Choice International Ltd — Q4 FY26

Choice International Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=zx83KAHb1N4 Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Q4 FY26 earnings conference call hosted by Choice 0:09 9 seconds International Limited. As a reminder, all participant lines will be in the listenon mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:25 25 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now 0:32 32 seconds hand the conference over to Miss Forum Gosher from Ad Factors PR Investor Relations. Thank you and over to you mi miss forum. 0:42 42 seconds Uh good evening everyone on behalf of choice international limited I welcome you all to the earnings conference call 0:49 49 seconds for Q4 and FY26. Joining us today from the management are Mr. Arun Bodar group CEO Mr. AJ Kal executive director and 0:58 58 seconds Mr. Aayush Sharma, head of investor relations. The earnings presentation has been uploaded on the exchanges as well as on the company website. You may refer 1:07 1 minute, 7 seconds to it as we walk as we walk you through the opening remarks and the discussions during the call. Before we begin, I would like to remind you that certain 1:15 1 minute, 15 seconds 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 the website. 1:28 1 minute, 28 seconds Choice International does not take undertake any obligations to publicly update his forward-looking statements. 1:34 1 minute, 34 seconds With that, I will now hand over the call to Mr. Arun Poda to share his opening remarks. Thank you and over to you sir. 1:42 1 minute, 42 seconds Good evening everyone and thank you for joining us today. In FI26, India maintains steady progress backed by a 1:51 1 minute, 51 seconds stable policy environment and consistent execution. 1:55 1 minute, 55 seconds There is a growing confidence across sector driven not just by expectation but by the change already visible on the 2:04 2 minutes, 4 seconds ground. Continued investment by global player across industries such as technology, manufacturing, service, 2:11 2 minutes, 11 seconds energy and logistic reflect that long-term commitment to India's growth story. In this context, our performance 2:21 2 minutes, 21 seconds in Q4 FI26 reflects stable progress for choice with continued momentum across 2:28 2 minutes, 28 seconds all across our inter institutional distribution and product lled business. 2:35 2 minutes, 35 seconds Our focus during the quarter remained on strengthening our platform, expanding our reach and building partnerships 2:43 2 minutes, 43 seconds while also growing our presence in areas such as public sector advisory. During the quarter, our consulting subsidiaries 2:51 2 minutes, 51 seconds secure government mandate aggregating approximately 55 K. These mandates spend program management, government 3:00 3 minutes governance reform and digital transformation and indicating our growing presence in public sector 3:06 3 minutes, 6 seconds advisory space. In wealth management, we secured a digital investment platform mandate from India Post payment bank. 3:15 3 minutes, 15 seconds This provides access to a large distribution network and support our effort to scale this business. In asset management, we expanded our offering 3:24 3 minutes, 24 seconds with the launch of the Choice Nifty50 index fund and Choice Nifty next 50 index fund. In line with our focus on 3:33 3 minutes, 33 seconds long-term investing solution, our business performance this quarter reflect a deliberate emphasize on 3:40 3 minutes, 40 seconds building strength within each vertical rather than pushing broad-based expansion. 3:48 3 minutes, 48 seconds In broking and distribution, our focus continue to be on the cash delivery segment. This has helped maintain 3:55 3 minutes, 55 seconds margins and build a more stable cliental base. The segment contributed 59% 4:02 4 minutes, 2 seconds to total revenue with stock broking AUM at rupees 52,482 4:09 4 minutes, 9 seconds cr in Q4 app 26 growing 28% yi wealth 4:16 4 minutes, 16 seconds aum stood at rupees 4,268 cr supported by ste cliental 4:22 4 minutes, 22 seconds participation in delivery late products our network with 67,000 choice business associate remain an important part of 4:31 4 minutes, 31 seconds our distribution strategy. This model allow us to combine digital capabilities with onground presence helping us expand 4:40 4 minutes, 40 seconds our reach while maintaining client engagement. During the quarter, our demate account base grew to 13 lakh up 4:49 4 minutes, 49 seconds 16% by supported by improved onboarding and a wider product offering. 4:55 4 minutes, 55 seconds In the insurance business, we saw consistent growth driven by a broader partner network and increased use of 5:03 5 minutes, 3 seconds digital platforms. Premium collection stood at rupees 84 cr in Q426 5:11 5 minutes, 11 seconds reflecting 14% by growth while policy volume stood at 50,887 5:18 5 minutes, 18 seconds number of policies. In our MBFC segment, we continue to focus on secured lending given the current environment in 5:26 5 minutes, 26 seconds unsecured lending. Our emphasis on MSME microlap rooftop solar financing support more stable growth. The loan book stood 5:36 5 minutes, 36 seconds at rupees 800 cr as of FY26 with the segment contributing 13% 5:44 5 minutes, 44 seconds to total revenue. Our in-house collection process continue to support AC asset quality with NNPA remaining 5:53 5 minutes, 53 seconds stable at 1.86% of March 31st 26. The advisory business continue to benefit our ongoing 6:01 6 minutes, 1 second infrastructure and governance related project with a order book of 698 cr. We are working on projects such as digital packs, multilateral support initiatives. 6:13 6 minutes, 13 seconds This segment contributed 28% to total revenue and provide visibility over the next two to three years. Now 6:22 6 minutes, 22 seconds let me now pass it on to Aayush Sharma, our head of investor relation who will present the quarter's financial performance. Thank you. 6:35 6 minutes, 35 seconds Thank you sir. Uh I will now walk you through our financial performance for Q4 and the full year FI26. During the Q4 6:43 6 minutes, 43 seconds FY26, Choice reported consolidated revenue of rupes 314 cr rupees representing a growth of 23% on YI 6:51 6 minutes, 51 seconds basis. Habitita for the quarter stood at rupes 123 crores with margins at 39.08% reflecting improved operating 6:59 6 minutes, 59 seconds efficiency. Profit after tax came in at rupees 68 crores translating into a margin of 21.62% 7:05 7 minutes, 5 seconds and a Y growth of 27%. For the full year FI26, consolidated revenue was at rupees 7:12 7 minutes, 12 seconds uh 1,145 crores up 24% compared to last year. Abita stood at rupes 425 crores 7:20 7 minutes, 20 seconds with margins of 37% while PAT was rupes 238 crores reflecting a growth of 46% on 7:27 7 minutes, 27 seconds a year-on-year basis. Overall, the performance reflects steady execution across businesses and continued strength 7:34 7 minutes, 34 seconds in our operating model. Looking at segment performance, the broking and distribution business reported revenue 7:40 7 minutes, 40 seconds of rupes 179 crores in Q4 with a PBT of rupes 55 crores. Our demat account base 7:47 7 minutes, 47 seconds has grown to 12.63 lakhs while we are seeing increased engagement per client supported by cross-selling of insurance 7:54 7 minutes, 54 seconds and wealth products through the finex platform. The NBFC segment recorded revenue of rupes 43 crores and PBT of rupees 2 crores during the quarter. 8:04 8 minutes, 4 seconds Asset quality remains stable with GNP at 2.74% and NNP at 1.86%. 8:10 8 minutes, 10 seconds This has been supported by disciplined underwriting, improved collections and a diversified loan book. Net interest margins remained healthy at 11.22% in line with our focus on secured lending. 8:22 8 minutes, 22 seconds In the advisory segment, Q4 revenue stood at rupes 91 crores with a PBT of rupes 31 crores for FY26. The segment 8:30 8 minutes, 30 seconds reported revenue of rupes 330 crores and a PBT of 120 cr rupees. 8:35 8 minutes, 35 seconds Performance during the period was supported by steady execution and continued inflow of mandates including repeat engagements. With this I would 8:44 8 minutes, 44 seconds now like to open the floor for any questions. 8:50 8 minutes, 50 seconds Thank you. We'll now begin the question and answer sessions. Anyone who wishes to ask a question may press star and one 8:57 8 minutes, 57 seconds on the touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants 9:05 9 minutes, 5 seconds are requested to use hands while asking a question. 9:26 9 minutes, 26 seconds The first line, the first question is from the line of Sha from money wish. 9:34 9 minutes, 34 seconds Thank you and over to you. Yeah. Am I audible? 9:41 9 minutes, 41 seconds Yeah. Yeah. Hi. Hi Orsh. Uh you are very well audible. 9:44 9 minutes, 44 seconds Yeah. Yeah. Yes sir. So thank you for the opportunity. My first question is on the well product AUM. we witnessed a 23% 9:52 9 minutes, 52 seconds decline. Could you give some color on that? 9:55 9 minutes, 55 seconds Sure. So, u if you will see uh there is an decline in overall AUM. However, there is a growth of 35% in the equity 10:03 10 minutes, 3 seconds MF AUM. uh the decline is largely driven by redemptions in the debt mutual funds which is uh which is natural because of 10:11 10 minutes, 11 seconds the uh market uh sentiment where people uh can you know withdraw their excess capital deployed in debt and tend to 10:20 10 minutes, 20 seconds invest in equities at a better prices right so that's the larger reason which is driving the reduction in the debt 10:27 10 minutes, 27 seconds amum anyways uh the margins in equity is higher for the company compared to debt uh mutual funds which is Therefore there 10:35 10 minutes, 35 seconds is not no larger impact on the overall revenue of the company. 10:39 10 minutes, 39 seconds Right. But uh as you are saying the reason is is this what we will witness if the market conditions are not stabilized going forward. Do you see that as a future in the future? 10:49 10 minutes, 49 seconds No our focus focused product is also equity aum. So you will see a consistent growth in the uh equity mutual funds. So 10:59 10 minutes, 59 seconds uh that's that is largely a treasury products. So that will not uh uh be our core focus product. Core focus will be XPA, MSNBC. 11:08 11 minutes, 8 seconds Right. So and on the NBFC uh are we comfortable with our provision coverage ratio? And of course uh in the in your 11:16 11 minutes, 16 seconds opening comments you did mention that uh NPA are stable that way but still we see a one or three bits uh increase in the 11:23 11 minutes, 23 seconds NPA. So uh you know could that be somewhat streamlined? 11:31 11 minutes, 31 seconds Okay. So on the uh provision coverage ratio, it is driven by an uh established market practice of ECL expected credit 11:39 11 minutes, 39 seconds loss as per the accounting standards. Uh so we are we have adopted the accounting the policy defined by the accounting 11:46 11 minutes, 46 seconds standards and whatever is uh calculated uh by the uh policy of accounting standards we are preparing the 11:53 11 minutes, 53 seconds provisions on the asset quality side. Uh you can you see a uh growth in the overall YI numbers. However, uh during 12:00 12 minutes the year there had we had seen certain rise in the uh NB numbers which has come down in Q4 FY26. Uh this rise was 12:09 12 minutes, 9 seconds largely driven by the overall economic uh impacts uh which we had seen in the micro finance segment but now things uh 12:16 12 minutes, 16 seconds seem to be normalizing uh starting this quarter. 12:20 12 minutes, 20 seconds Right. So my next question is on the insurance side. uh we see a decline in the corporate uh side of the business uh 12:27 12 minutes, 27 seconds and which we have which we had seen previously as well. So you know that side is that segment in a bit of a 12:34 12 minutes, 34 seconds doldrum or no so overall uh there has been a growth in the insurance premium uh and larger 12:44 12 minutes, 44 seconds contribution uh has come from retail insuranceances rather than uh the corporate insuranceances. uh so uh there 12:51 12 minutes, 51 seconds has not been major impact on the revenues. However, there we had seen for last two quarters a slight uh reduction in the corporate insurance premium. 13:00 13 minutes During the last year, we had got uh you know uh insurance premium from certain government contracts. Uh that was the 13:07 13 minutes, 7 seconds larger reason why there was higher uh insurance premium in the previous financial year. When we compare that number to this this this year's number, 13:14 13 minutes, 14 seconds you see a decline. However, the corporate insurance premium is uh for the corporates uh it is uh as per our expected uh range only. 13:24 13 minutes, 24 seconds Right. So, one final question before I join back uh on the mandate with the Assam Industrial Green Growth Fund as I 13:30 13 minutes, 30 seconds see on your slide 39. Could you give some color on how will be the structure and you know how the things will proceed 13:37 13 minutes, 37 seconds and whether FY27 is the year that we are you know looking forward to go about it. 13:45 13 minutes, 45 seconds So uh government of Assam has mandated choice capital advisor private limited to assist them in setting up the AF and 13:52 13 minutes, 52 seconds then uh doing the road shows uh for the fundraising for the AI if as well. So uh our role is to assist the government uh 13:59 13 minutes, 59 seconds uh although the fund management etc will be done by the government themselves. Okay. Okay. Thank you so Thank you. 14:11 14 minutes, 11 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question 14:19 14 minutes, 19 seconds is from the line of Shwata Sharma from Aryan Capital. Thank you and go ahead. 14:26 14 minutes, 26 seconds Uh thank you so much sir. Um so my first question is regarding um revenue grew uh 14:33 14 minutes, 33 seconds in FI26 but pet margin remain publicly stable. So what are the key levers you are targeting to expand the net margin over the next two three years? 14:46 14 minutes, 46 seconds Uh you are uh so I we have we have expansion in the uh net margins as well during this particular financial year. 14:55 14 minutes, 55 seconds However to expand the uh margins further the larger use of tech is going to play a role as we achieve the higher scales 15:03 15 minutes, 3 seconds uh our fixed costs are not going to increase. You must have seen in the Q4 performance where the revenues have grown by I think 23% but the profit uh 15:12 15 minutes, 12 seconds has grown by 46%. Uh for FY uh 26. So uh that growth that higher growth than the 15:20 15 minutes, 20 seconds revenue in profit after tax shows the higher expansion in the margins. So that will continue to uh expand as we 15:28 15 minutes, 28 seconds leverage on the technology and the fixed cost remain stable. 15:35 15 minutes, 35 seconds Okay. Yes. So, so uh your acquisition of uh Optimo Invest Investment Advisor and 15:41 15 minutes, 41 seconds the IP IPB uh partnership uh seems like a push into deeper tier 2 and tier three 15:49 15 minutes, 49 seconds market. So, what is the projected customer acquisition cost for these channels compared to your traditional digital channel? 16:00 16 minutes Okay. So, uh SWATA traditionally we are largely focused on semi- urban uh geographies uh tier 2, tier three, tier 16:07 16 minutes, 7 seconds four geographies where uh you know uh we uh acquire customers uh however at the same time uh the execution is completely 16:16 16 minutes, 16 seconds digital and techdriven uh which is through our mobile app or through our web trading platform uh etc. uh but the 16:24 16 minutes, 24 seconds acquisition is uh still uh physical which is driven by branches CBAs. Uh coming to your question on the uh 16:32 16 minutes, 32 seconds acquisition uh in partnership with the IPB uh their existing customer base will be we will be providing the services to 16:40 16 minutes, 40 seconds their existing customer base thereby uh making our uh our customer acquisition negligible uh or at a very uh low levels 16:50 16 minutes, 50 seconds because uh we will be uh paid by the uh we will be earning revenues from the uh cross sale which we do to their existing 16:58 16 minutes, 58 seconds customer base. So we don't see much of the uh you know uh customer acquisition cost increase uh while having a partnership with IPv. 17:09 17 minutes, 9 seconds Okay. So so sir as you uh as you uh scale the book uh are you seeing any competition in yields specifically what 17:17 17 minutes, 17 seconds is the current GNP and NNPA trend in newly acquired Pasabi retail lending portfolio? 17:25 17 minutes, 25 seconds uh uh the acquired portfolio is also behaving in line with our portfolio. 17:30 17 minutes, 30 seconds While when we had acquired we had done an uh comparative study and uh uh the 17:37 17 minutes, 37 seconds study uh stated that uh the portfolios both the portfolios of choice and Pabodi are uh similar uh in nature uh in terms of customer segment and geographies. 17:48 17 minutes, 48 seconds Thereby the performance is also similar. 17:50 17 minutes, 50 seconds we don't see a differentiated uh performance in the uh portfolio acquired from okay also are you seeing any competition 17:59 17 minutes, 59 seconds in yields uh definitely as we grow to uh as we grow higher and uh as we uh you know uh 18:06 18 minutes, 6 seconds originate better credits uh uh definitely there is going to uh be a rate reduction uh however that will not 18:14 18 minutes, 14 seconds be marginal uh I mean that will be marginal not a very significant uh impact in the uh compression of the name 18:22 18 minutes, 22 seconds but at the same time uh the impact will be seen in the asset quality also thereby uh you know increasing our ROE only and not having any negative impact on the ROE. 18:32 18 minutes, 32 seconds Okay. So my last question is which segments will be the primary growth engines going forward. 18:40 18 minutes, 40 seconds All four segments are focused segments for us. I mean there is nothing uh primary or nothing secondary. There is no segment which is of known core focus. 18:50 18 minutes, 50 seconds All these are growing and all these will continue to grow in future as well. 18:55 18 minutes, 55 seconds We have uh we have a dedicated uh you know uh the CEOs for all the segments and all business verticals and thereby 19:03 19 minutes, 3 seconds uh the day-to-day execution and uh business decisions are taken care of by all all of them. So all of them will 19:10 19 minutes, 10 seconds continue to grow and eventually you know become a larger organization in itself. 19:16 19 minutes, 16 seconds Okay, thank you so much sir. That's all my fault. 19:22 19 minutes, 22 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question 19:30 19 minutes, 30 seconds is from the line of Suraj Shindai from Yes Securities. Thank you and go ahead. 19:37 19 minutes, 37 seconds Yeah. Uh hi sir, thank you for the opportunity. I have a few questions. So my first question is that um as the base 19:45 19 minutes, 45 seconds grows larger, what is your uh realistic medium-term growth guidance across revenue and profitability? 19:56 19 minutes, 56 seconds Yeah. Hi Suras. Suras we have been uh constantly communicating as well as projecting internally to maintain a 20:03 20 minutes, 3 seconds growth rate of uh you know around 30% uh on yearon-year basis across revenues and profitability. 20:12 20 minutes, 12 seconds Okay. And sir, what are we uh you know doing to convert dominant DMAT holders into active traders and uh what is the 20:20 20 minutes, 20 seconds target activation ratio over the next 12 months? 20:25 20 minutes, 25 seconds Okay. So uh there are in when when we talk about the dominant uh demat holders there are different types of customers 20:34 20 minutes, 34 seconds which we segregate internally. uh suras uh if I mean there these are classified into uh investors, traders and you know 20:42 20 minutes, 42 seconds somewhat followers. So these are the three categories which we classify in and accordingly for each category a different set of uh actions are taken to 20:52 20 minutes, 52 seconds uh activate the government uh uh you know dement holders. The largest push uh for activation is through our digital 21:00 21 minutes channels by uh understanding their other investments by understanding their you know kind of uh investment philosophy 21:07 21 minutes, 7 seconds and uh then uh pushing u I mean sending the nudges and sending the attractive opportunities to invest in the market. 21:15 21 minutes, 15 seconds So these are the uh steps which we take depending on the customer uh investment philosophy and customer behavior. 21:24 21 minutes, 24 seconds Okay sir. And uh my last question is that uh you know digital adoption is something that is rising right now. So 21:31 21 minutes, 31 seconds what percent of revenue is now uh coming from digital channels and how do we see this evolving? 21:38 21 minutes, 38 seconds It's around uh 70% is coming from digital channels. When I say digital channels, these are trades executed by 21:46 21 minutes, 46 seconds the uh on the platform. Uh it can be our mobile app, it can be web trading platform. Uh and offline uh uh channels 21:56 21 minutes, 56 seconds include the coland trade facility and dealer terminals. So you can see 70% of the uh revenue generated through trades placed on the online modes. 22:07 22 minutes, 7 seconds Okay sir, that helps. Thank you sir. 22:13 22 minutes, 13 seconds Thank you. The next question is from the line of Shrii Sharma from family office. Thank you and over to you. 22:22 22 minutes, 22 seconds Hello, thank you for the opportunity. Uh my first question is could you share your near-term AUM target for the AMC 22:30 22 minutes, 30 seconds segment for F27 and also provide some color on the cost structure for running the AMC business. 22:38 22 minutes, 38 seconds Okay. So uh uh for one year target uh in the AMC business we are expecting uh 22:46 22 minutes, 46 seconds 1,000 crores to be the AUM uh you know at the close of 527. 22:52 22 minutes, 52 seconds Okay in the insurance distribution segment how is the corporate versus retail mix expected to evolve going 23:00 23 minutes forward and what is the target mix management is working onwards. 23:05 23 minutes, 5 seconds Okay. So on the uh insurance side, we we uh plan to keep uh 50/50 uh mix between corporate and uh retail in future as well. 23:15 23 minutes, 15 seconds Okay, that answers my question. Thank you so much and all the best for next quarter. Thank you. 23:23 23 minutes, 23 seconds Thank you. The next question is from the line of Nikita Meta, an investor. Thank you and go ahead. 23:32 23 minutes, 32 seconds Uh thank you for the opportunity sir. I have couple of questions. Uh so sir uh Q4 growth looks strong like uh did you 23:40 23 minutes, 40 seconds see any slowdown in March and April uh due to market volatality or has the momentum continued in FI27? 23:50 23 minutes, 50 seconds The momentum so uh thank you Nikita for this question. So of course there has been the volatility in the markets. 23:57 23 minutes, 57 seconds However, uh since our business is largely driven by the volumes, uh even in the uh in the volatile market, the 24:04 24 minutes, 4 seconds volume has remained on an on an upward trajectory and therefore our revenues have grown uh you know in line with the growth in the overall volumes. So we we 24:13 24 minutes, 13 seconds didn't face any uh much of the impact because of the market volatility and uh same we are expecting for FY27 until 24:22 24 minutes, 22 seconds unless a larger geopolitical issue comes up uh we don't foresee a major impact on the overall revenues. 24:30 24 minutes, 30 seconds Okay. Okay. Okay sir. And so what kind of ROC and ROE thresholds do you target for the new investments? 24:39 24 minutes, 39 seconds No. So there are no new investments we are making and there are no uh new segments which we in which we are 24:46 24 minutes, 46 seconds expanding as now. So uh it's the existing businesses which we will continue to grow. 24:54 24 minutes, 54 seconds Okay. Okay sir. I think it answers my question. So all the best for the future. 25:02 25 minutes, 2 seconds A reminder to all the participants that you may press star and one to ask a question. The next line is the the f the 25:11 25 minutes, 11 seconds next question is from the line of Rohan Meta an individual investor. Thank you and go ahead. 25:19 25 minutes, 19 seconds Hi uh good afternoon sir. Uh thank you for this opportunity. Sir, if you could touch upon the India post payments bank 25:25 25 minutes, 25 seconds partnership. Uh for us uh you know it it is quite compelling with over one and a half lakh post offices and 12 odd 25:33 25 minutes, 33 seconds customers but it would be safe to assume that most of these would be relatively low income or financially underserved 25:41 25 minutes, 41 seconds customers who might have a limited capacity uh into SIPs. So if you could shed some light on what your average SIP 25:50 25 minutes, 50 seconds ticket size um you would expect for this segment and how the unit economics would pan out for us you know compared to our existing wealth uh client base. 26:02 26 minutes, 2 seconds Okay. So uh thanks Rohan for this question. So uh our arrangement with India Post payment bank is to uh you 26:09 26 minutes, 9 seconds know provide platform to the existing customers uh to invest in the mutual funds. That's the core role. Uh there 26:17 26 minutes, 17 seconds will be multiple activities which we will be doing uh while ensuring the goals of this particular partnerships. 26:23 26 minutes, 23 seconds Uh the largest uh would be providing a digital platform integrating our platform with the India post payment bank's platform. That is number one. 26:31 26 minutes, 31 seconds Number two will be uh uh to conduct an extensive training for the uh front office team of the India Post payment 26:39 26 minutes, 39 seconds bank. Uh and then number three is the providing the services to the customers. 26:44 26 minutes, 44 seconds Now uh uh in this case as your question uh is on the size of the SIP and uh 26:51 26 minutes, 51 seconds assumptions on the lowinccome uh category uh you know customers. I would like to clarify here that the partnership is with India post payments 26:59 26 minutes, 59 seconds bank and not the post office. So uh although post payment bank uh leverage uh the distribution uh platform 27:07 27 minutes, 7 seconds distribution channels which is created by the post office but uh the customers which are there on the India post bank 27:14 27 minutes, 14 seconds have uh are not the exactly the same customers as of the post office right so uh they have a higher uh investment uh 27:23 27 minutes, 23 seconds capabilities because uh normally uh people tend to invest in the uh in the post offices in terms of recurring 27:30 27 minutes, 30 seconds deposits model. So however, nevertheless, coming to the size, it 27:38 27 minutes, 38 seconds will definitely be lower as compared to the metro customer, but uh not as low as a post office customer as well. It will 27:46 27 minutes, 46 seconds be lying somewhere in between. On a realistic target, we are expecting it will remain somewhere between 2,000 to 2,500 rupees per customer per month. 27:56 27 minutes, 56 seconds Okay, got it, sir. So any uh would you be looking at a sort of a break even period by when the investment in this 28:04 28 minutes, 4 seconds partnership will sort of uh you know start contributing to our uh uh bottom line. 28:15 28 minutes, 15 seconds So uh we will go live. So currently the tech integration is going on uh and uh we'll go live in this quarter. uh we 28:22 28 minutes, 22 seconds expect that from 1st of July we will start uh having uh revenues in our balance sheet and you know uh the profitability will start coming in. 28:31 28 minutes, 31 seconds Okay. Okay. Got it sir. Got it. That that is helpful. So just if I could ask uh touch upon the advisory segment also our order book on that front uh seems to have declined quarteron quarter. 28:43 28 minutes, 43 seconds So which is a first in many of the historical quarters. So uh this order execution running ahead of fresh order 28:50 28 minutes, 50 seconds wins. Is that the case or are we seeing any slowdown in government project tendering which uh you know might run 28:57 28 minutes, 57 seconds into the next financial year's advisory revenues. 29:03 29 minutes, 3 seconds So so no slowdown uh in the business per se. It is since being a Q4 the larger 29:09 29 minutes, 9 seconds target was on executing the uh projects and completing this within the uh this fin the the previous financial year 29:17 29 minutes, 17 seconds itself and that is why you see a decline in this this quarter first time. Uh until now you must have seen the growth 29:24 29 minutes, 24 seconds in the overall order book only. uh as the orders are executed uh you can see a decline but uh in this quarter we are 29:32 29 minutes, 32 seconds very confident that the pipelines looks very strong and we will get more contracts uh which will enable us to grow the order book uh you know uh compared to the previous quarter itself. 29:44 29 minutes, 44 seconds Got it. Understood sir. And just within this segment itself uh would you be concerned about uh the 29:51 29 minutes, 51 seconds concentration of uh orders that we have uh particularly from the infrastructure consulting part or within Maharashtra as 29:59 29 minutes, 59 seconds a state uh you know accounting for a fair share of our uh exposure. So is that is concentration a risk and would 30:07 30 minutes, 7 seconds we be looking to diversify and reduce this uh uh percentages? 30:13 30 minutes, 13 seconds So uh there are uh I mean we are of course the contribution of these states and sectors are high but uh we don't see 30:21 30 minutes, 21 seconds a major risk uh immediate major immediate risk of this conc concentration. However the focus of the 30:28 30 minutes, 28 seconds uh management is definitely there uh to uh expand to other states as well. The others which you see in the earnings 30:35 30 minutes, 35 seconds presentation includes 22 other states where we uh have the current orders live and uh where we are expanding our uh 30:43 30 minutes, 43 seconds businesses as well. So as the other states grow this contribution definitely will come down. 30:48 30 minutes, 48 seconds Okay. Okay. Got it. So within the next financial year is it? Yeah. Yeah. Through the next couple. Yes. 30:55 30 minutes, 55 seconds So just one last question if I may. uh uh upon the AMC business uh if we are going to be moving from passive to 31:02 31 minutes, 2 seconds active strategies in the next fiscal year uh in terms of active fund management and the sort of talent 31:09 31 minutes, 9 seconds profile that might be required are you are we looking at some uh you know new hiring in terms of fund 31:16 31 minutes, 16 seconds managers and uh if you have any threshold in terms of what kind of aums we should be dealing in uh in the AMC business. 31:25 31 minutes, 25 seconds Uh so on the team side yes definitely we are in talks with the industry uh experts and uh we are onboarding new 31:32 31 minutes, 32 seconds people uh to expand the team uh and uh that is uh the first activity which we are we have been doing for some time now 31:40 31 minutes, 40 seconds to uh build the base for the active strategies uh and this financial year will come come up with the active uh 31:47 31 minutes, 47 seconds schemes as well. Is there any other question I missed the last part of your question? No, suggest in terms of the AUM threshold if we have any or if we 31:56 31 minutes, 56 seconds are going to have any uh minimum AUM that would contribute positively to our overall consolidated ROEs. 32:03 32 minutes, 3 seconds Understood. So uh for the AMC business we are targeting an AUM of,000 crores for FI27. 32:10 32 minutes, 10 seconds Got it. Got it. Okay. All right. So that's very helpful. Thank you for taking my questions and all the best sir. Thank you. Thank you very much. 32:19 32 minutes, 19 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question 32:27 32 minutes, 27 seconds is from the line of Nishita from Crown Capital. Thank you and please go ahead. 32:34 32 minutes, 34 seconds Um yes, hello. Yeah. Hi Nishita. 32:38 32 minutes, 38 seconds Yeah. Hi. So uh I just had a follow up on the previous participants question. 32:42 32 minutes, 42 seconds You mentioned that uh the order order pipeline is quite strong and like receive good orders coming in in Q1. So 32:50 32 minutes, 50 seconds if you can quantify what is our current order book and how does the pipeline look like? 32:57 32 minutes, 57 seconds So current order book is uh 698 cr rupees and uh the current uh uh project 33:04 33 minutes, 4 seconds we have uh submitted our bids uh as these orders are uh you know uh awarded 33:11 33 minutes, 11 seconds by way of tending are more than 400 crores. 33:17 33 minutes, 17 seconds Okay. Okay. And what is generally our winning ratio? 33:22 33 minutes, 22 seconds It depends on uh location to location and and you know there cannot be a generalized uh winning ratio but uh it 33:30 33 minutes, 30 seconds all depends on various factors. So I mean that does not uh that is not a relevant uh kind of uh metrics. 33:39 33 minutes, 39 seconds Okay. Okay. Got it. Thank you so much. Thanks. 33:49 33 minutes, 49 seconds As a reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Ruti Gandhi in an investor. 34:01 34 minutes, 1 second Thank you and go ahead. Hello. Good evening sir. Am I audible? 34:07 34 minutes, 7 seconds Yeah. Hi. Good evening. You are very good. 34:09 34 minutes, 9 seconds Hi. So my first question is that how the management expect the revenue mix to evolve over the next three years uh as 34:16 34 minutes, 16 seconds the AMC, NVFC and IB businesses scale. 34:22 34 minutes, 22 seconds Okay. So all these uh businesses are classified into three segments broking and distribution advisory and NBFC. uh 34:30 34 minutes, 30 seconds we expect all of them to grow uh at a faster pace and uh the mix will uh remain somewhere between you know uh uh 34:39 34 minutes, 39 seconds 50 40 and 10 kind of issues 50 for broking and distribution 40 for advisory and 10 for the uh NBFC. 34:48 34 minutes, 48 seconds Understood. Also sir do we have any plans to monetize our advisory capabilities separately? 34:57 34 minutes, 57 seconds uh what do you mean by monetizing the get capability separately? 35:01 35 minutes, 1 second So as you said earlier that our primary and secondary we do not have any preferences as in our primary and 35:08 35 minutes, 8 seconds secondary categories business wise but other than that do we have uh any lands to echo aggressively on the advisory uh wing or the advisory business? 35:21 35 minutes, 21 seconds So advisory is definitely an uh core function of the company and there is a dedicated team of roughly around 2,000 people in the government advisory 35:29 35 minutes, 29 seconds business. There is a team of more than 150 employees in the investment banking team. So uh we have dedicated teams, 35:36 35 minutes, 36 seconds dedicated leadership, dedicated uh you know business and execution heads. So uh all of them are taking uh care of uh the 35:45 35 minutes, 45 seconds businesses very well and definitely these are going to grow at a higher pace. Uh so there is no specific preference per se to uh you know uh give 35:54 35 minutes, 54 seconds primary focus to any any business uh from the uh the hold go management site. 36:02 36 minutes, 2 seconds Understood. Thank you so much. Thanks. 36:09 36 minutes, 9 seconds A reminder to all the participants that you may press star and one to ask a question. The next question is from 36:16 36 minutes, 16 seconds Romesh Durani from Maha Brothers. Thank you and please go ahead. 36:22 36 minutes, 22 seconds Uh good evening sir and thank you for the opportunity. Uh sir just wanted to understand uh you know uh what steps are 36:31 36 minutes, 31 seconds we taking uh or what initiatives uh we are you know undertaking on the AI part 36:38 36 minutes, 38 seconds of the business like uh how do we plan to implement AI in generating you know 36:45 36 minutes, 45 seconds additional revenues and uh generating uh additional benefit to our customers. 36:51 36 minutes, 51 seconds Yeah sure. So uh we have uh we have separate we have uh established a dedicated team to implement AI across 37:00 37 minutes all business verticals. There have been uh specific sections we have which we have automated uh with the use of AI 37:07 37 minutes, 7 seconds across all all businesses. it's already uh largely the AI's use is on the data analytics and uh preparing the uh the 37:16 37 minutes, 16 seconds summarized uh outcome or the actionables for uh you know that particular activity that we have uh established currently 37:24 37 minutes, 24 seconds for the uh back office and uh data analytics kind of functions. So that is there in place as we uh as we develop uh 37:34 37 minutes, 34 seconds new models on the AI uh we will keep implementing on the you know uh front- end customerf facing activities as well 37:41 37 minutes, 41 seconds subject to regulatory compliance because from what we understand is uh you know uh few of the competitors on 37:49 37 minutes, 49 seconds the growing side they have been building some AI layers uh and some capabilities 37:56 37 minutes, 56 seconds in terms of you know uh in in in their strategies as well. So how are we 38:04 38 minutes, 4 seconds planning to be uh something or give something different uh to our customers. 38:10 38 minutes, 10 seconds So just wanted to understand your thoughts uh around the matter as well. 38:14 38 minutes, 14 seconds So in our case uh as I mentioned that analytics is the larger part which we are doing uh for the broking business 38:20 38 minutes, 20 seconds also. So take an example uh that uh now AI AI decides that which customer should get which notification at what time so 38:29 38 minutes, 29 seconds that he gets the right information at the right time right so these are the kind of activities which we uh have 38:35 38 minutes, 35 seconds piloted uh with the use of AI and uh we'll be implementing uh you know in the 38:41 38 minutes, 41 seconds due course as the models mature thanks just wanted to understand uh you know on the capital allocation Right. 38:51 38 minutes, 51 seconds Since you know we have uh multiple businesses uh and uh we have NC we have 38:58 38 minutes, 58 seconds a broking business we have we have an advisory building. So how do you plan to you know allocate uh the uh the capital 39:07 39 minutes, 7 seconds requirements and also on the uh bandwidth of the management uh are there separate heads uh you know and then how 39:15 39 minutes, 15 seconds the structure works if you can just elaborate on that. Okay. So on the bandwidth of management side uh uh we 39:23 39 minutes, 23 seconds have uh dedicated uh CEOs for each of the businesses who takes care of the uh day-to-day business operations and the 39:31 39 minutes, 31 seconds growth strategies. Uh at the hold level we decide uh an AOP annual operating plan at the beginning of the year and 39:38 39 minutes, 38 seconds then uh we do a tracking on a regular month-on-month basis. So uh uh so there is no uh no challenge in the uh from the 39:47 39 minutes, 47 seconds management uh bandwidth or management availability side right that's on the uh on the manpower aspect on the capital 39:54 39 minutes, 54 seconds aspect we have the NF enough internal approvals as well to support all businesses although all of our businesses are self-sufficient now they 40:03 40 minutes, 3 seconds don't need much of the capital however if uh as far as the growth capital is required uh the holdco is uh sufficiently capable to support any of 40:12 40 minutes, 12 seconds the business required. So there is no preference there as well as in when uh required any business uh needs uh growth 40:19 40 minutes, 19 seconds capital we are capable to support uh you know the business in terms of capital aspect as well. 40:25 40 minutes, 25 seconds Good to good to understand that part. Uh sir any uh you know thoughts around uh maybe uh you know demerging these 40:33 40 minutes, 33 seconds businesses and listing them separately or uh in the near term or any any thoughts around that? No, not 40:41 40 minutes, 41 seconds immediately. Of course, the value unlock will be one of the target, but there there are no immediate plans to do so. Okay, got it. Got it. Thank you, sir. 40:50 40 minutes, 50 seconds Thank you for the opportunity and all the best and looking forward to uh interacting with you next podcast. 40:56 40 minutes, 56 seconds Thank you very much. 41:02 41 minutes, 2 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Arun Poda for closing comments. 41:12 41 minutes, 12 seconds Thank you. Thank you all the participants. Thank you for your questions and continued engagement. In FY26, our effort have been centered on 41:22 41 minutes, 22 seconds growing the business in a balanced and disciplined way. As we move forward, our priorities will be the strengthen our 41:30 41 minutes, 30 seconds technology capabilities and further expand our presence. Thank you. Thank you everyone. 41:39 41 minutes, 39 seconds On behalf of Choice International Limited, that concludes this conference. 41:43 41 minutes, 43 seconds Thank you for joining us and you may now disconnect your lines.