Choice International Limited — Q3 FY26

Choice International Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=pQkGjXyZTTQ Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Q3 and 9 months FI26 earnings conference call hosted by Choice 0:09 9 seconds International Limited. As a reminder, all participants line will be in listen only mode and there will be an opportunity for you to ask question 0:16 16 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:24 24 seconds your touchstone telephone. I now hand over the conference to Mr. Anisa Fernandez from Ad Factors PR Investor 0:31 31 seconds relations. Thank you and over to you ma'am. 0:37 37 seconds Good evening everyone. On behalf of Choice International, I welcome you to the earnings conference call for quarter 3 and 9 month FY26. 0:46 46 seconds Joining us today from the management are Mr. Arun Podar group CEO, Mr. Manise Jen, deputy CEO, Ankit Jen, CPTO, Mr. 0:56 56 seconds Manos Singh Ghana CFO and Aayos Sharma head of investor relations. The earnings presentation has been uploaded on the 1:04 1 minute, 4 seconds exchanges as well as on the company website. You may refer to it as we walk you through the opening remarks and the discussion during the call. Before we 1:12 1 minute, 12 seconds begin, I would like to remind you that certain statements made during this call may be forward-looking in nature and are subject to risks and uncertainties. 1:21 1 minute, 21 seconds These are detailed in the company's annual report and other investor disclosures available on our website. 1:27 1 minute, 27 seconds Choice International does not undertake any obligation to publicly update these forward-looking statements. 1:34 1 minute, 34 seconds With that, I will now hand the call over to Mr. Arun Podar to share his opening remarks. Thank you and over to you sir. 1:43 1 minute, 43 seconds Thank you. 1:46 1 minute, 46 seconds Uh good evening everyone. It's pleasure to have you all with us today. As we move through the final stage of FI26, we 1:55 1 minute, 55 seconds are now witnessing a fundamental structural pivot in the India economy. 2:01 2 minutes, 1 second Beyond the headline index, there is a clear equitization of household saving where capital is steadily migrating from 2:10 2 minutes, 10 seconds physical assets into a financial market at unprecedented scale. This shift is not the cyclical, it's a structural. 2:19 2 minutes, 19 seconds While cooling inflation and the RBA strategic rate adjustment have eased the cost of capital, the real story for 2:27 2 minutes, 27 seconds choice continue to be the resilience of the rural and the semi-urban consumer who is increasingly aspirational, financially aware and digitally enabled. 2:38 2 minutes, 38 seconds This structural shift is further reinforced by the union budget 2627 which has underscored financial 2:46 2 minutes, 46 seconds discipline while deepening India's capital market ecosystem with sustained public capex MSME formalization and 2:55 2 minutes, 55 seconds market oriented reforms. The policy environment continue to support long-term participation across equities, 3:04 3 minutes, 4 seconds wealth product and organized credit areas. 3:07 3 minutes, 7 seconds that are central to our strategy. Our performance this quarter is not just the result of favorable market condition but 3:16 3 minutes, 16 seconds also reflect the steady progress we have made in building an integrated financial ecosystem and 3:24 3 minutes, 24 seconds executing our strategy over the past few years. We closed 9 month FI26 with the 3:30 3 minutes, 30 seconds revenue of 831 cr and a pat of rupees 170 cr. A standout achievement this 3:37 3 minutes, 37 seconds quarter was the operational debutment of choice AMC with our first gold ETF marking an important milestone in our 3:46 3 minutes, 46 seconds journey of building a full stake financial service platform by integrating Aloza consultant and expanding our wealth platform through 3:55 3 minutes, 55 seconds the acquisition of wealth distributor businesses of end to end glory. We are moving from being a service provider to 4:02 4 minutes, 2 seconds a holistic wealth architect for a rural India. With the India Post payment bank partnership, we are further 4:09 4 minutes, 9 seconds strengthening our last mile reach by enabling digital investment access through one of the country's most 4:16 4 minutes, 16 seconds extensive distribution network. We are no longer just facilitating transactions. We are building the infrastructure for financial 4:25 4 minutes, 25 seconds independence across India's superaved and emerging market where access trust and guidance matter as such as much as 4:34 4 minutes, 34 seconds products. Our operational focus remain on depth over breath and the philosophy of reflected across each of the business 4:43 4 minutes, 43 seconds vertical in broking and distribution as the industry adjusted adjust to a regulatory changes in the derivative 4:52 4 minutes, 52 seconds space. Our focus on the cash delivery segment has helped maintain our margins and build a more stable long-term 5:01 5 minutes, 1 second investor base. The vertical accounted for 58% of total revenue 5:08 5 minutes, 8 seconds during the 9-month period with stock broking cliental asset reaching six 5:14 5 minutes, 14 seconds 60,500 cr in Q3 FI26 resisting 22% YUI growth. Our wealth 5:22 5 minutes, 22 seconds expand rupees 4662 cr by 328 y 5:30 5 minutes, 30 seconds supported by rising client engagement in delivery led and long-term investment products over 65,000 plus choice 5:38 5 minutes, 38 seconds business associate continue to be our trust bridge allowing us to maintain hightouch relationship [clears throat] 5:45 5 minutes, 45 seconds in a high-tech word. This network have supported the expansion of our demade bears to 12 lakh 34,000 accounts 5:54 5 minutes, 54 seconds reflecting a 24% YUI increase driven by seamless capabilities deeper penetration in tier 2 and tier three market and a 6:03 6 minutes, 3 seconds diversified product offering. The insurance vertical delivered consistent growth added by the broader partner 6:11 6 minutes, 11 seconds coverage and the higher adoption of digital journey. Premium collection stood at rupees 83 cr in F Q326 6:20 6 minutes, 20 seconds marking a 14% YI growth with more than 50,000 policy sold. This reflect our 6:26 6 minutes, 26 seconds ability to cross sales uh protection product within our ecosystem and deepen wallet share across our cliental base. 6:35 6 minutes, 35 seconds Our NBFC segment continue to strengthen its focus on secured lending at a time 6:42 6 minutes, 42 seconds when part of the unsecured lending market are under pressure are emphasized on MSME microlap and the rooftop solar 6:50 6 minutes, 50 seconds asset. The loan book reaches at 756 cr as of 9 month 26 with the NBFC business 7:00 7 minutes contributing 14% of total revenue. Our in-house collection mechanism remain a key differentiator 7:07 7 minutes, 7 seconds utilizing pre digital alert and the physical ground team to keep our asset quality strong. NNPA remain stable at 7:16 7 minutes, 16 seconds 2.83% as of December 3125 underscoring the prudence of our underwriting and the risk management 7:25 7 minutes, 25 seconds framework. Our advisory segment is benefiting from India's massive infrastructure and governance push with 7:33 7 minutes, 33 seconds the order book of 748 cr. We are deeply embedded in the mission project ranging from digital packs computerization to world bank baked governance initiative. 7:46 7 minutes, 46 seconds The advisory business contributed 28% of total revenue providing revenue visibility for the next 24 to 36 month 7:55 7 minutes, 55 seconds and adding stability to our earning profile. 7:59 7 minutes, 59 seconds Our investment banking business remain execution led with 15 IPO completed so 8:05 8 minutes, 5 seconds far, 37 active mandate and a tentative fundraising pipeline of 9,700 cr rupees 8:13 8 minutes, 13 seconds reflecting strong market credibility and the deal flow momentum. Together these pillars underline our view that choice 8:20 8 minutes, 20 seconds is well positioned to participate in India's growth by expanding access building trust and supporting financial 8:28 8 minutes, 28 seconds inclusion across a wide section of country. I will now hand over to Aay Sharma our head of investor relationship 8:36 8 minutes, 36 seconds who will walk you through the financial performance of the quarter. 8:43 8 minutes, 43 seconds Thank you sir. I will now present our financial performance for Q3 and 9mm FI26. 8:49 8 minutes, 49 seconds Choice delivered a consolidated revenue of rupes 309 cr in Q3 FI26 reflecting 8:56 8 minutes, 56 seconds 46% YI growth. AITA stood at rupees 117 crores with margin expanding to 37.92% 9:03 9 minutes, 3 seconds reflecting our success in decoupling revenue growth from operational expenses. PA for the quarter was rupees 9:10 9 minutes, 10 seconds 66 cr rupees delivering a margin of 21.26% 26% and a YI growth of 114%. 9:17 9 minutes, 17 seconds For 9 months FY26 revenue rose to 831 crores which is up by 25% on YI basis. 9:24 9 minutes, 24 seconds Abita reached rupees 303 cr rupees with with AITA margins at 36.45% while profit after tax stood at 170 cr 9:32 9 minutes, 32 seconds rupees uh with a 56% YI growth. These outcomes demonstrate the effectiveness of our execution and the robustness of 9:41 9 minutes, 41 seconds our oper operating platform within our business segments. The broking and distribution vertical delivered Q3 revenue of 160 crores with a PBT of 9:49 9 minutes, 49 seconds rupes 49 crores. The NBFC segment reported uh Q3 revenue of rupes 40 crores and PBT of rupees 4 crores. Asset quality in this segment remains stable. 9:58 9 minutes, 58 seconds We maintained a healthy net interest margin of 12.25% even as we pri prioritize high quality secured portfolios. The advisory business 10:06 10 minutes, 6 seconds recorded Q3 revenue of rupes 100 crores with a PBT of rupes 38 crores driven by high quality execution and sustained 10:13 10 minutes, 13 seconds momentum across sectors. A healthy order book and reliable uh delivery reinforce our role as trusted adviser across 10:20 10 minutes, 20 seconds India. With that I would now like to open the floor for question and answers. 10:31 10 minutes, 31 seconds Thank you very much. 10:33 10 minutes, 33 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish 10:41 10 minutes, 41 seconds to remove yourself from the question queue, you may press star and two. 10:46 10 minutes, 46 seconds Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 11:09 11 minutes, 9 seconds The first question is from the line of Samrudi from DNS Capital. Please go ahead. 11:16 11 minutes, 16 seconds Uh congratulations on the good set of numbers. Uh my question was regarding a 11:23 11 minutes, 23 seconds recent project which you have uh posted on the press release about India Post 11:29 11 minutes, 29 seconds payments bank. So can you uh give an update about it like potential revenue which you are expecting from this and 11:38 11 minutes, 38 seconds margins and how many such projects are you uh looking for? 11:49 11 minutes, 49 seconds Hello. Am I audible? Yeah. Yeah. Yeah. Am I Am I audible now? I mean, are we audible now? 11:56 11 minutes, 56 seconds Yes, you're okay. Fine. Thank you. Uh, thank you Samrati for the question. Uh, see, this project is for uh integrating our wealth 12:05 12 minutes, 5 seconds services with the India Post payment banks uh distribution network. 12:10 12 minutes, 10 seconds Currently, India Post itself has an has 1.6 lakhs number of post offices, 1.8 eight lakhs number of uh uh postmen who 12:19 12 minutes, 19 seconds are delivering uh you know the services of IPV as well which includes uh saving bank accounts and uh current accounts to 12:27 12 minutes, 27 seconds more than 12 cr customers. Now this project is to provide the uh wealth management services to these 12 cr customer existing as well as uh future 12:35 12 minutes, 35 seconds customers of IPB. This opens up a huge uh distribution channel for our business. So uh more than you know the 12:43 12 minutes, 43 seconds uh numbers and margins it it opens up a an avenue for onboarding more and more customers which will be uh you know uh 12:52 12 minutes, 52 seconds and and this is this is technically the largest distribution uh system across India. So uh we will utilize this this 12:59 12 minutes, 59 seconds partnership and uh grow more onto uh semi-urban and rural geographies which will uh expand our reach to the end 13:06 13 minutes, 6 seconds users. So that's the outcome of this particular uh project which we foresee. 13:13 13 minutes, 13 seconds Okay. Okay. Understood. And uh secondly, I had uh a doubt about uh gold ETF like like how you have uh do you have any uh 13:23 13 minutes, 23 seconds plans in that segment and the time timelines for active strategies? 13:30 13 minutes, 30 seconds Okay. So I will request uh the deputy CEO of AMC Mr. Manish Jen to take up this question. Anish over to you. 13:38 13 minutes, 38 seconds Thank you. In terms of uh product portfolio, currently we have uh gold ETF and uh next we would be going ahead with 13:47 13 minutes, 47 seconds the index funds and to supplement the flow in the index fund, we would be launching the overnight fund. That's the 13:56 13 minutes, 56 seconds plan for uh this fiscal year. In the next fiscal year, we will complement um our basket on the commodity. So that's 14:05 14 minutes, 5 seconds where you will see that couple of commodity ETFs which are missing in the stack that will get added up. Once uh 14:13 14 minutes, 13 seconds these two stacks are completed, we will get into the active strategy. So as an AMC we want to give a choice to our 14:22 14 minutes, 22 seconds investors both on the passive sides as well as on the active side and on the passive side we want to cover uh equities as well as the commodities. 14:36 14 minutes, 36 seconds Okay, understood. Thank you. Thank you for taking my question. Thank you. 14:46 14 minutes, 46 seconds The next question is from the line of Nikita Ma and individual investor. Please go ahead. Hi. 14:52 14 minutes, 52 seconds Uh hi sir, thank you for the opportunity. I have few questions. Uh so first is what are the key drivers behind 14:59 14 minutes, 59 seconds the 45% YI revenue growth in this quarter particularly the contribution from broking versus the NBFC and advisory segments. 15:11 15 minutes, 11 seconds [clears throat] 15:12 15 minutes, 12 seconds So uh thank you Nikita. Uh the the the largest drivers are um uh the increased uh trading activities from the retail 15:21 15 minutes, 21 seconds investors which we have for which we have seen during the quarter. uh as our fixed costs are stable and uh operating 15:28 15 minutes, 28 seconds costs are not directly increasing with the increase in the revenues uh we are able to expand on the margins as well during this quarter across the uh 15:37 15 minutes, 37 seconds broking business. Similar uh expansion in the margins we have seen in the advisory business also where uh which is largely driven by the uh same team 15:46 15 minutes, 46 seconds executing multiple projects and uh which is resulting in a higher revenue being generated for the P&L. So uh both these 15:54 15 minutes, 54 seconds businesses have grown uh very well during this quarter as compared to the Q3 FY25 and this has led to a larger 16:01 16 minutes, 1 second growth in the uh in the uh revenues as well as the expansion in margins. 16:06 16 minutes, 6 seconds Moreover, uh Choice Broking has been one of the top five brokers which has uh seen an net client addition as per the NC's active UCCC list over the last 16:14 16 minutes, 14 seconds couple of quarters. So uh that has also contributed largely to our growth in the revenue as well as growth in the active clients. 16:23 16 minutes, 23 seconds Okay. Okay. So that answers my question. 16:25 16 minutes, 25 seconds And so I have one more question. Uh ITA margins expanded to 37.9% in Q3 FY26 16:33 16 minutes, 33 seconds from 29.2% YIC. Uh can you just elaborate on the sustainability of this expansion uh due to the rising employee cost? 16:44 16 minutes, 44 seconds Uh so on the AITA margin what we we foresee that uh as we grow the top line the AITA margins are going to be 16:52 16 minutes, 52 seconds sustained and uh even expand further. So uh we don't foresee any major uh constraint on uh you know sustaining 17:00 17 minutes this this AITA margin per se. This is largely in sync with the growth of the overall revenue as the fixed cost and the operational costs are not increasing 17:08 17 minutes, 8 seconds in the in the at the rate which the revenue is growing. So we foresee a bit margins to continue uh you know above the current levels. 17:17 17 minutes, 17 seconds Okay. Okay. Okay sir. That uh that was really helpful and all the best for the future. Thank you. 17:24 17 minutes, 24 seconds Thank you. Thank you. 17:30 17 minutes, 30 seconds Before we take the next question, we would like to remind the participants that you may press star and one to ask a question. 17:38 17 minutes, 38 seconds Thank you. The next question is from the line of Neil John from BNK securities. Please go ahead. 17:46 17 minutes, 46 seconds Hello sir. Um thank you for the opportunity. There's a couple of questions that I have. So one is on the active client front as you said uh we 17:53 17 minutes, 53 seconds have uh seen a growth in active clients and even our market share has uh increased on a year-on-year basis if you look at December's numbers. Uh it's a 18:01 18 minutes, 1 second marginal increase. So I want to know what your perspective is on uh future. 18:05 18 minutes, 5 seconds How do we look to expand this market share? Secondly, also on the cost of uh acquisition of customers, how's that moved on a year-on-year basis? Are you 18:13 18 minutes, 13 seconds finding it more difficult now with the markets end of being more volatile? Uh how's that trend playing out? And my second question, sir, is on the MTF book 18:22 18 minutes, 22 seconds side. I think I missed um the performance for this quarter. Uh how's the book scaling, sir? And there have been some industry commentary around you 18:30 18 minutes, 30 seconds know the risk on the MTF uh front. So if you have some commentary on that also. 18:36 18 minutes, 36 seconds Okay. Thanks uh John for taking out time to join this call. Uh firstly on your uh question on the active clients and market share. See we are in a in a 18:45 18 minutes, 45 seconds physical uh business model where we uh have physical presence on the ground and the the whole execution is done using 18:52 18 minutes, 52 seconds the technology. So our sourcing mechanism remains the uh the physical channels which includes our branches as well as the AP network and our CBAs 19:01 19 minutes, 1 second which we have. uh uh this is not uh adding more onto the I mean so so so that that setup is already there in 19:08 19 minutes, 8 seconds place and uh with this setup we believe that uh even uh today in the semi- urban geographies or even tier three and below 19:15 19 minutes, 15 seconds geographies people require a physical presence of the uh of the platform providers who uh through whom the people are investing their hard-earned money. 19:25 19 minutes, 25 seconds So that is the larger uh philosophy of behind having this particular business model. uh uh this is this this model is 19:32 19 minutes, 32 seconds the largest uh reason for having the net addition in the active clients over the last couple of quarters where the 19:39 19 minutes, 39 seconds overall industry has seen an uh decline or you know the larger players has seen a decline in the active clients. So uh 19:46 19 minutes, 46 seconds that's going to remain intact and uh which is also helping us to keep the client acquisition cost stable. We don't 19:54 19 minutes, 54 seconds see a major uh rise in the client acquisition cost because of uh the fixed cost we are already anyways incurring and the more and more clients which we 20:02 20 minutes, 2 seconds onboard uh our client acquisition cost remains stable. 20:06 20 minutes, 6 seconds Uh on your question of the MTF currently we are maintaining an uh a book average book of roughly around uh uh between 370 20:15 20 minutes, 15 seconds to 400 cr rupees. uh on the risk part uh we as as choice broking we have placed robust internal risk management systems. 20:24 20 minutes, 24 seconds We have not seen any any uh sort of risk arising on our customer base and uh on our platform. Our target is to grow the 20:32 20 minutes, 32 seconds uh MTF book very aggressively over the over the next one financial year. So uh that's the that's the target which we 20:39 20 minutes, 39 seconds are taking on the MTF and from the risk perspective our systems are very robust and we don't foresee any major challenge uh on the risk management side within choice. 20:49 20 minutes, 49 seconds Uh thank you sir. Uh just one followup. 20:51 20 minutes, 51 seconds Uh would you want to quantify like what is the average exposure uh for your clients on the MTF front? 20:58 20 minutes, 58 seconds uh Neil unfortunately I don't have that number readily available with me but uh we will try to include that number in our earnings presentation next time if 21:06 21 minutes, 6 seconds physical sure sir thank you so much thanks thank you 21:14 21 minutes, 14 seconds next question is from the line of Rohan Sha and individual investor please go ahead hello hi sir thank you for the 21:21 21 minutes, 21 seconds opportunity uh so I I had two questions one is with regards to the tagger which stands at 50.53 percentage with collection efficiency of 90%age. 21:33 21 minutes, 33 seconds Uh how will the management uh manage funding costs and liability mix to support 20 to 30%age AUM growth? 21:43 21 minutes, 43 seconds Uh sorry I I I missed the question. Can you please repeat the question again? 21:47 21 minutes, 47 seconds Sure. So I was just saying that the kagger stands at 50.53 percentage and the selection efficiency is at 90%age. 21:57 21 minutes, 57 seconds So how will you uh manage the funding cost and liability mix to support the 20 to 30% AUM growth? 22:05 22 minutes, 5 seconds Okay. So uh what you are uh on the keer which you are talking is on the overall consolidated revenue I think and uh that 22:13 22 minutes, 13 seconds revenue is uh including the uh broking advisory and in BFC businesses. So uh we are uh we have been 22:22 22 minutes, 22 seconds uh delivering uh you know the this this uh growth rate over the last five years and we are very much uh confident about 22:29 22 minutes, 29 seconds maintaining a similar range over the next couple of years as well. Uh with our current uh business plans we are very well uh positioned to achieve the 22:38 22 minutes, 38 seconds same numbers. Specifically on the uh on the uh NBFC side, our EUM is largely contributed by the retail loans where we 22:48 22 minutes, 48 seconds have the physical presence on the ground and do the physical credit underwriting using the technology most advanced technology tools available as well. So 22:57 22 minutes, 57 seconds uh that is that will help us maintain our uh high collection effic higher collection efficiency and lower uh you 23:04 23 minutes, 4 seconds know the credit cost. uh with this uh with the help of our existing uh physical presence itself we are very sure that we will be able to achieve an 23:12 23 minutes, 12 seconds EUM growth of 20 to 30% over the next couple of years. 23:17 23 minutes, 17 seconds Great. Great. And and on the uh recent acquisition uh how will it contribute to FI26 uh execution in INFA consulting? 23:29 23 minutes, 29 seconds Yeah. So on the uh on the recent acquisition of Ioliza consulting they have been uh working they have very good 23:36 23 minutes, 36 seconds credentials of uh uh working with various governments. The larger largest reason was that uh there were certain 23:44 23 minutes, 44 seconds geographies where they where we were not having certain credentials which uh AIA has and with the help of uh new 23:51 23 minutes, 51 seconds credentials coming in uh we will be able to expand onto the geographies where uh we uh get more contracts from from more 24:00 24 minutes states which will be adding up on our order book and therefore adding increasing our overall revenue. So uh that's the largest advantage which we we 24:08 24 minutes, 8 seconds foresee from the acquisition of AOLA consulting. 24:11 24 minutes, 11 seconds Okay. Thank you. Thank you for that. Uh all the best sir. Thank you. Thank you. 24:20 24 minutes, 20 seconds Ladies and gentlemen to ask a question please press star and one now. 24:26 24 minutes, 26 seconds Participants who wish to ask a question may please press star and one now. 24:33 24 minutes, 33 seconds [clears throat] 24:34 24 minutes, 34 seconds The next question is from the line of Shri Sharma from family office. Please go ahead. 24:40 24 minutes, 40 seconds Yeah. Hi, good evening sir. Just a couple of questions from my side. Uh first, could you share your plans around 24:47 24 minutes, 47 seconds KPIX for FY26 like particularly on technology investments or branch expansion? 24:55 24 minutes, 55 seconds Uh okay. So uh on the uh tech side uh not major uh in the capex perspective. 25:02 25 minutes, 2 seconds Uh however opex is the only thing which we have largely on the uh on the tech side. Uh and branch expansion is also 25:11 25 minutes, 11 seconds not very significant since our average cost of each uh new branch is not very significant. It ranges somewhere between 25:18 25 minutes, 18 seconds 300,000 to 500,000 rupees. So uh that's not very significant uh in terms of capex. However, uh on the IT capex and OPEX, I would request our uh CFO Mr. 25:29 25 minutes, 29 seconds Mano Singha to throw some light on the numbers during this particular quarter. 25:34 25 minutes, 34 seconds [clears throat] 25:35 25 minutes, 35 seconds I during the quarter total expenses along with capex around 10 cr for broking division. 25:41 25 minutes, 41 seconds Okay. Okay. So, uh I hope that uh helps your question uh Shi. 25:47 25 minutes, 47 seconds Yeah. Yeah. Yes. Sir and secondly uh could you help us with any broad full year guidance on revenue growth and pad 25:54 25 minutes, 54 seconds growth that management is currently targeting. 25:59 25 minutes, 59 seconds So we have been delivering double digit growth uh which has been upwards of you know 20 25%. We expect to maintain the 26:07 26 minutes, 7 seconds similar growth rates over the next couple of years as well. 26:11 26 minutes, 11 seconds Okay. Okay. That's all from my right. So thank you. Thank you for the opportunity and all the best. 26:16 26 minutes, 16 seconds Thank you. Thank you. The next question is from the line of Mandira, an individual investor. Please go ahead. 26:27 26 minutes, 27 seconds Yeah. Uh thanks for the opportunity. So I have couple of question. Uh with 26:32 26 minutes, 32 seconds demand account at 1.3 million uh and AD2 market share steady at 1.2% 2% what 26:42 26 minutes, 42 seconds strategy are in place to accelerate the client acquisition in tier [clears throat] 2 and tier three cities 26:49 26 minutes, 49 seconds okay so uh Mandra as I mentioned uh largely the the uh physical expansion of 26:57 26 minutes, 57 seconds our uh branches and our CBA network uh is going to contribute uh more towards the uh customer acquisition however of 27:05 27 minutes, 5 seconds lately we have uh started building an uh digital client acquisition team as Well uh I would request Mr. Ankit Jen to 27:13 27 minutes, 13 seconds throw some light on the digital client acquisition mechanism which we have in place. Uh we have Mr. Ankit Jen CPTTO who will throw some light on this acquisition model. 27:22 27 minutes, 22 seconds Okay. Uh hello everyone. U regard the acquisition model we uh from last one or two years we are building the entire infrastructure which is helping us to uh 27:31 27 minutes, 31 seconds get the user in in a lower CA because in in the world of detail the bigger pain is is the CA which which need to be sustainable for the business. So from 27:40 27 minutes, 40 seconds last two years we are working on that and we are uh right now we are seeing a good growth in that aspect. So basis of that we are we are planning a uh major 27:48 27 minutes, 48 seconds uh growth in the datab also we are we are building the complete financial ecosystem for the end user uh where our our entire uh theory and and the thought 27:57 27 minutes, 57 seconds process is to to where whomsoever client we are acquiring we should have a ecosystem where we can create a higher LTV uh using the multiple product u we 28:06 28 minutes, 6 seconds don't want it to be be like a a simple stock broking application we want it to be a a complete financial hub uh for the end user where u uh The recent product 28:15 28 minutes, 15 seconds add actions such as uh credit as well as the uh dedicated FNO section for the user are something which which are in pipeline or or something which we have 28:23 28 minutes, 23 seconds delivered uh in this quarter where the thought is to how we can uh get the more LTV of the user. 28:31 28 minutes, 31 seconds [clears throat] 28:32 28 minutes, 32 seconds Yeah. Okay. Thank you. Thank you. Uh Mandra I hope answers your question. Uh secondly uh insurance premium has uh u can I go ahead? 28:44 28 minutes, 44 seconds Yeah yeah yeah please go ahead. 28:45 28 minutes, 45 seconds Uh so secondly insurance premium has hit uh around uh 835 million with 50.6k 28:53 28 minutes, 53 seconds policies. What is the plan to sustain 58% revenue growth amid the posos expansion? 29:02 29 minutes, 2 seconds [clears throat] 29:02 29 minutes, 2 seconds So uh again uh Mandra as I mentioned upward I mean something north of 25% growth rate is something which we are 29:09 29 minutes, 9 seconds targeting in the uh insurance uh distribution business as well. Uh you would see in our earnings presentation that we are uh catering to both 29:17 29 minutes, 17 seconds corporate as well as retail uh customers in the insurance distribution business uh which has uh which is going to 29:25 29 minutes, 25 seconds continue uh you know expanding in both the segments and uh that will contribute to the growth rate of outputs of 25%. 29:34 29 minutes, 34 seconds Got it sir. Thank you. That was really helpful. Thank you sir. Thanks. Thank you. 29:43 29 minutes, 43 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. 29:58 29 minutes, 58 seconds Participants who wish to ask a question may press star and one at this time. 30:26 30 minutes, 26 seconds The next question is from the line of Urum Sha from Money Visor. Please go ahead. 30:31 30 minutes, 31 seconds Yeah. Uh I had just one question. If I see your presentation on the slide of choice Khaled. I see the credit card 30:39 30 minutes, 39 seconds issue has gone down by 6%. And also uh the client onboarded in this quarter has 30:47 30 minutes, 47 seconds been a bit of a decline. So any reason could you give? 30:51 30 minutes, 51 seconds Yeah, on the credit cards front uh we had uh certain uh technological uh h glitch with the integration with uh one 30:59 30 minutes, 59 seconds of the bank for which we have been working. Uh that was uh for a brief period of around 40 45 days which has 31:06 31 minutes, 6 seconds led to the reduction in the number. uh that that uh glitch has been uh resolved now and uh which is uh we have seen an uptick in the in the month of January. 31:17 31 minutes, 17 seconds So uh we foresee that uh this number is going to remain stable you know in the in the Q4. So we don't foresee a major 31:26 31 minutes, 26 seconds so we we we we think we expect this to be an temporary impact and not a sustained impact. 31:32 31 minutes, 32 seconds Okay. And on the onboarding of clients, onboarding of clients of equity. 31:39 31 minutes, 39 seconds Uh yeah. Yeah. So onboarding of clients of choice equity uh since uh we were gearing up for the contests of uh JFM 31:47 31 minutes, 47 seconds period. Uh the existing contests were withdrawn uh which has led to uh slight degrowth in the client on boarding. Uh 31:55 31 minutes, 55 seconds as we have launched the JFM contest for the CBAs as well. uh this uh will also uh normalize uh you know during the Q4 FI26. 32:05 32 minutes, 5 seconds Okay. Okay. Thank you sir. Thank you. 32:13 32 minutes, 13 seconds As there are no further questions from participant I now hand over the conference to management for closing comments. Over to you sir. 32:21 32 minutes, 21 seconds So thank you. Uh thank you for insightful questions. Our journey in FI26 has been about scaling with 32:28 32 minutes, 28 seconds discipline. Our focus remained on technological innovation and deepening our presence in India's unserved market. 32:36 32 minutes, 36 seconds On behalf of entire Choice team, I wish you all a prosperous new year ahead. Thank you. 32:45 32 minutes, 45 seconds Thank you. On behalf of Choice International Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.