CarTrade Tech Limited — Q4 FY26

Cartrade Tech Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=n_C1ZJeCniw Published: 5 days ago

0:00 Ladies and gentlemen, good day and welcome to the Cartra Tech Limited Q4 and FY26 earnings conference call 0:09 9 seconds organized by MUFG in Time India Private Limited. As a reminder, all participant lines will be in the listenonly mode and 0:16 16 seconds there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please 0:23 23 seconds signal an operator by pressing star then zero on a touchstone phone. Please note that this conference is being recorded. 0:30 30 seconds I now hand the conference over to Mr. 0:32 32 seconds Aryan Sumra from MUFG in Time India Private Limited. Thank you and over to you sir. 0:39 39 seconds Thank you. Good afternoon everyone. I welcome you all to the Q4 and FI26 earnings conference call for Carter Tech 0:46 46 seconds Limited. To discuss this quarter's financial performance, we have from the management Mr. Mr. Vay Sanangi Chairman and managing director, Miss Anisha 0:55 55 seconds Bandari, executive director and CFO and Mr. Vun Sanangi, Chief Strategy Officer. 1:01 1 minute, 1 second Before we proceed with the call, I would like to mention that some of the statement made in today's call may be forward-looking and may involve risk and uncertainties. For more details, kindly 1:09 1 minute, 9 seconds refer to the investor presentation and other filings that can be found on the company's website. Without further ado, I would like to hand over the call to 1:17 1 minute, 17 seconds the management for their opening remarks and then we can open the floor for Q&A. Thank you and over to you sir. 1:24 1 minute, 24 seconds Thank you and welcome to everybody to the Q4 FI26 earnings call and thank you for taking the time out today. Um I I 1:33 1 minute, 33 seconds just want to start off by saying we've completed a year which is been a very strong year for the company. Its growth in revenues, its growth in profits and 1:41 1 minute, 41 seconds it's obviously it growth in margins. Um if you if you look at the investor presentation shared with all of you. If you go to uh slide three which is you 1:51 1 minute, 51 seconds know really looking at the last threeear story of the company um at the center of a company is really innovation and that 1:58 1 minute, 58 seconds drives our growth and profits. If you look at the three-year growth story and if you look at the compounding of the company from a revenue standpoint the three-year CAGGR is 29% of revenue. 2:09 2 minutes, 9 seconds IBIDA is a 98% three-year CAGGR and the PAT CAGGR is 82%. As you as you all have 2:17 2 minutes, 17 seconds seen over the last many quarters, margins have continuously gone up. Margins have now gone from 9% to 33%. 2:24 2 minutes, 24 seconds Um and if you look at you know the strength of the company in terms of the capital strength um we've now got 1,244 2:32 2 minutes, 32 seconds crores of cash reserves. Um last year we added a cash balance of approximately 300 crores uh based on you know 2:40 2 minutes, 40 seconds profitable growth and as you can see the return on equity is getting better and better. If you look at you know the real 2:47 2 minutes, 47 seconds growth for from on on on on on various other metrics EPS is up 86% over the last three years caggr this is 2:56 2 minutes, 56 seconds the earnings per share now is actually 47 rupees a share um and um if you also look at the profit after tax has jumped 3:04 3 minutes, 4 seconds to 244 crores it's among India's most profitable listed digital platforms if you go to the next slide and look at the consolidated accounts which is slide 3:13 3 minutes, 13 seconds four as you can see The uh revenue growth is 22% for the year. Uh 20% 3:20 3 minutes, 20 seconds operating growth for the quarter. Pro Ebida growth is 70% for the year. 3:25 3 minutes, 25 seconds Margins are 33% for the year. For the quarter margins are 35% and EBIDA is up 55%. 3:32 3 minutes, 32 seconds Um if you look at profit after tax is up 54% and first time cross 70 crores is 70.84 crores in a quarter. So 54% up PAT 3:42 3 minutes, 42 seconds and uh PAT for the year has jumped from 145 crores to 243 crores which is up by 68% for the year. So it's been a very 3:51 3 minutes, 51 seconds very strong yearly performance u and we obviously feel very optimistic about uh not only the year gone by but we also 3:59 3 minutes, 59 seconds feel very very optimistic about the years you know going ahead. So um yeah we feel competitive dynamics have improved for the company. uh overall 4:08 4 minutes, 8 seconds customer engagement has improved and as you can see here revenues have improved and margins have improved and obviously profitability has dramatically gone up 4:16 4 minutes, 16 seconds as well. So we feel very strong uh and and in a good position to really guide the future of this company. If you go to slide five which is the consumer group 4:25 4 minutes, 25 seconds as you know by qual carval these brands it has had a really really strong year at a growth of 30% and not only has it grown revenue at 30% for the year it's 4:34 4 minutes, 34 seconds grown ibida by 96% and profit after tax at 55% uh due to increase in the deferred tax 4:41 4 minutes, 41 seconds provisions of the company uh if you look at the quarter quarter revenue is up 25% is up 72% and pre-profit after tax is up 4:50 4 minutes, 50 seconds 64% so it's been a very strong quarter for the consumer group uh um as well. If you look at the remarketing business um 5:00 5 minutes and I want to highlight here that in the year this year gone by every company of ours all the three businesses have achieved the highest ever revenue the 5:08 5 minutes, 8 seconds highest ever margins and the highest ever profits all of them. So it's been a really really strong um you know uh year 5:16 5 minutes, 16 seconds for us gone by. So you look at the remarketing group is up 22% on yearly revenues. Uh profits IBIDA is up 57% 5:23 5 minutes, 23 seconds margin has jumped to 28%. And profit after tax up 66%. And if you're looking at for the quarter revenue is up again 5:30 5 minutes, 30 seconds 22% IBIDA is up 56% and profit after tax is up 42%. So it's been as I said again a really strong quarter for the 5:38 5 minutes, 38 seconds remarketing business as well. If you look at Olex India uh uh for the year revenue is up total income is up 22% 5:47 5 minutes, 47 seconds IBIDA is up 54% and profits up 77% and for the quarter it's 16% I beta 34% and profit after tax 44%. So they've had a 5:56 5 minutes, 56 seconds strong year as well. Um you know these are the highlevel financial metrics which I wanted to share with all of you. 6:03 6 minutes, 3 seconds Um obviously I'm happy to take all your questions and share uh you know and clarify all the doubts you might have as well. So we can take questions now. 6:14 6 minutes, 14 seconds Thank you very much sir. We will now begin the question and answer session. 6:19 6 minutes, 19 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to withdraw yourself from the question queue, you 6:27 6 minutes, 27 seconds may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll 6:35 6 minutes, 35 seconds wait for a moment while the question queue assembles. 6:42 6 minutes, 42 seconds First question is from the line of Sadhar from Namura. Please go ahead. 6:49 6 minutes, 49 seconds Yeah, thanks for the opportunity and uh congrats sir on a good set of numbers. 6:54 6 minutes, 54 seconds Uh sir, first question is uh the classified business I mean uh we have taken uh quite a few initiatives in the 7:02 7 minutes, 2 seconds last uh few quarters and uh have rolled out new products as well on both light buyer as well as verification but uh the 7:10 7 minutes, 10 seconds growth momentum seems to be taking longer to sort of see an acceleration. 7:14 7 minutes, 14 seconds So if you can share some more color on uh where are we in terms of monetization uh uh how is the response for some of 7:22 7 minutes, 22 seconds these products which we have launched and how should we expect uh the growth to be for the next few years. 7:29 7 minutes, 29 seconds Sure. uh I think I mean uh in the ox business ox has grown by 16% in the quarter and uh we obviously any buyer 7:37 7 minutes, 37 seconds and both verification verification was launched uh in the last few weeks of the quarter uh verificate and and and any buyer has been around for a few months 7:46 7 minutes, 46 seconds um the adoption of both these products has been extremely strong I I think uh you know you'll very soon maybe this 7:53 7 minutes, 53 seconds quarter start seeing the impact of it um because uh in fact it's been in most very rarely in platform where these are 8:02 8 minutes, 2 seconds buyers monetized and we've actually had I would say strong success in the both the products verification and any buyer 8:10 8 minutes, 10 seconds and like I said you'll start seeing these numbers play out immediately in my opinion um and we can already see it you know on a daily basis but I think from 8:17 8 minutes, 17 seconds this quarter onwards you'll start seeing the impact of these products uh when you look at Olex as a whole we feel very optimistic about the uh monetization 8:27 8 minutes, 27 seconds opportunities within Olex X um last quarter we launched a couple of other AI initiatives as well in Olex um and you 8:36 8 minutes, 36 seconds know as we go on this year there'll be a series of launches of new products. Uh so we feel very very confident about elite buyer verification and the other 8:44 8 minutes, 44 seconds B2C and C2C initiatives being done by the company. Um I think you should see this momentum of monetization step up now immediately you should see it. 8:56 8 minutes, 56 seconds So any uh more products uh can you sort of elaborate what are we planning to do for the coming years uh which you said that they should be a pickup? 9:05 9 minutes, 5 seconds Sure. uh first within elite buyer itself. Valley buyer is a is a product is a suite of products for us right so we started off with you know visibility 9:13 9 minutes, 13 seconds uh uh uh bringing in trust with elite buyer we're moving to agentic AI with elite buyer so uh it's got a very unique 9:22 9 minutes, 22 seconds matchmaking tool which has gone live so if you are looking to buy a product it helps you find that product and matchmakes it to exactly what you want 9:29 9 minutes, 29 seconds which enables you to do transactions uh it's of course uh using what we call a matchmaking agent which has been built 9:36 9 minutes, 36 seconds grounds up Um it is moving also as we disclosed earlier in presentations to various other agents which suppose you're buying any product used product 9:45 9 minutes, 45 seconds it'll help you price it. So if you don't know what price to pay it'll instantly tell you how you what price you should pay for it and in many products it'll 9:52 9 minutes, 52 seconds also give you a condition check. So what we're able to do to today with photographic image uh recognition we're able to judge condition. So I I think 10:01 10 minutes, 1 second what we're trying to do is when you buy a product we buy a program with multiple agents. now which will get launched and you as I said you'll see them one after 10:09 10 minutes, 9 seconds the other um uh as consumers uh to to use um you will be able to buy a used product by understanding how to find and 10:18 10 minutes, 18 seconds matchmake a product uh uh a seller understand the price understand the condition so that's one family of you 10:25 10 minutes, 25 seconds know initiatives there's another family of initiatives that are going to sell your product and this is also you know got rolled out uh uh there's a 10:33 10 minutes, 33 seconds matchmaking on that side too so if you're going to sell a car or a bike or a refrigerator or something. How do we instantly give you a customer waiting for this product, right? And that also 10:42 10 minutes, 42 seconds requires a matchmaking agent which has been built. Also, when you're going to sell your product, do you understand price? Are you able to negotiate price? 10:48 10 minutes, 48 seconds So, there's pricing agent, negotiation agents on the other side as well. So, these are various AI initiatives 10:55 10 minutes, 55 seconds which are using Olex core proprietary data to give you a better experience. Uh these are at various stages of rollout. 11:01 11 minutes, 1 second So the matchmaking in a very small way is already rolled out to consumers uh uh on Olex and and as I said these are all 11:08 11 minutes, 8 seconds at various stages of of this of this launch. Um there's also uh a verification product which you've talked about on which brings further trust and 11:17 11 minutes, 17 seconds safety in a platform like this. So it tells uh you know it tells you who can be trusted or not tr who can be trusted and and you know it also comes on the 11:26 11 minutes, 26 seconds fact that a very large number of ox users are more than 5 years old. So we from their behavior we are able to analyze our you know uh intelligently 11:35 11 minutes, 35 seconds who can be trusted or not be who can be trusted actually at this point. So um that's another family I we've talked about you know building fintech and 11:42 11 minutes, 42 seconds there are various ways of development or building a financing product for people who want to buy used products um um and then there are multiple such initiatives 11:50 11 minutes, 50 seconds so but the intent is to keep building products which help transactions on the platform and obviously help us monetize in a far better manner also. 11:59 11 minutes, 59 seconds Understood sir. Lastly sir on the consumer business uh I mean uh good performance here as well. Uh can you uh 12:06 12 minutes, 6 seconds just uh elaborate a bit more on the uh OE dealer uh mix uh how has it changed in the quarter and uh in terms of 12:14 12 minutes, 14 seconds outlook uh given some of these rising steep cost pressures we are seeing across the industry. How do you see the 12:21 12 minutes, 21 seconds growth I mean going from here for the next year? uh do you see any risk of decelization or do you think this growth 12:28 12 minutes, 28 seconds momentum is uh can continue for you? So some thoughts there. 12:33 12 minutes, 33 seconds So one is that the car industry in the last 7 months has had steep growth including April as well. Um as as you 12:41 12 minutes, 41 seconds know that the car industry grew approximately 20% in April itself. Um we we any we we feel very optimistic about 12:48 12 minutes, 48 seconds the year ahead for growth for the consumer business. Um so any any growth rate which we've you know which we've 12:56 12 minutes, 56 seconds already shown last year or the year before or the year before that we obviously feel very optimistic about the next year or the years ahead as well. Um 13:04 13 minutes, 4 seconds we also feel reasonably optimistic about the car industry itself. Um you know uh that there should be some growth momentum just looking into the GST tax 13:13 13 minutes, 13 seconds reduction and demand escalation which has taken place post that we continue to see that. So I don't we we completely feel very optimistic about the growth in 13:22 13 minutes, 22 seconds the car industry for or the bike industry for that matter for the next uh you know year or two three years ahead 13:29 13 minutes, 29 seconds actually. So um nothing has changed if you feel as optimistic as we did you know 3 months ago or 5 months ago. Um 13:36 13 minutes, 36 seconds market conditions in the car industry are quite favorable or the two wheel industry for businesses like ours. Um Anisha you want to give the breakup of this dealer and uh or I don't think much 13:45 13 minutes, 45 seconds has changed but you want to give a break up. Sure. Uh so it's about 7030 OEM being 70 and dealer being 30 or 13:54 13 minutes, 54 seconds non consumer group that yeah yeah okay sure thank you. I will come back in. Thank you. Thank you. 14:02 14 minutes, 2 seconds Thank you. 14:04 14 minutes, 4 seconds Next question is from the line of Vijit Jen from City Group. Please proceed. 14:09 14 minutes, 9 seconds Yeah. Hi. Thank you. Um hi V. Hi. Uh my question is on super do. Um so first off 14:17 14 minutes, 17 seconds um uh you know good to see a unified C2B product. Uh do you need to spend on advertising and promotions to popularize superdos? 14:26 14 minutes, 26 seconds Uh um look so so already launched. Uh it is in the initial phase launched um uh 14:33 14 minutes, 33 seconds for uh all the dealers in India as you know Olex and Carval has almost all used car dealers in India listing or buying vehicles from the platform. Um and and 14:42 14 minutes, 42 seconds what it does today, it basically uh it's so which is already live. If you're a dealer looking to sell your car and the dealer can just take a photograph of a 14:50 14 minutes, 50 seconds car they want to sell and instantly matchmakes customers around in a in a in a local environment which can buy that 14:57 14 minutes, 57 seconds car. So it is it is basically something we promised in an earnings call earlier as well. It's something called instant sale, right? which basically uses AI to 15:06 15 minutes, 6 seconds to align customers to a particular kind of car and does it instantly so that if a dealer keeps inventory for 60 to 90 days um how do you bring that inventory 15:15 15 minutes, 15 seconds on 5 days right or stock because it gives you customers immediately and I think it's been very well received it's just been launched about 30 30 odd days 15:22 15 minutes, 22 seconds ago so it's done extremely well and very well received it early days as so we using AI in that form and super get more functionality as we go on um you know 15:32 15 minutes, 32 seconds for for for dealers uh there's a consumer version of that which I talked about uh in the pre in the previous question 15:40 15 minutes, 40 seconds which is really ma this is this is matchmaking actually but pricing and condition check will come with matchmaking and it'll come to consumers 15:47 15 minutes, 47 seconds too so those for consumers will get launched very soon um where they can instantly do the same as dealers can if they if someone you looking to buy a car 15:56 15 minutes, 56 seconds you'll be getting you'll get a feature like this available to you with the elite buyer program understood so uh when I so essentially 16:03 16 minutes, 3 seconds right now uh From what I can understand, this works on WhatsApp. So the idea being a dealer gets on to WhatsApp or a 16:10 16 minutes, 10 seconds consumer gets on to WhatsApp and they put those messages and uh get those matches, right? 16:16 16 minutes, 16 seconds Um to what you're mentioning, it seems like uh this you would build this out into a full-fledged platform and I also 16:24 16 minutes, 24 seconds feel we won't build an independent platform. 16:26 16 minutes, 26 seconds It'll it's a it's a uh what it's rendered on WhatsApp. the underlying technology is it is it's only a communic WhatsApp is is the is the is the communication or the tool at this point. 16:38 16 minutes, 38 seconds So you could put a photo on WhatsApp and it'll instantly give you three customers. 16:42 16 minutes, 42 seconds Uh the backend technology is being built at Olex and car trade. Right? So um it can be rendered across on any platform. 16:48 16 minutes, 48 seconds It'll go live on Olex. It could go live on Carval. It could go live on any platform we have to render it. Uh we we've just started WhatsApp because that's been very convenient for 16:56 16 minutes, 56 seconds consumers and dealers. But it'll go across all our platforms. Understood. 16:59 16 minutes, 59 seconds And then when you in the presentation you you mentioned that there are 2 million plus buyers and sellers. So are is this a count of people who have 17:07 17 minutes, 7 seconds already engaged with or messaged superdos as of now? Is that how one should No. No. The 2 million buyers and sellers are people who come every month to buy or sell cars on Olex or car. 17:17 17 minutes, 17 seconds I see. 17:18 17 minutes, 18 seconds Used cars. Only used cars. Sorry. Only used. It's not new. Yeah. So it's a significant scale every month. 17:23 17 minutes, 23 seconds This is not a one-off. This is like every every month. So yeah. 17:27 17 minutes, 27 seconds Right. And so u sorry just to get get back to that question would you do you think you would need to you know kind of 17:34 17 minutes, 34 seconds promote superdost as is um uh kind of you don't need to actually because as you know we have almost like 31 million 17:42 17 minutes, 42 seconds people on ox every month and you know 50 odd million on uh on on car val so we we don't it it'll be available to the 80 17:49 17 minutes, 49 seconds million people so it's right now available for dealers for cars it is also by the way a version of it a matchmaking won't be available for all 17:57 17 minutes, 57 seconds products on Nox, not just cars that will go live soon. Yeah. So, it's it started at cars, but it's going to go to even if 18:04 18 minutes, 4 seconds you're buying a I don't know a refrigerator, it would apply the same way. It it goes across everything. 18:10 18 minutes, 10 seconds Understood. And and then um uh you know just imagining that you know people use this for cars, for refrigerators, 18:19 18 minutes, 19 seconds everything. And then if they're engaging with this on these different platforms, uh the proposition here is not that you 18:26 18 minutes, 26 seconds know people can hold an account on superdose separately as such. That's not the proposition. 18:31 18 minutes, 31 seconds No, you actually have to buy something on Olex to get on to super even today that is the case. Superdos is a brand uh of a tool which assists you uh the you 18:40 18 minutes, 40 seconds you have to buy something on Olex to be give access to it anyway. So if you if you are an Olex elite buyer, you might get access but you have to buy something 18:47 18 minutes, 47 seconds on Olex to come or get even today by the way to get access to superdos. Understood. 18:52 18 minutes, 52 seconds It's not a free product. It's not a free product. Yeah. 18:55 18 minutes, 55 seconds Okay. Understood. My next question is on the remarketing business. So you know um uh there are two components to it right. 19:03 19 minutes, 3 seconds One is of course the uh the institutional sellers, the corporate sellers where you can have these uh macro cyclical driven growth momentum 19:12 19 minutes, 12 seconds and the other is obviously the retail one. Uh you know any broad sense you can give me on you know what is the underlying growth that you think you can 19:20 19 minutes, 20 seconds sustain in the retail segment? I'm I'm not necessarily asking for the next quarter but maybe just to just to kind 19:27 19 minutes, 27 seconds of visualize and help uh understand you know how much of that cyclicality has been blunted by retail from an ongoing basis. 19:37 19 minutes, 37 seconds Uh sure I think the first thing is the institutional is not cyclical. I I think there was a period for about a year in between postcoid where um repossession 19:46 19 minutes, 46 seconds dropped because loans were not given at co time. That was a one-off. it is not a cyclical cycle where it goes up and down every quarter or every year. So that's 19:54 19 minutes, 54 seconds the first correction. Uh even the institutional business is not necessarily cyclical but you know I actually think both the repossession 20:02 20 minutes, 2 seconds side and the retail side will keep growing is our view right. Um the retail side is of course small pe small dealers 20:11 20 minutes, 11 seconds small or owners coming and you know um buying or selling vehicles. um the institutional side is just a bulge in 20:19 20 minutes, 19 seconds venture coming in bulk. That's the difference. But we don't we see actually strong momentum of growth in both areas to be honest. We don't see yeah any 20:27 20 minutes, 27 seconds reason not to believe that for the next few years ahead and as long as I think I like I said as long as new loans have been given in India which is happening for any automotive 20:36 20 minutes, 36 seconds product I think you're going to have repossession right there was just a period in co when that done for about a year and a half where that did not happen. 20:42 20 minutes, 42 seconds Understood. One last question from my side. Any thoughts on you know acquiring uh the auto mall business 100%. 20:51 20 minutes, 51 seconds Um I know it's No, not not at this point. Nothing I can comment on. I see. 20:57 20 minutes, 57 seconds No, I don't think so. I think I think for us the partners we've got there are fantastic partners to have. So um I I I 21:04 21 minutes, 4 seconds think we've we've not nothing to update on it or nothing to say on it at this point. So no understood. 21:11 21 minutes, 11 seconds But but having them obviously is a huge huge advantage for the company and for us. 21:15 21 minutes, 15 seconds Okay. Understood. Got it. Thank you so much. Those are my questions. Thank you. Thanks. Nice. Thank you. 21:22 21 minutes, 22 seconds Next question is from the line of Nishid Jalan from Access Capital. Please proceed. 21:28 21 minutes, 28 seconds Yeah. Hi. Hi V. Hi Anisha. Congrats on very good set of numbers again. Uh just two questions from my side. uh on Olex 21:36 21 minutes, 36 seconds uh uh uh this initiative of elite buyer elite seller uh has been is doing well and you have now Anthony super do just 21:43 21 minutes, 43 seconds wanted to understand in Olex uh can you share some breakdown in terms of revenues coming from advertisement and 21:50 21 minutes, 50 seconds subscription uh subscription as in used card dealer taking a subscription right and advertisement versus the versus from 21:57 21 minutes, 57 seconds these new initiatives like elite buyer elit seller or super do where where buyer and seller needs to pay right because this could become a much bigger 22:04 22 minutes, 4 seconds opport opportunity and my second question is on remarketing. Uh just wanted to understand what would be the broad mix now uh uh uh on repossessed 22:13 22 minutes, 13 seconds and uh retail segment and if you can throw some light on remarketing in terms of which segment is witnessing uh 22:21 22 minutes, 21 seconds stronger growth compared to others right uh uh in terms of retail or represent or anything right and if you can also add 22:29 22 minutes, 29 seconds uh apart from take rate right we we do offer some value added activities in remarketing so what would be the share of revenues coming from that value added 22:37 22 minutes, 37 seconds activities ities and is it on the rising trend? 22:41 22 minutes, 41 seconds Sure. I think the first part is what whether it's elite buy verification, what part of the revenue is it and what is the traditional revenue. Um the 22:49 22 minutes, 49 seconds traditional revenue is pretty much most of it. It's very insignificant at this point. The elite buyer I mean it's really kicked off in the last two three months. So it's very insignificant in 22:57 22 minutes, 57 seconds the last year. Um but one thing is going to change is that from this year I I I feel in the next few quarters you'll see 23:05 23 minutes, 5 seconds elite buyer and verification becoming significant for the company. Uh we very optimistic about definitely elite buyer 23:12 23 minutes, 12 seconds in terms of monetization in the very near term. So you start seeing that significant it is not it would be when I say insignificant probably correct me 23:20 23 minutes, 20 seconds probably less than 5% last year for sure. So, so um but it's going to become significant in our opinion this year which you'll start seeing maybe from 23:28 23 minutes, 28 seconds this quarter or the next quarter. Um we can already see that trend as I said in the last month or so. Um that's one. Uh 23:35 23 minutes, 35 seconds the second uh question is around the new was it the new segments apart from repossession or retail in Sri Lanka 23:41 23 minutes, 41 seconds motor. we feel really optimistic about uh like we focused heavily on is commercial vehicles for example where u 23:49 23 minutes, 49 seconds we feel we right now working closely with a OEM on trade in for all their commercial vehicles right so if you want 23:55 23 minutes, 55 seconds to buy a new commercial vehicle and you want to trade in your old one we're building a partnership and a product with one OEM right now where you know 24:04 24 minutes, 4 seconds the vehicles can come back to Shira automuction right all the trading vehicles so there are multiple such initiatives on commercial vehicle side I also feel very optimistic about the farm 24:12 24 minutes, 12 seconds equip ment side apart from you know repossession retail and all the other things we do. So these are some of the initiatives on new supply sources you 24:19 24 minutes, 19 seconds know we are we are building. I think the third question was around what is the value added service income versus the auction income. The value added service 24:28 24 minutes, 28 seconds here and the auction income here are correlated right in a way. So because if you have a buyer fees or buyer management fees or you have you know uh some some small clients pay a little bit 24:37 24 minutes, 37 seconds of parking fees. They're very correlated with the auction revenue. So I would I would take it you know and really say these are all correlated with each 24:44 24 minutes, 44 seconds other. So very last percent of these fees are auction related in a way because all bunched together. Uh I think the one area of fees which is slightly 24:52 24 minutes, 52 seconds outside which about 10% or less is the inspection fees but otherwise all these other are very very auction related by itself. 25:01 25 minutes, 1 second So, so thanks for answering when my uh thought process to understand of remarketing was like I asked from the Ox 25:08 25 minutes, 8 seconds side is the share of value added revenue in uh remarketing going up right because there is always a limit to how much take 25:16 25 minutes, 16 seconds rate can you take from uh from consumers right and so I think I think this yeah the growth in it comes from two different places if you're talking about 25:24 25 minutes, 24 seconds take rate it's we answer this slightly differently where if the if the grow the take rate was to grow like for example One of the initiatives we're thinking 25:32 25 minutes, 32 seconds about is financing dealers who buy on our platform, right? Not not ourselves. 25:35 25 minutes, 35 seconds Again, a marketplace model. So, thousands of people buy vehicles every month. In fact, the total turnover is almost transaction turn almost 4 5,000 25:42 25 minutes, 42 seconds crores. Is a question that you know can you finance some of those that value added financing. So, we think value added is is not the core auction fees or 25:51 25 minutes, 51 seconds related. We think value added is completely a new line of fees, right? 25:54 25 minutes, 54 seconds So, those are the kind of fees we'd work on. inspection is completely a new fees which I've told you it's about 10% or so but but we think value added is not 26:03 26 minutes, 3 seconds related directly to an auction of a vehicle it's it's something people need when they auction a vehicle buying also yeah that's the reason I'm asking that's the reason I'm asking 26:10 26 minutes, 10 seconds yeah we actually think financing is one area marketplace financing is something we're looking at very closely there to increase margins yeah so what I what I what I was also trying 26:19 26 minutes, 19 seconds to understand was like you mentioned inspection is 10% of revenues right similarly are there any other big value addended uh activity that has already 26:27 26 minutes, 27 seconds started contributing to revenues apart from uh take rate and parking fees. 26:33 26 minutes, 33 seconds No, I wouldn't say anything significant at this point. No, it's mostly auction fees. 26:38 26 minutes, 38 seconds Okay. Okay. and and and uh uh uh uh one question on on on Olex side again on in 26:45 26 minutes, 45 seconds terms of uh in terms of followup right uh when you talk about that active buy and seller will become significant right so let's say let's not quarters one two 26:54 26 minutes, 54 seconds three quarters right let's say three years time right uh in three years time where do you see this segment can it contribute like a 304 27:02 27 minutes, 2 seconds it could be no no it it could be it could be more than that I would say it could be more than that I actually think because just remember one thing that I think one data point 27:10 27 minutes, 10 seconds which is very important is that there are six times buyers to sellers on the platform it's an obvious if someone is selling the many buyers right I mean 27:18 27 minutes, 18 seconds uh so the bulk of the users in this platform come to buy right so on a daily basis so the monetization opportunity is multiple fold there 27:27 27 minutes, 27 seconds multiple fold I would say yeah which is why such a significant which is why it's such a significant initiative for the company 27:35 27 minutes, 35 seconds okay and sorry just to hop on it and maybe if I could just ask One more followup. Obviously, this buyer can become really big for you in the next 3 years. 27:42 27 minutes, 42 seconds What kind of growth should we assume in the traditional channel in terms of advertising or in terms of uh the the subscription fees that you charge from 27:50 27 minutes, 50 seconds used car dealers that would be more linked to inflation or whatever annual increase that you I actually think no no there's so many 27:59 27 minutes, 59 seconds new products for sellers which have been built today and the seller base is growing. So it is it is to me there is no inflation or any growth rate which 28:07 28 minutes, 7 seconds you could apply. It can be completely disproportionate in the years ahead the way the products been created. I I would not put it I would not I would not I 28:15 28 minutes, 15 seconds would not I would not I don't want to give a guidance anyway but I would not think that this is going to be inflation. We're just way too early in the day to look at the number of seller products or buyer products being created 28:23 28 minutes, 23 seconds right now that like I said the growth could be any percentage. It's it's there's a s limit. 28:30 28 minutes, 30 seconds Thanks. Thanks V and all the rest for the Thank you. Thank you. Thank you. Thank you. 28:37 28 minutes, 37 seconds Next question is from the line of Sachin Dixit from JM Financial. Please go ahead. 28:44 28 minutes, 44 seconds Hi, decent set of results. Um I have two questions both on. The first is obviously I think you have explained 28:53 28 minutes, 53 seconds already that you there are some initiatives which will work out well in the near future. I just wanted to understand what happened this quarter 29:01 29 minutes, 1 second right because you had guided very clearly about there being higher momentum in the coming quarter when when we were discussing this same result last 29:09 29 minutes, 9 seconds quarter I mean why did it drop from 18 odd% growth to 15 and a half this quarter what happened no I don't think I think it is pretty 29:17 29 minutes, 17 seconds similar I mean first of all I mean not that it matters but this quarter is two days less and some of the online platform it does matter we talking about that is not 29:26 29 minutes, 26 seconds yeah no bio IO buy it's anyway around 16% right so that's one I think I think it is normally Q3 for us is a slightly 29:34 29 minutes, 34 seconds better quarter it's just the October phase of consumer products in India uh generally you know honestly such a we 29:42 29 minutes, 42 seconds it's not much difference and we feel pretty similar to what we saw the previous quarter some of the initiative like verification month 29:50 29 minutes, 50 seconds late on this is I mean obviously has had a checker track record in the Last 29:58 29 minutes, 58 seconds couple of quarters we noticed that yeah we are seeing some momentum pick up and which is what you highlighted in the last semicolon as well. Again yi growth is dipped which is why I'm asking right 30:07 30 minutes, 7 seconds is it a sign of something falling apart for us or or this very easily is is my question. 30:15 30 minutes, 15 seconds No no I I actually feel the other way around. I feel I'm more optimistic than I was last quarter. So in my opinion uh it's the other way around I think. And 30:22 30 minutes, 22 seconds and like I said, we did launch verification like about 45 days later than we thought. Um it's a completely new product and we wanted to go out with 30:31 30 minutes, 31 seconds it completely done. Um so so a lot of these things sometimes in product development may take a little longer but 30:38 30 minutes, 38 seconds we feel extremely optimistic as we did the previous quarter. Nothing has changed for us at Olex. 30:45 30 minutes, 45 seconds Understood. Understood. And just one more question on Olex only and which is on the employee cost side. Right. There is a lot more variability in Olex 30:52 30 minutes, 52 seconds employee cost compared to what we see in new auto for example or on the consumer group. Sure. 30:57 30 minutes, 57 seconds Is there a signant portion of our employee workforce here which is slightly more variable that revenue goes up, it goes up, revenue goes down, it 31:04 31 minutes, 4 seconds goes down compared to most of the other businesses where it's largely fixed sort of employee base. 31:10 31 minutes, 10 seconds No, the employee base is same. Just a moment. Employee base absolutely same. 31:13 31 minutes, 13 seconds In fact, employee cost year on year are 4%. 31:16 31 minutes, 16 seconds Um, no, I'm just talking about quarterly, right? So I do understand that there will be appraisals in a certain quarter but but every quarter it seems to be like 31:25 31 minutes, 25 seconds moving up 1 2 K on a 19 base to seems a decent sort of movement 31:32 31 minutes, 32 seconds it's up for the whole year a lot more variability so if you see here employee cost for the year is up 4%. 31:40 31 minutes, 40 seconds It's 73 crores to 75 crores. for the movement. It could be in a provisioning but there is not really the whole and anyway the other way to answer the 31:48 31 minutes, 48 seconds question is the cost of people or the kind of people are very similar to other businesses especially carval we also don't see much change in employee cost 31:56 31 minutes, 56 seconds next year if that's a question that I can give you guidance on no that's the rise in employee cost is not a 32:03 32 minutes, 3 seconds concern what I was just trying to understand there is a significantly more variable component in employ here the variable is the least in the in 32:12 32 minutes, 12 seconds the in the group it the least the variable people. Understood. Understood. 32:16 32 minutes, 16 seconds The least in Ox because it's a very online techdriven business. So it will be the least. Yeah. 32:21 32 minutes, 21 seconds Got it. Got it. Sure. Thanks. Thanks so much. 32:23 32 minutes, 23 seconds The way I would think almost is Yeah. If you if you look at the cost growth of Olex is actually 1% for the year and 4% in employee cost. Yeah. 32:32 32 minutes, 32 seconds Yeah. That's what I was saying. Cost growth is not a concern. I was just trying to understand the nature of the cost. 32:39 32 minutes, 39 seconds Not not different. It's not different from in fact like I said it's even less variable than in other companies and I think that's one of the reasons the margins are also up right if you see the 32:46 32 minutes, 46 seconds margins are up here on your margins um I've gone 23 to 31% I think that also shows 32:53 32 minutes, 53 seconds yeah great thank you thank you before we move to the next question 33:02 33 minutes, 2 seconds ladies and gentlemen in order to ensure that the management is able to address questions from all the participant in the conference please restrict yourself to two questions only. Should you have a 33:11 33 minutes, 11 seconds follow-up questions, please rejoin the queue. Next question is from the line of Hardik Dshi from White Whale Partners. 33:18 33 minutes, 18 seconds Please proceed. 33:20 33 minutes, 20 seconds Yeah, thanks for taking my question. Uh, you know, uh, the last is clear and even 33:27 33 minutes, 27 seconds going into FI27, the business momentum is very strong. Uh, but I just want to kind of ask more from a let's say 33:35 33 minutes, 35 seconds medium-term perspective. Obviously the big elephant in the room is AI and I appreciate all these uh you know the efforts that uh and initiatives that 33:43 33 minutes, 43 seconds you've taken to embed AI into our business but from a more let's say 33:51 33 minutes, 51 seconds larger picture perspective how do you view the risk of uh you know JBT claim 33:58 33 minutes, 58 seconds kind of you know uh the traffic shifting from Google to that to these platforms and thereby circumventing the traffic that comes onto our platform. 34:09 34 minutes, 9 seconds Yeah. So the first part is you know we are 95% organic right. So as a company uh for example Olex almost all his 34:16 34 minutes, 16 seconds traffic comes on an app um directly. So uh it's 100% of his traffic actually is organic. So you must remember that when 34:25 34 minutes, 25 seconds you when you when you look at the opportunity ahead for us uh the first thing is people come to our platform because the brand and the trust in those 34:33 34 minutes, 33 seconds brands. The second is because there is differentiated IP and platform experience. Um you know buying a used 34:39 34 minutes, 39 seconds car um on OX or finding a used car in Ox or finding the price of the car you need to buy is almost impossible in any third party platform horizontal or vertical. 34:49 34 minutes, 49 seconds Um a lot of our data sits behind which is not publicly available. So the underlying data whether it is you know 34:56 34 minutes, 56 seconds customer data, vehicle data, other data which we have sit behind uh which obviously LLNs and others cannot access 35:05 35 minutes, 5 seconds um and therefore the fact that the brand trust the IP of technology platform services as well as the data is proprietary makes AI for us a massive 35:14 35 minutes, 14 seconds opportunity. That is why when you're looking to sell your car we can in one second match three customers right for you in your locality because of the data 35:21 35 minutes, 21 seconds we carry. you're able to maximally and understand um the car you're selling, what price people should pay, what the condition of the car might be through 35:29 35 minutes, 29 seconds all the data we carry and then you know how do we give three customers that suit you or 10 customers that suit you. So uh to me AI is a massive opportunity. What 35:37 35 minutes, 37 seconds we're doing this year is building a series of agents, matchmaking agents, pricing negotiation agents, condition checking agents. Um tomorrow it'll be 35:46 35 minutes, 46 seconds listing agents, buying agents, loan agents which actually help which will use all our propriety data and 35:54 35 minutes, 54 seconds technology and make the consumer experiences platforms even better than what it is today. So for us it's a massive massive opportunity for the next 36:03 36 minutes, 3 seconds few months, few years ahead as well. Uh we we just see is is like a massive massive benefit for the company you know going ahead. 36:12 36 minutes, 12 seconds Got it. So I appreciate you know that on remarketing and ox use platform you know it's it's difficult uh but on the 36:21 36 minutes, 21 seconds consumer side you know uh how are you viewing the potential risk of uh you know uh the uh like people using agents 36:30 36 minutes, 30 seconds and kind of directly dealing with dealers and not coming onto your platforms. 36:34 36 minutes, 34 seconds Yeah. So so there are two parts here right. First is when you're looking to buy a car u you it's a 12 lakh car it's not like booking a an airplane ticket 36:44 36 minutes, 44 seconds for 20,000 rupees right so it's not commoditized you're looking to buy a car the process may take 30 to 60 days depending you know what your sense of 36:51 36 minutes, 51 seconds urgency is but you're going to a deep amount of work to buy that car I I think when you see Google AI mode or anything 36:58 36 minutes, 58 seconds come out search has gone up but the relevance to platform like ours has gone up even more our traffic has gone gone up as search has gone up in during this 37:06 37 minutes, 6 seconds phase of the last 18 months as well. As you can see the numbers always our traffic has continuously gone up in this phase. Uh number one number two is a lot 37:15 37 minutes, 15 seconds of the data we carry on platform like carval or bikeal are proprietary to us and to our users. It's not available on third party platforms at this point right or not likely to be available. 37:25 37 minutes, 25 seconds Number three the integration we have with OEMs and dealers. For example, if you want to know the exact price or the discount on the car or you want to get a loan immediately approved or you want to 37:32 37 minutes, 32 seconds get a trade-in price for your car, these are not accessible to third party horizontal platforms, right? So there's enough differentiated data, enough 37:41 37 minutes, 41 seconds differentiated depth of experience which makes us feel very you know optimistic obviously of greater use of platforms 37:49 37 minutes, 49 seconds like ours right and that's exactly what is happening as you use Google AI more which is probably the the larger used platform in the country you come to 37:56 37 minutes, 56 seconds carval even more because it may answer one question but when you buy a car you want more than one answer you want you want to go to a series of immersive experiences to really decide what you 38:05 38 minutes, 5 seconds want to do with it and then where you want to buy it from and what price you want to pay We feel actually this has actually worked heavily in our favor in the last 16 to 18 months. 38:15 38 minutes, 15 seconds Sorry. Sorry. Thank you. Thank you. Thank you. 38:21 38 minutes, 21 seconds Next question is from the line of Ritwick Agarwal from 3P Investment Managers. Please go ahead. 38:28 38 minutes, 28 seconds Okay. Hi. Um thank you for the opportunity. Uh I had two questions. uh first uh was on the lines of quality of 38:37 38 minutes, 37 seconds dealer leads. Uh are there any measures that we are planning to take or we have taken to improve the quality of dealer 38:45 38 minutes, 45 seconds leads in the consumer business and additionally anything on the pricing side for the leads? Uh any any sense on 38:53 38 minutes, 53 seconds the value proposition that you're hearing from dealers? 38:57 38 minutes, 57 seconds Uh no not really. I mean we we continuously there's a continuous effort of the company every day to um you know work closely with dealers to improve conversion ratios right whether 39:05 39 minutes, 5 seconds conversion ratios involves you know uh um improvements in our platform or improvements in dealer follow-up and you 39:13 39 minutes, 13 seconds know closer closing um it's a permanent exercise which has been going on for years and years and we continue to do that we obviously have lots of metrics 39:20 39 minutes, 20 seconds in place to track this and measure this but this is a absolutely you know important initiative for the company uh 39:27 39 minutes, 27 seconds and we keep doing this you know every single day. Um what was the second question? Sorry it is around need and what was the second question? 39:34 39 minutes, 34 seconds Yeah basically just wanted to get a feedback uh on the pricing. Uh uh pricing the pricing is pretty static. 39:40 39 minutes, 40 seconds You know we don't we we we mostly focus on volume increases uh and depth of you know and the depth depth of the impact 39:47 39 minutes, 47 seconds to make the dealer. The there are price increases but they're more inflationary in nature. Um the bulk of the growth comes from uh higher relevance and volume. 39:57 39 minutes, 57 seconds Okay. And uh one more question on the uh AI aspect. Uh is there any change in discussions that you're having with 40:04 40 minutes, 4 seconds OEMs? Uh basically that you know from the uh onset of AI is there any uh change in the discussions or the tone of 40:13 40 minutes, 13 seconds OEMs regarding their marketing expenses being diverted towards you? Yeah, there there there is a there's a there is a lot of initiative from our side um and 40:21 40 minutes, 21 seconds and with OEMs too on how we can we can improve the experience using AI for 40:29 40 minutes, 29 seconds consumers which come on our platform right so uh can we have agents which gives us different more data from an OEM which helps the customer buy can we have 40:38 40 minutes, 38 seconds agents which integrate the consumer us and the OEM and the bank even closer so there are everyday discussions on how we 40:46 40 minutes, 46 seconds can improve experience for our users on our platform with the help of the OEM sometimes on our own you know sometimes with banks helps with all our partners 40:54 40 minutes, 54 seconds actually uh it's a it's a very central conversation across all our companies to improve consumer experience on the 41:00 41 minutes platform or enhance it with multiple AI tools uh and and and that also involves integrating deeper with banks and OEMs 41:08 41 minutes, 8 seconds and dealers understood uh any any uh uh sorry last question just on the traffic on the 41:17 41 minutes, 17 seconds websites. Uh across the websites uh was there any dip or any seasonality that you saw in this quarter maybe increase in the volume or a decrease? 41:27 41 minutes, 27 seconds Uh we saw traffic grow last year actually in this quarter. So Y on Y growth normally post Q3 traffic is Q3 is the highest in traffic for the year 41:36 41 minutes, 36 seconds always. So a slight decrease from Q3 but year by Y we saw traffic increases actually. Okay. Got it. Thanks. 41:43 41 minutes, 43 seconds Okay. Thank you. Thank you. 41:47 41 minutes, 47 seconds Next question is from the line of Deep Sha from NV Capital. Please go ahead. 41:54 41 minutes, 54 seconds Uh thank you for taking my question. Am I audible? Yes, we can hear you. 41:59 41 minutes, 59 seconds So my question is again on Ox. Sorry for hopping on this again but I mean just want to understand monetization a bit 42:07 42 minutes, 7 seconds better. So if you just could give me some uh metrics as to how much uh how much I mean revenue is from like consumers, how much is from dealers and 42:15 42 minutes, 15 seconds currently like do we moni do we only like monitors dealers currently or I understand you launch new products like verification Eric buyers. I mean 42:23 42 minutes, 23 seconds consumers also are also being monetized but just over a medium like two to three year period you said this could be the new vertical could I mean give you 30 to 42:31 42 minutes, 31 seconds 40% of the revenues right so just want to get like more understanding on like what drivers you have what products sure uh we've got you know that that 42:41 42 minutes, 41 seconds we've got two basic sets of customers the sellers and the buyers right in sellers there are consumers and the dealers we monetize both today uh 42:49 42 minutes, 49 seconds sellers like you and we can also come for free but many times sellers like you and me come and pay for you know uh high 42:56 42 minutes, 56 seconds you know more visibility or other services uh or if they want to multip I mean I think the first time for a lot of consumers who come and list a car or or 43:04 43 minutes, 4 seconds any other product it's free but the second time is chargeable so many people come multiple times and therefore we charge consumer sellers even today we 43:12 43 minutes, 12 seconds charge dealers at all times and they sell right for selling the elite buyer program is aimed at charging for 43:19 43 minutes, 19 seconds consumers and dealers for buying services Right. So as a consumer if you come to buy today it's completely free unless you use an elite buyer service. 43:28 43 minutes, 28 seconds The elite buyer service is superior to obviously buying without the service and that product is getting better and better every day and that's another monetization tool. Verification is 43:37 43 minutes, 37 seconds really for consumers like you and me again. So there are dealer initiatives and consumer initiatives across all these spectrum of activities. The at 43:45 43 minutes, 45 seconds this point the consumer listing business which is people like you and me selling a product the revenue is quite high actually from that business. And as we go on, we think even the elite buyer 43:53 43 minutes, 53 seconds program primarily right now is monitoring consumers like you and me more than at this point. We actually think the consumer side of monetization 44:01 44 minutes, 1 second buyers or sellers will become a large part of the company and even within that consumer buyers which is the largest population of people on the platform is 44:10 44 minutes, 10 seconds going to become extremely significant in this year and probably very large in the next two to three years. 44:18 44 minutes, 18 seconds Uh got it sir and secondly on margins uh for for the consumer platform I think we are at uh for the full year we did I 44:26 44 minutes, 26 seconds think 38% AITA margins for and ox we did around 31%. So I mean just uh uh speaking next I mean do you see this 44:34 44 minutes, 34 seconds trend continue for the consumer business? I would say we are at a pretty high 38% margin. So do you see this still? 44:40 44 minutes, 40 seconds Yes. Margins will uh yeah margin will expand this year. And on X do you see this converging? 44:46 44 minutes, 46 seconds Yeah. Yeah. I think so margins across all businesses will expand. Um I do see Olex is it's already close to consumer business but it'll probably get there. 44:54 44 minutes, 54 seconds If not go ahead even. Um I think margins across the businesses will go up in the current year. Costs are actually quite stable. Um and also here when you look 45:01 45 minutes, 1 second at a 3 four five year how we think about the business we have we we got a profit of tax as you as you seen is 243 crores 45:09 45 minutes, 9 seconds this year we are pretty I mean one of the goals we set ourselves is you know to get to approximately thousand cr profit in the next four years or four to 45:17 45 minutes, 17 seconds four maybe five years between four and five uh which is 4x so we'll see margins shoot up in all these businesses as we head towards that thousand cr objective 45:25 45 minutes, 25 seconds you know in the next four to maybe five That answer my that that answers my question. Thank you so much and all the best. 45:35 45 minutes, 35 seconds Thank you. 45:37 45 minutes, 37 seconds Next question is from the line of Sharenic Ma from Indealth GmbH. Please proceed. 45:45 45 minutes, 45 seconds Hello. Am I audible? Yes. 45:49 45 minutes, 49 seconds So I had uh only one question. This was about your roe. So your uh ITA has 45:57 45 minutes, 57 seconds already gone up to 33%. Margins are looking healthy but still the ROE is very low at 10% 46:04 46 minutes, 4 seconds which is below the cost of capital. One of the major the actually the cash the cash in the company. Yeah 46:12 46 minutes, 12 seconds the major reason for the 10 because the company the cash in the company. 46:16 46 minutes, 16 seconds Yeah. So this see the business is much higher as you know the business is much 46:24 46 minutes, 24 seconds Yeah. I I I I feel like in in in due course you know whether it is you know returning money to shareholders or other modes is something we will consider. I 46:33 46 minutes, 33 seconds think at this point the current regulation uh because of our tax shelters and carry for losses prevents us from doing that. Uh but but you're right I think the RO is at 10% because 46:41 46 minutes, 41 seconds of the cash balance the cash balance didn't exist the RO would be very much much higher of course. 46:47 46 minutes, 47 seconds Yeah. So when do you think that uh possibility would come in from your uh regulation? Anisha you want to answer that question? I think maybe two to 46:55 46 minutes, 55 seconds three years. I think we've also got tax shelters that the company benefits from. 46:58 46 minutes, 58 seconds So I think maybe two to three years. Is that correct? Yes. Yes. And you're absolutely right. Yeah. 47:05 47 minutes, 5 seconds Okay. So you're not looking at any acquisition in the meantime or any other way of utilizing this cash, right? 47:12 47 minutes, 12 seconds No, there's nothing at this point to report on on a M&A or utilization of cash at this point. We obviously keep looking at M&A but there's nothing at a 47:20 47 minutes, 20 seconds level where we can at this point you know give feedback on a report. All right. All right. Thank you so much. 47:29 47 minutes, 29 seconds Thank you. Thank you. 47:33 47 minutes, 33 seconds Next question is from the line of Vimal Jamnadas from El Cami Capital Management Private Limited. Please proceed. 47:41 47 minutes, 41 seconds Yeah, thank you so much. Uh and uh congrats on a good set of numbers. Uh thank you. Uh I just wanted to uh make 47:48 47 minutes, 48 seconds sure one one aspect whether we have any seasonality in uh our consumer business which is carval bike in the March 47:57 47 minutes, 57 seconds quarter there's always seasonality actually not in the March quarter there's a seasonality a little bit of seasonality in the October to December quarter 48:05 48 minutes, 5 seconds because of uh the festivities in India right I mean typically Diwali deser the automotive market tends to be far more 48:13 48 minutes, 13 seconds buoyant a lot more launches you know a more going on. Uh so there's a little bit of uptake you know which is higher 48:19 48 minutes, 19 seconds then um and then you know so other it tends to be quite even actually after that it's only the one quarter it tends to be slightly different. 48:29 48 minutes, 29 seconds Understood understood. Uh and uh just on your comments on OX uh you mentioned the elite programs both buyer seller may contribute roughly five or maybe less. 48:41 48 minutes, 41 seconds Uh given the fact that you are seeing an immediate impact of these from Q1 onwards. Is it a fair argument that 48:48 48 minutes, 48 seconds these uh the contribution may double in 27? You mean you may contribute by margins? 48:56 48 minutes, 56 seconds Uh you mean margins? Revenue. 48:59 48 minutes, 59 seconds The revenue might double is your question. Is that your question? From elite only. 49:03 49 minutes, 3 seconds I mean, oh yeah. Yeah. From elite it I mean elite is very small base. So I don't I don't think we should think of it doubling or or or tripling or 49:12 49 minutes, 12 seconds anything because the base last year is very small. 49:16 49 minutes, 16 seconds Okay, fair enough. Uh couple of uh data points sir. Um if I may have the auction listings for this quarter and the auction volumes. 49:25 49 minutes, 25 seconds Uh Anisha, you want to give that? Sure. 49:29 49 minutes, 29 seconds The auction listing is about 1.7 million and volumes is about three lakhs. 49:35 49 minutes, 35 seconds Three lakhs. Okay. Fair. Uh thank you sir and all the very best. Thank you. Thank you. 49:43 49 minutes, 43 seconds Thank you. 49:45 49 minutes, 45 seconds Next question is from the line of UA Sil from ANR Capital. Please go ahead. Uh hi sir, I'm audible. 49:53 49 minutes, 53 seconds Yes, I can hear you. 49:55 49 minutes, 55 seconds Yeah. Uh congratulations on the good set of results. Uh almost all of my questions have been answered. Uh I just wanted to reconfirm about the roles. Uh 50:03 50 minutes, 3 seconds because actually my line got disconnected. Uh yep. Uh I just wanted to confirm that there are no acquisition plans or utilization plans in the near 50:11 50 minutes, 11 seconds future and we're looking at like giving back to the shareholders after two or three years. Right. 50:17 50 minutes, 17 seconds Well at this point as I said you know there is nothing which we can report box any M&A. Obviously our in attempt would be that if there's no utilization of 50:24 50 minutes, 24 seconds cash and we of course are generate as you know last year we generated 300 cr of additional cash. So we obviously we obviously believe that there will 50:32 50 minutes, 32 seconds significant cash generation for the next two to three years as well. Um and and obviously based on that you know at that point we'll have to take an appropriate 50:40 50 minutes, 40 seconds decision whether there is an M&A in play or the natural thing would be to when possible return money back to shareholders of course. 50:49 50 minutes, 49 seconds Got it. Got it. So next question was again on WEX. Uh just a followup question on the one of the previous questions that was asked. I just wanted to understand that 50:57 50 minutes, 57 seconds I think I think it's an important question. It's an important question because one of the things you know which you know it's very evident also is that the company has also generated EPS has 51:06 51 minutes, 6 seconds gone 47 rupees a share. So I think one should keep in mind that you know there's a significant cash generation in the company and obviously profit creation pool in the company. Just 51:14 51 minutes, 14 seconds further to your return money uh question. 51:16 51 minutes, 16 seconds Right. Right. Exactly. that was that that was the main uh thing that was that is why I as a question because a lot of cash generation and ultimately that is 51:25 51 minutes, 25 seconds why was depressed. Uh secondly I wanted to ask about uh again on the Olex side uh that we have taken a lot of initiative in the last few quarters and 51:34 51 minutes, 34 seconds uh shouldn't we have seen like a quarteron quarter growth as well because we were uh very optimistic in the quarterfree corn call as well. So I just 51:41 51 minutes, 41 seconds wanted to understand like uh is there like a seasonality because uh yeah there is October like I said earlier in the call uh in October 51:49 51 minutes, 49 seconds November there tends to be some seasonality uh in in any buying right whether it's a new car, used car etc etc. So it tends to be uh every year uh 51:58 51 minutes, 58 seconds we feel very optimistic about the growth I'll be honest and all the product creation and even the consumer traction to this to the platform. So we feel the next few quarters ahead you will start 52:06 52 minutes, 6 seconds seeing the growth momentum dramatically changing. Got it. Got it. That's it from my side. Thank you so much. Thank you. 52:15 52 minutes, 15 seconds Thank you. 52:17 52 minutes, 17 seconds Next question is from the line of Arpeta from Stallion Asset. Please go ahead. Hi Vai. 52:24 52 minutes, 24 seconds Hi Arit. How are you? 52:26 52 minutes, 26 seconds Yeah, I just wanted to understand uh revenue aggregation let's say from the verification product and the elite buyer 52:33 52 minutes, 33 seconds product. What kind of revenues are we currently and what kind of growth are we seeing month on month since we launch it 52:40 52 minutes, 40 seconds in Feb and March and can it add up like this 10 crores of revenues every month? 52:44 52 minutes, 44 seconds Do you think that is possible or is already happening in the month of April? Just wanted to understand that bit. 52:50 52 minutes, 50 seconds Um yeah first of all as I said it's growth is impossible to to to say because it's very early. I mean it's obviously rapidly growing but it's 52:58 52 minutes, 58 seconds impossible to give a growth rate. I wanted to understand what what are those early trends that you're seeing right now because we just I would say both on elite buy and 53:06 53 minutes, 6 seconds verification the the early trends are really strong that I can't as I said right now the revenue 53:13 53 minutes, 13 seconds is just insignificant I think um we'll all have to wait out you know maybe you know maybe this quarter to to actually 53:20 53 minutes, 20 seconds you know be able to give you some stable answer to the question but like I said the early signs are very very strong that I can put it this way and and like 53:28 53 minutes, 28 seconds I said this year to be significant to the you know as we go on in the ne it'll be significant last year it was not significant because it is it was 53:36 53 minutes, 36 seconds launched very late but in the next year you'll find it significant and I think in the in the years ahead we also get the guidance that will be probably one of our largest sources of revenue 53:45 53 minutes, 45 seconds got given the acceleration in revenues from the new products and is growing very strong 53:52 53 minutes, 52 seconds do you think 350 crores of conservative fat estimate according to you sorry uh so just repeat the last question last part question 350 50 cr is a conservative estimate according to you for 353. 54:06 54 minutes, 6 seconds I I don't want to comment and give you a guidance actually just gave you a view that our goal when I don't want to comment on next year's profitability. We did tell you that our goal of course is 54:15 54 minutes, 15 seconds to get from the 243 crores last year to about 1,000 crores of you know profit in about four years or five years. So you know that's the line we're drawing it. 54:24 54 minutes, 24 seconds We don't want to give a year-by-year guidance but we have told you was ask next you know within four maybe five years we want to get to this thousand number which is little more than 4x 54:32 54 minutes, 32 seconds today right got it and the kind of momentum that you are seeing in the new products do you think the ox revenue can start stepping 54:40 54 minutes, 40 seconds up from here on what we saw last quarter was around 18% we believe that absolutely right absolutely we believe that you're right do you think this number can start 54:48 54 minutes, 48 seconds crossing 35 40% on this product I I don't I don't give you guidance but obviously we believe the growth will be 54:56 54 minutes, 56 seconds stronger than what it is today. We believe that but are you seeing that earlier times in April? 55:01 55 minutes, 1 second Um I can't tell you about I I don't want to give a guidance for this quarter either. So but but just want to understand what you're 55:10 55 minutes, 10 seconds seeing already. I don't want to guidance what you're seeing. 55:12 55 minutes, 12 seconds Yeah. Yeah. Yeah. Yeah. Like I said it's only one month over. We definitely see April better than you know obviously some of the other months because new products have also got launched. 55:20 55 minutes, 20 seconds you know it's it's early days and and I don't want to give a guidance for this quarter or this year. I've given you a four to five year you know profit objective of the company or the group as 55:27 55 minutes, 27 seconds a whole. Um and we definitely given also guidance that we feel very optimistic about monetization and the consumer attraction at Olex both. 55:36 55 minutes, 36 seconds Hi V this is Amed Jwani here. 55:41 55 minutes, 41 seconds Hi hi hi. Uh so uh would that would that be right that for us to go 4x in profit our revenues will have to go 3x and by 55:50 55 minutes, 50 seconds that point of time ox which is a 200 cr product uh will become like a 1,000 cr kind of product like a 56x uh kind of 55:59 55 minutes, 59 seconds you don't want to give a revenue guidance of growth or would it make I I think it'll come across all our 56:07 56 minutes, 7 seconds three platforms to be honest we feel optimistic about all three I don't want to give you a revenue revenue guidance whether it's 3x or you know 2x or 4x uh 56:15 56 minutes, 15 seconds I I I feel our margin structure is strong um and therefore we feel optimistic that you know uh in all the work we do that um normally when we add 56:24 56 minutes, 24 seconds you know a rupee of revenue a very large part goes to profit which continues right and and our margins will become they're already best-in-class and get even better in the three four years 56:32 56 minutes, 32 seconds ahead which will contribute to getting us to this longer term goal of the company uh u but yeah this is where we're at this we are in the journey at this point so I don't want to give a 56:40 56 minutes, 40 seconds further guidance some revenue but but yeah generally we feel good about the fact there's enough opportunity and time in the company that we can aspire or get 56:49 56 minutes, 49 seconds to this goal what we've given to you today and at this point of time there's no see our stock price has fallen 40% or only 56:55 56 minutes, 55 seconds because of the AI at this point of time when you don't see AI as a risk you see it as an opportunity for us of course we believe AI is a massive 57:04 57 minutes, 4 seconds opportunity for the company I think for um for us because of just the brand trust technology platforms differential 57:11 57 minutes, 11 seconds IP data it's a massive opportunity for the group across all its businesses actually. 57:15 57 minutes, 15 seconds So if AI as a risk the first point sorry to interrupt Mr. Sham please request you to rejoin the queue sir for the followup question. Thank you. 57:23 57 minutes, 23 seconds Thank ladies and gentlemen please restrict yourself to two questions only. Should you have a follow-up question please 57:31 57 minutes, 31 seconds rejoin the queue. Next question is from the line of Rahan sayyad fromra asset managers. Please go ahead. 57:38 57 minutes, 38 seconds Uh yeah good afternoon to the team and thanks for taking my question. Uh so I have a two question. Uh so first of all 57:46 57 minutes, 46 seconds is over the last few quarters we have observed that even when overall auto industry uh growth was positively noted. 57:53 57 minutes, 53 seconds So the company equity and platform revenues continued to grow strongly. 57:57 57 minutes, 57 seconds However now recovering after GST related benefits so advertising growth appears to have moderated last weekly. So is 58:06 58 minutes, 6 seconds there any counter BTC behavior in this business model or is this more related to changes in OEM marketing spending timing? 58:15 58 minutes, 15 seconds I think over the last many years we've shown growth in the consumer business in carval bike across all kinds of markets right there were times when the market 58:24 58 minutes, 24 seconds did not grow for 18 months and we grew at a rapid rate. the time and the market grew and we grew a rapid rate. So I I I like to think we are completely agnostic 58:32 58 minutes, 32 seconds to you know uh uh beyond a level two new car growth or new bike growth sales. We benefit when car and bike sales grow. I 58:40 58 minutes, 40 seconds think we're seeing that trend also in the last six months which we've shown to you in both the quarters. Um we also feel optimistic with the GST cut rate 58:48 58 minutes, 48 seconds you know that you that the two-heer and the car market should have a reasonable 58:55 58 minutes, 55 seconds headway to grow for the next 1 2 3 years ahead. So um it's become far more affordable for every you know consumer. 59:01 59 minutes, 1 second So naturally we feel optimistic in this market situation where car sales bike sales grow. We normally always grow but even in the slowdown we grow. So but but 59:10 59 minutes, 10 seconds it is always better than industry growth and that growth for us is far more impactful I would say. 59:16 59 minutes, 16 seconds Also I just wanted to confirm is is there a is there a correlation between the PhD card sales and game momentum or 59:24 59 minutes, 24 seconds are you saying are you saying the growth rate of the car industries because of that? Is that the question? 59:28 59 minutes, 28 seconds Oh yeah it's not clear the car industry growth rate has changed from the GST cut. So that is that is clear. That's that's from the October sales of automotive 59:36 59 minutes, 36 seconds cars I mean new cars in India or new bikes in India. The growth rate is obviously impactful because of the excellent decision to cut taxes on cars 59:44 59 minutes, 44 seconds and bikes. So it has had impact in India of course. 59:46 59 minutes, 46 seconds Uh okay. And then the second question is around the company has built a very large physical auction infrastructure 59:54 59 minutes, 54 seconds across India. So how difficult is for a nuclear to replicate this network today and are you seeing any pricing or competition in the auction business? 1:00:05 1 hour, 5 seconds Um it is I mean we carry I think almost 130 auction sites right where a lot of our customers park vehicles and then we do an online sale. I I think in a 1:00:13 1 hour, 13 seconds country like India the defensibility for us in that business in our remarketing business is multiple. It is of course a physical infrastructure it's impossible 1:00:20 1 hour, 20 seconds to recreate but it's also the technology the underlying IP in the platform it's a buyer and seller the network effects of 1:00:27 1 hour, 27 seconds buyers and sellers thousands and thousands and millions of buyers and sellers across the platform. It's many things which could create a defensibility. It is difficult to duplicate the physical infrastructure 1:00:35 1 hour, 35 seconds but there are many more defensible I mean or many more modes in that business. 1:00:42 1 hour, 42 seconds Okay. Okay. Uh uh okay that's it for mass and thank you and good luck. 1:00:49 1 hour, 49 seconds Thank you. Thank you. 1:00:53 1 hour, 53 seconds Next question is from the line of Nikil Gupta from VU Capital. Please go ahead. 1:00:59 1 hour, 59 seconds Hi, thank you for the opportunity. Uh, can you please provide the percentage of our revenue from advertisement in our consumer business? 1:01:08 1 hour, 1 minute, 8 seconds It's insignificant. I mean less than I would say advertising less than ana from normal Google advertising or or third 1:01:15 1 hour, 1 minute, 15 seconds party less than 5% would be yes or no. 1:01:20 1 hour, 1 minute, 20 seconds So is it a fair understanding that in all our three segments the revenue share from advertisement is almost 1:01:27 1 hour, 1 minute, 27 seconds insignificant right no no that's not correct I said in in in motor doesn't exist in carval it may be 1:01:35 1 hour, 1 minute, 35 seconds less than you know uh as I said very insignificant and ox also would be less than uh less than 10% that is correct 1:01:42 1 hour, 1 minute, 42 seconds yeah okay and uh you already mentioned that you do not have any plans to use the 1:01:49 1 hour, 1 minute, 49 seconds cash to uh maybe acquire some other business. Uh why is it so? Because we have the if if I if I see all the three 1:01:59 1 hour, 1 minute, 59 seconds segments we operate in, we have acquired almost all the three businesses. So why the strategy has changed and do we not see any significant value in the market? 1:02:10 1 hour, 2 minutes, 10 seconds Just wanted to know the opinion. 1:02:12 1 hour, 2 minutes, 12 seconds Um no, we we what we said at this point, we do not have anything to report back on. uh it doesn't mean we're not looking at acquisitions or we won't do acquisitions or anything of the sort. We 1:02:20 1 hour, 2 minutes, 20 seconds just at this point there's not no update to be given. Um and and I think at this point we also have to remember that a company which has done M&A very successfully over the last many years. 1:02:29 1 hour, 2 minutes, 29 seconds We had three major M&As all have been extremely successful. We always continue to look out for M&A right which is strategic in nature which the teams are good where we feel you know there's 1:02:38 1 hour, 2 minutes, 38 seconds synergy value where we feel we can you know add value to our own customers. 1:02:42 1 hour, 2 minutes, 42 seconds These are things we do every day. So it's part of our whole cartridge ventures initiative. Uh we're normally very picky and choosy. So obviously uh 1:02:49 1 hour, 2 minutes, 49 seconds you know valuation is to match and many things have to match. So you know but when we do come out of something then we aggressively go after it like with an ox like an Olex. So it's not like we're not 1:02:58 1 hour, 2 minutes, 58 seconds looking or we don't look it's just that we haven't got something which we feel at this point we can close on. That's what the point is. 1:03:05 1 hour, 3 minutes, 5 seconds But we are it's in uh but we actively looking for M&A. Whenever we'll find opportunities we will go about it. Exactly. 1:03:12 1 hour, 3 minutes, 12 seconds I don't want to say we're actively I don't Yeah. I don't want to say we're actively or non-actively or looking or not. I just think that if something we do, we do well. If something came 1:03:20 1 hour, 3 minutes, 20 seconds around, uh we would definitely, you know, look at it if we felt it could add value to our customers or our shareholders, you know, or uh or Yeah. 1:03:29 1 hour, 3 minutes, 29 seconds Or there's some synergy value or strategic value, of course, we would look at it. Thank you so much. Thank you. 1:03:37 1 hour, 3 minutes, 37 seconds Thank you ladies and gentlemen. We will take this as the last question for the day. I now hand the conference over to Ariel Sumra 1:03:45 1 hour, 3 minutes, 45 seconds from MUFG in time for his closing remarks. Over to you sir. 1:03:51 1 hour, 3 minutes, 51 seconds Thank you. I would like to thank the management for taking the time out for the conference today and also I would like to thank all the participants to join the call. If you have any queries 1:04:00 1 hour, 4 minutes feel free to contact us. We are MUFG in time investor relation advisor to Carter Tech. Thank you. Thank you everybody. Thank you. 1:04:09 1 hour, 4 minutes, 9 seconds Thank you. 1:04:10 1 hour, 4 minutes, 10 seconds Thank you sir. On behalf of Cartridge Tech Limited, that concludes this conference. Thank you all for joining us and you may now disconnect your lines. 1:04:19 1 hour, 4 minutes, 19 seconds Thank you.