RNFI Services Ltd — Q3 FY26

RNFI Services Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=EqSJ9yha5Ns Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the Q3 and 9 months FI26 earnings conference call of RNFI 0:08 8 seconds services limited. From the management we have today Mr. Siman Singh founder and chief strategy officer, Mr. Krishna Daga 0:16 16 seconds CEO, Mr. Nimsh Kandelwal, CFO, Mr. Mohit Chan, company secretary, Mr. Deepankar Agarwal, executive director. As a 0:26 26 seconds 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. Please note that this 0:35 35 seconds conference is being recorded. This conference call may contain forward-looking statements about the company which are based on the belief, opinions, and expectations of the 0:43 43 seconds company as on date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to 0:51 51 seconds predict. I now hand the conference over to Mr. Simran Singh, founder and chief strategy officer. Thank you and over to you sir. 1:00 1 minute Welcome everybody. Uh thank you for joining the call. Uh 1:07 1 minute, 7 seconds I'll just give you a few updates what has happened before starting the presentation between the Q2 and Q3. 1:13 1 minute, 13 seconds Basically uh we completed 10 years of our journey. Uh the first five years 1:20 1 minute, 20 seconds were all building up right from the scratch like a new car with new tires, new engine and then the next three years 1:29 1 minute, 29 seconds we started making some good money and then putting that money back into it back into the car making it develop 1:35 1 minute, 35 seconds motheron. Then the IPO gave us IPO funds gave us a further fuel to start our expansion in a very rapid mode and uh 1:44 1 minute, 44 seconds we've started growing very very fast and we expect to grow more massively in the 1:51 1 minute, 51 seconds coming few years with your support and guidance for sure. U 1:59 1 minute, 59 seconds compared to the Q2 I would like to give you start a few updates which we had discussed last time. Um we had discussed 2:07 2 minutes, 7 seconds about starting insurance telemarketing call centers which we have started and uh we have invested into uh them into 2:15 2 minutes, 15 seconds the last quarter and expect them to start making good money for us in the coming quarters. 2:21 2 minutes, 21 seconds uh see you will have to understand our businesses no uh any expansion which we 2:28 2 minutes, 28 seconds do uh it suffer it it affects the prop P&L statement immediately because of the manpower being employed and no 2:36 2 minutes, 36 seconds capitalization being done there basically so that's the difference between us and the other companies there uh on second project we started the 2:44 2 minutes, 44 seconds sprint extro and the Xcode which has started doing well now and has already started making revenue there in that We 2:51 2 minutes, 51 seconds launched uh another platform yesterday with uh contract X and that is will go into a beta stage in the coming few 3:00 3 minutes days. Really many bank integrations are agreements are done. We started 3:07 3 minutes, 7 seconds putting uh some business on the remittance part on the forex business. 3:14 3 minutes, 14 seconds Uh so we plan to launch full-fledged in the first quarter of next year basically. 3:20 3 minutes, 20 seconds Once we complete this pilot doorstep banking we we've already finished the pilot with one bank one schedule 3:30 3 minutes, 30 seconds commercial bank and it's been doing really really well. Uh we've already signed up one another bank to do the roster banking with them also few more 3:38 3 minutes, 38 seconds pipelines in there. U motor insurance INP ISNP permission we received last time we launched that portal and started receiving traction from there also. 3:49 3 minutes, 49 seconds Um well we discussed about AI and would not like to diverge more but uh in the 3:58 3 minutes, 58 seconds very near future it will be be a big big game changanger for our company. U we spoke about launching new products in 4:06 4 minutes, 6 seconds the last quarter we've launched one and about to launch one more product making it six in a row or four in the Q2 and 4:14 4 minutes, 14 seconds two now. uh we'd mentioned about composite insurance license due to which we were supposed to apply that got 4:21 4 minutes, 21 seconds delayed a bit because of certain applications things and which were det but it's all now completed and we would 4:28 4 minutes, 28 seconds be applying for that now basically re that's for the reinsurance corporate reinsurance license 4:35 4 minutes, 35 seconds um overall the company is doing well we're expanding fast we investing a lot uh so that it should give us a further 4:44 4 minutes, 44 seconds trajectory in the coming quarter and years. So I'll take you through a presentation, a few slides and then we'll open up for question and answers please. Thank you. 4:59 4 minutes, 59 seconds Next. Next. Next. 5:09 5 minutes, 9 seconds You can see overall wea has on a 9 month grown at a 46.9% the pat has grown by 63.3% which is showing 5:18 5 minutes, 18 seconds that we leveraging lot of our things basically and we anticipate the gross profit to grow further and the pat 5:27 5 minutes, 27 seconds margin to keep increasing basically uh profit growth is being led by high margin businesses by like deluquid loan 5:34 5 minutes, 34 seconds collection business which we're doing very well emi collection business uh even though topline growth has been remained stagnant the cube it's a again 5:43 5 minutes, 43 seconds due to the DMT business which we mentioned in the last call otherwise the growth or growth on the top line also has been very very considerable 5:51 5 minutes, 51 seconds basically because that is again a a 20 25 cr rupees lag there which we have covered through other high margin 5:59 5 minutes, 59 seconds businesses the orchestration business is doing a doing a major good revenue this year and we anticipate will continue and do it 6:07 6 minutes, 7 seconds next year. Also, technology-led businesses including travel and CRA and the insurance platform are showing steady momentum and we'll see 6:16 6 minutes, 16 seconds scalability very very soon in that businesses too. Thanks. 6:22 6 minutes, 22 seconds Uh this is our corporate governance slide. We've always told you uh whatever good happens we'll update you. We might 6:30 6 minutes, 30 seconds miss something good but whatever bad happens we surely update you. And uh that is what we have done uh in improving further corporate governance. 6:39 6 minutes, 39 seconds We've appointed one independent director from the parent company in the in our material subsidiary RFI money private 6:47 6 minutes, 47 seconds limited also. Oh, next. 7:00 7 minutes Okay. 7:01 7 minutes, 1 second Uh we I had uh discussed this PL presentation slide last time also for 7:08 7 minutes, 8 seconds anybody who knew new new joining in I'll explain the slide again once again. 7:13 7 minutes, 13 seconds Basically uh see in between is the ready pay platform which we want to uh in the future create as an orchestration or as 7:22 7 minutes, 22 seconds an infrastructure of railroad. uh we got four major vertex one is payments which contains our corporate VC business PPI 7:30 7 minutes, 30 seconds Aadhaar pay then the orchestration model the valuriven model and the others basically then on one side as the 7:37 7 minutes, 37 seconds corporates where which is the banks NPFC's we were in BFSI space now we are 7:45 7 minutes, 45 seconds diversifying to the nonBFSI space also very aggressively so on left hand side is the deep integration of all these 7:54 7 minutes, 54 seconds clients into the rele platform. Then we've got modules for fraud risk management, compliance, accounting, support and then we have this agents or 8:02 8 minutes, 2 seconds the size on the right hand side. So the business is completely based on one model which is like more the number of corporates, more the number of uh 8:12 8 minutes, 12 seconds products, more the number of clients or more the number of sites, more the number of products through one rally player platform doing the play basically 8:20 8 minutes, 20 seconds and trying and create an infrastructure structure. Uh our active site are 2.2 two lakh we do daily transactions of 1.3 8:29 8 minutes, 29 seconds million plus in December 25 which is like a 28% increase from September 25 8:39 8 minutes, 39 seconds uh these are the major events which have happened uh 82 license we had already updated you but it happened in the last quarter so we updated here but we've 8:48 8 minutes, 48 seconds been appointed as recovery for bank of India Panzav National Bank RNFM money has got six new branches branches two 8:56 8 minutes, 56 seconds additional branches from Delhi insurance we've been got mad as I mentioned we'll tell you the good so we'll tell you the bad also 9:04 9 minutes, 4 seconds APS was stable not did not give us the expected growth it gave us mutated growth in the APS business this is what 9:11 9 minutes, 11 seconds has happened in the last quarter numbers of if you see if you if you see 9:21 9 minutes, 21 seconds see the four plus products we drastically increased by 15% on the number of products sold per site. So 9:29 9 minutes, 29 seconds this again shows it's a drastic what we're trying to implement is more the products on the sides. We have been 9:36 9 minutes, 36 seconds concentrating now not only on increasing sites but side by side making more products on the site because so that 9:43 9 minutes, 43 seconds we'll be able to make more income on the sides. 9:48 9 minutes, 48 seconds uh this average MD per sack this this including the pay world hence is not showing traction otherwise it's around 9:55 9 minutes, 55 seconds roughly around 1,300 which we have been able to do if you just take RNFI into consideration so that is again a jump of around 12 to 14%. 10:09 10 minutes, 9 seconds the aging wise clients if you could see how the number of profits are increasing and the number of products we've been doing really really well on that front 10:17 10 minutes, 17 seconds also we we plan to keep adding these corporates because we've started targeting the nonBFSI space also so that 10:25 10 minutes, 25 seconds should bring a lot of traction further on all numbers are for you to see you can 10:32 10 minutes, 32 seconds see them better than me so I guess if any of we could open ourselves to any question and answers we ask. 10:40 10 minutes, 40 seconds Next. That's fine. That's fine. Next. 10:56 10 minutes, 56 seconds Thank you. Thank you very much. We will now begin the question and answer session. To ask a question, please click on ask question tab on your screen. When 11:06 11 minutes, 6 seconds the moderator announces your name, kindly accept the prompt, unmute your audio and go ahead with your question. 11:12 11 minutes, 12 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 11:23 11 minutes, 23 seconds We'll take a first question from BR from AB Capital. Kindly accept the prompt on your screen. Unmute your audio, turn on 11:31 11 minutes, 31 seconds your video and go ahead with your question please. Hello sir Bar can you hear me? 11:41 11 minutes, 41 seconds Yes yes yes ma'am. 11:43 11 minutes, 43 seconds Okay sir I have few questions so let me just start. So the the first question is uh like uh on the mutual fund distribution business like what kind of 11:52 11 minutes, 52 seconds AUM or uh revenue targets that you are setting up for the next one to two years. So uh it's in a very initial phase. 12:00 12 minutes Okay. But uh we plan to launch something like a bach if you could see it's an app 12:07 12 minutes, 7 seconds which is there. So we got a very big retail base. So we should be able to they have in a few months garnered a 12:17 12 minutes, 17 seconds already of 50 uh crores which I last heard of. We should be able to do much more than that because our retail base 12:24 12 minutes, 24 seconds is very very big. But I guess the licensing will take some time. In the meantime, we'll get the product ready. 12:31 12 minutes, 31 seconds uh I once we are about to launch I'll surely bat give you an update of what we are targeting once we know a definitive 12:39 12 minutes, 39 seconds date of about what what we are about to launch but we're working more on it's as a savings scheme on a daily basis for 12:47 12 minutes, 47 seconds that's the p that's what we planning to do there uh sure sir so next question is on the 12:54 12 minutes, 54 seconds forex business growth so I've noticed that part u the profitability I mean the pat margins are increasing ing quarter 13:01 13 minutes, 1 second on quarter. I mean even on the sequential quarters if you see it is growing. So can I know if this is uh 13:09 13 minutes, 9 seconds sustainable for uh next 1 to two years and what could be the stabilized margins for this business. 13:18 13 minutes, 18 seconds See uh as you know it's a platform business railroad business uh we keep optimizing it and we we anticipate it to keep increasing in the coming few years. 13:29 13 minutes, 29 seconds That's for sure. Because see as you mentioned about the mutual fund port motor fund system which we are launching 13:37 13 minutes, 37 seconds there again we're going to launch with the same manpower with the very least expense just on the launching of the platform and a little bit of marketing. 13:46 13 minutes, 46 seconds So once more products come into the picture the margins would necessarily increase. So we anticipate it to increase further on year on year. 13:58 13 minutes, 58 seconds Yeah. But what could be the sustainable margins in the long run let's say two to three years down the line it the run has just started uh so we 14:08 14 minutes, 8 seconds anticipate it to grow very much further on basically it just started it's just the tip of the iceberg is what we anticipate 14:16 14 minutes, 16 seconds and there is a lot of regulations also surrounded like whole business is about the regulation regulated by RBI so we 14:23 14 minutes, 23 seconds keep focusing on that as well so any new regulation there might be up and down as well so one has to taking that consideration as well but for the in the 14:31 14 minutes, 31 seconds near future we anticipate it to grow grow further grow further that's for sure okay can I also expect uh revenue growth 14:40 14 minutes, 40 seconds in sequential quarters as well yes 100% because now the DMT has already panned out so you'll see see the 14:48 14 minutes, 48 seconds sequential growth is already happening for the last few quarters but the DMT is like a high revenue less margin business 14:56 14 minutes, 56 seconds so the revenue we had to cover that revenue also. So now you'll see a very sequential growth in the revenue also in the coming quarters. 15:05 15 minutes, 5 seconds My question is with respect to uh non-forex business only. 15:09 15 minutes, 9 seconds I I just told you about the non-forex business only. 15:11 15 minutes, 11 seconds Sure. Sure. Uh sir, next question. Uh could you share the specific Q3 uh 15:19 15 minutes, 19 seconds revenue and uh you know other numbers of just payrint alone? Should we email to you sir? Will that be fine? 15:29 15 minutes, 29 seconds No, I mean you can answer uh here it past standalone pattern. 15:34 15 minutes, 34 seconds No, I mean overall number sir for uh pace print our overall numbers. 15:40 15 minutes, 40 seconds Yeah, the pint have done actually extremely well because they the business banking and verification stack is doing massively well. 15:47 15 minutes, 47 seconds So Pat is approximately um three and a half CR for this 9 months. 9 months 15:54 15 minutes, 54 seconds and the revenue and the revenue is approximately 70 cr. 15:58 15 minutes, 58 seconds 70 cr is the revenue and 3 and a2 crores is the pattern which we anticipate the last quarter to do very well because of the last what we could see for the last 45 days. 16:07 16 minutes, 7 seconds Okay sir 70 cr for this quarter alone right? 16:10 16 minutes, 10 seconds No no no the entire the entire 9 months 9 months okay entire 9 months is 70 cr. 16:17 16 minutes, 17 seconds See there there again the DMT business is grown down by 75%. So the revenue 16:24 16 minutes, 24 seconds would shift there. It's gone more on a technology or more on a platform base. 16:28 16 minutes, 28 seconds So that is the reason there otherwise uh that is the reason major down by DMT business otherwise it's grown massively there also. 16:38 16 minutes, 38 seconds Okay. Can I expect the business to come back in the next one to two quarters? 16:42 16 minutes, 42 seconds No the profitability will increase the DMT business won't come back. The regulations have changed but the profitability will increase very massively there also. We anticipate that. 16:53 16 minutes, 53 seconds Okay answer in one of the slide we have mentioned that uh 8% growth in active 17:00 17 minutes sax right does that number include the uh pay world cex as well yeah it includes on both sides the pay 17:09 17 minutes, 9 seconds world s basically before and after both because that's the club and we plan to we we've started doing marketing together distribution of the field 17:17 17 minutes, 17 seconds together and that is how it's included sir both on the back and the run both ways. 17:23 17 minutes, 23 seconds Okay. So is the integration of payroll completely done now? 17:27 17 minutes, 27 seconds Yeah, you we expect you to get we expect you to show very good numbers from the next year there. It's it's done. It's done more or less done. 17:37 17 minutes, 37 seconds Okay. And one last question sir again this is about the pace sprint APIs. Can you just tell me what are the high revenue generating APIs? 17:48 17 minutes, 48 seconds One is the connected banking platform and one is the sprint stack verification stack completely which is generating a lot of revenue there sir. 17:57 17 minutes, 57 seconds Okay. Can I assume that these two APIs are contributing let's say like 75 80% of uh the top? 18:04 18 minutes, 4 seconds Yes. Yes. Yes. Yes sir. 18:06 18 minutes, 6 seconds Okay. And what are the expectations from the API that we launched I think yesterday. Yesterday or it's in a nent stage but it's we've 18:14 18 minutes, 14 seconds already got a lot of interest from a few banks. for that system and a few corporates also and that is the reason after that only we started developing 18:22 18 minutes, 22 seconds the system it see we expect escro to start contributing in the next few months and then this platform should 18:30 18 minutes, 30 seconds also start contributing okay uh thank you sir I will join back 18:36 18 minutes, 36 seconds the queue and wait for my next uh turn thank you thank you 18:44 18 minutes, 44 seconds give me a moment please I now request HRA Jadea to please accept the prompt on his screen. 18:53 18 minutes, 53 seconds HR please accept the prompt. Unmute your audio. Turn on your video and go ahead with your question please. 19:09 19 minutes, 9 seconds Yes, we can hear you. Please go ahead. Yes. Yes. 19:12 19 minutes, 12 seconds Okay. Okay. Yeah. So, uh I have a few questions sir. uh in uh 9 month FI26 19:19 19 minutes, 19 seconds which business vertical has contributed the most to our profit growth it's a diversified diversified 19:27 19 minutes, 27 seconds profitability no single business has contributed a large sum it's a diversified contribution from all see you'll have to understand there's one 19:35 19 minutes, 35 seconds development team there's one major field team so one HR team one finance team so 19:43 19 minutes, 43 seconds it's that is the way and some products they might contribute high revenue but profitability is negligible but some products they are low revenue but 19:51 19 minutes, 51 seconds profitability is more on the payment side of the business profitability will always remain less but 19:59 19 minutes, 59 seconds volume revenue would be more and for business like delquent loans insurance 20:07 20 minutes, 7 seconds EMI collection the revenue would be lower but the margins would be higher sir so we can't pinpoint any single 20:14 20 minutes, 14 seconds product to his contributed major revenues sir. 20:18 20 minutes, 18 seconds Okay. Okay. So you're saying it's a diversified uh profitability growth. 20:22 20 minutes, 22 seconds See that's the beauty play about our platform. It's like it's a very very diversified business. U we can't rely on 20:31 20 minutes, 31 seconds one single product and we plan to diversify it further on and that is what we're working on so that it should not 20:39 20 minutes, 39 seconds affect us if any it's a compliant regulated business. So if any regulations change it should not affect us. 20:48 20 minutes, 48 seconds Unders understood. Long term. Yes sir. 20:50 20 minutes, 50 seconds Yeah. So uh understood. So my next question is uh what growth initiatives and technology integration plans does uh do we emphasize going forward? 21:00 21 minutes See we have a 90 member tech team there you know which is in house. uh we are I 21:07 21 minutes, 7 seconds would not like to diversify more but we're working lot on the AI stuff and you'll see a lot of changes in the 21:15 21 minutes, 15 seconds coming quarters which will be shown by our balance sheet and be presented to you also once we have completed what we're trying to do sir. 21:23 21 minutes, 23 seconds Right. Okay. Okay. Okay. Understood. Uh my next question is uh from which region of the country do we see maximum Shia 21:31 21 minutes, 31 seconds contribution? uh it's again product based uh forex would be contributed from Delhi Mumbai uh insurance is would be 21:40 21 minutes, 40 seconds Gujarat more would be there a business would be from Bihar 21:46 21 minutes, 46 seconds Odisa Bengal so there again it's a diversify business again sir for sprint 21:54 21 minutes, 54 seconds verified it would be again the major tier one and tier two cities so that is how the whole business is based sir 22:01 22 minutes, 1 second Okay. Okay. And uh also if you can throw some color on reinsurance broking license status. 22:09 22 minutes, 9 seconds Yeah. So we uh reinsurance broking license. 22:13 22 minutes, 13 seconds It's a as you told us for us it's all about clients and crossell. So a few clients with whom we do insurance they 22:21 22 minutes, 21 seconds asked us they had a bigger ticket size and they they asked us if you could do reinsurance but we did not have a license. uh our criteria requirements 22:30 22 minutes, 30 seconds required by IIDA were fulfilled. We did not require to put any capital or something. We just had to hire somebody 22:38 22 minutes, 38 seconds with a re broking background. So we thought why not apply for it and pitch this as an additional one product 22:44 22 minutes, 44 seconds basically. So hopefully in the next 2 to 3 weeks we'll apply for this license. 22:50 22 minutes, 50 seconds can't you don't take my word but once the application is completed in the next 2 3 4 weeks we'll surely apply for that license sir. 22:58 22 minutes, 58 seconds Understood. Understood. Okay. And uh so next question is we had also talked about the expected growth in loan 23:06 23 minutes, 6 seconds collection segment. So can you share some light and highlight in terms of its strategy and path ahead and how much business or growth are we expecting from 23:14 23 minutes, 14 seconds it? uh we we see we we are expecting the numbers to 23:22 23 minutes, 22 seconds grow more than three times in the coming few years. That's what we're targeting. 23:26 23 minutes, 26 seconds We are in the process of finalizing our AOP. At the next corn call, I'll be able to diverge you more on what numbers we 23:33 23 minutes, 33 seconds are trying to achieve. But we're expecting a massive growth and uh we already on the path to that growth, sir. 23:41 23 minutes, 41 seconds Okay. Okay. Next, next conference, right? Okay. Okay. Sure. And uh you also mentioned so this is my last question uh 23:48 23 minutes, 48 seconds you also mentioned strong growth from payprint given new product launches. So can you please share some updates on the same? 23:56 23 minutes, 56 seconds Yeah we the connected banking platform is doing very well. The sprint verify platform has taken up taken up started 24:04 24 minutes, 4 seconds shooting. Uh we doing a lot of development. We just launched the sprint xro last quarter which has started 24:11 24 minutes, 11 seconds getting traction. uh yesterday we've launched a sprint contract platform. Uh it's going to take a one two months to get it on the beta phase but we expect that also to give a lot of traction. 24:23 24 minutes, 23 seconds Mind you these all business are not only give us a one-time income but they give give us annutity income also. So whatever we're building up we're 24:30 24 minutes, 30 seconds building up in the kitty that's the beauty about all our businesses majorly other than the forex business is most of the and relevant loan collection 24:38 24 minutes, 38 seconds business most of them built up our annuality income also. So that is that is the advantage of our business 24:45 24 minutes, 45 seconds there also. So we think it should give us a massive traction there. Contribute a lot of traction to the top line and the bottom line as well sir. 24:53 24 minutes, 53 seconds Okay. Okay. Understood. Thank you. Thank you so much sir for answering my questions. If I have uh any more questions I'll join in the queue. 25:01 25 minutes, 1 second Thank you. 25:02 25 minutes, 2 seconds Thank you. I now request Schllo an individual investor to please accept the prompt on the screen. 25:09 25 minutes, 9 seconds Good morning sir. How are you? 25:11 25 minutes, 11 seconds Shel, please accept the prompt, unmute yourself and go ahead with your question, please. 25:29 25 minutes, 29 seconds Uh yes. Yes. Uh yes. How are you? I'm fine. 25:37 25 minutes, 37 seconds Uh so my first question is how are we trying to differentiate ourselves in terms of technology? 25:46 25 minutes, 46 seconds So I just mentioned sir we are working a lot on the AI a bit. I can't diverge 25:53 25 minutes, 53 seconds this more on a call. If somebody would like to come and visit to our office please more than welcome to our office where we could show what we are doing sir. 26:01 26 minutes, 1 second Okay. Okay. uh can you please highlight why the growth in active shahayak and 26:08 26 minutes, 8 seconds arpoo as compared to last year was quite low. So basically ARU has been grown on 26:15 26 minutes, 15 seconds RNFI as individual level but we took off pay and once any integration happens a few of the agents fall out from the old 26:24 26 minutes, 24 seconds company they get away so that is the reason the ARPU has not fallen ARPU has increased for pay pay RNFI for sure but 26:33 26 minutes, 33 seconds because of pay but now it's the integration is more or less complete and you'll see the traction very much in the 26:40 26 minutes, 40 seconds next quarter Okay. So my next question is we saw the 26:47 26 minutes, 47 seconds update on RNFI being recovery agent for two national banks. 26:53 26 minutes, 53 seconds Uh how many how many such banks are we targeting and what kind of growth in business it can add? So presently we 27:01 27 minutes, 1 second work around two to three dozen clients on the recovery front 27:08 27 minutes, 8 seconds of around few national bank national and banks other than this this also uh so 27:15 27 minutes, 15 seconds the business is growing quarteron quarter very massively there's a lot of traction we are only one of the few 27:22 27 minutes, 22 seconds players who have their own digital platform own call centers uh and own in 27:30 27 minutes, 30 seconds field staff including SCX doing collection uh we are putting we working 27:37 27 minutes, 37 seconds a lot on the technology there to optimize it and not only the volume will increase we anticipate the profit 27:46 27 minutes, 46 seconds margins to increase also so business because there's a lot of business uh 27:52 27 minutes, 52 seconds hopefully if if mind you whatever I say the regulations have to remain same and everything has to be 28:00 28 minutes though we anticipate the business to increase and the margin to increase also because of tech play which we are trying to do. So 28:07 28 minutes, 7 seconds okay uh so my next question also we did not see major growth in cross-selling of products can you highlight your thoughts on this? So there's a lot of growth. 28:19 28 minutes, 19 seconds There's a 15% growth in the four bucket cross-selling sir which shows that the cross-selling has increased massively 28:26 28 minutes, 26 seconds sir and is keeping it's going on increasing. 28:32 28 minutes, 32 seconds We're working more as I told you not only we're working on the sax increase we're working more on the product increase. So the crossell will increase 28:40 28 minutes, 40 seconds mind you with the client crossell if you are asking that with the banks the crossell takes time. 28:47 28 minutes, 47 seconds uh the trust has to be developed, the deliveries have to be done and then the cross sales happen. uh there's been a 28:54 28 minutes, 54 seconds lot of crosses with a few banks we've we do mostly all the products with them with a few banks we do 40 35 40% 29:02 29 minutes, 2 seconds products with them we keeping on increasing there we've been only in the BFSI space up till now we with with the ED2 license coming in sprint verify 29:12 29 minutes, 12 seconds platform coming uh developing out very nicely we've started entering the nonBFSI space also and we expect a lot 29:21 29 minutes, 21 seconds of clients coming in there also Okay, understood. Uh just one final question. If you can share some 29:29 29 minutes, 29 seconds information of your Sahayak like in terms of why they would like to stick with RNFI or the kind of change they see 29:38 29 minutes, 38 seconds while associating with RNFI or their income growth, it would be really helpful. Yes, it's it's it's more about 29:45 29 minutes, 45 seconds technology, UI, how you solve the queries and most importantly the diversified product 29:54 29 minutes, 54 seconds portfolios that brings a lot of stickiness. Lot of stickiness and lot of hard work goes in training also for each product. 30:01 30 minutes, 1 second Yes. So cross-elling we say on a call is a easy it sounds very easy but the for the field it's a very difficult job to 30:09 30 minutes, 9 seconds do. uh the the geography is very vast, training people, different language barriers, but so diversified products is a key stickiness point. 30:22 30 minutes, 22 seconds Okay. Thank you very much for answering my questions. Thank you sir. Thank you. Thank you. 30:30 30 minutes, 30 seconds I now request Priyanka Sarkcar from Square 64 Capital Advisor LLP to please accept the prompt on the screen. 30:38 30 minutes, 38 seconds Priyanka. 30:40 30 minutes, 40 seconds Please turn on your webcam, unmute yourself and go ahead with your question, please. 30:51 30 minutes, 51 seconds I think she's Hello. Yes sir. Good morning sir. 30:55 30 minutes, 55 seconds Hi sir. Uh good afternoon. Uh sir, one basic question. I'm relatively new to the company but one thing I'm not able 31:04 31 minutes, 4 seconds to understand sir. If the RPO for the 9 months is 1183 and the number of Sahayak is 2.2 two 31:12 31 minutes, 12 seconds lakhs then the revenue should be a multiplication of that into uh 9 months right so that comes to 134 crores 31:20 31 minutes, 20 seconds so that comes to 234 crores but the non-forex revenue is 347 so where is the gap of this 115 crores uh if you can help me understand that please 31:28 31 minutes, 28 seconds actually nonforex business include actually for ARO we are calculating only for RNF and pay business not all subsidiaries 31:34 31 minutes, 34 seconds sir so basically aru only where saks are involved whereas for sprint verify connected banking the site is not 31:41 31 minutes, 41 seconds involved involved for insurance into the corporate the psychic is not involved. 31:45 31 minutes, 45 seconds So we just classifying the business where the sak is involved into the arpoo where the where our corporate business is there and the sak is not involved 31:54 31 minutes, 54 seconds that business is not classified as a sak business so we don't count it in the arpoo sir okay got it got it sir may I ask a 32:02 32 minutes, 2 seconds follow on question please yes please this gross margin of 37% for this 9 months fi 26 32:11 32 minutes, 11 seconds indicatively next two to three years I understand there's a lot of upfronting of cost because you're launching a lot of new products, right? All of that, let's hope it'll stabilize over the next 32:19 32 minutes, 19 seconds 18 to 24 months. thereafter what is the gross margin that it can uh get to and eventually leading to a growth in uh 32:29 32 minutes, 29 seconds Evitan level also margin can't give you a number roughly sir because the new product what traction is going to get 32:37 32 minutes, 37 seconds the the regulation is there the traction which we the the traction which we are getting by tech play which we are doing 32:45 32 minutes, 45 seconds but sir it's a platform so this will we anticipate it to keep increasing If everything goes as per plan and what 32:54 32 minutes, 54 seconds we planning to do, I as I mentioned earlier s we think this is just a tip of the iceberg and we 33:03 33 minutes, 3 seconds anticipate to to increase considerably sir because uh the expenses won't increase it would further reduce 33:12 33 minutes, 12 seconds and the revenue would increase sir. Yes sir. 33:15 33 minutes, 15 seconds Perfect. Okay sir. Thank you and wish you all the best. Thank you sir. Thank you. Thank you. 33:21 33 minutes, 21 seconds Ladies and gentlemen, to ask a question, please click on ask question tab on your screen. 33:28 33 minutes, 28 seconds For follow-up question, participants may use the raise an option. 33:34 33 minutes, 34 seconds I request BR from AB Capital to please accept the prompt on the screen. 33:44 33 minutes, 44 seconds Yeah, please proceed with your question. 33:46 33 minutes, 46 seconds Hello sir, in the last conference call you were guiding for 40 to 50% of yearon-year growth in non-forex 33:53 33 minutes, 53 seconds business. Do you stand by that uh now as well? 33:57 33 minutes, 57 seconds So last time also I said sir uh we targeting that and we I stand by that right now also provided the conditions 34:06 34 minutes, 6 seconds remain same sir. Um I we stand by that sir. Okay. 34:13 34 minutes, 13 seconds Uh that's all sir from I said thank you. Thank you sir. 34:18 34 minutes, 18 seconds Thank you ladies and gentlemen to ask a question please click on ask a question tab available on your screen. 34:36 34 minutes, 36 seconds We will wait for a moment please. 34:49 34 minutes, 49 seconds A reminder to participants to ask a question, please click on ask a question tab available on your screen. 34:59 34 minutes, 59 seconds As there are no further questions, I would now like to hand the conference over to management for closing comments. Over to you, sir. 35:06 35 minutes, 6 seconds Thank you everybody uh for joining the call. It's been a 10 years journey for 35:12 35 minutes, 12 seconds us. The journey has been has ups and downs throughout the years. But what of after we've 35:22 35 minutes, 22 seconds raised capital the journey in terms of business has increased because it is provides fuel to the engine. uh with the 35:31 35 minutes, 31 seconds new capital raise we are done and is the warrants we have issued and the funds would come in the next few months we 35:38 35 minutes, 38 seconds anticipate it to provide a further growth engine like I always say thank you very much for your support 35:47 35 minutes, 47 seconds we keep guiding us we'll keep learning uh any queries please feel free to ask if somebody would like to come and visit 35:55 35 minutes, 55 seconds the office more than welcome that will give you more idea about what we do we're in a different business. Our 36:02 36 minutes, 2 seconds business is not see we'll have to understand one thing. Our business is not a balance sheet intensive business. 36:10 36 minutes, 10 seconds So it's a P&L intensive business. So any investment which we do now would give money in the future but hit the balance 36:17 36 minutes, 17 seconds sheet in the near term basically. So we have to m grow also maintain profits 36:25 36 minutes, 25 seconds also. So it's a balancing act because we anticipate a lot of growth in the coming few years. We're working towards that. 36:32 36 minutes, 32 seconds Thank you for your support and like always I'll end with the line. There might be good there might be bad but we'll always be transparent to you. 36:42 36 minutes, 42 seconds Thank you very much. Thanks a lot. 36:43 36 minutes, 43 seconds Uh sir I'm sorry to interrupt but we have one question in the queue. Can we go ahead and take him? Yes. Yes please. 36:49 36 minutes, 49 seconds We have a question from Chira from Astrolit Investments. 36:53 36 minutes, 53 seconds Chira, please accept the prompt on your screen and go ahead with your question, please. 37:03 37 minutes, 3 seconds Hello. Hi Sim, can you hear me? Yes, how are you? 37:06 37 minutes, 6 seconds Yes, good, good, good. Thank you. Uh, apologies, I joined a call a bit late. 37:10 37 minutes, 10 seconds So, I don't know whether this was covered. Uh, just couple of questions from my end. Can you give me uh update on the forex business? What is happening 37:16 37 minutes, 16 seconds over there? And uh then to the next question. 37:20 37 minutes, 20 seconds Yes. uh for the forex business uh the remittance tie up is done with the two banks. We've started doing the pilot 37:26 37 minutes, 26 seconds with those two banks and uh the pilot is near about to end in the next few 30 35 37:33 37 minutes, 33 seconds days and the platform has already been launched. We anticipate to kick off massively in the first from the first 37:40 37 minutes, 40 seconds quarter of next year sir on the forex side of the business sir. 37:44 37 minutes, 44 seconds Okay. Okay. So this is after the 82 license that we have received. Yes. This is after the 82 license sir. 37:48 37 minutes, 48 seconds Yes. And so how will be the margins going forward in this uh business? Now so the problem with the forex business 37:56 37 minutes, 56 seconds was always that currency is treated as a commodity. So if I buy a dollar today for 90 rupees and I sell it at 90 rupees 38:05 38 minutes, 5 seconds 50 pesa in the next 1 minute also the turnover will show as 90 rupees 50 pesa and the margin is 50 pesa which looks 38:12 38 minutes, 12 seconds very very bad but otherwise it was an okay business. 38:16 38 minutes, 16 seconds Now what would happen the remittance part the currency would not be taken into the consideration only the remittance charges would be taken into 38:23 38 minutes, 23 seconds the consideration so the margins would increase massively sir also we only had an FFMC license 38:29 38 minutes, 29 seconds earlier where we could do currency only for two two things business and leisure now we can do for around 16 17 products 38:38 38 minutes, 38 seconds uh remittance were not allowed earlier now we allowed to do remittance also so it that would change the scope sir No, no, understood. Well, understood this. 38:47 38 minutes, 47 seconds Uh, sorry, my question was more of the take rate part. I understand. Uh, the previous quarter on the FM, FFMC, the take rate part, the margin is around 1 to 1.4 5%, sir. 38:58 38 minutes, 58 seconds Okay. Okay. The blended across all the products. Yes sir. 39:02 39 minutes, 2 seconds Okay. Okay. Okay. Okay. Uh any uh volume or throughput number that you can guide us from this business? 39:08 39 minutes, 8 seconds So, as I told you, we're just finalizing the AOP numbers, sir. uh in the next quarter if the board allows we'll give you a guidance on the numbers we're targeting. 39:18 39 minutes, 18 seconds Okay. Okay. Okay. But what is the different value proposition that we will be taking because I believe there are other AD2 license player also. 39:25 39 minutes, 25 seconds So we already got see lot of companies doing well in that space but our major traction is we 39:33 39 minutes, 33 seconds already have a distribution setup employees there in every local corner of the India. So it's it's we we we our 39:43 39 minutes, 43 seconds business model is not to be a number one in any space but leverage our network manpower technology 39:50 39 minutes, 50 seconds and we get more profit out of that space basically by being a not even a small player a decent player so that is what 39:58 39 minutes, 58 seconds we're targeting sir that's the differentiator between us and the others sir understood but uh just from my understanding the sax will not be in this uh segment right 40:06 40 minutes, 6 seconds so that's what is a differentiator here that that's what people don't We've got a lot of sites in cities also doing various products like EMI collection 40:15 40 minutes, 15 seconds domestic money transfer BBPa BBPS these side then we got sir 40:22 40 minutes, 22 seconds around a lot of base of ours is travel agents right do a lot of air booking and stuff like that so we got a mixed base it's not 40:30 40 minutes, 30 seconds only that we present in rural area yeah predominantly if we say two lakh agents they must be semi- urban and rural 40:37 40 minutes, 37 seconds around 70 75% ages with like 25% agents available in the rural tier one tier 2 cities sir. 40:45 40 minutes, 45 seconds Got it. Got it. Got it. And on the non-forex bit uh how should we while I understand there will be quarterly uh variation in the numbers but how should 40:53 40 minutes, 53 seconds we read this 12% growth year on year in the non-forex business have we stop few products there or is the in general the 41:00 41 minutes volume as I mentioned the DMT product there was a guideline change in November 1st last 41:06 41 minutes, 6 seconds year. So DMT was a high revenue less margin business. So that has affected 41:13 41 minutes, 13 seconds the top line. In fact we grown massive it affected by 63% business went down that affect massively the top line. 41:21 41 minutes, 21 seconds We've grown massively the top line also actually sir but because of that is not being reflected now that has panned out of the third quarter. So you'll see a lot of traction as well. 41:31 41 minutes, 31 seconds Uh understood. So sorry how was the how much was the DMT business in the total non forex? 30 crores 41:39 41 minutes, 39 seconds 30 there is an incremental impact of 30 cr in the first half only up to only up to 41:47 41 minutes, 47 seconds September it was a 30 cr downside sir because of the DMT business uh okay no so let's say in 2Q we did 120 41:56 41 minutes, 56 seconds crores of nonforex business how much of that was coming from DMT it's roughly I'll have to give you the exact number roughly it's around 30 42:04 42 minutes, 4 seconds crores in the first half Q1 Q2 Q Q1 or Q2 DMT basically there's incremental downside 42:12 42 minutes, 12 seconds from last half to this half is 30 in the first half till September only okay okay so and sorry can you just explain me what was the change in the 42:20 42 minutes, 20 seconds DMD rules uh the RBI regulated it uh saying uh 42:27 42 minutes, 27 seconds every Aadhaar every registration actually there is a change in criteria for remitter registration earlier it was 42:35 42 minutes, 35 seconds OTP based Now it is Aadhaar biometric base. So a lot of people have moved to bank accounts. Basically that is what happened in that segment sir. 42:44 42 minutes, 44 seconds Okay. But now that uh that transition has taken place and now we can expect the group to come back again. 42:50 42 minutes, 50 seconds The fourth quarter in the fourth quarter that transition is taken away sir. Yes sir. 42:54 42 minutes, 54 seconds Understood. Understood. Okay. It was more like a quarter impact. Uh this it was it was a 9 month. It was 9 month impact. Okay. Okay. Okay. Sorry. 43:02 43 minutes, 2 seconds came in in effect November 1, 2024 last month. 43:07 43 minutes, 7 seconds Understood. Understood. Understood. And how are the uh just the last how are the business trends in let's say the EMI collection, the insurance crosselling and all those uh selling products. 43:18 43 minutes, 18 seconds So everything is growing at a scale which we wanted to and anticipated to we are as I you joined in late shar I 43:26 43 minutes, 26 seconds mentioned ours is not a balance sheet intensive business P&L business. So any expansion we do for the long term, it 43:33 43 minutes, 33 seconds hits our balance sheet immediately in the short term. So we're doing a balancing act between doing profitability and spending to grow at 43:41 43 minutes, 41 seconds the future. The we we require a lot of fuel for the future to grow massively on 43:48 43 minutes, 48 seconds the network s that that that's what is happening sir. 43:52 43 minutes, 52 seconds Understood. Uh thank you so much uh for your answers and all these I joined to bit potatoes. 43:58 43 minutes, 58 seconds Thank you sir. Thank you. Okay, thank you. We have one more question from the connection of admin. Uh, kindly 44:06 44 minutes, 6 seconds introduce yourself and go ahead with your question, please. Please accept the prompt on your screen. 44:21 44 minutes, 21 seconds Yes, kindly unmute your audio. Uh, introduce yourself and go ahead with your question. Hi, this is uh Vedant Punjabi from Ara Energy Projects. Uh 44:30 44 minutes, 30 seconds sorry for joining late actually had some issues. Uh I just wanted to ask one quick question and uh that is over the 44:38 44 minutes, 38 seconds next few years what are the operating levers that you see driving the growth of the business? When I joined I heard you say that uh we have we have 44:49 44 minutes, 49 seconds substantial growth anticipated over the next few years. So would it be distribution expansion or monetization 44:56 44 minutes, 56 seconds power split? How how do you massage this growth and as an investor what are the levers that we could probably keep an an eye on to track such growth? 45:05 45 minutes, 5 seconds So basically sir as you always say the mention is the platform is going to remain the same. The team is more or less going to remain the same. So as you 45:14 45 minutes, 14 seconds rightly said we plan to increase the distribution. So increase the number of SCX then increase the more the products 45:21 45 minutes, 21 seconds on the SCX that's leveraging the SCX to get more monetization and on the left hand side the corporates we keep 45:29 45 minutes, 29 seconds increasing the corporates uh we've we started entering the BFSI space as well. 45:35 45 minutes, 35 seconds So we we we'll see a lot of traction there and then on the corporate side also we keep increasing more products 45:41 45 minutes, 41 seconds thus monetizing the corporate also. So these are our few parameters or which we 45:47 45 minutes, 47 seconds are our leverage point is the expense remains more or less same increases by a 45:55 45 minutes, 55 seconds fixed cost the cost fixed cost remain same in fact we working towards lowering it and increasing the revenue so it's an 46:04 46 minutes, 4 seconds effect which will work both ways the revenue would increase and the expenses would come down in the future and does 46:11 46 minutes, 11 seconds that that is how if it doesn't come down also it says around that number that is that is what we intend to do sir. 46:22 46 minutes, 22 seconds Okay. Uh understood. All right. Thank you. Thank you. 46:29 46 minutes, 29 seconds One moment please ladies and gentlemen. That was the last question for today. 46:34 46 minutes, 34 seconds Thank you members of the management. On behalf of RNFI Services Limited that concludes this conference. Thank you for joining us and you may now exit the 46:42 46 minutes, 42 seconds meeting. Thank you all. that you carry