 minutes, 4 seconds Okay. Okay. Thank you. Thank you. 35:09 35 minutes, 9 seconds Thank you. The next question is from the line of Arit Sha from Stallion Asset. Please go ahead. 35:18 35 minutes, 18 seconds Hello. Hi. 35:20 35 minutes, 20 seconds Hi. Congratulations on a super set of numbers. great expansion on margins and across all businesses. Just wanted to 35:27 35 minutes, 27 seconds understand let's say over the years I what kind of incremental uh revenues now would now straight pass on to profits 35:36 35 minutes, 36 seconds would it be 80% 90%. How should we look at that? 35:39 35 minutes, 39 seconds Yeah, if that's been the track record uh I I don't see any reason why that will change. 35:45 35 minutes, 45 seconds Got it. And you just mentioned that we're going to be launching something like an ox verified for seller and a buyers uh in the next one month or so. 35:54 35 minutes, 54 seconds How big do you think that opportunity would be for revenues going? Because I believe I just see for uh meta maybe 36:02 36 minutes, 2 seconds Instagram Facebook that opportunity is about two to three billion dollars every year in terms of just selling verified subscription. But how do you how big that number could be for any any sense? 36:14 36 minutes, 14 seconds It's I I I I don't want to give revenue guidance around it but but it's a very important product uh for Olex and and dramatically enhances user experience. 36:25 36 minutes, 25 seconds It's very innovative the way it's been brought out at Rolex and you'll see it you know in a few weeks. Uh uh but but we feel very very good about the product 36:33 36 minutes, 33 seconds and very optimistic about it. it it it the you know the revenue of cost upside will be significant but we also see that 36:40 36 minutes, 40 seconds it it's it's a big big you know feature for all users on Olex it changes a lot on how they interact as a buyer or sell 36:47 36 minutes, 47 seconds on the platform got it and how should we look at the remarketing business growth because the growth has deacelerated from what was 36:56 36 minutes, 56 seconds earlier let's say a couple of quarters back and it's now moved to 12% or the margins of course offset for that kind 37:03 37 minutes, 3 seconds of revenue growth How should you build new growth for remarketing business? 37:07 37 minutes, 7 seconds I I think we've had a 202% 9 month growth if you look at it. 37:11 37 minutes, 11 seconds Uh and I think that's the way to look at it. Um um sometimes the quarter is a base effect of the previous year. Uh but 37:18 37 minutes, 18 seconds but yeah, I would think of it uh you know a lot of the business over a 9month period and um the business actually in a 37:26 37 minutes, 26 seconds in a good situation uh both the retail side and the repossession side. Um so I I see um you know some of these growth is continuing. I don't see much change. 37:36 37 minutes, 36 seconds Uh in fact the markets are quite favorable for for Sidam Mallal as as they are for Olex or Carval. 37:44 37 minutes, 44 seconds Got it. And structurally the classified business the growth should keep improving now quote unquote how do you think what they I feel overex growth rates will ox 37:52 37 minutes, 52 seconds growth rates will go up. Um uh and I think consumer group uh which is 32% in the first 9 months already been very strong the growth rates. So I I don't 38:01 38 minutes, 1 second see I I think you'll see a positive growth rate on from what it is in Ox the 18 and a half will get better um uh in 38:08 38 minutes, 8 seconds in carval as I said 32% a growth rate in the first nine months so I don't see uh it's been very very strong anyway 38:16 38 minutes, 16 seconds and this growth will keep coming despite the margin that we are at right you don't you didn't have to spend a lot in 38:23 38 minutes, 23 seconds getting that growth like the 37% we don't see much we don't see much change we don't see much change in the cost structure of the 38:30 38 minutes, 30 seconds Got it. Perfect. Perfect. Thank you so much. Thank you. Thanks. 38:35 38 minutes, 35 seconds Thank you. The next question is from the line of Adita Yadab from Transient Capital. Please go ahead. 38:44 38 minutes, 44 seconds Yeah. Hi, thanks for the opportunity and congratulations sir on a great great execution. Congratulations to the team 38:51 38 minutes, 51 seconds as well. Uh my question so yeah this has been talk of the town but my question 38:57 38 minutes, 57 seconds was regarding the AI uh wave and so there are two parts to it sir one is one 39:04 39 minutes, 4 seconds is there like of course there was talk of threat of inter disintermediation where like the uh the site visits go 39:12 39 minutes, 12 seconds down hypothetically where the LLM itself generates the answer to the query of the user and the second part was uh the use 39:21 39 minutes, 21 seconds of AI tech in the uh within the company itself. So uh I would uh ask you to like 39:29 39 minutes, 29 seconds provide color on both the sides. And with the first part uh with the first part we are seeing some evolving models 39:35 39 minutes, 35 seconds globally also where uh uh you know they are uh uh the I mean the data owners 39:43 39 minutes, 43 seconds like us are uh moving into a licensing agreement with uh the LLM uh organization where 39:52 39 minutes, 52 seconds you are charging a licensing fee of that sort and not providing unlisted access and we're seeing some those kind of models evolving and uh so yeah I would 40:02 40 minutes, 2 seconds urge you to provide color on uh both things like outside the organization and inside the organization both. Thank you. 40:07 40 minutes, 7 seconds Sure. The first way we see AI in the group is at multiple levels right I think um and and and then the first 40:15 40 minutes, 15 seconds thing which we work on is to improve user experience right is if you come onto our platforms how does our data and 40:23 40 minutes, 23 seconds intelligence uh you know help you perform a task better. So, so lots of work is going on and been done and 40:31 40 minutes, 31 seconds launched even around helping your experience experience on carval or ox or bike quality to get better. Number one, 40:38 40 minutes, 38 seconds um how do you and and and like I said, the one thing we've always pride ourselves on is going deep into the journey. Uh so that it's very hard for 40:47 40 minutes, 47 seconds LLM to duplicate what we do. For example, if you come to Carval and you want to get a loan approved in a second, 40:54 40 minutes, 54 seconds uh our tools help you get an approval from multiple banks within one second. 40:58 40 minutes, 58 seconds Uh I don't think any LLM would be able to do that, right? So, uh our task is always to go deeper into a process of the journey of what we do. So that no 41:08 41 minutes, 8 seconds horizontal platform or an LLM can replicate or duplicate what we do. And the strength we've got is when we look at AI products within you know our 41:17 41 minutes, 17 seconds experience for users uh we obviously have public data we obvious we have our own public data we have our own private 41:25 41 minutes, 25 seconds data and we have our own private consumer data or customer data right all of that is being used for giving you a better response as a user the LLM is 41:34 41 minutes, 34 seconds only a public data they don't get to see all the other three levels of data right as much as we're a technology company we're a data data warehouse for the 41:41 41 minutes, 41 seconds automotive industry and all the industry in all the other industries we cater to. 41:45 41 minutes, 45 seconds So for example today u millions of mobile phones are sold on Olex or hundreds and thousands and millions of furniture items are sold on Olex right. 41:55 41 minutes, 55 seconds So the amount of data around that helps us serve our customers better. 65% of used cars listed in India are inventory 42:03 42 minutes, 3 seconds in Olex today. Right? So I think I think we feel that all of this data which we've got of consumer or products or 42:10 42 minutes, 10 seconds price uh gives us a differentiated advantage to on on the on the air front to help serve our customers better right 42:18 42 minutes, 18 seconds I think that's what we believe um on licensing and sharing content no we don't share content with or proprietary content or uh our own our own data with 42:28 42 minutes, 28 seconds LLMs at all uh in any licensing arrangement we think the data we've got and the brand we have and the platform we have as a 42:35 42 minutes, 35 seconds differentiator or is differentiated and we would not want to be licensing or sharing it with anybody else. 42:43 42 minutes, 43 seconds Okay. Okay. 42:45 42 minutes, 45 seconds And uh sir regarding the consumer group uh what other optionalities you see that you've been talking about like going 42:53 42 minutes, 53 seconds deeper into the user journey uh facilitating loans is one such part of that and uh do we see other 43:00 43 minutes optionalities also in the business where we could be you know trying to get a larger uh revenue share of the user car buying journey especially 43:09 43 minutes, 9 seconds there are multiple journeys going on there are multiple multiple helping a person in the car buying journey helping a person sell a car to get a loan, to buy a car, to buy other value added 43:17 43 minutes, 17 seconds products to you know overex multiple multiple journeys uh which help us you know serve the customer better and give them a better experience and go deeper 43:25 43 minutes, 25 seconds in the process of of buying or selling a product. 43:30 43 minutes, 30 seconds Could you could you provide some color on that in in which business? I mean are you talking about Olex or Carval? Which one? 43:37 43 minutes, 37 seconds Carvali the consumer group. in the consumer group. So in in car valley for us uh one of one of the things we we 43:44 43 minutes, 44 seconds help consumers do is how do they sell a a car when they buy a car right and how that trade in manage right for us buying 43:51 43 minutes, 51 seconds a car is is a journey it's not it's not about just buying a new car it's about all these surround activities around it and for building technology of products 44:00 44 minutes which help a user do all those tasks in what we call a one-click environment is what we work towards and and for that we need to work with the ecosystem which are dealers manufacturers banks etc etc. 44:10 44 minutes, 10 seconds to provide products like this. So I mean that's an example of how we're thinking. Okay. Okay. Thank you. Dr. 44:18 44 minutes, 18 seconds Thank you. Thank you. Thank you. 44:21 44 minutes, 21 seconds Thank you. The next question is from the line of Vij Jane from city. Please go ahead. 44:28 44 minutes, 28 seconds Hi thank you for the opportunity and apologies. I could Hi. Hi V. Sorry I joined a little bit late in this 44:36 44 minutes, 36 seconds question. I apologize. Uh my question is uh you know um this quarter of course we saw all the GSC rate cuts that happened 44:45 44 minutes, 45 seconds on cars etc and uh you know on a number of other categories too. Uh two questions one uh at OX level uh uh did 44:55 44 minutes, 55 seconds you see any you know surge in listing activities etc as you know people might have replaced uh uh at a higher pace 45:03 45 minutes, 3 seconds than they would have done earlier on both cars and other categories. So did you see any indicators there and how should we think about that as it impacts 45:10 45 minutes, 10 seconds your business moving forward and second um also how you know the car price changes uh affect uh you know your 45:19 45 minutes, 19 seconds business across all three categories if you could give me a broader color how you think about yeah I we partly asked this before but 45:27 45 minutes, 27 seconds but the new car and the start of the new car side um the reduction in the new car new car um prices of GST add an 45:36 45 minutes, 36 seconds immediate benefit uh to the new car industry obviously and we saw over October December new car industry go rapidly reach and scale highest ever 45:43 45 minutes, 43 seconds numbers they've ever done um and and obviously carval and the consumer group are obviously beneficiaries to that in immediately I would say consumer demand 45:51 45 minutes, 51 seconds traffic demand uh buying demand all that automatically went up um on carval I think what we what we saw I mean and 45:59 45 minutes, 59 seconds this is a trend normal very normal when when when prices fall sharply in the new in the new product industry is used car 46:07 46 minutes, 7 seconds the used car industry is almost u in a in a status quo mode where people are wondering whether they sell an old item at a lower price or not because if the 46:15 46 minutes, 15 seconds new car price has come down by 10%. The used car price necessarily has to come down by 10%. I mean this just the way the economics work. So 46:22 46 minutes, 22 seconds I I think for people who are selling a product it takes some time to digest that understanding that what I have is going to fetch me 10% less right and and 46:31 46 minutes, 31 seconds that takes one two three months to adjust itself. So OX's growth a lot of that um towards the end of December you find that people are becoming more 46:39 46 minutes, 39 seconds accepting to realizing that the asset value has gone down in the used product they own right because the new product itself come down and and you found that 46:47 46 minutes, 47 seconds starting to happen in December onwards in the used car industry or the used product industry I think in in Jan we're seeing a little more of that where uh 46:56 46 minutes, 56 seconds people who have used products are now saying listen this is a new norm of pricing um generally As you've seen over 47:04 47 minutes, 4 seconds the long periods of time and multiple cycles like this, as the new product industry pricing goes down, the new car indust new product demand goes up, the 47:13 47 minutes, 13 seconds used car demand goes up with a lag because when the used car product prices start going down, you'll start now finding demand for the used product 47:21 47 minutes, 21 seconds going even higher. So, so you should have a massive growth in the used product industry in the next 12 to 15 months, which follows typically the new product price decreases. 47:33 47 minutes, 33 seconds Okay. So there's usually a lag there uh of there's a lag because it takes time people mentally to adjust to the new prices but when they do then the demand 47:41 47 minutes, 41 seconds dramatically goes up because the affordability of the used product goes up right makes sense. Uh thank you thank 47:48 47 minutes, 48 seconds you for that V. Second question within the uh within the OX business right so I mean if I look at the last quarter right 47:55 47 minutes, 55 seconds and you launched obviously a lot of products here uh Eli wire super saver uh super series etc uh and uh there was a 48:04 48 minutes, 4 seconds big quarteronquarter jump in the last quarter and uh if I use that exit rate that you might have had in September 48:11 48 minutes, 11 seconds quarter um would you say that these GSC related changes uh minus them uh Olex 48:19 48 minutes, 19 seconds would have been higher than this in this quarter and this is why you're guiding to much better growth rate than 18% yi going forward. 48:26 48 minutes, 26 seconds No, I'm noting no I'm not linking the GST at all with Olex. I don't think Olex was positively or negatively affected with the GST. I just I just feel like 48:35 48 minutes, 35 seconds Olex is getting better at everything it does every day. Right. uh it's an M&A which is little more than two years now and and the product changes the product 48:43 48 minutes, 43 seconds improvements the new product launches by the super series launch in Jan not in December but it was announced in Jan um so we feel like a lot of what we're 48:52 48 minutes, 52 seconds doing is starting to pay off and and of course at the center of it is user experience and transaction volume on Ox is getting better and and we obviously 49:00 49 minutes have visibility you know u um towards the end of quarters on how the next quarter is going to be because of is 49:08 49 minutes, 8 seconds there's a rate and the run rate right so that's why I' given a guidance earlier in the call saying that the growth rate of ox will go up automatically right in this quarter of Jan to March and that's 49:16 49 minutes, 16 seconds the guidance we had given yeah sorry thank you last question uh sure on the on the consumer business right uh 49:25 49 minutes, 25 seconds on the consumer business so now uh I mean we can see you know your trends on traffic across carwali and ywal 49:34 49 minutes, 34 seconds uh in terms of you know revenue market share apples to apples. Uh would you say it's roughly on par with your traffic 49:43 49 minutes, 43 seconds share or um would you say sorry just say just I got I lost the last part. Uh just repeat the question. I just lost last part. 49:50 49 minutes, 50 seconds So you said revenue share right the revenue traffic are you comparing the revenue traffic growth? Are you saying that? 49:59 49 minutes, 59 seconds Yeah. Yeah. So roughly if you if you have a certain traffic market share uh uh among classified and you have a certain revenue market share would you 50:07 50 minutes, 7 seconds say your revenue market share is above or below the traffic market share is what I'm trying to I don't want to I don't want to I don't want to get into competitive market 50:15 50 minutes, 15 seconds shares at this point but the reality is that uh carval if you look at the traffic market share is is very dominant in the business it's in right and that 50:24 50 minutes, 24 seconds comes from the number of users which come itself um clearly that dominance is displayed in all types of in all facets 50:31 50 minutes, 31 seconds of its business uh you know all its engagements calls etc etc and how we serve our customers manufacturers and dealers um you know we also feel very 50:40 50 minutes, 40 seconds strong about the revenue growth at carvali right to have a 32% growth 9 months and the look at the last three caggr of growth of carval it's been 50:48 50 minutes, 48 seconds extremely strong so you know I would like to keep it at that but but really we see that carval is is becoming you know clearly a dominant new car you know 50:57 50 minutes, 57 seconds platform M got it understood. Um just last question for Anisha if you can give me you know 51:05 51 minutes, 5 seconds the split mix between uh new and used and OEM versus dealer. Thank you. 51:11 51 minutes, 11 seconds Sure. Similar visit to what we have disclosed previously. The use continues to be like 15 versus new being at 85. 51:17 51 minutes, 17 seconds The OEM dealer is at ballpark 7030 kind of a ratio. OM being 70 and how about 51:25 51 minutes, 25 seconds great thanks. And within the remarketing business, what would you split between uh you know retail uh uh and those three categories that you split uh remarketing into? 51:34 51 minutes, 34 seconds Uh sure. REO is about 49% of our business. Retail continues to be about 40% of the business and the balance is corporates. 51:43 51 minutes, 43 seconds Got it. Thank you. Thank you. Thank you. Thanks. 51:47 51 minutes, 47 seconds Thank you. The next question is from the line of Deep Sha from NV Capital. Please go ahead. 51:54 51 minutes, 54 seconds Uh thank you for the opportunity. Am I audible? Yes. 51:59 51 minutes, 59 seconds So so so my first question is on the consumer business. Again I just wanted to understand over a 2-year horizon do you see uh growth kind of tapering down? 52:09 52 minutes, 9 seconds Uh because firstly during the IPO you all had mentioned that the penetration of like digital ad spends is around 19% 52:17 52 minutes, 17 seconds that currently would have increased to around 3540%. So it's much closer to global peers. Uh secondly uh it's 52:25 52 minutes, 25 seconds largely a dualistic u market. So do you do you see or or do you use pricing as a conscious lever? So just and like the B 52:34 52 minutes, 34 seconds would also catch up. So just wanted to get an understanding of the consumer business over two years. Do you how how do you see growth uh coming coming in here? 52:42 52 minutes, 42 seconds Sure. I think the first thing is that uh spends of manufacturers are in the 18 to 20% range on platform their cars. I 52:50 52 minutes, 50 seconds think the 30 40% you may be referring to are if you include uh OTT platforms and television on like YouTube and other 52:58 52 minutes, 58 seconds things like that um there's a huge headroom for advertising from the offline world to grow in the online world in the automotive industry. So the 53:07 53 minutes, 7 seconds 17 18 20 we think obviously will grow much larger over the next you know uh few years number one. Number two, we 53:15 53 minutes, 15 seconds also feel among digital advertising platforms whether if a manufacturer is advertising on us or other horizontals, we feel we offer farm of value to 53:23 53 minutes, 23 seconds dealers and consumers. So we see a clear increase in our market share in spends. 53:28 53 minutes, 28 seconds Number three, we definitely see the automotive industry growing at a particular rate for the next 5 years. Uh and we've shown that even if the industry growth is more muted, we 53:35 53 minutes, 35 seconds continue to grow because of the shift towards spending on platforms like cars. 53:39 53 minutes, 39 seconds Um and number four we definitely see you know as prices and our pools of cars and the mix of cars changes we benefit from that. So the multiple multiple factors I 53:48 53 minutes, 48 seconds think right from user growth to all these four factors which is why we see that you know the consumer group has continuously grown over the last three years even this year has gone to 32% for 53:57 53 minutes, 57 seconds the first nine months. We see no reason for this change for the coming few years at all. 54:02 54 minutes, 2 seconds Uh so the 20% uh uh penetration you said is on the auto auto portal side right the 30% 54:09 54 minutes, 9 seconds it's no no it's on it's on uh automotive plus all other such digital platforms 54:18 54 minutes, 18 seconds so would like Meta Instagram all of that would come in here or yeah that would come in that that would come in that yeah oh okay and on pricing do you see that 54:25 54 minutes, 25 seconds as a conscious tier to I mean uh increase your support your top line your prices change based on product change and mixes too right I think we're 54:33 54 minutes, 33 seconds not a company which charges more for doing the same thing we normally uh you know we normally try and increase value to our users uh to manufacturers dealers 54:42 54 minutes, 42 seconds by you know when their prices change or when we provide more services to them I think that's where we think about it okay not and just uh in addition to the 54:51 54 minutes, 51 seconds previous question on a mix on the remarketing group the 10% corporate that you mentioned how just how would you differentiate between the retail and the 54:59 54 minutes, 59 seconds corporate what do you include in The corporate piece retail is single user. Corporate is someone who's got bulk vehicles is different. I mean a corporate could be fleet owners would be corporates. 55:10 55 minutes, 10 seconds Yeah. Fleet owners could be corporates. 55:11 55 minutes, 11 seconds Yeah. Individual is just individual user. Yeah. Okay. And the last question was on OX. 55:17 55 minutes, 17 seconds You mentioned that the growth will pick up from them. Uh could you just elaborate on the non-auto portal? I mean when when you had acquired this the focus was largely on the auto piece of 55:25 55 minutes, 25 seconds the business. how how are we scaling up the non-auto piece and could you just actually the non-auto piece has also grown rapidly I mean in this period uh 55:32 55 minutes, 32 seconds the non-auto growth has been slightly ahead of the auto growth so it's been pretty strong um there multiple parts of it from uh electronics to uh goods to 55:42 55 minutes, 42 seconds mobiles furniture uh bikes um jobs real estate multiple parts of it uh we feel 55:49 55 minutes, 49 seconds very optimistic about all those in fact in mobile phones there's almost 25% of all phones sold are listed on Olex we've shared that market share data as well 55:58 55 minutes, 58 seconds publicly um and even in furniture if you today in India are selling a table or a chair uh or anything else Olex is a 56:06 56 minutes, 6 seconds single destination where you know 180 190 million Indians come every year to sell something or buy something so uh it's a very strong platform for used 56:14 56 minutes, 14 seconds products in in from a non-auto standpoint of course on auto 65% of cars are listed on Rolex but even on non-auto we find that the traction and the 56:23 56 minutes, 23 seconds adoption extremely high and and and and very optimistic about the non-uto side. 56:28 56 minutes, 28 seconds It it actually fulfills a very major need for uh the population of India that if you ever want to sell something, I 56:36 56 minutes, 36 seconds think this is the only methodology you can use to sell what you have. It could be a piano, it could be it could be anything. Um and and then and we said 56:44 56 minutes, 44 seconds before that uh a lot of this operates hyperlocally. So if you are listing you know an item in a particular geography 56:51 56 minutes, 51 seconds within a 5 km geography, there's a buyer for you. So very strong platform, very strong transaction metrics and and extremely strong adoption by users. 57:01 57 minutes, 1 second Gotcha. Thank you so much and all the best. Thank you. Thank you. 57:06 57 minutes, 6 seconds Thank you. The next question is from the line of Shinik Ma from IndoS Wealth. Please go ahead. 57:15 57 minutes, 15 seconds Hi, thank you for uh giving this opportunity. I had two questions. Number one was on the roe. 57:24 57 minutes, 24 seconds So you have a fairly strong glide path to the growth years. 57:30 57 minutes, 30 seconds When do you think in the next 2 three years we can come to a more uh ROE which is closer to say the growth 57:38 57 minutes, 38 seconds that we want to take which may be in the range of 20 25%. 57:44 57 minutes, 44 seconds um you know I don't want to give a guidance on when that will happen but clearly we see the ROE going up because um as profit goes up and and there's 57:53 57 minutes, 53 seconds lack of u you know capex or other big investments being made um we clearly see the RO going up in the company. 58:02 58 minutes, 2 seconds Yeah. Okay. And second I was thinking a little bit about the AI. So do you have some AI uh case which you've utilized in 58:12 58 minutes, 12 seconds your company and has been very successful to to bring the business growth for you? Any one user case? the 58:21 58 minutes, 21 seconds multiple interventions or I think the one we uh which already live which all users use even today is if you list a 58:29 58 minutes, 29 seconds product on ox and let's say you list a car and you put a photograph of a u of 58:36 58 minutes, 36 seconds something else our AI tool immediately will will check on it and obviously guide you to say listen this is the wrong product uh so the multiple small 58:45 58 minutes, 45 seconds interventions like this but AI is being used across to enhance you know user experience on carval or overex there's a lot of pricing information. So if you go 58:53 58 minutes, 53 seconds to caraval today and you're buying a used car, it'll immediately guide you, tell you what price you should pay, which is all intelligently, you know, on 59:01 59 minutes, 1 second you, as you know, used car pricing is an extremely complicated, you know, item and and this is all done through AI. So multiple interventions, but there's a 59:09 59 minutes, 9 seconds long long way to go. We're just the beginning of the AI interventions in the business. 59:15 59 minutes, 15 seconds Okay. Appreciate your feedback. Thank you. Thank you. 59:20 59 minutes, 20 seconds Thank you ladies and gentlemen. We will take that as our last question for today. I now hand the conference over to Mr. Aryan SRA for closing comments. Over to you sir. 59:31 59 minutes, 31 seconds Thank you. I would like to thank the management for taking the time out for this conference call today and I would also like to thank all the participants. 59:39 59 minutes, 39 seconds If you have any queries feel free to contact us. We are MUFG in time investor relation advisor to Cartrate Tech Limited. Thank you so much. 59:47 59 minutes, 47 seconds Thank you everybody. 59:48 59 minutes, 48 seconds Thank you. Thank you on behalf of Car Trade Tech Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.