Nippon Life India Asset Management Ltd — Q4 FY26

Nippon Life India Asset Management Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=rJpfdMYY1vw Published: 2 weeks ago

0:00 Ladies and gentlemen, good day and welcome to Nepon Life India Asset Management 4 SI26 earnings call hosted 0:08 8 seconds by Motila Loal Financial Services Limited. 0:12 12 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:30 30 seconds this conference is being recorded. I now hand the conference OM Pra Jane from Motilwal Financial Services Limited. 0:38 38 seconds Thank you and over to you sir. 0:42 42 seconds Uh thank you Vikra and good evening to everyone. On behalf of Motilal Oswal, I welcome you all to Nepon Life India 0:49 49 seconds Asset Management's fourth quarter FI26 earnings conference call. We have along with us Mr. Sundep Sikka, managing 0:56 56 seconds director and CEO and the senior management team. We are thankful to the management for allowing us this opportunity. I would now like to hand it over to Mr. Sep for his opening remarks. 1:07 1 minute, 7 seconds Over to you sir. 1:09 1 minute, 9 seconds Thanks Pas. Good evening everyone and welcome to our Q4 FI26 earnings conference call. We have with us a 1:17 1 minute, 17 seconds president and CBO Sata strategy uh CFO Par deputy CFO Amul uh chief digital 1:25 1 minute, 25 seconds officer Aran uh head AF Ashish deputy AF head Ashwin and Matsuisen nominee of Nikon life insurance Japan. 1:34 1 minute, 34 seconds I would like to share key highlights of the performance and post that I will hand over to Parag to speak in greater detail on the recent industry trends as 1:43 1 minute, 43 seconds well as the performance post which we will move to Q&A. 1:48 1 minute, 48 seconds Coming to the key highlights, I would like to start by mentioning NM India was the fastest growing AMC in the top 10 AMC's both in Q4 as well as FI26. 2:00 2 minutes This led to a continued increase in our overall AM market share. 2:05 2 minutes, 5 seconds We had the highest increase in AM market share in the industry in FI26. 2:12 2 minutes, 12 seconds Our market share is at 8.89 is the highest since June 2019. 2:19 2 minutes, 19 seconds Importantly, both equity net sales market share and sit market share remain above our equity 2:27 2 minutes, 27 seconds area market share with both being in high single digit for the quarter. 2:34 2 minutes, 34 seconds Moving to our financial performance, NAM India achieved its highest ever annual profit after tax at INR 15.29 29 billion 2:43 2 minutes, 43 seconds a growth of 19% air on air as well as the highest operating profit at INR 17.48 48 billion a growth of 24% year on air. 2:55 2 minutes, 55 seconds Further we also achieved our highest ever quarterly operating profit of INR 4.93 billion. 3:02 3 minutes, 2 seconds For FI26 the board of directors have declared a dividend payout of INR 21.50 3:09 3 minutes, 9 seconds per share that is 91.5% of the net profits. This includes the proposed 3:15 3 minutes, 15 seconds final dividend of INR 12.50 50 per share. 3:21 3 minutes, 21 seconds Now I will hand over the call to Parag for further details on the industry and our performance. 3:27 3 minutes, 27 seconds Good evening. Uh thank you. Uh let me start off uh with markets. Equity markets in Q4 FI26 witnessed a 3:34 3 minutes, 34 seconds correction from pri prior quarter levels. The Nifty decreased by 14.4 5% quarteron quarter while the Nifty Midcap 3:44 3 minutes, 44 seconds and small cap indexes uh decreased by 12.8% 8% quarter on quarter and 14.4% quarteron quarter respectively. The 3:52 3 minutes, 52 seconds report rate was flaged quarter on quarter at 5.25% while the 10ear GC yield increased by 45 bases quarteron quarter to 7.04%. 4:04 4 minutes, 4 seconds Coming to the data on the mutual fund industry industry quarterly average grew 4:10 4 minutes, 10 seconds by 20.9% yearonear and 0.7% quarteron quarter in Q4 FI26 to INR 81.5 trillion. 4:21 4 minutes, 21 seconds The share of equity in the overall area decreased by 0.6% quarteron quarter ending at 56.4% for Q4 FI26. 4:33 4 minutes, 33 seconds Now moving on to industry close. Even in these monetary markets the equity category witness gross inflows of INR 4:41 4 minutes, 41 seconds 2.78 trillion and net inflows of INR 1.23 trillion. Both the gross and net inflows were higher quarteron quarter. 4:53 4 minutes, 53 seconds Categories with the highest inflows were flexi multiarket allocation and midcap funds. 5:00 5 minutes The fixed income category witnessed a net outflows of INR 1.78 trillion in the 5:06 5 minutes, 6 seconds quarter. The ETF category had a net inflows of INR 709 billion up 36% quarteron quarter. 5:18 5 minutes, 18 seconds Moving on to SIP industry SIP contribution for the quarter was INR 929 5:24 5 minutes, 24 seconds billion up 19% yearonear and 3% quarteron quarter. 5:30 5 minutes, 30 seconds Monthly SIP flu in March 2026 stood at INR 321 billion at an all-time high. 5:39 5 minutes, 39 seconds Contributing SIP folios decreased by 0.7 million that is 1% lower to 97.2 million for March 2026 over December 2025. 5:51 5 minutes, 51 seconds However, on year-on-year basis, contributing SRP full use increased by 16.1 million that is 20% yearon-year growth. 6:02 6 minutes, 2 seconds At the time, at the end of the quarter, unique investor in the mutual fund industry increased to 61.4 million that is an increase of 13% yearon year. 6:14 6 minutes, 14 seconds Now moving to our business performance, we closed the quarter with the total asset under management of INR 7.73 6:22 6 minutes, 22 seconds trillion. This includes mutual funds, manage accounts, offshore funds and gifts. 6:29 6 minutes, 29 seconds Our mutual fund quarterly region grew 30.1% yearonear and 3.4% quarter on 6:36 6 minutes, 36 seconds quarter to reach INR 7.25 trillion. We were the fastest growing AMC in the top 6:44 6 minutes, 44 seconds 10 in Q4 FI26 and annually in Q FY26 and had the highest increase in 6:51 6 minutes, 51 seconds quarterly average GM market share among all AMC's in FI26. 6:57 6 minutes, 57 seconds I would now like to share a few highlights for the public. Starting with the market share, our market share 7:04 7 minutes, 4 seconds increased 63 basis year on year and 24 basis quarteron quarter to 8.89%. 89%. 7:12 7 minutes, 12 seconds Our equity market share increased 24 basis yearon year and was three basis for Tomcotted to 7.16%. 7:20 7 minutes, 20 seconds We achieved a high single digit market share in net sales in equity and hybrid segment in Q4 FI26. 7:28 7 minutes, 28 seconds However, excluding NOS, our market share would be in double digits. 7:33 7 minutes, 33 seconds We continue to have the largest investor base in the mutual fund industry with 23.8 8 million investor. 7:41 7 minutes, 41 seconds We are humbled to have over one in three mutual fund investors invest with us. 7:47 7 minutes, 47 seconds I would also like to touch upon some of the important aspects of our systematic growth. 7:53 7 minutes, 53 seconds I'm happy to share that there has been continued momentum in our systematic growth. Our monthly systematic book rose 8:01 8 minutes, 1 second by 17% yearonear to INR 37.2 billion for March 2026. 8:08 8 minutes, 8 seconds This resulted in an annualized systematic growth of INR 447 billion. 8:14 8 minutes, 14 seconds SIP market share stood at 9.84% for March 2026, marginally higher than 8:21 8 minutes, 21 seconds 9.82% as of December 2025. 8:27 8 minutes, 27 seconds Moving on briefly to ETF signal, we continue to be one of the largest ETF player with AUM of INR 2.42 42 trillion 8:36 8 minutes, 36 seconds and a market share of 21.4% which increased by 234 basis yearon year and 109 basis for town. 8:46 8 minutes, 46 seconds Our share in the industry ETF folio is 45%. 8:50 8 minutes, 50 seconds We also have 52% share of ETF volume on the n and our ETF average daily volumes across key 8:59 8 minutes, 59 seconds fund remain far higher than the rest of the industry. 9:03 9 minutes, 3 seconds The industry continued to witness a surge in gold and silver ETF volumes in the quarter. Combined in these two ETFs 9:12 9 minutes, 12 seconds for NIMF was INR 848 billion as of March 31st, 2026, up 23% quarteron quarter. In 9:22 9 minutes, 22 seconds quarterly average terms, our gold and silver ATM represent 36% of ETF and 12% of the MSUM. 9:32 9 minutes, 32 seconds During the quarter we completed two debt index fund NFOs raising INR 8.6 billion cumulatively. 9:40 9 minutes, 40 seconds These were NPON India TIE IDX financial services 3 to 6 month debt index fund and India Crest IDX financial services 9 9:48 9 minutes, 48 seconds to 12 months debt index fund. 9:53 9 minutes, 53 seconds Moving on to the digital franchises and digital purchase transaction and new SIP registration rose to 5.4 5.0 04 million 10:03 10 minutes, 3 seconds in Q4 FI26 up 44% yearon year. 10:08 10 minutes, 8 seconds We had our highest ever monthly transaction in January 2026 at 1.79 million. 10:16 10 minutes, 16 seconds Digital business contributed 77% of the total new purchase transaction in Q4 FI26. 10:24 10 minutes, 24 seconds During the quarter, NIM digital business intensified its focus on long-term investor behaviors through multiple 10:32 10 minutes, 32 seconds initiatives aimed at strengthening SIP habits and re-engaging terminated SIP investor amid amid market volatility, 10:41 10 minutes, 41 seconds helping rebuild confidence in discipline, long-term investing despite short-term months. 10:48 10 minutes, 48 seconds Now, I would like to briefly update on our subsidiaries and gifts. Starting off with AIS under NPON India AIS we offer 10:57 10 minutes, 57 seconds category 2 and category 3 AIS and have raised cumulative commitment of INR 93.3 11:04 11 minutes, 4 seconds billion across various teams up 26% year on year in Q4 of 26 we raised INR 4 billion of 11:14 11 minutes, 14 seconds commitment across various asset classes fundraising is currently underway for two of our listed equity AIS one private 11:23 11 minutes, 23 seconds credit fund and direct VT fund. Based on the success of Nepon India credit opportunity fund Niko one, we launched 11:31 11 minutes, 31 seconds the series second series Niko 2 and successfully conducted first close in Q4 FI26 11:39 11 minutes, 39 seconds with the first capital P the fund is ded down to the extent of 25%. 11:45 11 minutes, 45 seconds On the offshore front, our Asian stood at INR 139 billion. We continue to expand our footprint in new geographies across Europe, Asia and Latin America. 11:58 11 minutes, 58 seconds Moving to gift city as I said previous previously, we currently have two feeder funds mainly Nepon India ETF Nifty50B 12:06 12 minutes, 6 seconds gift and Nepon India large cap fund gift. The Indian fund stood at USD 38 million. 12:16 12 minutes, 16 seconds Now on to our financial performance for Q4 FYI 26 revenue stood at INR 7.39 12:24 12 minutes, 24 seconds billion up 30% year on year and 5% quarter on quarter. Other income stood at negative INR0.34 12:33 12 minutes, 33 seconds billion lower both yearon year and quarter on quarter due to the market volatility. 12:40 12 minutes, 40 seconds Operating expenses at INR 2.45 45 billion up 16% yearonear and down 1% 12:47 12 minutes, 47 seconds quarter pattern operating profit stood at INR 4.93 billion up 39% yearonear and 12:54 12 minutes, 54 seconds 8% quarter bottom profit after tax stood at INR 8 3.85 85 13:01 13 minutes, 1 second billion up 29% yearonear and down 5% per month for FY26 operating profit grew by 24% 13:10 13 minutes, 10 seconds yearonear profit after tax grew by 19% year on year 13:16 13 minutes, 16 seconds as mentioned earlier for FY26 the board of directors have declared a dividend payout of 21.5 per share that is 13:25 13 minutes, 25 seconds approximately 91.5% of the net profit this includes proposed final division of INA 12.5% per share. 13:34 13 minutes, 34 seconds Lastly, the board of directors in their meeting today have approved the following ESOP based on the recommendation of NRC 13:42 13 minutes, 42 seconds brand of three 87,448 stock units under Nikon life India asset 13:49 13 minutes, 49 seconds management limited performance link stock unit 2023 at 10 rupees stock unit 13:58 13 minutes, 58 seconds grant of 15 lakh 96,475 stock options under the nicon life India asset management limited employee stock 14:06 14 minutes, 6 seconds option scheme 2023 at INR 898.04 per stock option. 14:14 14 minutes, 14 seconds With this I would like to conclude my remarks and open the floor for questions. 14:20 14 minutes, 20 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch telephone. 14:30 14 minutes, 30 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 14:42 14 minutes, 42 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 14:55 14 minutes, 55 seconds The first question is from the line of Swarnab Mukharji from 361 Capital. Please go ahead. 15:02 15 minutes, 2 seconds Hi sir, thank you for the opportunity and congrats on a great set of numbers. 15:06 15 minutes, 6 seconds Uh three uh questions sir. First of all uh on the in the movement this particular quarter just wanted to 15:14 15 minutes, 14 seconds understand whether this is uh primarily a product mixed towards the EPS or uh is there anything else to read into that in 15:23 15 minutes, 23 seconds terms of uh uh you know how how the expansion has happened in terms of the margin and uh uh also u if if you could 15:33 15 minutes, 33 seconds uh call out the category including the EPS category also how we played out this quarters the last quarter. That's my first 15:40 15 minutes, 40 seconds question. Uh secondly, sir, in terms of the SIP numbers that you have reported, uh the numbers have been broadly in that 15:50 15 minutes, 50 seconds 3600 to 3,700 cr over the last uh five six months. So I just wanted to 15:57 15 minutes, 57 seconds understand uh what is uh you know how should we think about this trend going forwards and in terms of uh the flow in 16:05 16 minutes, 5 seconds the various schemes that we have has there been any change or movement and if you could give some color on you know 16:12 16 minutes, 12 seconds new sites created the redemptions etc that would be very helpful and in conjunction if we could also uh discuss 16:20 16 minutes, 20 seconds about uh the net inflows in equities uh and and the active active 16:26 16 minutes, 26 seconds category how they are looking and uh lastly yeah just one last 16:33 16 minutes, 33 seconds question on the cost how to think about next yeah so I'll request far to take the question on yields and the is of cost and then 16:42 16 minutes, 42 seconds we'll have sata strategy talking about the flows yeah so I think uh the yield movement is mainly due to the change in the asset 16:51 16 minutes, 51 seconds mix as you mentioned that has resulted a a slight marginally high in need in the current quarter. Uh the yield on equity 16:59 16 minutes, 59 seconds is 53 basis. Uh 55x of arbitrage on debt it's 25 basis. On liquid it remains in 17:07 17 minutes, 7 seconds the range of around 11 12 basis. on ETF uh it's uh slightly higher than 25 per 17:14 17 minutes, 14 seconds year. So blended yield is marginally upd 17:27 17 minutes, 27 seconds is 11 cr the overall esop for the current year is 43 odd cr and uh for the new plan uh the next year esop cost will 17:35 17 minutes, 35 seconds be in the range of around 35 odd cr. The overall cost on esop of the new plan will be in the range of around 70 to 75 cr. 17:44 17 minutes, 44 seconds for the next four years. 17:48 17 minutes, 48 seconds Okay. For the next four years and we can take a standard approaching the numbers. 17:52 17 minutes, 52 seconds Yeah. So generally first year generally try you you because it's important of uh numbers. 18:01 18 minutes, 1 second Right sir understood. 18:04 18 minutes, 4 seconds Yeah. Uh so coming to the uh SIP uh trends. So like you mentioned uh we have 18:10 18 minutes, 10 seconds a uh the SIP flows are in the range of about 3600 3,700 stores. Uh so so you 18:18 18 minutes, 18 seconds would have seen last quarter also in our call we had mentioned that uh you know the SIP uh net inflow which is coming in 18:26 18 minutes, 26 seconds the industry has sort of flattened. So we are also sort of seeing a similar training in our case. But uh uh along 18:34 18 minutes, 34 seconds with that what we have seen uh in the last say six odd months we have started now building uh six books across few 18:42 18 minutes, 42 seconds other categories uh mostly in the hybrids and in the commodities fund. uh uh one or two categories like I 18:50 18 minutes, 50 seconds mentioned in the last quarter call flexiap and sector funds are these are the these are two categories where we really need to build up this book uh we 18:59 18 minutes, 59 seconds are working on that very closely uh hopefully that will keep giving us uh slightly better net sales growth as we 19:06 19 minutes, 6 seconds go ahead from here on uh but the good part is uh the uh sip book uh uh you know market share is more than our 19:14 19 minutes, 14 seconds equity net sales market share and equity market share which is definitely the reason why our equity market share is growing. So that 19:22 19 minutes, 22 seconds should be the parameter which we uh we one one needs to track and we are tracking that very closely uh and 19:30 19 minutes, 30 seconds hopefully uh you know that should uh keep helping us have a stable growth in market share. 19:38 19 minutes, 38 seconds Okay. Understood. Just to clarify uh the equity net market share you had mentioned in your opening with us would 19:45 19 minutes, 45 seconds be in high digit amos it is in double digit. If you include 19:53 19 minutes, 53 seconds the NFOS we don't do NF so uh it is still uh closer to a double digit. 20:00 20 minutes Okay very helpful sir. Thank you so much and all the rest. Thank you. 20:08 20 minutes, 8 seconds Thank you. The next question is from the line of Mohit Mangal from Chantra. Please go ahead. 20:14 20 minutes, 14 seconds Yeah. Yeah. Thanks for the opportunity and congratulations on a good set of numbers. Uh my first question is on the regulation. So regulation that came uh with effect from 1st April uh which has 20:23 20 minutes, 23 seconds a potential impact of five basis point on equity. Uh now that we are towards the end of April just wanted to know what steps we have taken to mitigate the 20:31 20 minutes, 31 seconds impact and maybe how should we see that uh impact going forward. 20:36 20 minutes, 36 seconds So mo uh the impact will be in the range of around three and a half four bases uh which we will try to minimize uh even 20:44 20 minutes, 44 seconds though it's the first month but it is over the period we'll try to minimize uh uh from the tenants uh on the P&M number. 20:53 20 minutes, 53 seconds Okay. Uh so will that be uh through a distribution uh cut or or how that uh should be? 20:59 20 minutes, 59 seconds Yes. Yeah. We are going to pass on the entire thing to the uh uh to the distributors. It's a path through 21:08 21 minutes, 8 seconds understood that's very helpful. Uh second is that the tax rate was very low in Q4. So what was the reason for that? 21:14 21 minutes, 14 seconds So there was some release the assessment uh which we have taken a reversal in the current quarter. Plus there are some uh 21:23 21 minutes, 23 seconds due to this market losses also there is some lower taxation because the rates are slightly lower on that. So that is why there is a slightly lower taxation on that side. 21:34 21 minutes, 34 seconds Understood. My last question is towards the share of phones in the ETS space you know that has come down from 53% in Q425 you know to 45% in the current quarter. 21:45 21 minutes, 45 seconds So are we facing a lot of competition within this space or how should we look at it? 21:51 21 minutes, 51 seconds So uh you know uh if you see the ETF uh the color of the ETF lows which are coming in various categories in the 21:58 21 minutes, 58 seconds industry uh the commodity ETFs I have seen some higher inflows in the last 6 months and typically in the last 3 22:04 22 minutes, 4 seconds months barring say March um so uh it's not competition it is something related 22:11 22 minutes, 11 seconds to uh to uh uh you know uh uh it's more related to uh how the uh market looks. 22:20 22 minutes, 20 seconds looks at uh multiple options when they are trying to diversify their product bouquet. Uh I think we uh still remain 22:29 22 minutes, 29 seconds highest on volume. Our volumes are the highest. Our inflows uh from a net inflow point of view is still higher. So 22:36 22 minutes, 36 seconds we continue to build on that uh perspective in the market. So it is more about volume. it is more about how many 22:44 22 minutes, 44 seconds uh new investors are uh you know trading on the exchange and what is the impact cost we are able to deliver in the funds 22:51 22 minutes, 51 seconds I think also I think it's important to note that the overall volumes continue to grow right now this is very helpful thanks 23:00 23 minutes you all the best thank you the next question is from the 23:07 23 minutes, 7 seconds line of players chain from Motil Oswal please go ahead Yeah, hi thanks for the opportunity. 23:13 23 minutes, 13 seconds Just a few questions from my side. Uh firstly, you know, uh the as you mentioned right that the ship momentum 23:21 23 minutes, 21 seconds in the industry itself has kind of uh stabilized uh and you know post hat also 23:28 23 minutes, 28 seconds we've seen markets not doing great right. So do you see any uh further 23:35 23 minutes, 35 seconds slowdown or how should we kind of read into this from industry trends perspective and especially if you could highlight uh how are the trends 23:42 23 minutes, 42 seconds different between say a do-ityourself model versus a distributed model. Uh that's my question number one. Uh 23:49 23 minutes, 49 seconds question number two is you know the last couple of quarters we've seen a very strong traction on silver and gold ETFs 23:57 23 minutes, 57 seconds in terms of flows and because of which we have kind of benefited on the ease uh how do you see the traction at least in 24:05 24 minutes, 5 seconds the near term on on these categories um and my last question will be on uh 24:12 24 minutes, 12 seconds the expenses front overall expenses you know you've been guiding about a 15% growth in overall expenses should we 24:19 24 minutes, 19 seconds kind of uh stick to that and you know as basis points of AUM we are still higher than uh a few of our peers. So do you 24:27 24 minutes, 27 seconds think that you know we we structurally over the next couple of years we should start tending towards that kind of a number or how should we look at 24:35 24 minutes, 35 seconds expenses? U yeah those would be my question. Thanks. 24:39 24 minutes, 39 seconds So where is the expense number I will take it and then chat will add on to the sales thing. So the expenses uh yeah our 24:47 24 minutes, 47 seconds guidance still remain in the range of 15 15% uh year on year exop but that is what our guidance remains uh the the 24:56 24 minutes, 56 seconds this basis uh the idea is always that we should have a operating leverage uh and 25:03 25 minutes, 3 seconds uh as as the Indian grows uh the operating lab should kick in and should help us to reduce the basis uh over 25:11 25 minutes, 11 seconds longer uh that that will be our talk with us on the tips. 25:17 25 minutes, 17 seconds Yeah. Uh I think on the tips it's a good question. See what we are seeing is that the fintech platforms are definitely 25:25 25 minutes, 25 seconds aiding growth of the sick book uh in the industry. The client behavior uh might be slightly different than what comes in from a distributor le uh SIP uh inflow. 25:38 25 minutes, 38 seconds uh the cycles are a bit shorter uh when it comes to fintech uh uh you know investors but the good part is they are 25:45 25 minutes, 45 seconds ready to commit more and hence the average ticket size is also now moving up uh so that's a good trend uh the 25:53 25 minutes, 53 seconds other side is you know when it comes to distributor SIP uh we are finding that 25:59 25 minutes, 59 seconds these volatile conditions are leading uh them to uh you know educate the investor and uh show better retention 26:08 26 minutes, 8 seconds uh you know challenges will always remain but uh you know as we progress from here on and more FIB's moving 26:16 26 minutes, 16 seconds towards hybrid category and large cap oriented fund will lead uh to better retention in times to come that's our 26:24 26 minutes, 24 seconds purposes and view and just on that question on the uh silver and uh gold ETFs what is the kind 26:35 26 minutes, 35 seconds of traction that we have seen in the near term on this on these products. 26:41 26 minutes, 41 seconds See I think as you would have seen I think gold silver and why only gold silver I think most of the flagship ETFs 26:48 26 minutes, 48 seconds I think because of our volume liquidity I think we normally uh get a higher share uh last two three years because 26:55 26 minutes, 55 seconds underline gold and silver um the increase in prices we definitely saw uh the new investors a lot of new investors 27:03 27 minutes, 3 seconds coming in last two months ever since the volumes have been uh the price has come down we have also seen um we have also 27:10 27 minutes, 10 seconds seen um a little bit you know a decrease but interestingly I think this axe which was there recently I think out of the 27:18 27 minutes, 18 seconds total traded volume on the stock that day 63% of the volume was of the commodities so I think we continue 27:25 27 minutes, 25 seconds building a strong foundation I think it's very we don't want to look at the numbers on a monthly or a weekly basis but I think the core the key fundamental 27:34 27 minutes, 34 seconds things which is basically the tracking error the liquidity um uh I mean these are the two things we continue focusing on and there's a natural pull for the 27:41 27 minutes, 41 seconds products and we feel whenever uh commodities you know depending on the cycles the way they move I think investors whenever they come I think we remain one of the one of the first 27:50 27 minutes, 50 seconds protocols also to add we are also seeing a lot of ships coming in this category you know that will really give stability to this category in times to come which 27:58 27 minutes, 58 seconds used to happen about five years 10 years back I think that's a good trend I hope you have answered already. 28:11 28 minutes, 11 seconds Yes sir. Thank you. 28:18 28 minutes, 18 seconds The next question is from the line of Shivaji Taplan from Yes Security. Please go ahead. 28:25 28 minutes, 25 seconds Am I audible? Go ahead. Yeah. Uh thank you for the opportunity. 28:32 28 minutes, 32 seconds Uh just a couple of questions surrounding the uh SIF business. 28:38 28 minutes, 38 seconds one is uh that when is the SIF business actually starting on the ground um is 28:45 28 minutes, 45 seconds there any specific timeline for that and is there anything holding it up um that's number one and number two what is 28:53 28 minutes, 53 seconds the outlook for this business you know from a medium-term maybe couple of years perspective and also long-term uh you 29:00 29 minutes know five year perspective from a uh from an AUM standpoint and also perhaps uh profitability Thank you. 29:10 29 minutes, 10 seconds So I think let me you know I've been take the second question first you know as I think we are uh this is a new uh 29:17 29 minutes, 17 seconds business line uh we somehow are convinced I think this is something very very can become very big this is something what ETFs were about 10 years 29:25 29 minutes, 25 seconds back uh very difficult to put a number to it 10 years back if somebody would have asked what ETF business they would not have been able to say how big it can 29:32 29 minutes, 32 seconds become but I think we are very very we are seeing this business very uh see it as an important pillar in times to come point number one that is one of the 29:40 29 minutes, 40 seconds reasons we built up a very strong team under the leadership of industry veteran Andrew H and uh so I think what will be the numbers what will be the EM we do 29:49 29 minutes, 49 seconds not know but I think we clearly feel this is a product and a category there is a demand for that there's a separate market for that there's a separate is a 29:57 29 minutes, 57 seconds separate niche and it requires a specialized skill set for that and uh we are getting ready so this is an important opportunity to your question 30:04 30 minutes, 4 seconds of uh when do we hit the ground I think we are already you know I think while yes we have not formally launched our product. Uh definitely there's a lot of 30:11 30 minutes, 11 seconds work happening at the back end uh to decide and work on back testing of certain products and all that which we want to launch because no idea trying to 30:19 30 minutes, 19 seconds launch SF which is a mutual fund plus uh 10 20% variation of the mutual fund. I think you really want to be differentiated and add value to 30:26 30 minutes, 26 seconds investors. So yeah to your question I think we are very serious about this business because we feel it satisfy it 30:34 30 minutes, 34 seconds takes care of a separate uh need which some investors have uh and I think Andrew and team are already working on it. 30:45 30 minutes, 45 seconds Thank you. 30:48 30 minutes, 48 seconds Thank you. The next question is from the line of Sav from HSBC. Please go ahead. 30:56 30 minutes, 56 seconds Uh thank you and greetings. Um congratulations from a good of members. 30:59 30 minutes, 59 seconds Uh uh two questions from my friends. Uh firstly about city. Wanted to understand your strategy and if you have any 31:07 31 minutes, 7 seconds products planned. Um second is just about the little overhang with this fine and everything. So if there is any timeline or resolution. 31:19 31 minutes, 19 seconds So I think let me take the second one first. You know I think at this point of time we do not have anything new to disclose other than that has been 31:26 31 minutes, 26 seconds disclosed to the stock exchanges. Uh I think as and when we hear from the si I think we'll uh inform you know through 31:33 31 minutes, 33 seconds the stock exchanges. So that is I think point number one. Uh point number two on the gip city I think again gibity we we 31:41 31 minutes, 41 seconds feel I think gib city is again becoming a important gateway into India. So I think while there is a lot of discussion happening on money moving out of India 31:49 31 minutes, 49 seconds launching products which is under LRS but we see a bigger opportunity of money coming into India I think all our road shows that we've been doing in Japan and 31:57 31 minutes, 57 seconds certain other markets I think we feel today the acceptability of GIF city is increasing and more foreign flow will 32:04 32 minutes, 4 seconds come into India uh through GIF city. So we have our operations um operations in place there we have a complete clear team and we have some more details on slide number 25. 32:15 32 minutes, 15 seconds Great. Thank you very much and all the best. Thank you. 32:26 32 minutes, 26 seconds The next question is from the line of Mah from MK Global. Please go ahead. 32:32 32 minutes, 32 seconds Hi, thank you for the opportunity and congrats on a good set of numbers. So I have this one question on SIP folios. So 32:38 32 minutes, 38 seconds we have seen the SIP folders have been um declining on a sequential basis. So any read through out there and if you 32:47 32 minutes, 47 seconds could just help us uh understand what are the SIP trends in terms of flows uh with respect to the month of April. Uh 32:54 32 minutes, 54 seconds and secondly uh I just wanted to know your thoughts on the stickiness of SIP flows uh in uh the commodity ETF 33:02 33 minutes, 2 seconds segment. Yeah, these are my two questions. So uh so the SI inflows uh if 33:09 33 minutes, 9 seconds you take uh Q3 and uh Q4 of course uh uh there is a jump in the Q4 number 33:18 33 minutes, 18 seconds Q3 uh like I mentioned uh you know November, December, Jan, Feb was a bit of a tough phase for uh you know the 33:26 33 minutes, 26 seconds industry as well as the inflows were lesser but I think you March we have seen a slightly better month uh Uh so 33:35 33 minutes, 35 seconds the trends continue to be better as we go ahead. Uh so that helps us in net fit growth uh every month uh uh which 33:44 33 minutes, 44 seconds probably will start now reflecting further in the SI book. We have seen in March our S book has improved uh so 33:52 33 minutes, 52 seconds which is a clear indication that uh uh you know the investors are coming in with slightly better understanding of 33:59 33 minutes, 59 seconds the volatility. Uh so that's the first part. When it comes to uh uh SIS in the 34:07 34 minutes, 7 seconds commodity side, uh most of the SIS are coming in uh uh gold and silver of 34:14 34 minutes, 14 seconds course and uh there are SIS which flow into other categories which have got a commodity tilt like hybrid like uh fund 34:23 34 minutes, 23 seconds of fund. So so we are uh we keep getting flows which are coming through the fund of fund also into our hybrid into our commodity fund. 34:36 34 minutes, 36 seconds Call it sir. Thank you so much. Okay. 34:41 34 minutes, 41 seconds Thank you. Before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star N1. 34:51 34 minutes, 51 seconds The next question is from the line of Abijit Sakur from Cortech Security. Please go ahead. 34:58 34 minutes, 58 seconds Yeah. Hi. Uh, good evening everyone. Uh my first question is for uh Sik and first of all congratulations on the new 35:05 35 minutes, 5 seconds role as well sir on the SIP again uh like what we've seen in the last few months like you mentioned there was a 35:12 35 minutes, 12 seconds little bit of a slowdown in net SIP inflows just wanted to check here whether you've seen uh people take money 35:21 35 minutes, 21 seconds out and uh kind of take it out of the mutual funds itself or compared to the past you've seen people kind of staying 35:28 35 minutes, 28 seconds on within the mutual fund ecosystem and moving that money into some of the products or let's say at least more exciting products like the commodity ETF 35:37 35 minutes, 37 seconds just uh you know some qualitative sense on that uh and secondly uh in terms of the fintech versus traditional channel 35:44 35 minutes, 44 seconds uh you mentioned that the fintech channel ticket sizes have gone up so if you could just give some sense of what is the relative difference uh in terms 35:52 35 minutes, 52 seconds of the fintech SIP book versus the traditional SIP book that's the first question sir 35:59 35 minutes, 59 seconds Okay. uh so so so SIPs uh uh uh you know when it comes to uh SIPs uh which are 36:08 36 minutes, 8 seconds coming through the fintech platform like I mentioned they are a bit of a short cycle uh because uh they they come with 36:16 36 minutes, 16 seconds uh a uh past track record in uh perspective and if there is a volatility which is what is a fact in the market 36:25 36 minutes, 25 seconds today they tend to stop and restart so the good part is they don't exit the AUM they restart a new journey and that's 36:33 36 minutes, 33 seconds the reason why the SIP discontinuation number in the industry looks to be on the higher side but when it comes to net 36:40 36 minutes, 40 seconds zip acquially 36:51 36 minutes, 51 seconds moving up uh uh on the digital side maybe they are in the range of 60 to 70% of the uh regular uh SIP uh which comes 37:01 37 minutes, 1 second in from the distribution channel but the catch up has been very good and very fast. So the education uh drive which is happening digitally through fintech 37:09 37 minutes, 9 seconds platforms and through the asset management companies is really helping the investors to commit a slightly larger uh uh sip amount on a monthly 37:18 37 minutes, 18 seconds basis. U I I hope I have answered your question. 37:25 37 minutes, 25 seconds Um yeah and secondly uh you know question for parakir would be that uh you know what would be the mf revenues 37:33 37 minutes, 33 seconds uh in the year 2026 the percentage it will be much it's 37:43 37 minutes, 43 seconds higher than 90% uh 92% on the overall revenue 92% of the overall revenues is mutual 37:50 37 minutes, 50 seconds fund okay 91 Thank you. 37:58 37 minutes, 58 seconds Understood. Uh those are my questions. Thank you. 38:03 38 minutes, 3 seconds Thank you. The next question is from the line of Van Gupta from Leighton PMF. Please go ahead. 38:11 38 minutes, 11 seconds Hi. Uh one simple question. If I look at the industry leader and the recent fund that also IPOed 38:18 38 minutes, 18 seconds uh and was uh and looking at their operating margin versus our operating margin, is there a clear path in our 38:27 38 minutes, 27 seconds head wherein we also can reach at those aida margins or given the product mix 38:35 38 minutes, 35 seconds we are likely to remain at a lower uh AIDA margin business compared to the other two companies. 38:45 38 minutes, 45 seconds Uh so uh uh the event that uh the basically the reason for us is that we 38:52 38 minutes, 52 seconds are maintaining the AITA model that that that is what we are in continuing even though there is a trajectory that the telescoping sizing will keep on dropping 39:00 39 minutes the overall u overall T but we are we are continuing to uh keep the margin 39:07 39 minutes, 7 seconds intact for for so many years. uh the the question or the reason is mainly the uh 39:15 39 minutes, 15 seconds mix in uh we almost contribute to 30 3% of the uh ETF and we have significantly 39:21 39 minutes, 21 seconds ETF uh higher ETF in our overall and that's why our margins are low but the idea is to grow the overall 39:28 39 minutes, 28 seconds profitability year on year and grow uh as a percentage growth uh which is which is in line or higher than the most of 39:36 39 minutes, 36 seconds the industry players. So that is what the number we we are looking at rather than the only bits which is which is a derived number from that. So absolute 39:44 39 minutes, 44 seconds profit will be more critical for us uh to monitor and grow uh as a business. 39:52 39 minutes, 52 seconds Understood. Understood. The second question uh if you can share any update on the uh recent JV that we formed. 40:03 40 minutes, 3 seconds So I think broadly I think that's for a AF business you know as we have signed up a non-binding agreement you know and I think it's uh uh the idea is I think 40:12 40 minutes, 12 seconds we will be I think uh launching um products in Aif I think the idea is I think we clearly see an opportunity to 40:19 40 minutes, 19 seconds get a lot of overseas uh and money and especially the alternate in the alternate and the infrastructure side uh also as far as as far as the JV is 40:27 40 minutes, 27 seconds concerned it will also be helps in collaboration not only in the AF where it will be a JV but also within a mutual fund business you know to you know as 40:35 40 minutes, 35 seconds whether from a capability of international fund ETF uh and also offshore money. So I think it will play 40:42 40 minutes, 42 seconds out as the idea is to keep getting ready as um India keeps you know getting stronger I think more foreign money will come into India and I think building 40:51 40 minutes, 51 seconds capabilities access I think we were always very strong in Japan uh so now this JV gives us an access to Europe. 40:58 40 minutes, 58 seconds Got it. And just one last question like in India we have feeder funds going into US right so let's say there will be a 41:07 41 minutes, 7 seconds Vanguard fund or a JP Morgan fund uh and not specifically related to Nepon but 41:14 41 minutes, 14 seconds generally as an industry level is there anything moving towards making a fund of fund kind of structure 41:23 41 minutes, 23 seconds being made available in India so that actually the retail money can come in because I understand but the ticket size for a big city will also be higher but 41:32 41 minutes, 32 seconds the feeder fund can actually drive much more retail anywhere so is there any work at industry level to create feeder 41:40 41 minutes, 40 seconds funds coming into India I think I will not be able to comment on behalf of the industry I think as a company our focus is always keeping 41:48 41 minutes, 48 seconds investor in mind I think and as and when we feel there is an appetite and there's a need I think uh we will be open to 41:55 41 minutes, 55 seconds launch it and to your earlier question uh having DWS with us you know DWS is one of the largest uh international case 42:03 42 minutes, 3 seconds both know also in ETF space you know ETF and passes you know so there could be uh uh I don't want to say it will happen 42:11 42 minutes, 11 seconds but depending as and when there's a need from the investors and a demand from the investors we feel we're in a strong position to launch products like these 42:19 42 minutes, 19 seconds got unders thank you thank you that was the last question for 42:28 42 minutes, 28 seconds today. I now hand the conference over to the management for you comments. 42:34 42 minutes, 34 seconds Okay. Uh thank you all for taking out time uh to join us on the call today. If you have any other uh further queries uh 42:43 42 minutes, 43 seconds we will be happy to address the same uh post the call. Thank you. 42:49 42 minutes, 49 seconds Thank you very much on behalf of Motila Loal Financial Services Limited. That concludes this conference. Thank you all 42:56 42 minutes, 56 seconds for joining us today and you may not disconnect your lines.