Prudent Corporate Advisory Services Ltd — Q4 FY26

Prudent Corporate Advisory Services Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=FBMiiFcxU5M Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to represent corporate advisor Q4 FY26 earning conference call hosted 0:10 10 seconds by Aenda Spark Instraditional Equities Private Limited. As a reminder, all participant lines will be the listen 0:17 17 seconds only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the 0:26 26 seconds conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that 0:33 33 seconds this conference has been recorded. I now hand the conference over to Mr. Sake Gora. Thank you and over to you sir. Uh 0:41 41 seconds thank you uh Julius. Good morning everyone and welcome to uh Q426 earnings call of prudent corporate advisor 0:50 50 seconds services limited. Uh first of all I um I would like to thank the management of food and corporate advisers for giving us the opportunity to host the call. We 0:58 58 seconds will have an uh we will have opening comments from the management team post post which we will open the floor for Q&A. From the management side today we 1:07 1 minute, 7 seconds have uh Mr. Sanjay Sha who is chairman and the managing director. Uh Mr. 1:12 1 minute, 12 seconds Shirish Patil uh chief executive officer and whole time director. Uh Mr. Chak Sha uh non-executive director Mr. Chira 1:20 1 minute, 20 seconds Kotari, Chief Financial Officer, uh, uh, Mr. Parik, head investor relationships. 1:25 1 minute, 25 seconds Um, and with this, I would hand over the call to Sanjay sir for his opening comments and thank you and over to you sir. 1:33 1 minute, 33 seconds Thank you Sy. Thank you very much and good morning everyone. 1:39 1 minute, 39 seconds Warm welcome to all of you for joining us on Q5 FI23 call. Thank you for taking the time out uh with us today. I hope 1:48 1 minute, 48 seconds you have an access to the investor presentation handy with you because during the discussions we'll be referring to lot of slides of the 1:55 1 minute, 55 seconds presentation. So before I move to the quarterly number I would like to begin with what we believe is one of the most significant initiative of prudence. So 2:04 2 minutes, 4 seconds please turn to slide 24 of the presentation which we have uploaded. So this year marks the 10 years since we launched funds bajar in mid 2016. a 2:13 2 minutes, 13 seconds platform that has been central to our growth and to the lead which we have built in the B2B2C segment. Tech 2:21 2 minutes, 21 seconds adoption has consistently been one of our key growth drivers and we are now taking the next step in that journey with the launch of very powerful AI 2:30 2 minutes, 30 seconds platform called prudent age for our mutual fund distribution partners and funds age for our retail customers on the funds bajar. The platform is 2:39 2 minutes, 39 seconds designed to transform the way distributors run their day-to-day day-to-day business. Be it goal-based planning or business analytics such as 2:47 2 minutes, 47 seconds discontinued SIPs, EU analysis, cross-ell gaps, readymade email and WhatsApp communications, marketing 2:54 2 minutes, 54 seconds support, research and ondemand client reports. Activities that earlier required navigating multiple sections 3:01 3 minutes, 1 second can now be completed with a single click or simply by voice including in regional languages such as Gujarati, Marati, 3:10 3 minutes, 10 seconds Punjabi etc. We believe this meaningful uh this meaningfully bridges the gap between technology and the usability for 3:18 3 minutes, 18 seconds our partners. The platform has just gone live in beta mode. We will closely track partners feedback over next few months 3:25 3 minutes, 25 seconds and refine the engine accordingly. We see this as a timely and ahead of the curve step for the industry. With that, now let me move to the quarterly 3:34 3 minutes, 34 seconds performance. Now please move to slide 16. This slide talks about the movement in our overall AUM. So uh if you look at 3:43 3 minutes, 43 seconds this slide u it's talking about the movement in overall amum. And on the left side left hand side of the slide we 3:50 3 minutes, 50 seconds are comparing three numbers. The average daily AUM for the full year of FI26. 3:56 3 minutes, 56 seconds The closing AUM is as on 31st March 2026 and our current AUM as on 5th May 2026. 4:02 4 minutes, 2 seconds So typically our AUM at the end of March tends to be higher than the fiscal year average. But this year the closing AUM 4:10 4 minutes, 10 seconds of 1.19 trillion on 31st March came in lower than the fullear average amum of 4:17 4 minutes, 17 seconds 1.21 trillion. This was largely due to market correction in the month of uh March. The good news is that we have 4:25 4 minutes, 25 seconds bounced back strongly. Our AUM as of 5th March has already climbed to 1.33 trillion. This is 9.7% higher than the 4:34 4 minutes, 34 seconds average of full FY26. This gives us a strong healthy revenue tailwind for the remaining 11 months FI27. 4:42 4 minutes, 42 seconds On the right hand side, if you look at it provides a trend of quarterly AUM uh average AUM. Our average AUM of for Q4 4:52 4 minutes, 52 seconds FI26 was 1 lakh 28,000 cr which grew by modestly.3% sequentially. This is particularly not worthy because market 5:01 5 minutes, 1 second fell by 14.5% during the same period. We managed to grow sequentially due to two reasons. First we recorded our highest 5:09 5 minutes, 9 seconds ever equity net sales in a single quarter of 4,300 cr. Second the quarter corre the market correction was largely 5:16 5 minutes, 16 seconds concentrated in the month of March. So on a year-on-year basis, our quarterly JVM grew by a healthy 26%. 5:24 5 minutes, 24 seconds Now please turn to slide 47. This slide shows how our equity AVM has moved both on a year-on-year basis and on a quarteronquarter basis. 5:38 5 minutes, 38 seconds So let us start with the year-on-year view on the left hand side of our slide. 5:42 5 minutes, 42 seconds Our equity grew by 15.4% during FI26. It moved from approximately 1 lakh 100 cr 5:50 5 minutes, 50 seconds in March 2025 to 1 lak 15,480 cr in March 2026. This represent an increase 5:57 5 minutes, 57 seconds of nearly 15,400 cr. Importantly, this entire growth has came from net new 6:04 6 minutes, 4 seconds money driven by our SIP flows and acquisition of indust. Now coming to quarteron quarter view on the right hand side. Equity declined by 8.2% during the 6:13 6 minutes, 13 seconds quarter. This was primarily due to marktomarket losses of 14,550 cr reflecting sharp market correction 6:21 6 minutes, 21 seconds during the period. However, the impact was partially cushioned by our highest ever quarterly net sales of 4,300 cr. 6:29 6 minutes, 29 seconds Notably, our mark to market loss of 11.6% was significantly lower than 14% correction seen in Nifty 500 index 6:37 6 minutes, 37 seconds reflect Ladies and gentlemen, the management 6:50 6 minutes, 50 seconds line has been disconnected. Please hold while we quickly get them reconnected. 7:00 7 minutes [music] 7:05 7 minutes, 5 seconds [music] 7:12 7 minutes, 12 seconds [music] 7:22 7 minutes, 22 seconds [music] 7:29 7 minutes, 29 seconds tree. [music] 7:39 7 minutes, 39 seconds [music] 7:46 7 minutes, 46 seconds [music] 7:53 7 minutes, 53 seconds [music] 7:58 7 minutes, 58 seconds [music] 8:05 8 minutes, 5 seconds [music] 8:12 8 minutes, 12 seconds [music] 8:19 8 minutes, 19 seconds [music] 8:25 8 minutes, 25 seconds [music] 8:28 8 minutes, 28 seconds Ladies and gentlemen, Thank you for being on hold. The management line has been reconnected. Thank you and over to you. 8:36 8 minutes, 36 seconds Sorry, I think the line was disconnected. So, I'm again starting with uh our consolidated financial slide which is slide number 51. Before that, I 8:44 8 minutes, 44 seconds have explained about the SIP growth. So, I think the uh the last slide of our presentation which is the I think that's very important one. So, let me just 8:52 8 minutes, 52 seconds again talk about the consolidated financials. So if you look at on a fullear basis, our mutual fund revenue growth at 21% is in line with our 9:01 9 minutes, 1 second quarterly average EUM growth of about 21.7%. 9:05 9 minutes, 5 seconds Despite impact of backbook repricing, our yield have remained more or less stable at 91 business point. Not only for the year but for last three years in a row. 9:15 9 minutes, 15 seconds So if you look at on a full year basis, our insurance revenue grew by 18%. This was on the back of a very strong growth in face premium with health insurance 9:23 9 minutes, 23 seconds growing by 35% and life insurance by 28%. The revenue growth was bit softer than the phrase premium growth laid by 9:33 9 minutes, 33 seconds rationalization of commission rates from 1st October 2025 in health insurance vertical on account of GST being in 9:40 9 minutes, 40 seconds reduced to nil rate and change in product mix of on uh life insurance vertical on account of strong growth in 9:47 9 minutes, 47 seconds both these key varicles total revenue from operation grew by 19.4% 4% and our commission and fee expenses which is a 9:56 9 minutes, 56 seconds very strong line item has also grew in the same line and the same pace at 19.8% on a full year basis excluding ESOPs 10:04 10 minutes, 4 seconds employee expenses during the entire year went up by 212%. 10:09 10 minutes, 9 seconds This is bit higher on back of indust acquisition and the cost related to all the employees of Indas and one-time provision related to labor code changes 10:18 10 minutes, 18 seconds which has came in uh last quarter with our annual incre incremental capex cycle now complete and our entire team's 10:26 10 minutes, 26 seconds review is also completed we expect that the employee cost for the existing base will increase by approximately 14% in 10:34 10 minutes, 34 seconds FI27 if I give you the indication that our salary bill has moved from 8.93 cr in March 2026 to 10.2 cr in April 2026. 10:45 10 minutes, 45 seconds Laid by a healthy operational performance, operating profit grew by 18.2% and operating margin were stable at a 23.6%. 10:54 10 minutes, 54 seconds Profit after tax was lower at 13.5% compared to operating profit growth mainly laid by a dent in other income 11:02 11 minutes, 2 seconds due to market correction in the month of March of 585 cr of our treasury investments 200 cr is sparked by us in 11:10 11 minutes, 10 seconds the balance advantage fund and hybrid SIS on account of steep market correction during the quarter other 11:17 11 minutes, 17 seconds income turned negative by 4.7 cr as compared to positive income of 9.5 cr in the preceding quarter. This resulted in 11:26 11 minutes, 26 seconds an overall drag on P&L for last quarter by approximately 13 to 14 cr. However, 11:33 11 minutes, 33 seconds all the losses on mutual fund portfolio have since reversed. Current gain on the mutual fund portfolio stand at 11:40 11 minutes, 40 seconds approximately 11.5 cr and if market remain at current level, I think by 30th June, we expect a very healthy income 11:48 11 minutes, 48 seconds from other income side. On a quarter-on- quarter basis, our revenue grew by 5.1% sequentially, laid by a 69% growth in 11:57 11 minutes, 57 seconds insurance revenue. Operating profit grew by 19.5% sequentially, aided by lower employee cost. Employee costs were lower 12:05 12 minutes, 5 seconds as variable pay provision required in the current quarter was lower compared to what was set aside in the preceding quarters. However, despite a very 12:13 12 minutes, 13 seconds healthy operational performance, profit grew at a stronger pace of 2.6% 6% due 12:21 12 minutes, 21 seconds at a slower pace of 2.6% due to negative other income as stated in the commentary above. Now shifting from our financial performance to the regulatory landscape. 12:31 12 minutes, 31 seconds CB has recently made changes in the total expense ratio and I would like to address uh a few points on that matter. 12:38 12 minutes, 38 seconds First point is that revised expense ratio which will now be inclusive of all statutory levies including GST. It's a 12:46 12 minutes, 46 seconds revenue neutral for those who are registered under GST. But the big advantage is that it removes the earlier anomaly where a GST registered 12:54 12 minutes, 54 seconds distributor earn less than an unregistered one. This creates a level playing field and helps smaller players 13:02 13 minutes, 2 seconds to join the prudent platform. So even though it's a revenue neutral as far as uh impact is concerned, strategically it 13:10 13 minutes, 10 seconds is a very very beneficial to us. We have aligned our payout structure in line with regulatory changes wherein rate will also be exclusive at over end and 13:18 13 minutes, 18 seconds distributor who raise a GST invoice we will be reimbursing him GST based on the invoicing invoice raised by them. The second point relates to the removal of 13:27 13 minutes, 27 seconds five basis point benefit in lie of exit load which has been in place since 2012. 13:33 13 minutes, 33 seconds This benefit which was available over and above regular TR has now been withdrawn by CD. While this represent a 13:40 13 minutes, 40 seconds cause for the entire industry, we would like to highlight that broader implication are still being discussed and negotiated at the industry level. We 13:48 13 minutes, 48 seconds expect greater clarity to emerge by end of this month and we will update our stakeholders accordingly once the picture is clearer. So to conclude our 13:56 13 minutes, 56 seconds fullear performance, FI26 has been very very satisfactory year for us. Despite two key headwinds, marktomarket pressure 14:05 14 minutes, 5 seconds in the mutual fund segment and yield rationalization in the insurance segment following the reduction of GST to zero. 14:12 14 minutes, 12 seconds Both our key business vertical delivered a close to 20% growth. This is a testament to underlying strength of our business model. A few highlight that 14:21 14 minutes, 21 seconds stand out for the year. Our equity net sales at 13,900 cr where the highest ever in the in the history. We added 14:29 14 minutes, 29 seconds 5,100 new partner during the year reflecting strong and healthy distribution expansion and our health insurance vertical continued to deliver 14:37 14 minutes, 37 seconds outstanding performance with phase premium growing at a 35%. So across the board our key parameters and the performance indicators have remained 14:45 14 minutes, 45 seconds robust and we are well poised uh as we move into FI27. So with that I'll open the floor for question answer. Thank you. 14:55 14 minutes, 55 seconds Thank you. We'll now begin the question and answer session. Anyone who wishes to ask question may press star and one on 15:02 15 minutes, 2 seconds your touchtone telephone. If you wish to remove yourself from the question Q, you may press star and two. Participants are 15:10 15 minutes, 10 seconds requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question Q assemble. 15:22 15 minutes, 22 seconds The first question is from the line of Swarna Mukerji from 361 Capital. Please go ahead. 15:31 15 minutes, 31 seconds Hi sir, good morning and uh thank you for the opportunity. Congrats on a great set of numbers. Uh three questions from my side. Uh so as you highlighted uh on 15:41 15 minutes, 41 seconds the uh you know the five basis point XP growth pass on uh you still awaiting clarity. I just wanted to understand I 15:48 15 minutes, 48 seconds mean I think the last time in the earnings call uh you it seems like that you know the expectation from your side 15:57 15 minutes, 57 seconds was that uh you know there will be a pass on what is what is the what is the factors why why this is taking time or 16:05 16 minutes, 5 seconds the lack of clarity is there if if you could highlight you know uh has there been any deviation va what was your expectation previously in terms of the 16:13 16 minutes, 13 seconds impact uh so that is the first question uh Second is if I were to look at your standalone P&L the fees and commission 16:21 16 minutes, 21 seconds expenses if we calculate as a percentage of the fees and commission income there is a drop in this ratio. Just trying to 16:29 16 minutes, 29 seconds understand this is a function of industriation and hence more direct revenue uh how how should we think about 16:36 16 minutes, 36 seconds it and uh on the life insurance side I mean what is driving the growth uh uh in this segment because as as far as we 16:45 16 minutes, 45 seconds understand that apart from retail protection I think the other segments uh which we do uh at the industry level has been depre. 16:55 16 minutes, 55 seconds So uh I wanted to understand that you know uh our our growth has been steady. 17:00 17 minutes So what what is what is helping there and also given that our fresh to overall 17:06 17 minutes, 6 seconds union mix has I think uh improved uh if I'm not wrong. So uh what is happening on the side? Do we do do we see any kind 17:15 17 minutes, 15 seconds of persistency related impact playing out there? Thanks. 17:22 17 minutes, 22 seconds So I think let me first of all address the second question related to your uh what you call the uh reduction in the uh or probably overall you are finding 17:31 17 minutes, 31 seconds visibly reduction in the brokerage payout percentage. So I can tell you there are two important points as far as the revenue is concerned. So if you look 17:38 17 minutes, 38 seconds at uh as you knew that product we have a annual additional trail which we pay to the partner based on their fullear net 17:47 17 minutes, 47 seconds need sales and uh the provision which we have made uh based on our assumption in first three quarter was sufficient 17:54 17 minutes, 54 seconds enough for us. Uh so that in the fourth quarter our provision was practically nil. So if you look at in the previous quarter there was a additional trail 18:02 18 minutes, 2 seconds provision of 5 and a half cr. Finally when when the final number arrived uh the in the quarter four the provision for that was uh zero. So there is a five 18:11 18 minutes, 11 seconds and a half cr of extra uh so lower expenditure because of that number one. 18:15 18 minutes, 15 seconds Number two I think we have been all the time telling as far as insurance is concerned that we provide the revenue in our books only when we have absolute 18:23 18 minutes, 23 seconds clarity and uh there is a uh related to full year revenue of addition about four four and a half cr has been recognized 18:32 18 minutes, 32 seconds by us in the month of March. So there is additional revenue of also about 4 and a half cr. So overall there's a 10 cr of extra revenue. I think that is the one 18:40 18 minutes, 40 seconds major item and probably the insurance revenue is also bit higher because there are some contest related money would have came from the insurance. all put 18:48 18 minutes, 48 seconds together I think uh that's the reason but my belief is that when you look at the overall uh uh commission cost you 18:56 18 minutes, 56 seconds should look at the fullear number which is more representative from the point of view of your model rather than the uh last quarter. So that is number one. 19:05 19 minutes, 5 seconds Number two you are talking about regarding the clarity from the uh AMC side about five bosses but is concerned. 19:11 19 minutes, 11 seconds I think u I think the large AMC has already communicated and I think we assume that at so overall we believe 19:19 19 minutes, 19 seconds that as far as uh new business is concerned our real might remain neutral on the book we are expecting about uh 19:26 19 minutes, 26 seconds two three business point impact uh as far as exit load related uh passon is the tier rationalizing but still couple 19:34 19 minutes, 34 seconds of AMC are yet to communicate clearly that's why I think we are not able to uh tell you exactly that what is going to be the impact As far as uh sharing this 19:42 19 minutes, 42 seconds with our distributed distributed partners are concerned consistently we've been maintaining this stand that we'll try to share uh as best as 19:50 19 minutes, 50 seconds possible and if not more at least in the existing ratio which you are are having as far as signing with them concern I think we'll be able to share that. So 19:58 19 minutes, 58 seconds these are the two questions I think raise two questions I'll tell probably sir to address about the life insurance and the uh there's another question also 20:07 20 minutes, 7 seconds sir sir just a follow up on uh on this one uh if I may so uh I mean uh in in terms 20:18 20 minutes, 18 seconds of the uh this uh you saying that it will be relatively neutral in terms of the flowy uh so how how does that play out I mean 20:27 20 minutes, 27 seconds in the flow wheel also would not there have been an impact at the at a individual level. 20:36 20 minutes, 36 seconds So I think there are two things one is uh AMC Z pricing on the existing book and uh and the their call on the new 20:46 20 minutes, 46 seconds business. So we believe I think Siri would be the right guy to also give you more clarity but I think based on the whatever indication we have till now I 20:54 20 minutes, 54 seconds think my new book pricing might remain more or less similar because GST component has already been adjusted. So it was a very neutral for us and five 21:03 21 minutes, 3 seconds days per impact is not on everybody and somewhere I think our impact will be might be more or less neutral as far as new rates are concerned on the old book I think still we'll have some impact. 21:15 21 minutes, 15 seconds Okay. So sir which is going to be repric and that so that we need to pass on. So there are two things old book whenever the impact will come to us we need to share with that with our distributed 21:24 21 minutes, 24 seconds partners. As far as new business is concerned our rate would be more or less neutral. So I think we we may not see a significant change as far as my payout also payout is also concerned. 21:33 21 minutes, 33 seconds Right sir and this in the question would be similar visa we say a national distributor like us and individual agent 21:41 21 minutes, 41 seconds I mean just wanted to understand that post that would we be at a similar competitive advantage with via AMC 21:49 21 minutes, 49 seconds passing on to their individual agents individual distributors. 21:55 21 minutes, 55 seconds So I think probably for us the biggest advantage from 1st of April is the GST rationalization itself because large 22:04 22 minutes, 4 seconds player in the industry are less than 21 lakh rupees as far as 20 lakh rupees is concerned as far as Leon is concerned. 22:10 22 minutes, 10 seconds So most of the player in the industry are non-registered non GST registered partner and they had a huge advantage of GST. Now with that advantage being gone 22:20 22 minutes, 20 seconds away, we will be very very competitive as far as what they used to get from AMC and what we used to offer. Now their yield their rate might remain the same 22:29 22 minutes, 29 seconds but because of GST being taken out I think their yield from AMC will come down by 15%. So automatically we are competitive by by almost 15% compared to the rate of AMC. 22:41 22 minutes, 41 seconds Right sir got it got understood. Yeah. 22:46 22 minutes, 46 seconds So city regarding the life insurance business what you asked about that how we could 22:55 22 minutes, 55 seconds grow better compared to the industry in the life insurance side. Two reasons I would say one definitely post 2023 in 23:02 23 minutes, 2 seconds our life insurance business were little muted because the higher ticket side flow completely majority of the higher ticket side flows died away. So last two 23:11 23 minutes, 11 seconds years I think business growth was not there. Of course we took some time to settle down and also to change the product mix what we what we used to 23:21 23 minutes, 21 seconds sell. So if you look at in this financial year the the new category I think we we were talking last few 23:28 23 minutes, 28 seconds quarters also that tulip category that term plus ulip category I think we have been pushing this category very very actively. So whatever we lost in terms 23:36 23 minutes, 36 seconds of life insurance business from the guaranteed plans what we try to recover through this particular product category and this year that category is the 23:44 23 minutes, 44 seconds biggest selling category in our system because historically we have been trying to sell thumb plans as well as on a 23:51 23 minutes, 51 seconds mutual fund equity or SIP way. So that tulip plants of uh the industry I think serves both the purpose which gives the 23:59 23 minutes, 59 seconds higher life cover as well as the exposure to equity and this product goes very well in our system and hence I think we could navigate uh this 24:07 24 minutes, 7 seconds particular uh business and we are very very confident that over time the tulip category will will do better in our system and probably that will help us 24:15 24 minutes, 15 seconds grow our life insurance business. So that that's the answer and s fourth question I think I don't think that any question was there question 24:24 24 minutes, 24 seconds if you look at the persistency uh is probably he's finding that persistence is a bit lower could it be because of phrase and new comp 24:32 24 minutes, 32 seconds composition or something else that was the question right and yeah yeah so by by my calculation the renewal growth rate has come off while 24:40 24 minutes, 40 seconds last year it was I mean the last year fresh growth was also better than the growth so I was just trying to understand that is there Persistency 24:47 24 minutes, 47 seconds issue or any way you can look at it in a different manner. No no persistency is still the highest. 24:53 24 minutes, 53 seconds I think still we are maintaining more than 94 95% of persistency. So there is no challenges on a persistent side. 24:59 24 minutes, 59 seconds Still we have maintained the same. So there is no challenges on that side. 25:04 25 minutes, 4 seconds Okay. So this is more like product use of ticket size blend. Uh come again. 25:15 25 minutes, 15 seconds So I I just wanted to check that you know would can this be like more a function of ticket size uh rather than you know as you said that is not a 25:24 25 minutes, 24 seconds challenge that the renewal renewal growth is bit tid 25:33 25 minutes, 33 seconds can you take this question are you there I think we need to also look at the data what you are referring maybe we can 25:40 25 minutes, 40 seconds connect you offline and then take it uh what data you are referring Sure. Sure sir. Definitely. Yeah. Okay sir. Thank 25:47 25 minutes, 47 seconds you so much. Thank you and all the best for 27. 25:53 25 minutes, 53 seconds Thank you. A reminder to all participants that you may press star and want to ask question. The next question 25:59 25 minutes, 59 seconds is from the line of Lit Mo from Equir Security. Please go ahead. 26:07 26 minutes, 7 seconds Yeah. Hi S good morning. Um so there's two questions. So firstly like as you mentioned that on the older book like we probably there would be an impact of 26:15 26 minutes, 15 seconds around two three basis point from the larger. So just wanted to understand like on the nongst distributors like all the partners which we have so are we uh 26:24 26 minutes, 24 seconds aligning our distribution rates for them as well on the older book or are we continuing with the old earlier rates 26:31 26 minutes, 31 seconds itself and so secondly can we can you give us the break up of like the new of the noninancial other 26:39 26 minutes, 39 seconds non other financial products income which is like around 30 35 crores for the pool year. 26:46 26 minutes, 46 seconds So I think as far as the rate alignment is concerned definitely our payout will also get adjusted as per how the AMC is 26:53 26 minutes, 53 seconds adjusted. So what we used to pay was the uh gross rate and now the rate would be aligned by uh date of GST on the book if 27:01 27 minutes, 1 second I'm talking about so I think that adjustment will definitely happen for the first time in our history it is happening that our payout is going to be delayed by few days this time because 27:10 27 minutes, 10 seconds still a lot of clarity is required from the AMC and we have not calculated for the month of April. So it would be difficult to give you any any clear 27:18 27 minutes, 18 seconds indication as far as numbers are concerned but yes the rate would be uh readjusted uh uh for uh so I think the 27:25 27 minutes, 25 seconds same definition would be followed by us we'll reduce the GST component and we'll probably pay the GST wherever GST invas 27:34 27 minutes, 34 seconds sure sir yeah and and should we believe that because of this rate alignment or the GST so the the 27:42 27 minutes, 42 seconds smaller distributors in the country like they will be at a very disadvantage. So, uh probably the growth or the additions or the newer channel partners at an 27:50 27 minutes, 50 seconds industry level might slow down uh like for the overall industry because of this or 27:57 27 minutes, 57 seconds so I think you you look at in both this I think probably they need to work a little bit harder because they had an advantage of 28:05 28 minutes, 5 seconds GST component which was otherwise also not a part of your remation and you were making little bit extra because of GST but you are right for the non-GST 28:14 28 minutes, 14 seconds partner ner I think across the board there is impact of 15 20% of the revenue and uh so we normally say that I think 28:22 28 minutes, 22 seconds it's a one-ear mark to market and you need to work a little bit harder but you are right and probably for us that is the biggest advantage also this year you'll see a lot of people getting 28:30 28 minutes, 30 seconds consolidated under the platform because uh their competitive to sustain independently will become questionable and they'll also want that all other 28:38 28 minutes, 38 seconds expenditures should be born by somebody rather than uh facing the custom dated so you are right I think we will see these more consultation opportunity in the industry. 28:48 28 minutes, 48 seconds Now coming to your question about the bifocation of our uh other financial revenue of uh 33 cr right that is what you're asking about. 28:56 28 minutes, 56 seconds Yes sir. Yes sir. 28:59 28 minutes, 59 seconds H so I think 22 cr has came from PMS 6 cr from fd. So 20 plus 6208 and raised 29:08 29 minutes, 8 seconds is probably small case and l and everything. So I think small small product but majority of the income is coming from mobilization through PMS. 29:18 29 minutes, 18 seconds So it's almost entire revenue other than FD which is about 56 cr is recurring in nature. 29:24 29 minutes, 24 seconds And I can tell you if you look at current year our revenue in the other product has not grown because last year there was about 6.7 cr revenue from 29:33 29 minutes, 33 seconds liquid loan which has probably discontin. 29:36 29 minutes, 36 seconds So if you remove 6.7 cr from last year my other pro revenue growth is almost about 34%. Which is visibly as of now 29:43 29 minutes, 43 seconds only 5% but if you struck out struck off the uh liquid loan from last year that growth is almost 35%. 29:51 29 minutes, 51 seconds Yes. Yes. Great. So, thank you. Thank you. 29:58 29 minutes, 58 seconds Thank you. The next question is from the line of Deepen Goo from CT. Please go ahead. 30:05 30 minutes, 5 seconds Uh, hi good morning everyone. Uh, so firstly in your presentation I see that there are around uh thousand MFTs who 30:12 30 minutes, 12 seconds are thousand plus MFTs who are um who can basically sell SIF. So just uh two questions on that front. uh one is uh 30:21 30 minutes, 21 seconds what would be the SIF flows in fourth quarter and if you can give some color on the yield construct uh for SIFS uh 30:29 30 minutes, 29 seconds versus let's say on the equity book that you have how does it differ uh the second question uh is uh on the life 30:38 30 minutes, 38 seconds insurance business now if I look at your um annual yields uh they seem almost similar maybe marginally lower uh 30:46 30 minutes, 46 seconds compared to last year despite 2 yields probably would have been lower because of the ITC impact. Uh now you mentioned in your pre uh you know in your in your 30:55 30 minutes, 55 seconds commentary that uh the term plus yearly product has piled up. So is it just a function of mix change or is there 31:02 31 minutes, 2 seconds something to read uh more into the numbers? Uh the third question um is on 31:09 31 minutes, 9 seconds uh you know is on the cash position. uh so uh I mean previously you have deliberated uh multiple you know organic opportunities you have also kind of 31:18 31 minutes, 18 seconds ventured and gone ahead with a few of them so anything uh else that uh would be uh you know you know uh um that that 31:27 31 minutes, 27 seconds one can expect going into FI 27 or 28 uh yeah those are my three questions 31:34 31 minutes, 34 seconds so let me answer about this third one first first two series will try and address so there as far as equity specific cousin it's a work in process 31:43 31 minutes, 43 seconds and continuously we have been exploring so nothing at a concrete uh state but I'm sure something uh I think it's in 31:51 31 minutes, 51 seconds the in the process we not say that something will happen in 27 28 but uh or 26 27 but definitely regularly 31:58 31 minutes, 58 seconds and we've been trying and exploring that opportunity all the time so about SF and LI 32:06 32 minutes, 6 seconds yeah so you asked about the flows in SF in last quarter. So we did around 90 32:13 32 minutes, 13 seconds crores kind of business in SIF in last quarter. So currently I think month we believe that we have attained a run rate 32:21 32 minutes, 21 seconds of around 2530 crores now and we strongly believe that this is still a new category for us and incrementally every month we strongly believe that 32:29 32 minutes, 29 seconds this monthly flow will keep on increasing on SF side. So today I think the industry has got around 6,000 unique 32:36 32 minutes, 36 seconds distributors who are certified to sell SIF and out of 6,000 almost thousand plus are done by prudent and working 32:44 32 minutes, 44 seconds with prudent. So that way we are very very confident on the same line the second question was how is the margin in 32:52 32 minutes, 52 seconds SIF versus other products. So probably the SIF margins are in line with mutual funds. So there is not much difference 32:59 32 minutes, 59 seconds between SF margin and the mutual fund margin. So you can consider SF as as part of the mutual fund sales or mutual 33:07 33 minutes, 7 seconds fund margin only going forward. So the margin in SF would be in line with mutual funds. So that is the second 33:14 33 minutes, 14 seconds point. Third point you asked about the yield experience in the life insurance side. So uh yield experience in the life 33:21 33 minutes, 21 seconds insurance side. I think few of the things would be positive, few of the things could be negative in the sense which can bring down our which has 33:28 33 minutes, 28 seconds brought down the yield. One is the ULIP category compared to the previous year the the ULIP sale has gone up by almost 33:37 33 minutes, 37 seconds six seven I think five six% I would say so you can see that the ULIP growth will bring down the uh yield in per se. So 33:46 33 minutes, 46 seconds that is one. At the same time I would say that the positive side post October definitely because of our quality of the 33:54 33 minutes, 54 seconds assets and the revenue the the mix of the product we could definitely uh maintain our uh commercials with the most of the insurance companies. 34:04 34 minutes, 4 seconds Obviously I think that is a positive sign. So per say I think we could maintain the life insurance yield. Of 34:12 34 minutes, 12 seconds course you definitely will bring down some kind of yield but otherwise I think other categories we could maintain the yield from the life insurance side. 34:19 34 minutes, 19 seconds Got it. Maybe just one small question which I'll squeeze in. Uh you mentioned that uh you know any repricing that 34:27 34 minutes, 27 seconds happens in the mutual fund yields uh the impact on bank book might be in the range of two to three basis points per your best guesstimate at this point of 34:35 34 minutes, 35 seconds time and you expect the incremental flows to largely be neutral. Now uh I just wanted to understand how the uh 34:43 34 minutes, 43 seconds economics works for you. Let's say you generate around 100 cr of flows for a particular mutual fund uh let's say in 34:49 34 minutes, 49 seconds the month of May 26. Uh let's say that comes in at uh let's say let's say 90 basis points of gross realizations. Now 34:57 34 minutes, 57 seconds let's say the customer stays in the ecosystem and the AUM compounds over the next 3 to four years. How are the trail commissions uh organized in this case? 35:07 35 minutes, 7 seconds if you can give some color on the uh economics of the business u after the initial uh money has come into the ecosystem. 35:17 35 minutes, 17 seconds So actually if you look at because the transaction level really is always defined. So for example today I have brought somebody's one lakh rupees 35:25 35 minutes, 25 seconds wherein I am earning let's say 90 basis point. So one is your back book as on the book as on 31st March hypothetically I'm assuming that my entire book is 35:34 35 minutes, 34 seconds going to be repriced by let's say lower than two basis point. So whatever the trans and so when I when it it's a question of income right say for example 35:41 35 minutes, 41 seconds Sanjay SA has given me a cr before five years and my uh my earning on that particular particular investment was 35:49 35 minutes, 49 seconds let's say 50 bullet point now it will come down to 48 basis point that is one part of the story as far as backbook is concerned regarding the existing business which I I've told you that I 35:58 35 minutes, 58 seconds don't see a significant change as far as by earning is concerned because one was repricing backbook another was taking a call on the new business and current 36:05 36 minutes, 5 seconds indication is such that uh I might have an impact of truth business in the back book but not into the new business. If 36:12 36 minutes, 12 seconds you look at the my book and the new business I think uh uh probably uh if you look at gross to net ratio of 50% we 36:21 36 minutes, 21 seconds are expecting that this year my gross sales has to be in the range of 30 35,000 cr on a total you know of one lakh 30,000 cr. So my net new sales is 36:29 36 minutes, 29 seconds always in the range of 20%. So probably you might see that my book virtually would 20% book might get repriced by end of the year 36:37 36 minutes, 37 seconds but then as long as the money remain into the system I think we'll continue to enjoy the same rate unless there is a change in the backbook repricing 36:46 36 minutes, 46 seconds otherwise we'll continue to have the same rate because the rate is mapped to a particular transaction whether it is a,000 rupees sip or a 1 cr lump sum 36:55 36 minutes, 55 seconds okay so could be no I I think I get that so just two kind close the argument. We are saying that 37:02 37 minutes, 2 seconds if you get let's say 1,000 cr rupees today at let's say 90 basis point gross yields and the money stays in your ecosystem for next 10 years the yields 37:11 37 minutes, 11 seconds will be 90 basis points as long as there is no oneoff backbook repricing like uh some of the did last year or last year 37:19 37 minutes, 19 seconds perfect absolutely got it sir uh thank you and all the 37:27 37 minutes, 27 seconds thank you a reminder to all participants that you may press star and want to ask question. 37:33 37 minutes, 33 seconds The next question is from the line of pri Jane from Motila Losol. Please go ahead. 37:40 37 minutes, 40 seconds Yeah. Hi. Uh so joining a bit late. I don't know whether this point has been discussed. Uh so one is the GST impact 37:48 37 minutes, 48 seconds that is there and the second is the exit load impact. Uh the five basis points going away. Uh now whenever you consider 37:55 37 minutes, 55 seconds the passing it on passing it on to your distributors what is the thought process that student has with respect to 38:04 38 minutes, 4 seconds maintaining its margin whether it is the absolute spread that you would you would earning. So for example, if you're 38:12 38 minutes, 12 seconds earning 90 bits and earlier you were giving 70 bits to the distributor you were earning 20 bits. Now that goes to 38:18 38 minutes, 18 seconds 88 bits, you would maintain that 20 bits and give 68 bits or would it be on a percentage basis? How does that how does 38:26 38 minutes, 26 seconds the company think about passing it on to the distributors? 38:33 38 minutes, 33 seconds So I think we you are right before you joined we tried to discuss about the how are we going to manage the uh the 38:40 38 minutes, 40 seconds changes which are going to happen. So one thing is we just wanted to communicate that whatever AMC has done for the distributors as far as changing 38:48 38 minutes, 48 seconds the rate is concerned because previously your rate was let's say for example 1% includes of GST they have reduced they have the revised rate would be 85 basis 38:56 38 minutes, 56 seconds point and whoever is a part of GST has to raise an invoice for that. So the similar impact would be at our end also. 39:02 39 minutes, 2 seconds However, we'll not be able to crystallize uh anything in the monetary terms because here the April calculation is pending. So that is uh I think that's 39:11 39 minutes, 11 seconds that's the answer to your question. And second question you said about the exit lot also I think we are expecting 39:18 39 minutes, 18 seconds roughly about so then in case of exit lot also if you look at the back book and the new business which will be mobilized. So we assume that as far as 39:26 39 minutes, 26 seconds book is concerned there might be impact of two to three basis point on the entire am on a weighted basis. This is also a presumption because still couple 39:34 39 minutes, 34 seconds of AMC yet to be closed but I'm assuming it will be in the range of two to three basis point and that also we'll try and share with our distribution partners the 39:42 39 minutes, 42 seconds way we used to share uh either in absolute terms or in in in form of a percentage sharing. So I think that is 39:48 39 minutes, 48 seconds uh about the uh exit load impact on the existing book. I think the in the new business uh current indications are such 39:57 39 minutes, 57 seconds that probably our yield would remain more or less similar and we do not see a significant change as far as my new uh yield is concerned and hence probably uh 40:06 40 minutes, 6 seconds the overall uh my pricing strategy also would remain the same. 40:12 40 minutes, 12 seconds Got that uh answer and sir you know the other part was the skip run rate and stickiness or S skip new generation now 40:21 40 minutes, 21 seconds that the SIP returns have kind of you know been uh one year SIP returns have been very moderate for the last I think 40:29 40 minutes, 29 seconds many months now and it's reflected in your numbers as well the SIP momentum has slowed down uh what what are the 40:36 40 minutes, 36 seconds ground pillars that you're getting with respect to SIP momentum going ahead finish. 40:45 40 minutes, 45 seconds So in terms of new registration last financial year we have done the highest gross registration in terms of new ship. 40:52 40 minutes, 52 seconds So that way yes I think you can say that I think post February mid and that time I think yes 41:00 41 minutes we have seen some kind of low reduction in the new se registration but uh annualized basis we have done the 41:07 41 minutes, 7 seconds highest ever se registration new se registration uh regarding the termination or the cancellation obviously I think the last 41:15 41 minutes, 15 seconds financial year we have seen that higher termination compared to uh the previous year obviously when the market returns 41:23 41 minutes, 23 seconds are not that great. Two years SIP are not delivering great returns. Two things happen. Uh the new registrations come 41:30 41 minutes, 30 seconds down little bit and cancellation increases little bit. So considering both these things uh definitely the cancellation has gone up in last 41:38 41 minutes, 38 seconds financial year compared to the previous year. But as I said that the gross has helped to grow kind of returns continue for longer 41:47 41 minutes, 47 seconds time. Definitely there could be some impact on the new SE and the cancellation both. Having said that 41:56 41 minutes, 56 seconds experience of investors the confidence level of investor is much much different compared to what it used to be earlier. 42:03 42 minutes, 3 seconds So hence we have seen the trend that the cancellations are low and still the investors are giving more money. But again that depends how the market 42:11 42 minutes, 11 seconds returns in next one year. As of now we are very very confident. 42:15 42 minutes, 15 seconds about that. So my other question was on your overall uh revenue profile uh you know how do you see that revenue profile 42:24 42 minutes, 24 seconds between insurance and other financial products? Obviously that mix has uh gone through you know some changes over the 42:32 42 minutes, 32 seconds last few years. Uh how do you see this uh changing in the say next 3 years? Do you think that you know these uh all the 42:40 42 minutes, 40 seconds new businesses uh can scale up materially from here on and what would be the your dependence on mutual funds will uh go down. How how do you how do 42:49 42 minutes, 49 seconds you see the mix panning out in the next two three years? 42:53 42 minutes, 53 seconds So currently other revenue other product revenue is very very significant if I exclude the insurance side. So obviously I think there is lot of scope to grow uh 43:02 43 minutes, 2 seconds the other product revenue as Sanjay said earlier that if I exclude the liquid on which product is not there now last year other product revenue growth was around 34 35%. 43:12 43 minutes, 12 seconds Uh and PMS contributes the highest one. 43:15 43 minutes, 15 seconds Obviously as we know that I think PMS business is also kind of cyclical when the market return details are not that great PMS sales also comes down. So 43:22 43 minutes, 22 seconds assuming in a normal scenarios we surely believe that uh the PMS, AIF and the FD which are the new products for us in the 43:29 43 minutes, 29 seconds alternate side definitely it is going to grow drastically in our system as well. 43:35 43 minutes, 35 seconds Sif is a new product category though we consider or treat SIF as a part of mutual fund only but incrementally SIF 43:43 43 minutes, 43 seconds is definitely going to contribute a lot in our system. Insurance yes we are very very bullish on specifically health 43:50 43 minutes, 50 seconds insurance side. So that component also may grow but this financial year we might may see some kind of yield reduction in insurance because regulator 43:58 43 minutes, 58 seconds is talking about rationalizing the commission or not. But having said that mutual fund uh business we are very very 44:06 44 minutes, 6 seconds confident that we will grow it though the base is very high still it will grow but all the products what we have introduced in last four five years may 44:14 44 minutes, 14 seconds grow faster than the mutual fund in terms of percentage but there's no clearcut indication that what would be the percentage share of other products versus mutual fund because we want to grow mutual funds as well. 44:26 44 minutes, 26 seconds Got that. And last question sir uh you know the MSB uh business has seen uh you know many 44:34 44 minutes, 34 seconds players coming in. Uh so do you think that the competitive intensity to acquire MSDS uh as well as the rates 44:42 44 minutes, 42 seconds that one needs to share with uh these MFDs that could be a challenge going ahead? how you are seeing the 44:49 44 minutes, 49 seconds competitive environment uh amongst different types of player different types of national distributors and because many players are getting into 44:57 44 minutes, 57 seconds B2B2C mutual fund distribution now so do you think that that the competitive intensity will be high in terms of sharing and that could impact especially 45:06 45 minutes, 6 seconds on the new close front because backbook takes almost a year to transfer but at least on the new flow front people can share significantly higher and take away 45:14 45 minutes, 14 seconds some MSV or incremental share could be lower for How do you see the environment there? 45:20 45 minutes, 20 seconds Uh price now the new competitions are not new. Last year the same question definitely would definitely we could have said that they 45:28 45 minutes, 28 seconds are new. Now they are already 2 years old. The competition is there for last two years. We have experienced what they they are doing and what we are doing in 45:36 45 minutes, 36 seconds last two years. Uh having said that last last that is 25 26 we have seen all these competition. But if I tell you 45:44 45 minutes, 44 seconds that my uh equity gross sales was the highest ever, equity net sales was the highest ever. Equity gross new SIP 45:53 45 minutes, 53 seconds registration was highest ever. My health insurance business was highest ever. My life insurance business was second highest ever. So obviously the 46:00 46 minutes competition comes we have to be mindful but to be very honest we have not seen any big impact or the any impact on in 46:09 46 minutes, 9 seconds terms of business. we are very very uh I would say alert what they are doing and what the competition can do it. But the other side of this coin I would say that 46:18 46 minutes, 18 seconds because of so many B2 B2 B2C platforms I think more and more MFDs are becoming aware about the advantages of platform. 46:27 46 minutes, 27 seconds So we also get this in indirect advantage of platforms be being more popularized. So obviously that is a bigger advantage. Then I think the worry 46:36 46 minutes, 36 seconds about these guys will pay more brokerage and will take the distribution. And now I think specifically from April onwards 46:43 46 minutes, 43 seconds I think the level playing field with the AMC's ident especially for the smaller distribution. I think the market for the platform business is going to become 46:51 46 minutes, 51 seconds very very big. So we are not worried about what this competition will take something but rather I would say that the market has become bigger and bigger. 46:59 46 minutes, 59 seconds I think how we can get the maximum pie out of the growth opportunity in the market. So that is how we consider. 47:05 47 minutes, 5 seconds Got that. Thank you. 47:10 47 minutes, 10 seconds Thank you. The next question is from the line of Gor of Chen from ICICI Pro Credential Mutual Fund. Please go ahead. 47:19 47 minutes, 19 seconds Sir, thank you for taking my question. Just one question from my side on indust capital acquisition. uh if you can 47:26 47 minutes, 26 seconds highlight uh how much AUM we have been able to retain if there is any attration or outflow we have seen on that front is 47:33 47 minutes, 33 seconds one and second do you think uh there can be further such uh acquisition uh potential opportunities which we can 47:40 47 minutes, 40 seconds find in the market that is all from my side sir thank you 47:50 47 minutes, 50 seconds so if I you taking sorry Yeah. No, I'll just talk about the indust then probably you can just cover. So I just talking about 47:58 47 minutes, 58 seconds the indust as an acquisition. So I just say that indust the the experience has been very very positive. Uh we 48:05 48 minutes, 5 seconds communicated that we acquired 285 cr was the amum when we were supposed to acquire and finally I think 10 15 cr 48:13 48 minutes, 13 seconds here and there we got roughly about 260 cr in our code by end of September. And if I tell you the latest number the is 48:20 48 minutes, 20 seconds 12 2250 cr. It has grown in line with my overall AUM growth and the uh gross sales, net sales, SIP book everything 48:30 48 minutes, 30 seconds has been reasonably great. I think the retention of mentor is absolute. 48:34 48 minutes, 34 seconds Everybody is there. Not a single person has left. The senior guy who managing the business is also very very settled into the system. So overall if you look 48:42 48 minutes, 42 seconds at on all key parameters I think the experience uh adaptability client adaptability we have couple of uh uh 48:49 48 minutes, 49 seconds discussions with the client also. So overall it's a very very satisfactory thing. Regarding uh another acquisition I think I already try and address that 48:57 48 minutes, 57 seconds it's a work in process. We regularly try and assess. So nothing is concrete. So I'll not say that something is definitely going to happen in next 3 49:04 49 minutes, 4 seconds months but uh it's always a regular agenda for us to scout and look for some good acquisition. Yes sir. 49:11 49 minutes, 11 seconds I think you answered both. 49:15 49 minutes, 15 seconds Got it sir. Thank you so much and all the best. 49:20 49 minutes, 20 seconds Thank you. The next question is from the line of Abhijit Sar from Kotak Securities. Please go ahead. 49:28 49 minutes, 28 seconds Uh good morning everyone. Uh so my first question uh is on uh slide 32 just wanted to check what is the AUM 49:37 49 minutes, 37 seconds share of NFTs with more than 10 crores of AUM. I don't know if that number is disclosed anywhere else in the presentation. 49:46 49 minutes, 46 seconds I think there is a slide if you look at more than 10 crater showing up on my 49:56 49 minutes, 56 seconds number 32 where we say that we have 2,220 people as of March who has cost 10 50:04 50 minutes, 4 seconds crum and and there so I think we have not provided the AUM but if you look at the 50:11 50 minutes, 11 seconds average so I probably we can use the number Okay. And so just qualitatively just just qualitatively Sanjay sir uh of 50:20 50 minutes, 20 seconds the MFDs that you're acquiring how has been the direction in terms of firstly at what AUM level they are joining the 50:27 50 minutes, 27 seconds platform and has it changed materially in the last two to three years. 50:34 50 minutes, 34 seconds Basically NFD is joining have two categories one new to industry and secondly the existing distributor. 50:42 50 minutes, 42 seconds uh almost I would say that 40 to 50% of the MFDs joining us I think we convert them from other and bring them in the 50:50 50 minutes, 50 seconds mutual fund industry so practically they start at zero AUM zero mutual fund cliental and everything and that is what we build upon uh as I said I think other 51:00 51 minutes 50% who joins us from the industry I think they vary from zero AUM to even 100 crum or 200 cr aum many of the 51:08 51 minutes, 8 seconds binkies don't join us for the mutual fund business they join us for alternate product or the insurance business this kind of product and when their 51:16 51 minutes, 16 seconds experience becomes better they join us or they start they may start doing mutual so would not be any single answer 51:24 51 minutes, 24 seconds that at what aum distributors join so it's it's an it's a different uh definition 51:31 51 minutes, 31 seconds that's alternatively is there a leakage in terms of let's say somebody crossing let's say 100 crores or any such number 51:39 51 minutes, 39 seconds after which they want to venture on their Oh, that's we still not at that stage to be very honest after 100 K till date 51:47 51 minutes, 47 seconds I don't remember any any MFD who has left but yes the leakage specifically in the 51:54 51 minutes, 54 seconds range of 10 or 20 KES earlier and again that I would yes we have not seen that kind of plastically 52:01 52 minutes, 1 second got it very for any MFD to move out after attending a certain scale all their customers are on funds moving their all 52:09 52 minutes, 9 seconds the split from Y platform becomes very very bigger the scale it's for the any MMD to 52:18 52 minutes, 18 seconds move out of any platform got it sir thank you so much 52:26 52 minutes, 26 seconds thank you the next question is from the line of Jan Kosh from city please go ahead hi so uh sorry just a few followups from 52:35 52 minutes, 35 seconds my side one is if you can quantify the employee number as of on March 31st. Uh 52:43 52 minutes, 43 seconds second uh you know given all the discussions around MF ELS uh will be possible to uh give some color on what 52:51 52 minutes, 51 seconds are the incremental ills uh currently 31st March is concerned the precise 53:01 53 minutes, 1 second number is 1540 people uh and their new salary bill would be I said about 10.2 2 cr. So that is about the entire number 53:09 53 minutes, 9 seconds of employees. Regarding the new business yield, it will be difficult because still like as I told you that uh and then the yield also vary based on the 53:18 53 minutes, 18 seconds composition which segment more money will come, which uh scheme more money will come. So it's not a single answer that uh because you you knew right 53:27 53 minutes, 27 seconds because if the more money comes in largest scheme of B or the smallest scheme of B I think the Y difference would be almost about 30 40 basis 53:36 53 minutes, 36 seconds points. to give you an indication that what is likely to be the blended it will be very very difficult and that probably and normally we are difficult to give 53:44 53 minutes, 44 seconds you about the book yield and the existing business normally it's very difficult for us to um and normally we do not communicate also that number 53:53 53 minutes, 53 seconds uh thank you and all the best thank you the next question is from the 54:00 54 minutes line of Gav Cheni from Prauas Leiladar please go ahead 54:07 54 minutes, 7 seconds Uh thank you sir. So just uh two questions. So just to simplify I mean your MF distribution yields would kind 54:14 54 minutes, 14 seconds of uh probably you know uh go down a bit right would that be offset by the fees and commission right? Uh so is that a 54:22 54 minutes, 22 seconds correct way to understand and hence would we be able to maintain our uh net uh yields is is the first question. 54:33 54 minutes, 33 seconds So I think overall my yield should remain in the model I so my yield should not come under any compression because u 54:40 54 minutes, 40 seconds on the book uh other than GST we might see a two three business point impact which to a large extent we should be able to share with our distribution 54:49 54 minutes, 49 seconds partners and the new business I told you that I don't see any change as far as my yield is concerned so overall my book yield should remain static I think 54:58 54 minutes, 58 seconds whether my earning how it will get adjusted would be I'll be able to tell you only once entire thing is implemented into the system. But somewhere we should see a improvement in 55:06 55 minutes, 6 seconds our yield as far as my overall yield is concerned. So you mean the net yield? 55:13 55 minutes, 13 seconds Yeah, net yield should be positive. 55:15 55 minutes, 15 seconds Overall yield should remain more or less static. the two things my earning let's say today I'm earning 91 basis point for example as on 31st March my belief is 55:25 55 minutes, 25 seconds that in April on the total book my yield might probably move by about one one and a half basis point on the total two 55:31 55 minutes, 31 seconds basis point but overall my my f because I'll be able to sharing I'll able to share this with my partner also so overall my earnings should not be should 55:40 55 minutes, 40 seconds not go down in any case I think I should be able to protect my overall earning yield which is what I was trying to get at sir I I got your uh so appreciate that. Uh 55:49 55 minutes, 49 seconds and the lastly uh you know what will be what is the expected uh uh ESOP cost uh 55:56 55 minutes, 56 seconds in the upcoming year? This year it was I think 3.3 cr also. 56:02 56 minutes, 2 seconds So last year it was about 6.7 cr or let's say it was 7 cr on annualized basis. I think I assume that it has to 56:09 56 minutes, 9 seconds be linked to the stock price because at 2,600 rupees I think the cost was roughly about 7 cr. So probably I don't 56:17 56 minutes, 17 seconds know what the price of the share but one thing is clear we have decided that every September or October we are going to uh announce the ESOP now because so 56:26 56 minutes, 26 seconds that we can have next four quarters continuous emotization and there should not be any spill over into the uh so there should not be double uh pro 56:34 56 minutes, 34 seconds provisioning on a particular quarter. So now more or less probably number of sales might change by few sales here and 56:41 56 minutes, 41 seconds there but so probably you can assume that cost might go up by 15 20%. 56:54 56 minutes, 54 seconds So yet if let's say this time the cost is likely to be 7 cr next year it could be 8 and a half cr 57:02 57 minutes, 2 seconds I not gone to the board I'm just ballpark number you cannot take it as a projection but I'm just giving my thought 57:10 57 minutes, 10 seconds understood sir correct me if I'm wrong you mentioned that total employee cost would grow by 15% in F27 right 57:18 57 minutes, 18 seconds yes existing not the total cost my existing employee salary which used to be 8.93 cr 57:26 57 minutes, 26 seconds in March would be 10.1 cr in the April same people who has were on the books so I'm not talking about the April maybe 57:34 57 minutes, 34 seconds join so I'm not talking about their salary the guy who was with me on 31st month his salary has been revised on 1st of April and that that growth is about 57:42 57 minutes, 42 seconds 14% Understood. Perfect. Thanks a lot. I appreciate your input. 57:52 57 minutes, 52 seconds Thank you. The next question is from the line of Lit Mo from Mur Securities. Please go ahead. 57:59 57 minutes, 59 seconds Yeah. Hi. Just two uh followup questions sir. U so like in the last quarter we had mentioned that uh like the AM coming from the top five AMCs were in the range 58:08 58 minutes, 8 seconds around 50 51%. Um now I just want to understand like from a flow perspective what where could that number be and also 58:17 58 minutes, 17 seconds uh uh like um within the total of around 1.3 lakhs like could you just bifurcated between the direct channel AM and like 58:26 58 minutes, 26 seconds the part AM coming from the from the partners level 58:35 58 minutes, 35 seconds basically five AMC as you said contribute around 50% of M and uh between direct and uh the 58:44 58 minutes, 44 seconds regular channel I think the ratio what we maintained earlier also that still continues as it is around after in this acquisition uh it has changed little 58:53 58 minutes, 53 seconds right now it is 9010 so 90% contribution comes the AUM 90% of the contribution is from our uh B2B B2C channel and around 59:02 59 minutes, 2 seconds 10% contribution is from the direct plus indust channel yes sir wish you talk about the new 59:10 59 minutes, 10 seconds flows. If you talk about the new flows, uh new flows it would be around you can say 6 to 7% coming from the direct 59:17 59 minutes, 17 seconds channel and almost 30 93 94% coming from the B2B2C channel. 59:23 59 minutes, 23 seconds Okay. and see like from the top five AMC's contribution from from a globe perspective. after the it does similar there's hardly any 59:31 59 minutes, 31 seconds change there will be a change of one or two% because new AMC's coming in they might eat into some kind of uh share in from the bigger AMC's but uh if you look 59:41 59 minutes, 41 seconds at the share of in the business and share in the AUM of course there would be the new business share would be little lesser than the AUM share but there's no drastically different uh 59:50 59 minutes, 50 seconds because as I said new AMC's will into the existing uh uh assets of the bigger AMC's but there's no meaningful difference You can highlight. 1:00:00 1 hour Sure sir. Y thank you sir. 1:00:05 1 hour, 5 seconds Thank you. The next question is from the line of Sankit Gora from Aendas Park Institutional Equities. Please go ahead sir. 1:00:13 1 hour, 13 seconds Yeah. Uh thank you for the opportunity. 1:00:15 1 hour, 15 seconds uh uh sir my uh means if I look at the graph flows numbers in the current month uh current quarter uh it seems to be 1:00:24 1 hour, 24 seconds more driven by by by the lumpsum number rather than the sip which has been pretty stable. So, so just wanted to 1:00:31 1 hour, 31 seconds understand whether this amount came predominantly when the market corrected and and is it fair to say that uh uh it 1:00:39 1 hour, 39 seconds might not repeat if the market come back and and and therefore we can go back to that uh lumpsum number around 4,000 odd 1:00:46 1 hour, 46 seconds cr instead of 5,300 cr figure what you experience in the current quarter and and just wanted to understand whether it came in the month of March or or it was more uniformly distributed. 1:01:00 1 hour, 1 minute So basically I think whenever market corrects the initial phase we historically we have seen that the lumsum money takes advantage of the 1:01:07 1 hour, 1 minute, 7 seconds market and hence the lumsum flows would be higher than the sip flows during that period year. Uh long-term I think always you would see that currently in our 1:01:16 1 hour, 1 minute, 16 seconds system almost it is 50 50% kind of number. So uh long-term I think 50% contribution comes from kind of SIPs and 1:01:23 1 hour, 1 minute, 23 seconds almost similar from the number overnight my SIP numbers cannot change. So tomorrow market corrects obviously I 1:01:31 1 hour, 1 minute, 31 seconds think lumsum will take it over in terms of share and tomorrow if the market is and longer term if the market is not doing that great that time we will see 1:01:38 1 hour, 1 minute, 38 seconds that the new flows or the phrase flows will will come down significantly and that time you will see that the SIP sales is much much higher than the 1:01:47 1 hour, 1 minute, 47 seconds new new sets but long-term I think currently system is 50/50 specifically you talk about whether the flow has come in the month of March or 1:01:55 1 hour, 1 minute, 55 seconds April I would say that the difference in Jan March If I look at the phrase flows hardly any difference I think of course 1:02:03 1 hour, 2 minutes, 3 seconds there was a difference of around 100 cr you can say around 10% deviation in the Jan 5th March number but you can't say that I think the March number was 30 40% 1:02:11 1 hour, 2 minutes, 11 seconds higher than my January number so it was hardly 100 cr in Jan and March number so yes there was a 1:02:17 1 hour, 2 minutes, 17 seconds difference but not much understood sir and and and the and the second question is is is predominantly 1:02:26 1 hour, 2 minutes, 26 seconds on the SIP market share uh uh uh that monthly SIP market share if I see it it's been stuck in that zone 1:02:33 1 hour, 2 minutes, 33 seconds of 3.5 to 3.7 kind of a number um just just wanted to understand um I mean mean this paying is coming from more other 1:02:42 1 hour, 2 minutes, 42 seconds platform companies uh where we are not able to expand market share it's not paying but but we are not able to expand the market share uh is it largely coming 1:02:49 1 hour, 2 minutes, 49 seconds from the other platform companies or or is it more more people choosing to take direct in your view sir 1:02:57 1 hour, 2 minutes, 57 seconds definitely I think you would see that more and more people in the industry market share of direct is increasing. So 1:03:04 1 hour, 3 minutes, 4 seconds when you are comparing the share only on a total SIP registration if you are saying that we have maintained in a 1:03:12 1 hour, 3 minutes, 12 seconds scenario wherein the overall share of direct is increasing that way you you yourself is saying that I think we are gaining the markets in a regular plan. 1:03:19 1 hour, 3 minutes, 19 seconds So that says that we are not losing the share to other competition platform or other regular plan platforms on that particular space we are gaining the 1:03:28 1 hour, 3 minutes, 28 seconds market share but when we are talking about the overall industry yes I think the share is maintained understood absolutely right but but any 1:03:37 1 hour, 3 minutes, 37 seconds any number you have in mind sir like like this number should be at least four or four percentage four and a half percentage in medium-term as a market share 1:03:45 1 hour, 3 minutes, 45 seconds so practically I think we don't target this kind of number but of course I We keep on tracking the growth or the share 1:03:52 1 hour, 3 minutes, 52 seconds month on month or quarter and quarter and I think every month it is at least few point higher than the previous one. 1:04:01 1 hour, 4 minutes, 1 second So I think we are on the that zone that I think we are growing but specifically if you say that are we targeting 4% 5% of the market share that way I think 1:04:10 1 hour, 4 minutes, 10 seconds because direct I will not be able to control how the direct goes how how many platforms will become stronger on the direct side. I think it is anybody's 1:04:17 1 hour, 4 minutes, 17 seconds guess to say but yes I think always there is a focus that we should be able to increase the market share in the to overall industry and specifically on a 1:04:25 1 hour, 4 minutes, 25 seconds regular plan but no number in mind okay understood sir and and lastly on on this uh due to GST thing the unorganized 1:04:34 1 hour, 4 minutes, 34 seconds uh MFDs who probably don't pay uh GST in your assessment how big is that number 1:04:42 1 hour, 4 minutes, 42 seconds uh or or how much am managed by them and and if they come on the platform and if we take a bit of market share very similar to what we have today. Uh maybe 1:04:51 1 hour, 4 minutes, 51 seconds maybe too early to tell but but just just any any numbers you have in your mind how many people are there how much of AM is given by these guys managed by 1:05:00 1 hour, 5 minutes these guys and if they come to our platform how much potentially bump up we can see in the AM in that sense. 1:05:07 1 hour, 5 minutes, 7 seconds So here definitely one thing is very clear that the competitiveness of platform has increased compared to what 1:05:13 1 hour, 5 minutes, 13 seconds it was last year. Now how this will play out. I think only the time would say I 1:05:20 1 hour, 5 minutes, 20 seconds don't have any uh exact number on the industry side that what percentage of the AUM these GST nonGST guys were 1:05:28 1 hour, 5 minutes, 28 seconds contributing but I think AMC's would be the right person or the RTS would be the right person to give you the number but I think what I understand again I think 1:05:36 1 hour, 5 minutes, 36 seconds I would say that is not the authenticate number but what I heard in the market maybe around 15 to 16% of the AUM is contributed by non GST registered 1:05:44 1 hour, 5 minutes, 44 seconds partner. Now whether this is the entire industries or only MFTs even I'm not too sure right now. So in terms of number of distributors would be much much higher 1:05:53 1 hour, 5 minutes, 53 seconds but the contribution in terms of overall AUM definitely would be much lesser than what uh it looks like. So of course it's an 1:06:01 1 hour, 6 minutes, 1 second opportunity for all the platforms that these uh non-registered distributors may join them but it is not 1:06:10 1 hour, 6 minutes, 10 seconds only nonregistered distributor. I think I would say that the entire industry for that particular matter the platform competitiveness has increased whether it 1:06:19 1 hour, 6 minutes, 19 seconds is non-registered or the registered so only thing how it plays out I think let's see I think after one year we'll be able to see that how it works 1:06:27 1 hour, 6 minutes, 27 seconds understood sir uh thank you thank you that's it for me thank you as there are no further 1:06:34 1 hour, 6 minutes, 34 seconds question from the participants I now hand the conference over to Mr. Sanjaya for closing comments. 1:06:43 1 hour, 6 minutes, 43 seconds Thank you. Thank you everyone. I think we probably tried to address all the queries. However, if you any question, you can definitely reach out to our IR 1:06:50 1 hour, 6 minutes, 50 seconds guy parik who will be happy to answer all your questions. Thank you very much. Thank you. Thank you. Thank you. 1:06:57 1 hour, 6 minutes, 57 seconds Thank you. 1:06:59 1 hour, 6 minutes, 59 seconds Thank you. On behalf of Aventus Park Institutional Equities Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.