SMC Global Securities Limited — Q4 FY26

SMC Global Securities Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=5t-3nMsqHog Published: 9 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Q4 FI 2026 earnings conference call of SMC Global Securities 0:10 10 seconds Limited hosted by XB4 Advisory. As a reminder, all participant lines will be in the listen only mode and there will 0:17 17 seconds be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please 0:25 25 seconds signal an operator by pressing startle zero on your touchdown phone. Please note that this conference is being 0:31 31 seconds recorded. I now hand the conference over to Mr. Goautam Kotari from execute for advisory. Thank you and over to you Mr. 0:38 38 seconds Pat. 0:41 41 seconds Good evening everyone and thank you for joining us on the Q4 and FI26 earnings conference call. Uh joining us today on the call are uh Mr. Subbashan Agarwal 0:50 50 seconds chairman and managing director of SMC group, Mr. Mahi Gupta, vice chairman and managing director of SMC Group, Dr. Mr. 0:56 56 seconds DK Agarwal, chairman and director SMC Capitals Limited. Mr. AJar, director and CEO SMC 1:04 1 minute, 4 seconds Global Securities Limited. Mr. Anur Banchel, full-time director, SNC Global Securities. Mr. Himmanu Gupta, director and CEO Moneywise Financial Services 1:13 1 minute, 13 seconds Pride Limited. Miss Shriy Agarwal, full-time director of SNC Global Securities Limited, Mr. Prane Agarwal, director of and CEO of Talkscard, and 1:22 1 minute, 22 seconds Mr. Vinod Kumar Jamar, president and group CFO. Uh before we begin, please note that today's discussion may include forward-looking statements which reflect 1:30 1 minute, 30 seconds the company's current views and expectation. These statements are subject to risk and uncertainty and actual results may differ materially. A detailed safe harbor statement is 1:38 1 minute, 38 seconds provided on the second last page of our earnings presentation which is available on the stock exchange and the company's website as well. With that, I now invite 1:46 1 minute, 46 seconds uh Subastra to share his opening. Over to you, sir. 1:51 1 minute, 51 seconds Uh good evening everyone and a warm welcome to all participant on this call. 1:57 1 minute, 57 seconds We hope you have had the opportunity to review our quarter 4 and full year financial year 26 2:06 2 minutes, 6 seconds uh financial results and the accompanying earning presentation both of which are available on the stock exchange and on our website. Before we 2:15 2 minutes, 15 seconds move into our financial performance, let me first outline the prevailing industry dynamics and the key developments that 2:22 2 minutes, 22 seconds shaped the operating environment during the period. Starting with the blocking industry financial uh year 26 was a year 2:31 2 minutes, 31 seconds of transition. The cumulative impact of regulatory measures introduced over the last several quarters. The higher ST on 2:40 2 minutes, 40 seconds appendo, the phased implementation of true to label charges and the appendo participation framework continue to play 2:49 2 minutes, 49 seconds through industry derivative volumes during the year. This period has required a strategic recalibration toward cash delivery distribution and 2:58 2 minutes, 58 seconds led businesses which we believe is a healthy structure shift for the industry. The fourth quarter in particular 3:06 3 minutes, 6 seconds s heightened market volatility equity market witnessed a sharp correction in m in March those are subish against the 3:14 3 minutes, 14 seconds backdrop of global trade related uncertainty and geopolitical events. The industry also experienced a technical 3:21 3 minutes, 21 seconds disruption at the market infrastructure level during the quarter which temporarily affected trading activity. 3:28 3 minutes, 28 seconds Despite these headwinds, retail participation SIP growth and the broader investor base in India continue to 3:36 3 minutes, 36 seconds expand stressily reinforcing the long-term opportunity in our markets. On the regulatory front, the operating 3:44 3 minutes, 44 seconds environment is moving in a constructive direction. During the quarter, SAB issued two notable circulars aimed that is of doing business for stock brokers. 3:56 3 minutes, 56 seconds A revised technical GL framework which rationalizes reporting requirements and 4:03 4 minutes, 3 seconds exempts smaller size brokers and other circular simplifying bank and demand 4:10 4 minutes, 10 seconds account reporting obligations effective from 20 effective from April 17, 2026. 4:17 4 minutes, 17 seconds developments together with RBI recent directions on bank exposure to capital market intermediary are reshaping the 4:26 4 minutes, 26 seconds funding and compliance landscape for the industry. We believe diversified well capitalized intermediaries with strong 4:34 4 minutes, 34 seconds performance and strong compliance framework are best placed in this evolving environment. Thanks to the 4:42 4 minutes, 42 seconds influence broking industry, the sector continued to demonstrate strong growth based momentum during FY26. Industry 4:50 4 minutes, 50 seconds growth was supported by improving insurance penetration, rising customer awareness, sustained demand for retail 4:58 4 minutes, 58 seconds products protection and health products and a continued shift towards advisory digitally enabled distribution. The 5:06 5 minutes, 6 seconds EDAR's ongoing push towards composite intermediation has further widened and the addressable opportunity for 5:13 5 minutes, 13 seconds established intermediary with respect to the financing and NBFC segment. The operating environment during FY26 was the most challenging of 5:23 5 minutes, 23 seconds the three. The sector navigated moderate credit growth tighter understand underwriting standards and heightened 5:31 5 minutes, 31 seconds focus on asset quality. Funding co stayed elevated through much of the year and unscrewed personal lending and micro 5:39 5 minutes, 39 seconds finance segments in particular saw industrywide portion and elevated delicquencies with normalization only be 5:48 5 minutes, 48 seconds beginning to emerge in the fourth quarter. As a result, most participants ourselves included deliberated 5:57 5 minutes, 57 seconds deliberately calibrated dispersements and prioritized sec lending segments. 6:03 6 minutes, 3 seconds While policy and liquidity measures during the latter part of financial year 26 aimed to these conditions that 6:12 6 minutes, 12 seconds benefits will translate gradually into balance sheet expenses. On the broader regulatory side, the labor code that 6:18 6 minutes, 18 seconds came into effect during FY26 created a more uniform and uniform compliance 6:25 6 minutes, 25 seconds framework across industries with an associated impact on employee related line items during the implementation 6:33 6 minutes, 33 seconds phase. We had operationalized the necessary changes in advance and the transition has been smooth across our 6:41 6 minutes, 41 seconds group entities with cost normalization now complete. Let me now walk you through the key highlights of our 6:48 6 minutes, 48 seconds performance for the quarter and the full year. In Q4 finances at 26 uh our consolidate operational minimum 6:57 6 minutes, 57 seconds stood at rupees 516.9 cr representing a y growth of 22.6% and a sequential growth of 4.5%. 7:10 7 minutes, 10 seconds A bit for the quarter was rupees 89.7 cr of 42.6 7:17 7 minutes, 17 seconds yi with an aida margin of 17.4%. 4% and extension of two basis 250 basis 7:25 7 minutes, 25 seconds points on a y basis tax should stood at rupees 21.5 cr compared to rupees 4.1 cr 7:35 7 minutes, 35 seconds in Q4 fy25 sequential moderation in aa reflects the 7:43 7 minutes, 43 seconds impact of market volatility in March and the typical seasonality in our businesses But the strong Yi recovery in 7:51 7 minutes, 51 seconds quarter 4 reflects the operating leverage in our blocking and insurance businesses alongside meaningful 7:58 7 minutes, 58 seconds improvement at the segment level across all the three operating segments for the 8:04 8 minutes, 4 seconds full year. FY26 consolidated operational income grew 5.7% to rupees 8:13 8 minutes, 13 seconds 1,876.9 crores. Abita for the year was rupees 376.4 crores with a margin of 20.1% while pack stood at rupees 103.2 crores. 8:28 8 minutes, 28 seconds We want to be transparent with our investors at FY26 a margin compression at the consolidate level on a full year 8:35 8 minutes, 35 seconds basis. This was driven primarily by two factors. First sustained funding cost at the consolidate level with finance cost 8:44 8 minutes, 44 seconds rising and second the deliberate calibration on our financing business which I will speak into in more detail 8:51 8 minutes, 51 seconds in a moment. Our fees based businesses, broking, distribution, insurance continue to provide stability and growth 8:59 8 minutes, 59 seconds and help offset a meaningful part of these stresses within our broking distribution trading businesses for FI26 9:06 9 minutes, 6 seconds for the year of continued expansion in client engagement geographic reach and digital adoption. Even against the 9:14 9 minutes, 14 seconds backdrop of a moderate derivative volume environment 9:19 9 minutes, 19 seconds segment revenue grew 4.3% on Y basis to 10 9:27 9 minutes, 27 seconds F1089.2 cr while Q4 FY26 revenue rose 19.3% 9:34 9 minutes, 34 seconds Y 2 rupees 286.8 8 crores with segment a bit improving sharply by 66.6% 9:44 9 minutes, 44 seconds y to 60.9 cr in the quarter. Our broking client base including stockard grew to 30.39 9:54 9 minutes, 54 seconds lakh accounts as of FY26 while our broking DP AUA23 10:02 10 minutes, 2 seconds 96% to rupees 1 lakh 42,73 crores. Our distribution business 10:09 10 minutes, 9 seconds continued to scale with cumulative mutual fund AVM reaching to rupees 4294 10:15 10 minutes, 15 seconds cr supported by 943.922 active SIPs. Online penetration owner 10:22 10 minutes, 22 seconds broking clients base reached 72% infy 26 up from 61% a year ago reflecting the 10:32 10 minutes, 32 seconds success of our continued investment in digital platforms in house trading applications and AI lack customer 10:39 10 minutes, 39 seconds engagement tools like like the broader industry we have continued to deepen our presence in cash delivery distribution 10:47 10 minutes, 47 seconds advisory areas that we believe are the structal growth drivers of this business going forward. Our financing business 10:55 10 minutes, 55 seconds operated through 38 branches across seven states with a continued focus on asset quality, portfolio diversification 11:03 11 minutes, 3 seconds and calibrated approach to growth in a challenging macro environment. Let me address the key data points directly. 11:11 11 minutes, 11 seconds NBFC AUM stood at rupees 1,119 11:16 11 minutes, 16 seconds cr as of March 2026 down from 1,291 cr 11:23 11 minutes, 23 seconds ago and disbbursements during FY26 were 720.05 11:30 11 minutes, 30 seconds 05 cr materally lower than financial year 25 reflecting our deliberate decision to 11:37 11 minutes, 37 seconds slow originations in segments where we observe early stage steps that has been broadly consistent across the industry 11:46 11 minutes, 46 seconds particularly in the store and micro finance linked segment. This was a conscious choice not a constraint. 11:56 11 minutes, 56 seconds The outcomes of this discipline are visible in the portfolio quality score aum at 76.71% 12:03 12 minutes, 3 seconds GNPA at 3% and at 2% collection efficiency of 98.63%. 12:15 12 minutes, 15 seconds And a healthy capital adequacy ratio of 43.2% the strongest in four years. Net worth 12:22 12 minutes, 22 seconds stood at rupees 488.3 cr with a ROA of 2.08%. 12:29 12 minutes, 29 seconds The lending portfolio remains well diversified acrossme WCTLM lab onward lending assets microlab gold 12:38 12 minutes, 38 seconds loans capital market funding and supply chain financing with sector level normalizations now beaming to emerge in 12:46 12 minutes, 46 seconds stress segments. We expect to return to a more measured growth posture in this 12:52 12 minutes, 52 seconds business as micro as creditations stabilize in our insurance booking 13:00 13 minutes business. Growth momentum was particularly strong during the year and tracked the broader industry till 13:07 13 minutes, 7 seconds segment revenue grow 17.1% year on year to rupees 667.5 13:14 13 minutes, 14 seconds cr in FI26 while quarter 4 FY26 revenue 13:19 13 minutes, 19 seconds rose 29.8% 8% yi to rupees 208.1 cr 13:27 13 minutes, 27 seconds premium for the year stood at rups 3,145 crores with the business in issuing J.39 13:35 13 minutes, 35 seconds lakhs policies supported by a workforce of 503 employees 16,600 13:43 13 minutes, 43 seconds aents against 393 motor insurance service providers a case study development 13:52 13 minutes, 52 seconds during the year was the upgrade our category from direct broker to composite broker which now allow us to expand into 13:59 13 minutes, 59 seconds the reinsurance segment as well opening up a meaningful new growth revenue going 14:05 14 minutes, 5 seconds forward we do want to flag that segment a bit growth of 4.8% 8% tra revenue growth reflecting investment in 14:14 14 minutes, 14 seconds distribution capacity and technology that will support the composite broker expenses overall why FYI26 presented a 14:23 14 minutes, 23 seconds more measured operating environment than FI25 particularly in our financing business and through periods of market 14:32 14 minutes, 32 seconds volatility in the second half of the year. Our diversified business model, strong national distribution network of 14:39 14 minutes, 39 seconds 203 branches across 396 cities and continued investment in technology and risk management have allowed us to 14:48 14 minutes, 48 seconds deliver healthy operating outcomes in outcomes in our pre-we businesses while protecting balances quality in our 14:57 14 minutes, 57 seconds financing business. We believe this position the group well for sustainable long-term value creation as the operating environment normalizes. With 15:06 15 minutes, 6 seconds that I now hand over to Mr. Majama our president and group CFO to take you through a more detailed overview of our 15:14 15 minutes, 14 seconds financial performance. Over to you Voji. 15:20 15 minutes, 20 seconds Thank you Subas and good evening to everyone on the call. I will now take you through financial and operational 15:27 15 minutes, 27 seconds performance for Q4 FI26 and the full year FI26 on a consolidated basis. For 15:34 15 minutes, 34 seconds the quarter ended March 26, our consolidated operational income stood at rupees 516.9 crores representing Yi 15:44 15 minutes, 44 seconds growth of 22.6% and sequential growth of 4.5%. Sorry. 15:52 15 minutes, 52 seconds AITA for the quarter was rupees 89.7 KES up 42.4% YI with an AITA margin of 17.4% 16:02 16 minutes, 2 seconds an expansion of 250 basis points on a Y basis. Profit after tax came at rupees 21.5 16:10 16 minutes, 10 seconds kores as against 4.1 kores in Q4 FY 25 16:17 16 minutes, 17 seconds with pet margin improving by uh 320 basis points to 4.2% 2% sequentially abit and pet moderated primarily 16:25 16 minutes, 25 seconds reflecting the sharp market correction in March. Normalization in broking activity after a strong Q3 and timing of 16:33 16 minutes, 33 seconds certain expenses for the full year FI26 consolidated operational income grew 5.7% to rupees 16:42 16 minutes, 42 seconds 1876.9 crit stored at rupes 376.4 4 crores with a margin of 20.1% while 16:51 16 minutes, 51 seconds profit after tax was rupees 103.2 2 crores as subaser mentioned AITA was 16:57 16 minutes, 57 seconds lower by 10.3% and pet lower by 29 29.9% on a full year facility two principal 17:06 17 minutes, 6 seconds rewards of this margin compression were higher consolidated finance cost of rupees 221.3 crores and the calibrated 17:15 17 minutes, 15 seconds approach in our financing segment and reduction in net gain on fair value changes income on the EPS line I on to 17:23 17 minutes, 23 seconds note that basic and diluted EPF for FI26 was four rupees 4.87 versus rupees 13.92 reported in FI25. 17:34 17 minutes, 34 seconds This comparison is not strictly like for like as our pup share capital increased from 20.9 K to 41.9 17:43 17 minutes, 43 seconds K during the year on account of corporate action on equity and the FI26 EPS is calculated on the 17:51 17 minutes, 51 seconds enlarged capital B on a standalone basis Q4 FI26 operational income stood at 17:58 17 minutes, 58 seconds rupees 249.9 crores up by 25.6% 6% yearonear with AITA of rupees 65.8 18:06 18 minutes, 6 seconds crores at a margin of 26.3% and expansion of 890 basis points year 18:12 18 minutes, 12 seconds on year basis. Standalone pet for the quarter was rupees 20.7 kores up 141.1% 18:21 18 minutes, 21 seconds for the full year FI26 standalone operational income grew 4.7% to rupees 968.1 crores with a rupees 18:31 18 minutes, 31 seconds 251.4 4 crores at a margin of 26.0% and pat of rupees 81.3 crores. Turning to 18:39 18 minutes, 39 seconds segment wise performance in the broking distribution and trading segment Q4 FI26 18:45 18 minutes, 45 seconds revenue grew 19.3% YUI to rupees 286.8 cr with segment rising sharply by 66.6% YUI to rupees 60.9 cr for the full year. 18:58 18 minutes, 58 seconds Segment revenue grew 4.3% to rupees 1,089.2 crores while segment AI was rupees 239.4 crores marginally lower by 3% y basis. 19:11 19 minutes, 11 seconds The relatively modest revenue growth at the fullear level reflects the moderated industry derivatives volume backdrop and 19:18 19 minutes, 18 seconds the heightened market volatility in the fourth quarter. While the strong Q4 AIT improvement reflects operating leverage 19:26 19 minutes, 26 seconds and improved cost efficiency as we exited the year in the insurance booking segment Q4 FI26 19:34 19 minutes, 34 seconds revenue grew 29.8% 8% yi to rupes 208.1 crores with segment debit of rups 4.5 19:42 19 minutes, 42 seconds crores up 6.7% year on year for the full year segment revenue grew 17.1% to 19:49 19 minutes, 49 seconds rupees 667.5 crores with segment debit of rupees 14.3 crores 19:56 19 minutes, 56 seconds up 4.8% 8% uh year on year. The robust topline growth reflects the strength of our distribution platform. Our expanding 20:04 20 minutes, 4 seconds pause and MISP network the structural industry trends. The slower EIT growth 20:11 20 minutes, 11 seconds versus revenue reflects investment in distribution capacity and technology infrastructure to support the upcoming reinsurance opportunity following our 20:20 20 minutes, 20 seconds composite broker upgrade. In the financing NBFC segment, Q4 FI26 stood at 20:27 20 minutes, 27 seconds rupees 43.3 crores, up 6% Y with segment AIT of rupees 21.2 crores, up 18.6% yearonear. A healthy quarterly outcome. 20:40 20 minutes, 40 seconds However, on a fullear basis, segment revenue declined 15.1% to rupees 188.9 20:46 20 minutes, 46 seconds Ks. Segment Eid declined to 26.2% 2% to rupees 102.2 crores and fat moderated to 20:54 20 minutes, 54 seconds rupees 24.6 crores from rupees 46.3 crores in FI25. As Sebaster explained 21:02 21 minutes, 2 seconds this performance is the direct outcome of a deliberate decision to calibrate dispersement in challenging macro environment where we prioritize our asset quality protection over AUM group. 21:13 21 minutes, 13 seconds The supporting metrics validate that decision. Secured AUM at 76.71% CR at 43.2%. 21:24 21 minutes, 24 seconds Up from 37% in FI25, collection efficiency at 98.6% 21:30 21 minutes, 30 seconds NP at 1.99% and credit cost at 1.3% of average net receivables. NIM modated to 21:37 21 minutes, 37 seconds 7.3% from 8.2% 2% in FY25 reflecting the elevated funding cost environment that affected the wider NBFC sector during the year. 21:48 21 minutes, 48 seconds On the borrowing side, our NBFC continues to maintain a well diversified borrowing mix with bank borrowings forming 85% of the mix in FI26 up from 21:58 21 minutes, 58 seconds 79% in FI25. Our borrowing program is supported by IKRA a minus stable rating on the long-term bank loans and K a 22:07 22 minutes, 7 seconds minus stable and IB stable rating on our NCD program. While the recent RBA directions on bank exposure to capital 22:16 22 minutes, 16 seconds market intervenes have led parts of the industry to diversify funding sources further. our existing diversified mix 22:24 22 minutes, 24 seconds and conservative leverage of 1.52x at the NBC level position as well to navigate the evolving framework. At the 22:32 22 minutes, 32 seconds consolidated level, our debt to equity ratio stood at 1.53x with consolidated net worth of rupees 22:40 22 minutes, 40 seconds 13004 cr. Overall, our performance for Q4 and FI26 reflects three things. First, strong 22:50 22 minutes, 50 seconds recovery in Q4 across all operating segments despite a volatile market backdrop. Second, healthy folar growth 22:57 22 minutes, 57 seconds on our feebased businesses supported by structural industry tins in distribution and insurance. And third, a 23:05 23 minutes, 5 seconds deliberate transparent moderation in our financing business that has preserved balance sheet quality and positions us well for 23:13 23 minutes, 13 seconds the next leg of growth. We remain focused on financial discipline, cost optimization, scaling our digital and 23:20 23 minutes, 20 seconds technology platforms and progressively rebuilding return metrics as we move into FY27. 23:28 23 minutes, 28 seconds With this we conclude our remarks and the floor is open for questions and answers. Thank you. 23:34 23 minutes, 34 seconds Thank you very much. We'll now begin with the question and answer session. 23:37 23 minutes, 37 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 23:45 23 minutes, 45 seconds may press star and do. Participants are requested to use handsets while asking the question. 23:52 23 minutes, 52 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 23:59 23 minutes, 59 seconds Participants, you may press star N1 to ask the question. 24:07 24 minutes, 7 seconds The first question is from the line of Manavar Rajput from Lexus Financial Service. Please go ahead. 24:15 24 minutes, 15 seconds Hello sir, I'm audible. Yes. 24:21 24 minutes, 21 seconds I wanted to know in our broking business uh can you give up a breakup of our cash segment and uh commodity and option 24:28 24 minutes, 28 seconds segments and also I wanted to is for this quarter or for the whole FI26 have we seen a spike in our commodity segment of broking? 24:41 24 minutes, 41 seconds H yeah hi man this is AJ uh director and CEO so uh like the last year uh equity 24:51 24 minutes, 51 seconds cash market the brokerage share was around 50%. Future option was around 40% and commodity uh was 10%. So we have 25:00 25 minutes seen like earlier the commodity ratio was around 4 to 5% now it has grown up to 10%. And even in future we foresee a good growth into commodity as well. 25:12 25 minutes, 12 seconds Okay sir any uh anything any number you expecting going forward that uh this will be 20% or 30%. This should 25:20 25 minutes, 20 seconds gradually because worldwide commodity business is much larger even as compared to equity business and even our regulator is very uh proactively wants 25:30 25 minutes, 30 seconds that commodity segment should should grow and we have seen even in budget there is uh no change in CTDT as 25:38 25 minutes, 38 seconds compared to STD. So and new new products are continuously being launched like electricity contract has recently been 25:45 25 minutes, 45 seconds launched and we are for seeing even the weather contract might also be launched. 25:49 25 minutes, 49 seconds So uh and retail participation is also increasing day by day. So we are seeing good traction and gradually this percentage should keep on increasing. 26:00 26 minutes Okay. And sir on the other on the LDFC side this year I think our dispersement was very compared to other years. So uh 26:10 26 minutes, 10 seconds what I have seen in the presentation is that our onward lending is constant and products are lower. So are you focusing 26:17 26 minutes, 17 seconds more on lower digit secured products or uh it will be the similar as over the past past years or this year was an exception. 26:27 26 minutes, 27 seconds Yes. Hi I am Iman director and CEO of finance. So you rightly observed that uh the onlanding 26:35 26 minutes, 35 seconds uh products dispersement have been constant over the year. However, you know there is a a recalibration in 26:43 26 minutes, 43 seconds within our other product as uh Subhaji and Jamar G briefly highlighted over 26:49 26 minutes, 49 seconds their speech. So let me go deep down further into that uh theme lending breakup. So within the theme lending we 26:57 26 minutes, 57 seconds have increased our focus on certain product while you know reducing uh consciously reducing exposures on 27:04 27 minutes, 4 seconds others. For example the lab product which is a larger ticket size product therein we have actually discontinued 27:11 27 minutes, 11 seconds west disbursement. So you know FI25 the disersment was 70 cr as against you know very marginal disbursement during this 27:20 27 minutes, 20 seconds year and similarly for the unsecured business loans FI25 dispersement was 281 cr and uh this is uh 93 crores during 27:30 27 minutes, 30 seconds this completed financial year. So these two products we have consciously you know reduced our exposures while you 27:37 27 minutes, 37 seconds know our focus remains on other uh small ticket size secured products like microlap and uh you know gold loan and 27:45 27 minutes, 45 seconds asset finance therein we have been increasing our disbbursement. So if you know compare the disbbursement uh after 27:52 27 minutes, 52 seconds excluding LAP and unsecured business loans actually the disbbursement numbers have grown from 452 crores to 614 crores 28:01 28 minutes, 1 second which shows you know the growth coming from our focused uh product lines and you know uh this year the uh EUM got 28:10 28 minutes, 10 seconds offset due to you know reduction in the uh couple of these products but going forward we expect you know the uh 28:17 28 minutes, 17 seconds dispersements will from these uh new product line the focus product line would be much higher and there would be increase in the event. 28:26 28 minutes, 26 seconds Okay. Any specific uh number of you are expecting that that this will be increase for the next year keeping loan. 28:38 28 minutes, 38 seconds You are asking about which number for our AUM AUM disbursement for the next year. anything you 28:47 28 minutes, 47 seconds aum we expect to grow at around 15 to 20% during the year. 28:52 28 minutes, 52 seconds Okay, got it. And I have last question uh on the insurance side. So what what initiatives are underway to deepen 29:01 29 minutes, 1 second insurance as we have seen our insurance business is continuously growing and what is the upside opportunity in terms of policies for customer over the medium term? 29:22 29 minutes, 22 seconds Hi Manohar, this is Sakshi CFO at SMC insurance. Thank you for your question. 29:27 29 minutes, 27 seconds So as far as insurance uh Crossell is concerned, yes, we are looking forward for opportunities for Crossell to 29:34 29 minutes, 34 seconds include the group financials leverage to expand our insurance. We close the Yeah. 29:43 29 minutes, 43 seconds And ma'am uh what will be the upside opportunities in terms over the medium over the medium term? 29:50 29 minutes, 50 seconds So upside so we uh so basically we uh we would be looking at our uh reinsurance 29:56 29 minutes, 56 seconds segment as well uh for uh to basically use the group corporate clients as well. 30:04 30 minutes, 4 seconds Okay. Okay. Got it. Thank you. That's it from Thank you participants. You may press star and one to ask a question. 30:16 30 minutes, 16 seconds Next question is from the line of page pal Singh from Spark Caval Advisor. Please go ahead. Hello audible sir. 30:25 30 minutes, 25 seconds Hello. Hello. You are audible. 30:28 30 minutes, 28 seconds Uh okay sir. So my first question on the stock cards performance FI26 performance. So could you provide comprehensive update on StockX cards 30:36 30 minutes, 36 seconds FI26 performance including active client gross client edition and uh revenue and current blended AP arbu. 30:46 30 minutes, 46 seconds Yes. Uh hi this is Tanya Graal CEO of stockcatch. So um I'm very happy to 30:53 30 minutes, 53 seconds inform that this year uh we managed to uh you know go acquire the market share 31:01 31 minutes, 1 second in a big way. we have uh we opened 100,000 clients during the year and uh 31:09 31 minutes, 9 seconds uh even uh when you see the nse data we are placed on fourth number in terms of 31:16 31 minutes, 16 seconds uh contribution to nse in terms of active clients. So we are uh in the rank we are fourth in the year 202526 31:26 31 minutes, 26 seconds and also uh as you asked about the growth in terms of revenue and all we we have grown uh 150% in terms of revenue alone. 31:37 31 minutes, 37 seconds So uh the currently this year has been really good for us and going forward also we expect it to be uh 31:46 31 minutes, 46 seconds we expect it to contribute to the group in a big level. 31:51 31 minutes, 51 seconds Okay. Okay. Great to hear. And sir, second question. My second question on the NBFC side. Uh so what is the strategic intent behind diversifying 31:59 31 minutes, 59 seconds toward NCD sir? Uh so we are moving towards the NCD. So uh how do you see uh 32:06 32 minutes, 6 seconds expect further NCD in the next financial year. 32:12 32 minutes, 12 seconds I think you were talking about uh the the borrowing source of borrowing and uh diversification you know just to clarify 32:21 32 minutes, 21 seconds uh both NBFC as well as broking entity have raised cash for NCDS. 32:28 32 minutes, 28 seconds Okay. So the year NBS raised about only 5 K of fresh NCD while 32:36 32 minutes, 36 seconds broking entity raised about 150 150 K of SDS. 32:44 32 minutes, 44 seconds Okay. Okay. on diversification of borrowing and you know reduce reliance on the uh bank borrowing and this is 32:53 32 minutes, 53 seconds also in line with you know the RBI's intent wherein they want corporates to reduce their dependency on bank borrowing. 33:02 33 minutes, 2 seconds Okay. Okay. And sir one last question is that how well we are able to crossell our insurance product to our existing demand account holders. So we have a large distributor and active NBFC world. 33:11 33 minutes, 11 seconds So just wanted to know actually like broken we do have a large 33:20 33 minutes, 20 seconds uh client base. So Rockell is always on the top of the mind. So we are doing 33:27 33 minutes, 27 seconds like even uh the insurance and mutual uh capability into our mobile app as well 33:33 33 minutes, 33 seconds and uh we are doing crossell mobile app and P2C network. So we are generating 33:40 33 minutes, 40 seconds lot of point of uh sale cost through of insurance as well through a broking 33:47 33 minutes, 47 seconds network. So uh uh last uh I think more than 8 cr of premium we have done from broking uh as far as insurance is 33:56 33 minutes, 56 seconds concerned but actually uh just this has been really offline. So now we are focusing on even online cross-ell 34:04 34 minutes, 4 seconds penetration. So we are uh in integrating more deeply uh into our mobile app and would start digitally promoting it as 34:12 34 minutes, 12 seconds well. So uh so in time to come uh the focus in cross in crossell would keep on increasing and we foresee a good uh numbers into this. 34:23 34 minutes, 23 seconds Okay. Okay. Great to hear and all the best for your future performance. 34:30 34 minutes, 30 seconds Thank you participants and one to ask a question. 34:35 34 minutes, 35 seconds Next question is from the line of Mahesh Kumar from MU Investments. Please go ahead. Hello. 34:44 34 minutes, 44 seconds Yes sir. Go ahead. You are sir. Yeah. Uh so thanks for the opportunity. 34:49 34 minutes, 49 seconds I just want to I just had a couple of questions. So I just wanted to ask about NBFC business uh in FI26 has moderated 34:59 34 minutes, 59 seconds with AUM revenue and a bit you know declining. So could you outline the key drivers whether it is cautious underwriting, sectoral stress, portfolio 35:07 35 minutes, 7 seconds rundown or demand slowdown? Also what's your road map for lending business over the next few years in terms of AUM growth and target product mix. 35:18 35 minutes, 18 seconds Okay. So uh Himmanu Gupta Himmanu Gupta director and CEO of SMC Finance. So uh 35:27 35 minutes, 27 seconds I'll reiterate our you know business strategy has been to increase the secured book. So as you will see over 35:35 35 minutes, 35 seconds the years our secured aum has been increasing and as we ended March 26 secured aum stood at about 75%. 35:43 35 minutes, 43 seconds And uh that has been a conscious you know uh uh decision wherein we tightened the underwriting for unsecured loans. 35:52 35 minutes, 52 seconds And uh under the unsecured loans apart from tightening you know we have discontinued surrogate programs wherein 36:00 36 minutes we observed there was a higher delinquency and uh within the secured product lines also we have consciously been focusing 36:09 36 minutes, 9 seconds more on the smaller ticket size loans wherein there is a you know larger diversification and also uh we get higher yields. 36:20 36 minutes, 20 seconds So uh with this approach we have been working since about last couple of years. So the net effect has been that 36:27 36 minutes, 27 seconds there is a rub off on the AUM wherein the uh unsecured product exposures have been reducing and large secret exposures 36:35 36 minutes, 35 seconds have also been reducing and we have been building secured uh retail book. So uh 36:43 36 minutes, 43 seconds over the last couple of years you won't see any growth in the AUM but uh uh when you see the product mix there there has 36:51 36 minutes, 51 seconds been you know uh uh achievement in line with our you know uh target segments and going forward I 37:01 37 minutes, 1 second think uh there would be another year where we would have certain amount of rub off and you know slight growth in EUM. This year as I said we are 37:09 37 minutes, 9 seconds targeting 15 to 20% growth in income and I think from the next year FI 28 29 uh 37:16 37 minutes, 16 seconds once in the uh the older products uh reduce to a larger extent then we would see good growth from the new product lines. 37:26 37 minutes, 26 seconds Okay sir. Okay. So and sir uh in the insurance broking business so our revenue largely sees uh like seen 37:33 37 minutes, 33 seconds towards skewed towards the general insurance uh product. So do you see this continuing as a main growth driver in 37:40 37 minutes, 40 seconds which segment like are are you seeing the uh most driving the growth? 37:47 37 minutes, 47 seconds Uh hi uh this is Sakshi CFO SMC insurance. So yes, it's true in uh so basically uh so 90% of our revenue is 37:56 37 minutes, 56 seconds from the general insurance and we and that will uh continue to remain a major contributor to our revenue though we 38:04 38 minutes, 4 seconds foresee a growth in uh life insurance revenue as well in the coming years. 38:09 38 minutes, 9 seconds Sure ma'am. Sure. And lastly, I just wanted to if I could if I could just squeeze in on one question with the 38:17 38 minutes, 17 seconds recent RBI, you know, circular restricting leverage for, you know, NBSC and group entities in uh propriety 38:24 38 minutes, 24 seconds trading. Uh what impact do you expect in SNC Global's you know proprietary trading P&L given its historical strong contribution from arbitrage and you know HFT type of trade. 38:38 38 minutes, 38 seconds This is Dr. DK Agraal CMD SLC Capital. 38:41 38 minutes, 41 seconds Uh just to uh clarify that arbitrage operations the proprietary arbitrage 38:48 38 minutes, 48 seconds operations are kind of uh treasury operations. So whatever surplus funds are there in the company at any point of time we deploy that fund into arbitas. 38:58 38 minutes, 58 seconds So we have uh checked uh and we have we are sure that whatever funds are required for current level of arbitrage those funds are available with us as we are sufficiently capitalized. 39:09 39 minutes, 9 seconds Okay sir minimal impact or rather very negligible impact or maybe no impact on our uh operations. 39:17 39 minutes, 17 seconds Okay sir thank you so much. Uh that's it from myself and best of luck. 39:22 39 minutes, 22 seconds Thank you. Thank you participant Jim plus one to answer question. 39:29 39 minutes, 29 seconds Next question is from one of Vran Sahu from RK advisory. Please go ahead. 39:41 39 minutes, 41 seconds Vic may request to unmute your line and proceed with your question please. 39:52 39 minutes, 52 seconds Due to no response, we move on to the next participant. 39:57 39 minutes, 57 seconds Next question is from the line of Aman Singh and the visual investor. Please go ahead. Yeah. Hello. So, can you hear me? 40:06 40 minutes, 6 seconds Yeah, we can hear you please. 40:08 40 minutes, 8 seconds So, uh yeah, I had a couple of questions. So first one was uh share the current monthly SIP flow being sourced 40:15 40 minutes, 15 seconds to SIP the size of the size the live SIP book and how that rendered over the recent quarter 40:24 40 minutes, 24 seconds sip uh you are talking about SIP. 40:30 40 minutes, 30 seconds Yeah voice was not clear you repeat it again. Yes. 40:35 40 minutes, 35 seconds Could you share the current monthly SIP flow being sourced through SM3 and the size of the book and the trend? 40:44 40 minutes, 44 seconds H Anur you can take yeah hi Anur here. Uh so on a monthly 40:51 40 minutes, 51 seconds basis we are um you know sourcing around 1900 to 2,000 SIP. Current SIP uh live 40:58 40 minutes, 58 seconds SIPs are 94,392 uh with an average of rupes 2,722 41:05 41 minutes, 5 seconds uh per SIP contributing around 25.69 crores per month. 41:12 41 minutes, 12 seconds Okay. Uh so my second question was that with GNPA having uh regulation uh versus the prior years and it is 41:21 41 minutes, 21 seconds still elevated compared to FI24 uh where that specific uh operation or regulatory constraints in the SM segment 41:29 41 minutes, 29 seconds or is the company deliberately rotating capital uh you know uh towards micro lap or gold loans. 41:41 41 minutes, 41 seconds Yeah. So uh regarding the GNPA as you rightly observe this is you know almost 41:48 41 minutes, 48 seconds at same level as compared to last year you know slightly better in fact but if you compare with FI24 it is slightly 41:54 41 minutes, 54 seconds higher. So basically there are certain large secured accounts which are classified as GNPA and we have 42:02 42 minutes, 2 seconds sufficient security available with us for the recoveries. However, you know, uh the the legal process or the settlement process is taking some time. 42:14 42 minutes, 14 seconds We are you know actively pursuing the matters and taken adequate legal measures as well as you know are in touch with the customer for the 42:22 42 minutes, 22 seconds recoveries. So we expect uh the good amount of recoveries from these large secured exposures and we have made adequate provisions also. 42:34 42 minutes, 34 seconds Okay. And so additionally on the annual disbbursement side uh which have collapsed versus the previous two years. 42:41 42 minutes, 41 seconds So what quarterly disbursement run rate should we assume going forward and what would be the key trigger or return to growth. 42:52 42 minutes, 52 seconds So uh so you know overall you will find that the disbbursement numbers have gone slightly down over last year and couple 43:01 43 minutes, 1 second of year. However, if you know uh go one level deeper into the product wise disbburusment. So as I told you that we 43:09 43 minutes, 9 seconds have uh tightened the underwriting of secured product. So one uh it is coming from that tightening. Uh disbbursement 43:18 43 minutes, 18 seconds of unsecured products has been consciously reduced which was 29 281 cr last year. Now it is 93 crores. So this 43:26 43 minutes, 26 seconds was our conscious decision and uh discontinuing large ticket lap it was you know 225 in FI24 43:34 43 minutes, 34 seconds versus know 70 crores in FI25 and almost negligible in current year. So these two are the product wherein uh there has 43:43 43 minutes, 43 seconds been you know steady decline in the disbburment figure. However if you look at you know all other product apart from 43:50 43 minutes, 50 seconds these two. So in FI24 we did was 315 crores and uh compared to that FI25 450 43:58 43 minutes, 58 seconds crores and FI26 615 crores and this year you know we expect uh growth in the 44:06 44 minutes, 6 seconds disbburment from this uh 614 crores we expect it to go above 800 crores. 44:15 44 minutes, 15 seconds Okay. Okay sir. Uh the last question. So what can the segment uh insurance broking segment sustain a strong uh 44:22 44 minutes, 22 seconds double digit growth trajectory over the next few years given the competitive intensity from large digital agriculture. 44:33 44 minutes, 33 seconds Hi uh this is Sakshi. Yes. So uh given the current scenario so we uh expect a 44:40 44 minutes, 40 seconds uh so basically a 15% growth over the next financial year as well given our reinsurance segment that will also be a 44:48 44 minutes, 48 seconds contributor to our revenue and uh because we are focusing on both physical and digital selling. So we so we uh so 44:56 44 minutes, 56 seconds we shall try to achieve the targeted numbers. 45:01 45 minutes, 1 second Okay. Thank you so much for taking my questions and good luck. 45:08 45 minutes, 8 seconds Thank you very much ladies and gentlemen. That was the last question. 45:13 45 minutes, 13 seconds I'll now hand the conference over to Mesh Supta for closing comments. 45:31 45 minutes, 31 seconds Thank you for joining us today. We trust this session has helped address your questions and provide clarity on our 45:39 45 minutes, 39 seconds performance for the quarter and the full year. For any additional information or follow-ups, please feel free to reach 45:47 45 minutes, 47 seconds out to our investors relations partners at XD4 advisory. We appreciate your continued engagement and look forward to 45:56 45 minutes, 56 seconds connecting with you again in the next quarter. So, thank you very much. 46:01 46 minutes, 1 second Thank you very much on behalf of egg for advisory that concludes this conference. 46:07 46 minutes, 7 seconds Thank you for joining us and you may now disconnect your line. Thank you.