UTI Asset Management Company Limited — Q4 FY26

UTI Asset Management Company Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=FqMkDpuL6lY Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the UTI Asset Management Company Limited Q4 and FI26 earnings 0:08 8 seconds conference call. From the management we have with us Mr. Vitri Subramanyam, managing director and chief executive 0:15 15 seconds officer, Mr. Vin Lotia, chief financial officer and head corporate strategy and Mr. Sepsi, head investor relations, marketing and corporate communications. 0:26 26 seconds We also have investor relations team from ad factors VR. As a reminder, all participant lines will be in the listen only mode and there will be an 0:35 35 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:42 42 seconds operator by pressing star and then zero on your touchstone phone. Please note that this conference is being recorded. 0:50 50 seconds Before we begin, I would like to mention that some of the statements made in today's discussion may be forward-looking in nature and may involve risk and uncertainties. 0:59 59 seconds Please note the disclaimer mentioning these risk and uncertainties are on the disclaimer slide of the investor presentation that has been shared earlier. 1:08 1 minute, 8 seconds I will now hand over the conference to Mr. Vitri Subramanyam for opening remarks. Thank you and over to you sir. 1:17 1 minute, 17 seconds U good evening everyone. Uh thank you for joining us today on this call. Uh our financial results presentation and 1:25 1 minute, 25 seconds press releases have been shared on the stock exchanges as well as on our website and we trust you have had the opportunity to uh review them. Uh today 1:33 1 minute, 33 seconds I'm joined by my colleague Vin Dotia CFO and head of strategy and Mr. Sepsi, head of investor relations, marketing and corporate communications. 1:44 1 minute, 44 seconds Before I take this opportunity uh to provide you with a brief perspective on the market scenario, our performance and 1:50 1 minute, 50 seconds our uh way forward, I would like to take a moment to thank UTI shareholders, board and trustees for the confidence 1:58 1 minute, 58 seconds and trust they have reposed in me in continuing to build on UTI's legacy. 2:03 2 minutes, 3 seconds Having been closely associated with this organization for nearly a decade, I believe we have built a strong foundation across our investment 2:11 2 minutes, 11 seconds capabilities, distribution and technology. Our focus now is to accelerate growth from this base, 2:19 2 minutes, 19 seconds improve our growth and continue delivering long-term value to all the stakeholders. 2:25 2 minutes, 25 seconds Let me begin with a brief overview of the macroeconomic environment and industry trends. 2:32 2 minutes, 32 seconds The year SI 2526 has been a year of resilience in investor behavior even as 2:38 2 minutes, 38 seconds markets have witnessed volatility. The key differentiator has not been the short-term movement in flows but the 2:46 2 minutes, 46 seconds enduring structural stability in investor behavior towards financial assets and of course particularly mutual 2:53 2 minutes, 53 seconds funds. Despite global uncertaintities, whether in geopolitical developments, trade shifts or capital flows, India's 3:01 3 minutes, 1 second fundamental growth drivers have remained intact. Domestic demand continues to be strong and the financialization of savings is clearly sustaining momentum. 3:11 3 minutes, 11 seconds We have been seeing this clearly in the growth in systematic investment plan investments. 3:18 3 minutes, 18 seconds Uh talking now about equities and mutual funds in particular. Uh on the industry trends, FI2526 continued to witness strong retail investor participation. 3:29 3 minutes, 29 seconds Total mutual fund uh folios at approximately 27.39 cr as of March 2026. 3:37 3 minutes, 37 seconds Retail mutual fund folios equity plus hybrid and solution oriented schemes increased to around 20.82 cr. The 3:47 3 minutes, 47 seconds industry's average assets under management reached 79.46 lakh cr as of March 2026 3:55 3 minutes, 55 seconds demonstrating steady expansion driven by both market performance and sustained influence. 4:02 4 minutes, 2 seconds Retail AUM stood at rupees 42.89 89 lakh cr and this underlines the growing 4:09 4 minutes, 9 seconds contribution of individual investors to the overall mutual fund industry. 4:16 4 minutes, 16 seconds SIPs continue to be a key driver of flows and investor discipline. The monthly SIP contributions stood at 4:25 4 minutes, 25 seconds rupees 32,087 cr in March 2026 while SIP AUM reached uh nearly rupees 15 lakh cr 4:35 4 minutes, 35 seconds accounting for 19.94% of overall MF industry AU while there has been some moderation in inflows 4:44 4 minutes, 44 seconds across certain categories in recent months investor participation remains broad-based industry equity mutual fund 4:52 4 minutes, 52 seconds inflows stood at 40,450 crores in March 2026. 4:57 4 minutes, 57 seconds Uh this is remarkable and indicates continued interest in equities as an asset class in spite of intermittent market volatility. 5:08 5 minutes, 8 seconds Let me now move on to talk a little bit about our company performance and I'll take you through our performance highlights. 5:16 5 minutes, 16 seconds The financial year 2526 has been a year of strong execution across our core strategic priorities from strengthening 5:24 5 minutes, 24 seconds retail flows, deepening distribution relationships, scaling our product franchise and investing in 5:33 5 minutes, 33 seconds technology-led operating leverage. We have also undertaken several structural initiatives to strengthen the operating 5:41 5 minutes, 41 seconds platform and expanded our geographic presence in a calibrated manner while maintaining net zero incremental costs 5:49 5 minutes, 49 seconds by managing branch operations efficiently. We have significantly improved our supervises supervisor to 5:57 5 minutes, 57 seconds feet on street ratio from approximately 1 is to1 to 1 is to5 over these recent years with one manager now overseeing 6:06 6 minutes, 6 seconds around five relationship managers. Our total employee strength which stood at 142 employees as of March 2024 is now at 1248 as of March 2026. 6:21 6 minutes, 21 seconds Talking about the group, UTI group's total AUM stood at 23.42 lakh cr as of March 31, 2026. 6:30 6 minutes, 30 seconds Our mutual fund AUM reached 3.88 lakh cr compared to 3.39 lakh cr last year. In 6:39 6 minutes, 39 seconds FI26, we added 7.16 lakh new investors uh as identified by their pans, taking 6:47 6 minutes, 47 seconds our total folio base to 1.38 cr. During the year, our gross new SIP registrations crossed 14 and a half lakh 6:55 6 minutes, 55 seconds of which 76% were through digital channels. 6:59 6 minutes, 59 seconds On the product side, we successfully launched the UTI multicap fund which mobilized about thousand crores with strong participation across banks, 7:08 7 minutes, 8 seconds national distributors and MFDs. In addition, our UTI arbitrage fund crossed the 10,000 cr AUM milestone during the 7:17 7 minutes, 17 seconds year. Our passive business continues to scale well uh with ETF AUM at 18,963 cr 7:27 7 minutes, 27 seconds and index fund AUM at 5,934 cr aggregating to rupees 24,897 7:36 7 minutes, 36 seconds cr during the year and we continue to maintain leadership position in the smart beta category. 7:44 7 minutes, 44 seconds We expect our uh uh momentum in this passive business will continue to be supported by a robust 7:52 7 minutes, 52 seconds pipeline of new launches during the coming year. On the institutional side of our business uh which falls under our 7:59 7 minutes, 59 seconds TMS division, both the EPFO and CMPFO concluded the process of appointing new portfolio managers through a open 8:07 8 minutes, 7 seconds bidding system. uh for the third consecutive term UTI AMC was selected as one of the portfolio managers for EPFO. 8:16 8 minutes, 16 seconds In the case of the CMPFO, we were chosen as one of the two portfolio managers for the second consecutive term. Both 8:24 8 minutes, 24 seconds mandates have been awarded for a tenure of 5 years. 8:28 8 minutes, 28 seconds Switching to our pension fund business, our pension business grew during the year with total AUM at 4.02 02 lakh cr 8:37 8 minutes, 37 seconds representing a 11.8% 8% increase yearonear while the private sector pension aon grew by 46% yearonear. 8:47 8 minutes, 47 seconds This continues to remain an important strategic growth area for us. 8:53 8 minutes, 53 seconds An important area of focus for us through the year has been digital transformation and productivity enhancement. Our digital business 9:01 9 minutes, 1 second initiatives have delivered strong outcomes including a 234% increase in revenue, 33% increase in transactions 9:08 9 minutes, 8 seconds and a 31% reduction in cost per transaction. We recently launched one of the industry's first AI powered contact 9:16 9 minutes, 16 seconds uh center solutions, Vani, which has already automated 59% of our inbound calls. This has materially improved 9:25 9 minutes, 25 seconds customer response time and service efficiency. We also launched an inapp WhatsApp payment facility via CAMS Pay 9:34 9 minutes, 34 seconds and are the first AMC in India to offer this service to investors to transact and engage in live chat via WhatsApp and make payments. 9:45 9 minutes, 45 seconds To bridge the gap between complex financial insights and reach a diverse investor base, we also launched an 9:52 9 minutes, 52 seconds industry first AI translated vernacular initiative with the launch of our monthly fact sheets in Hindi. We are 10:00 10 minutes also translating our fund manager communications into eight regional languages Hindi, Gujarati, Marathi, 10:07 10 minutes, 7 seconds Bengali, Tamil, Telugu, Canada and Malalam to provide our views in regional languages for our pan India audience. uh 10:16 10 minutes, 16 seconds as mutual funds u go deeper and deeper into the heartland of India, we think 10:23 10 minutes, 23 seconds being able to provide uh communication in different languages will uh hold us in goodstead. From an investment 10:30 10 minutes, 30 seconds performance standpoint, we continue to remain focused on process consistency and disciplined execution. In fixed 10:37 10 minutes, 37 seconds income, 50% of our AUM ranked in the top two quartiles over the one-year period and 60% over the 3-year period. 10:46 10 minutes, 46 seconds Similarly, our hybrid strategies and our value oriented strategies have continued to uh show strong-term performance in 10:54 10 minutes, 54 seconds the equity space. Uh our passive strategies have a consistent track record of low tracking difference uh 11:02 11 minutes, 2 seconds which is very important in terms of the investor outcomes. Our equity research coverage has further expanded in line 11:10 11 minutes, 10 seconds with the growth in the market. This strengthens our ability and to identify opportunities across market segments. 11:18 11 minutes, 18 seconds Overall, FYI 2526 has been a year when we have strengthened our business across distribution, product capability, 11:26 11 minutes, 26 seconds digital infrastructure and institutional trust and I would add also a very significant people refresh. Going ahead, 11:35 11 minutes, 35 seconds our foremost strategic priority is to grow our mutual fund AUM while building a more resilient, diversified and 11:43 11 minutes, 43 seconds scalable franchise. All to be done while maintaining strong cost discipline. With that, I will now request Sep to take you 11:51 11 minutes, 51 seconds through the operational and financial performance of the company in detail. 11:56 11 minutes, 56 seconds Thank you, sir. I will speak about UTMC's performance during the fourth quarter and for the full year ended 31st March 2020. 12:04 12 minutes, 4 seconds Speaking about UTI mutual funds performance, UTI was able to capture a market share of 5.5% of the gross sales of the industry during this quarter and 12:13 12 minutes, 13 seconds market share of 6.1% of the gross sales for the financial year FI26. 12:18 12 minutes, 18 seconds Our equity quarterly average for March 2026 stood at rupes 95,824 12:24 12 minutes, 24 seconds cr rising by 5.46%. 46% as compared to the quarter ended March 25. Our quarterly average AU for the index and 12:32 12 minutes, 32 seconds ETF fund stood at rupees 1 lak 76,673 cr up by 24.86% in the fourth quarter. 12:41 12 minutes, 41 seconds ETF and index fund annual net inflow stood at rupes 24,897 cr. In fi 2526 we added 7.16 lakh new 12:51 12 minutes, 51 seconds investor bank taking our total total folio base to 1.38 crores. Our SIP am 12:58 12 minutes, 58 seconds witnessed a growth of 5.91% over the corresponding quarter of last year reaching to rups 39,813 13:06 13 minutes, 6 seconds crores as of March 26. The SIP inflows for the fourth quarter stood at rups 2,457 13:12 13 minutes, 12 seconds crores. The SIP gross inflows for UTM mutual fund witnessed a year-on-year growth of 13.42% 13:20 13 minutes, 20 seconds with an average SIP ticket size being rupes 3381 for March 2026. For the full year, SIP 13:28 13 minutes, 28 seconds inflows were rupees 9,442 crores higher by 13.42% 13:35 13 minutes, 35 seconds as compared to rupees 8,325 crores in FI25. 13:40 13 minutes, 40 seconds The active SIP for years as on 31st March 2026 stood at 29.53 lakhs a 9.71% 13:48 13 minutes, 48 seconds growth as compared to March 25. Speaking about UTMC's financial on a standalone basis the core income that is sale of 13:56 13 minutes, 56 seconds service for FI26 amounted to rups 1,255 crores as compared to rups 1,180 cr for fi25. 14:06 14 minutes, 6 seconds The normalized score pack for FI26 is rupes 460 cr as compared to rups 447 cr 14:13 14 minutes, 13 seconds in fi25. The normalized pack for fi26 is rupees 643 cr as against rups 653 crores 14:22 14 minutes, 22 seconds in fi25. The employee cost of rupes 437 cr includes the one-time item on account of revision of family pension benefit of 14:31 14 minutes, 31 seconds rups 25 crores incurred in quarter 2 of fi26. Excluding this oneoff item the normalized employee cost is 420 412 crores. 14:42 14 minutes, 42 seconds On a consolidated basis, the core income sale of service for FI26 amounted to rupees 1,539 14:49 14 minutes, 49 seconds cr as compared to rupees 1,445 cr for FI25. The normalized for core 14:56 14 minutes, 56 seconds pack for FI26 is rupees 452 cr as compared to rups 492 cr in FI25. The 15:04 15 minutes, 4 seconds normalized pack for FI26 is 511 cr as against rupees 731 cr in FI25. The 15:12 15 minutes, 12 seconds employee cost of rupees 553 553 cr include the one-time item on account of revision of family pension benefit of 15:20 15 minutes, 20 seconds rupes 25 cr included incurred in fi quarter 2 of fi 26 excluding this one of item normalized employee cost is rupees 15:28 15 minutes, 28 seconds 528 cr on UT pension fund limited our 100% owned subsidiary UK pension fund limited 15:36 15 minutes, 36 seconds has recorded a growth of 12% yearonear in its reaching ing rupees 4 lakh cr as on quarter 4 of FI26 and currently it 15:46 15 minutes, 46 seconds manages 24.36% of the NPS industries AM UT international which represents our international business interest has an 15:54 15 minutes, 54 seconds AM of US dollar 1.74 billion that is rups 16,144 cr as of 31st March 2026 our 16:03 16 minutes, 3 seconds international clients are more than in more than 30 countries and they are primarily institutions pensions insurance companies banks and asset 16:11 16 minutes, 11 seconds manager. One of our flagship fund the India dynamic equity fund domiciled in Ireland has an AM of US 540 million 16:19 16 minutes, 19 seconds which is rupes 5,12 cr as of March 31, 2026. 16:25 16 minutes, 25 seconds On UTI alternative it has an AM of Rs 5,280 crores. It manage it currently manages five active funds across performing credit and multistate theme. 16:37 16 minutes, 37 seconds Structured debt opportunity fund two has exited all the investment and made the final distribution of final 16:45 16 minutes, 45 seconds distribution in quarter 3 FI26 at an above benchmark performance with an IR of 13.4%. 16:52 16 minutes, 52 seconds UTO of 3 has an AUM of 609 cr and the fund is currently in the investing stage. During the second quarter UT 17:00 17 minutes alternatives launched the fourth fund of the edge of series. This fund has been planned as a 1,500 cr fund plus with a 17:07 17 minutes, 7 seconds 500 cr green shoe option with a current AUM of 674 cr. UT multi opportunity fund one has an AUM of rupes 1,598 cr. 17:19 17 minutes, 19 seconds Currently the fund is in investing stage. UT real estate opportunity fund with it commitment of rupees 187 cr is 17:26 17 minutes, 26 seconds currently in fundraising and investing stage. I would now request the managing director and CEO for his concluding remark. Sir, 17:35 17 minutes, 35 seconds thank you Sep uh for sharing the operational and financial updates of the company. Uh I'm also pleased to inform you that at the board meeting today, 17:43 17 minutes, 43 seconds UTIMC has declared a dividend of rupees 40 per share for the financial year 2526. The same is subject to the 17:52 17 minutes, 52 seconds approval of shareholders at the ensuing annual general meeting. Uh we would like to open the forum for questions and answers. Thank you very much. 18:01 18 minutes, 1 second Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 18:09 18 minutes, 9 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 18:18 18 minutes, 18 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 18:44 18 minutes, 44 seconds Ladies and gentlemen, to ask a question, please press star N1 on your phone. 18:53 18 minutes, 53 seconds We'll take our first question from the line of GAN from ICA Credential Mutual Fund. Please go ahead. 19:01 19 minutes, 1 second Sir, sir, thank you for the opportunity. My question is on the expenses side. 19:07 19 minutes, 7 seconds There is some one of you called out in Q4 FI26 but I could not understand the claim completely. But then on reported 19:15 19 minutes, 15 seconds numbers what we are seeing is uh year on year there is a sharp increase. So if you can help us understand what is the 19:23 19 minutes, 23 seconds oneoff and for FI27 how should we build or think about the employee expense and also the other 19:31 19 minutes, 31 seconds expenses bit because if you look at FI26 I don't think there is much oneoff in the other expenses bit that for the full 19:39 19 minutes, 39 seconds year has also grown 15% which is on the higher side. So if you can help us understand how should we think on the board from FI27 perspective. 19:50 19 minutes, 50 seconds Yeah. Hi V here. So on the employee cost there is a oneoff on account of VRS and 19:57 19 minutes, 57 seconds family pension. Uh the total quantum of that is close to around 130 cr that we 20:03 20 minutes, 3 seconds provision in the Q3 of uh this particular financial year. Plus on account of labor code there has been an 20:11 20 minutes, 11 seconds impact of close to around 4 cr as well uh because we have to provide for an additional liability of 4 cr. So total 20:20 20 minutes, 20 seconds employee cost that you see is close to around 412 cr at a standalone and 528 20:27 20 minutes, 27 seconds cr at a console level. uh in terms of guidance for the next financial year because obviously there will be a benefit on account of VRS the run rate 20:35 20 minutes, 35 seconds on a quarterly basis should be around 90 to 95 cr for the standalone entity and 20:42 20 minutes, 42 seconds 125 to 130 K on the consolidated uh firm obviously because we are building 20:50 20 minutes, 50 seconds capacity expansion into all the three uh lines of business with respect to the 20:57 20 minutes, 57 seconds other expenses yes it has increased at 15% and I would say some of these items are not actually a cost that but as an 21:05 21 minutes, 5 seconds investment that we are doing in our business both on the digital front as well as on the physical front. uh on the 21:12 21 minutes, 12 seconds digital fund we have upgraded our IT infra structure especially with respect to uh the cloud infra and because of 21:20 21 minutes, 20 seconds that there's an additional expense line item of close to around 8 cr and on the physical part since we have expended 21:28 21 minutes, 28 seconds close to around 90 UFTS in the last one and a half years that has obviously increase our cost uh the guidance for 21:36 21 minutes, 36 seconds the other administrative expenses it should increase close to around 7 to 8% % for the standalone entity and maybe 21:45 21 minutes, 45 seconds 100 or 200 basis point more for the console entity since for UTI pension fund we are expanding into newer 21:53 21 minutes, 53 seconds geography so for the consolidated one it could be in the range of around 10% and for the standalone it's around 8% for 22:02 22 minutes, 2 seconds the other expenses gor with that answer your question yes sir just one follow up on the 22:10 22 minutes, 10 seconds employee expenses bit. So basically Q4 when I'm looking at the consolidated employee expense it is 132 cr 22:18 22 minutes, 18 seconds that is the normalized run rate what you are saying post VRS and there is no oneoff in this yeah there's no for there's no one in 22:27 22 minutes, 27 seconds this in that case sir on a yearon-year basis 22:35 22 minutes, 35 seconds at the console level even after we are at we are at a 14% three right and Q4 to 22:43 22 minutes, 43 seconds Q4 Q4 FI 25 our employee spend was 116 cr4 FI 262 cr so that has still grown at 22:50 22 minutes, 50 seconds 14% even after the yeah some is on account of additional 22:57 22 minutes, 57 seconds provision for account on uh variable pay and quarterly incentive and uh as I told you at a console level since we are 23:06 23 minutes, 6 seconds expanding into all the three lines of business there have been additional recruitment in all the three that is why it is increasing. 23:19 23 minutes, 19 seconds Okay sir, my next question is to vet sir that post taking over as CEO if he can help us understand what are the key 23:28 23 minutes, 28 seconds three four areas or aspects that he plans to work on for the coming year and what is his road map that he wants us to 23:36 23 minutes, 36 seconds guide for how he wants to run the company from here that will be helpful. 23:41 23 minutes, 41 seconds So bor before that let me clarify the run rate for standalone is close to around 90 to 95% uh 95 cr per quarter 23:50 23 minutes, 50 seconds and for the console it's around 125 cr what you wait yeah 23:58 23 minutes, 58 seconds uh so as I you know said in my opening uh statement gor I think uh you know from our point of view uh the company 24:06 24 minutes, 6 seconds has carried out very significant uh you know refresh of its platforms of its technology of its infrastructure of our 24:15 24 minutes, 15 seconds reach in terms of the branch expansions that we have done. So if you ask me what is the single line agenda the single 24:22 24 minutes, 22 seconds line agenda is growth um you know we are operating with roughly 270 branches u uh 24:30 24 minutes, 30 seconds you know I give you the employee count which is now in the 1200 number um and if I look at all of these numbers put together I would say we are operating 24:38 24 minutes, 38 seconds below our capacity so the simple target over the next few years is to grow is to grow faster than certainly our peers in 24:46 24 minutes, 46 seconds the top 10 of the industry such that we can start to get the benefit of the operating leverage that is now already 24:53 24 minutes, 53 seconds built in because we have absorbed a lot of those costs. Uh from a people point of view, I mentioned in my opening comment there's been a significant uh 25:02 25 minutes, 2 seconds refresh uh in terms of the people uh you know and also I would say over the last few years there's been a dramatic uh 25:09 25 minutes, 9 seconds transformation. If I just look at uh the age group of you know our uh what we call a frontline carter uh the average 25:18 25 minutes, 18 seconds age of the team has dropped from 41 years in FI21 uh to 36 years in FI26 and Gen Z now 25:28 25 minutes, 28 seconds makes up 38% of the workforce uh and if I go back 5 years it used to make up 5% of the workforce. So there's a very 25:36 25 minutes, 36 seconds dramatic people refresh which has taken place. Uh my sort of uh you know call out to the internal team is to make sure 25:44 25 minutes, 44 seconds uh they are well equipped uh they are trained uh they have best-in-class support be it from our data platforms be 25:51 25 minutes, 51 seconds it in terms of technologies available to them to be able to raise their productivity and their efficiency so that we can raise our share of gross 26:00 26 minutes sales net sales and achieve a much higher level of AUM without in any way having to add uh you know further costs 26:08 26 minutes, 8 seconds on the people front particularly within the context of the MF business. So the single line agenda is growth. If I were 26:15 26 minutes, 15 seconds to drill down into the second line agenda, it would be to sort of grow our share of SIPs disproportionately because 26:23 26 minutes, 23 seconds I think that is the key to uh growth particularly on the equity side of the business uh the active equity side of 26:30 26 minutes, 30 seconds the business and we know that is a much higher yielding uh part of our business mix. Um and clearly uh you know on top 26:39 26 minutes, 39 seconds of uh these two uh all the technology refreshes that we've done are allowing us to engage effectively with the young 26:47 26 minutes, 47 seconds cohort and in the digital uh space uh you know if you look at the new SIP signups which are happening uh I would 26:56 26 minutes, 56 seconds say you know given on which data point you look at more than 50% of the SIPs are now originating digitally uh so you 27:04 27 minutes, 4 seconds know all the investment that we've made in digital uh is something that we hope to use once again to be able to increase 27:11 27 minutes, 11 seconds our growth rate. But single line agenda grow the business second manage the cost increase the efficiency uh and use all the other tools that I mentioned. 27:24 27 minutes, 24 seconds Uh very helpful sir. Uh thank you and all the best. Thank you. Thank you. 27:29 27 minutes, 29 seconds Thank you. Before we take the next question, would like to remind participants to ask a question, please press star and one on your phone. Now, 27:38 27 minutes, 38 seconds next question is from the line of Naman Maheshwari from Shangi Family Office. Please go ahead. 27:46 27 minutes, 46 seconds Uh, hi, good evening. Am I audible? Yes, please go ahead. 27:52 27 minutes, 52 seconds Okay. uh so very well captured on you know the single focus of growth uh as an engine. Uh so you know since last three 28:01 28 minutes, 1 second four years we had not witnessed a sharp correction led by so many uh you know headwinds into the market but this could 28:09 28 minutes, 9 seconds have been a good time to acquire customers right March was uh to some extent it was pretty risky for the uh 28:17 28 minutes, 17 seconds overall equity market. So how did we see the you know customer acquisition going during this time right during this slick 28:26 28 minutes, 26 seconds and what were the major schemes that are you know engaging interest of uh SIP buyers also uh do you collect the data 28:35 28 minutes, 35 seconds of first time SIP u buyers with you or uh how do you track that if you could give some light on that so those are 28:44 28 minutes, 44 seconds some questions Yeah. So, uh N you're right. There was a 28:52 28 minutes, 52 seconds lot of volatility which came into the market and uh and we are very happy to see that investors have been consistent 28:58 28 minutes, 58 seconds in their SIP while generally Marque is a higher number of SIP closes because you know people achieve the target. People 29:06 29 minutes, 6 seconds have started a started their SIP in the month of April and close it in the month of March. But overall there was no uh 29:13 29 minutes, 13 seconds you know uh not a very high amount of redemption pressure that the mutual fund industry saw uh on you had asked a very 29:22 29 minutes, 22 seconds interesting question on how do we track the first time SIP investors and we track them on the basis of the PAN 29:29 29 minutes, 29 seconds numbers that we have and as both vetri and vin mentioned that we have invested a lot in the digital infrastructure so 29:37 29 minutes, 37 seconds we have now created a complete data lake and we get to know each and every investor whenever they he or she comes 29:44 29 minutes, 44 seconds in their folio I mean and start their folio we get their entire database so we know that whenever there is a new customer who's coming all the data that 29:52 29 minutes, 52 seconds they have the major scheme that the first-time investors generally look at are the index funds and we have seen good traction especially from the 30:00 30 minutes fintech platform for the uh gen investors and they generally uh you know take their first investments at around 30:08 30 minutes, 8 seconds 1,500 uh rupees is the SIP and just to add to what sorry there's 30:16 30 minutes, 16 seconds battery here just to add to what Sep said uh one of the numbers that we are now tracking closely and we are also 30:23 30 minutes, 23 seconds putting that into our sales matrix so that we know what those numbers are and we know what strategies we can use to drive it is the uh new customer 30:31 30 minutes, 31 seconds acquisition which to us basically means are we getting a customer with a PAN number which we earlier did not have in 30:37 30 minutes, 37 seconds our uh MF folio is uh so the idea is to target that number. I mentioned that last year we added seven lakh plans. So 30:46 30 minutes, 46 seconds this year we are targeting to grow that number significantly. So a lot of the activity that we are doing in the digital space as well as on ground uh 30:54 30 minutes, 54 seconds you know including B30 cities et etc as an example women investors as an example is to widen that pool because that has 31:02 31 minutes, 2 seconds been our historic legacy but also we think that is a great way to create the customers who as they grow you will grow with them. What we also have now with 31:11 31 minutes, 11 seconds our Salesforce marketing automation is the ability to communicate with these clients using our Salesforce marketing 31:18 31 minutes, 18 seconds automation and being able to cross-ell and upsell opportunities to them. Uh we implemented the Salesforce marketing 31:26 31 minutes, 26 seconds automation sometime in the middle of last year. uh early results at this point I mean early days at this point of time but we are starting to see that you 31:33 31 minutes, 33 seconds know driving engagement with those customers helps you make them uh you know think through their investments better and also gives you that 31:41 31 minutes, 41 seconds opportunity to upsell and cross-ell. So new customer acquisition is certainly a key part of that and now with digital 31:48 31 minutes, 48 seconds there is an ability to you know target and communicate appropriately with them to raise your share of a with them. 31:58 31 minutes, 58 seconds Okay. Okay. And actually I didn't mean to ask you from the SIP stoppage. 32:03 32 minutes, 3 seconds Actually I wanted to understand that you know did you witness any sharp inflow from first time SIP doers when the 32:12 32 minutes, 12 seconds market was you know uh in March when there was extreme volatility. So did that help you you know fast track some 32:21 32 minutes, 21 seconds customer acquisition by educating them rightly because we have a very strong feet on street right. So that is what I 32:27 32 minutes, 27 seconds wanted to understand that did it accelerate during this volatility window right 32:37 32 minutes, 37 seconds I mean not so much because you know sometimes sharp market corrections also caused people's thought processes plus 32:45 32 minutes, 45 seconds March as I mentioned is a period when people look at you know SIPs and renewing their SIP so however one good 32:53 32 minutes, 53 seconds factor that we saw that when in the month of February the number of new SIPs which we opened were quite good. Uh so 33:02 33 minutes, 2 seconds and even in the industry level but industry level the numbers were slightly lower. We did better than the industry 33:09 33 minutes, 9 seconds in that sense. So volatility has been helping in terms of getting new investors because now they look at the market being at a lower level and 33:17 33 minutes, 17 seconds starting their SIP but not so much in the month of March itself. So maybe because of the sharp volatility which we saw saw in the market. 33:26 33 minutes, 26 seconds So again better I don't think there's a specific call out on March per se. Uh but you know we track our um um uh you 33:35 33 minutes, 35 seconds know SIPs which are sort of let's say canceled or seized visa v the total SIP book uh and the new SIPs that we are 33:43 33 minutes, 43 seconds adding and we also compare how our our performances relative uh to the industry because the same number you also get 33:50 33 minutes, 50 seconds from MC uh I would say in general we have seen our numbers have been slightly better in recent months but I'm uh I 33:58 33 minutes, 58 seconds wouldn't like call out something which is particular ularly distinct in terms of a trend. 34:04 34 minutes, 4 seconds Okay, sir. Fairly understood. Uh, congratulations and all the best for the upcoming quarters. 34:10 34 minutes, 10 seconds Yeah, thank you. 34:12 34 minutes, 12 seconds Next question is from the line of Magna Lutra from Incredibles. Please go ahead. 34:19 34 minutes, 19 seconds Yeah. Hi, thank you sir for giving me an opportunity. Uh, sorry I joined a little late. I'm not sure that these questions have been asked. uh what would uh I mean 34:28 34 minutes, 28 seconds can you please explain the impact of the revised norms uh new norms from 1st April. 34:37 34 minutes, 37 seconds So the TR on on account of exit load has been cut by five basis point and obviously there 34:45 34 minutes, 45 seconds have been some rationalization in the base TR as well but uh as a fun we are of the view that 34:52 34 minutes, 52 seconds whatever impact is there that we'll be passing on to the intermediaries so we don't foresee any challenges as far as 35:00 35 minutes this rate cut is concerned on our AMC yield. 35:04 35 minutes, 4 seconds Okay. Okay. Okay. got and sir uh uh secondly uh what do you see as as the uh yield impact going forward for the year? 35:17 35 minutes, 17 seconds So it's a combinations of actually what are asset mixed as well. So uh maybe a basis point or two dilution 35:26 35 minutes, 26 seconds could be there because ETF and index fund is going at at a slightly higher yield and on the fixed income side as 35:33 35 minutes, 33 seconds well there is a stronger appetite for a low duration product which have a slightly lower yield as compared to a high duration or a K yield fund. So 35:42 35 minutes, 42 seconds maybe a basis point or two dilution in the overall number per say for financial year 26 27. 35:50 35 minutes, 50 seconds Got it sir. And sir uh just to add on battery here you know from my point of view the most critical 35:57 35 minutes, 57 seconds line to grow is the revenue line. Of course I would like my higher yielding products to grow faster but eventually 36:04 36 minutes, 4 seconds from our point of view there is a cost base that we have and anything that we helps us grow the top line faster we are happy to take it. Uh there is a separate 36:13 36 minutes, 13 seconds challenge of can we raise our share of high yield yielding products relative to what we have in passive. We know our 36:20 36 minutes, 20 seconds share of passive as a percentage of our total AM is much larger than some of our peer groups. But managing yield for the sake of managing yield is not a thing 36:29 36 minutes, 29 seconds that I'm in favor of. I would rather manage revenue. But yes, certainly we would like to raise our share of net sales coming in from active equity schemes. 36:39 36 minutes, 39 seconds Got it. Got it. And sir uh on the employee front are we seeing uh this as 36:46 36 minutes, 46 seconds a normalized run rate or how do we see employee costs from here on? 36:51 36 minutes, 51 seconds So given some guidance on the employee run rate going forward at least for the standalone entity is close to around 95 36:59 36 minutes, 59 seconds cr per quarter and at a console it will be closer to around 125 cr per quarter higher on the console side because we 37:07 37 minutes, 7 seconds are building capabilities in all our three subsidiary lines of business. 37:12 37 minutes, 12 seconds Got it sir. And uh lastly sir on the pipeline of the product what uh what is there there for the coming quarter s what can we expect? 37:24 37 minutes, 24 seconds Yeah. So we have filed uh multiple uh passive funds with the uh with we are going to file multiple passive funds 37:31 37 minutes, 31 seconds with the regulator. Now we have received the board approval. So some of the funds that we are going to file with SEBI are 37:38 37 minutes, 38 seconds UTI NIFTY 500 index fund both on the index side and the ETF side. UT BAC index sector leaders again both on index 37:47 37 minutes, 47 seconds and ETF. UTI NIFTY India new age consumption and UT Nifty India Internet fund. 37:55 37 minutes, 55 seconds So these are the four funds which both index and ETF. I can just add to what Sep is saying. Um you know our focus has 38:04 38 minutes, 4 seconds been only on the core diversified categories which is why you see even in the last you know I would say three four 38:10 38 minutes, 10 seconds five years we stayed away from launching a flurry of you know sector and thematic funds right we are continuing to be guided by that 38:20 38 minutes, 20 seconds principle. uh we will launch in the passive the full booking because we think of those as access products where you know from our point of view we are 38:28 38 minutes, 28 seconds providing access to teams and sectors which investors are welcome to take uh and uh you know pursue but in the diversified space we have covered the 38:37 38 minutes, 37 seconds core categories and you know there's no interest in doing anything beyond that we do plan to however launch at least 38:43 38 minutes, 43 seconds one fund in the SIS category uh during this uh current year uh we've uh you know it's the process in terms of 38:51 38 minutes, 51 seconds getting all the board approvals and regulatory approval and I think if you see the industry data it is clear that you know there's been some action in 38:59 38 minutes, 59 seconds cyst but it's not that the growth over there has been particularly dramatic but we think we have one or two good product ideas and certainly we would like to launch one of them during the current 39:08 39 minutes, 8 seconds year so I think that would be the uh target over there uh separately uh we've also received the u um uh permission 39:17 39 minutes, 17 seconds from the uh IFSC which is gift uh we already had a our subsidiary 39:24 39 minutes, 24 seconds rather which is UTI alternatives they already had their license uh in the gift city but that was for a wholesale uh 39:33 39 minutes, 33 seconds what they call a non- retail FME license we have now just last week received the approval for retail FME uh so we will 39:41 39 minutes, 41 seconds intend during the course of this year to also use gift as a two-way solution uh both for partnering uh you know uh uh 39:51 39 minutes, 51 seconds products which domestic investors might want to uh invest overseas as well as providing vehicles in Gib City for 40:00 40 minutes global investors who might want to invest through that route into our domestic funds. Okay. All right. 40:09 40 minutes, 9 seconds And so lastly on the float run, what would be the share of uh the banking channel in total equity and hybrid? 40:26 40 minutes, 26 seconds Just give me a second. 40:34 40 minutes, 34 seconds Yeah, the share would be about 1 and a half%. Okay, cool. Thank you. That's all. 40:43 40 minutes, 43 seconds Thank you. We'll take a next question from the line of Mohit Mangal from Centrum Broking. Please go ahead. 40:51 40 minutes, 51 seconds Yeah. Thanks for the question. Before I was actually looking at your I'm sorry to interrupt. Can you use your handset mode, please? 40:59 40 minutes, 59 seconds Yeah. Is this better? Yes, please go ahead. 41:02 41 minutes, 2 seconds Uh yeah. Yeah. Uh so actually I was looking at your PPT and and and I was actually a little surprised that your equity net flows you know both on 41:09 41 minutes, 9 seconds quarterly and yearly has been kind of negative. Uh though from 25 to 26 we see some kind of a moderation. So what are 41:18 41 minutes, 18 seconds our strategies to you know uh improve the net sales within the equity space? A hybrid is doing well that is fine but within the pure equity space what can we 41:27 41 minutes, 27 seconds do you know to increase uh our market share as well as you know bring it in the positive territory. Yeah, Mo. 41:35 41 minutes, 35 seconds Yeah. So, let me answer that battery here. Uh, so there are two key things you need to do. One is of course as I mentioned earlier, we need to raise the 41:43 41 minutes, 43 seconds uh SIP book, right? So, that is a key metric for our sales team now to raise the SIP book and that is where I believe 41:50 41 minutes, 50 seconds you'll be able to build the most sustainable level of both flows as well as over time it builds into a lot more stable angle. Uh, so that is point 41:59 41 minutes, 59 seconds number one. Secondly, when you look at that net flow number, you're absolutely right. Uh last year was actually year before last was usually negative. Last 42:07 42 minutes, 7 seconds year the negative number came down. This year it was you know I would say almost close to zero. Now this reflects the fact that you know some of our uh 42:15 42 minutes, 15 seconds strategies have seen large outflows over the last few years. See this is really a question of repositioning the sales team 42:22 42 minutes, 22 seconds in terms of saying how do we take multiple products to the market and how do we make sure that we are able to simultaneously sell uh and bring in next 42:31 42 minutes, 31 seconds sales from uh you know different schemes. So one of the things we are happy is that this year we were able to if you look at our you know sort of core 42:39 42 minutes, 39 seconds what we would call 19 funds. Uh eight of them actually saw positive net sales and we've now reached a situation where 42:47 42 minutes, 47 seconds unlike in the past where maybe one or two flagship schemes dominated the entire inflow. We are trying to diversify the inflow across the entire 42:56 42 minutes, 56 seconds basket of funds that we have. Very simply I would say everything from value uh to GAP in the middle and quality growth. So from my point of view, the 43:05 43 minutes, 5 seconds only way to avoid the cyclicality which is otherwise inherent in this business 43:12 43 minutes, 12 seconds is the fact that your flows are proyical to performance. So I would like to dial 43:19 43 minutes, 19 seconds that down by making sure that we have competent uh uh you know silos for each of these different sort of strategies. So then 43:27 43 minutes, 27 seconds all market strategies the salespeople are able to take some performing products and equally uh you know what I'm increasingly seeing in this 43:35 43 minutes, 35 seconds marketplace is that a fair number of distribution uh as well as other investors are also open to seeing where 43:43 43 minutes, 43 seconds is the opportunity for me to participate in a fund which maybe currently is suffering because market conditions are not favorable but where perhaps 43:51 43 minutes, 51 seconds something might change to my advantage in the future. So what we are trying to double down on is training the sales sales team and empowering them making 44:00 44 minutes sure that they are able to carry multiple products to the market rather than the firm be reliant on a only on a narrow set of funds. So that's the way 44:09 44 minutes, 9 seconds we try to diversify and you know that is what along with the SIPs I think will hopefully let us turn the corner and in increasingly build it into a sustainable number. 44:19 44 minutes, 19 seconds Understood. This is this is helpful. uh I was actually looking at I mean uh you know taking this forward and I was looking at your employee number your employee number has reduced but your 44:28 44 minutes, 28 seconds sales team has kind of increased so that is something basically with within your strategy you know to increase your net sales uh I mean should we refer to it 44:37 44 minutes, 37 seconds that way sorry will you repeat that question yeah so basically I was looking at your number of employees so number of 44:44 44 minutes, 44 seconds employees were around 1 1400 in Q3 that got reduced to 1,250 odd but your sales was around 775 but that's around $799. 44:54 44 minutes, 54 seconds So, so I mean I just wanted to understand that you're increasing your core sales team members but at the same time reducing your overall employee 45:01 45 minutes, 1 second strength as well. So that's that's the right way to look at it. That's the right way to look at it because you know I think historically if you look at our 45:09 45 minutes, 9 seconds workforce I wouldn't just say Q3 but if I go back a little bit in time the ratio of people who are actually responsible for bringing in business relative to 45:18 45 minutes, 18 seconds those who were in let's say corporate related functions who were not really people who are bringing in the money that ratio was not a very favorable 45:26 45 minutes, 26 seconds ratio for us so what we are trying to do through all of the people refresh that I mentioned is essentially correct this 45:33 45 minutes, 33 seconds that you Of course, there will always be a large investment team. There will be a large assurance related team, you know, obviously the CFO and those kind of 45:42 45 minutes, 42 seconds control functions as well. But it needs to be more balanced than where we used to be. Having said that, I don't see the RM count going up too much further from 45:52 45 minutes, 52 seconds here. Uh I think we've reached a stage where with 260 odd, you know, uh USCs as we call it, I think we are pretty much fully staffed to the extent we require. 46:03 46 minutes, 3 seconds Unders. So that's helpful. Uh lastly on the international uh piece basically uh it was this was not a good year and even 46:10 46 minutes, 10 seconds the last quarter was not good. Uh so I think uh I mean we had strategies earlier as well you know to grow this piece as well. Uh so just wanted to know 46:19 46 minutes, 19 seconds how uh you know going forward into financial year 27 should we look at this kind this subsidiary. Basically 46:27 46 minutes, 27 seconds to put it very simply uh this is a little bit of a schizophrenic uh view on India. Uh domestic investors hugely 46:35 46 minutes, 35 seconds positive, hugely committed to investing for the long term and then uh you see a completely opposite viewpoint with 46:43 46 minutes, 43 seconds global investors where they are pulling money out of India right left and center and rotating it to every other uh you know developing market and uh of course 46:52 46 minutes, 52 seconds to develop markets. So you know this is a freight trend that we can't do much about because appetite for India is a function of many many things. So when 47:00 47 minutes you see uh I think if you look at calendar 25 and just the first quarter of fi the calendar 26 effectively 47:08 47 minutes, 8 seconds foreigners have pulled out $40 billion out of India. So our international business honestly is just feeling the pain of that outflow front and center. 47:18 47 minutes, 18 seconds uh we are looking at sort of trying to diversify that AUM. Uh we did you know launch a government bond ETFs saying you 47:26 47 minutes, 26 seconds know why do we only have equity products we should also have bond products but it doesn't help when your currency drops 9% over the year and then your bond 47:35 47 minutes, 35 seconds investors also end up with a hugely negative return. So it's just been a very very difficult market to position India right now with global investors. 47:43 47 minutes, 43 seconds Uh but I've seen this time and again it's a cyclical business. there are points in time where nobody is interested in the country and there are 47:50 47 minutes, 50 seconds other points where they want to you know bring the money back in a flood. So right now I would say it's just hold our ground and where possible we are looking 48:00 48 minutes to bring in some of our institutional clients u into our alternative products. 48:06 48 minutes, 6 seconds So we are trying to use that as a we actually started this last year itself but you know it takes a while to get 48:13 48 minutes, 13 seconds global investors completely to understand the domestic alternative product. Thankfully UTI alternatives you know having returned money on two of its 48:21 48 minutes, 21 seconds strategies during this year has a you know solid track record. So I'm hoping whatever traction we see in the alternative space uh will help the uh 48:30 48 minutes, 30 seconds international business sort of overcome some of the headwinds in their P&L account. But the larger challenge of India being seen negatively is a 48:39 48 minutes, 39 seconds headwind that we have no way of overcoming right now. 48:43 48 minutes, 43 seconds Understood. Makes sense. Lastly on SIF basically you know I mean if you can just elaborate on how how do you see 48:50 48 minutes, 50 seconds this piece and uh you know uh will will uh the yields be similar to that of mutual fund? I mean a little bit on that would be helpful. 49:02 49 minutes, 2 seconds I think too early to call that out. Um I think if you can do something which is 49:09 49 minutes, 9 seconds genuinely differentiated in terms of risk and reward to the investor uh my 49:16 49 minutes, 16 seconds intention would be then to price that um at a superior yield to the mutual fund. 49:22 49 minutes, 22 seconds uh but if you are offering something which is more in the nature of you know a plain vanilla uh structure which is 49:30 49 minutes, 30 seconds you know only slightly differentiated from the traditional MF product then your yield may not be different uh so I 49:38 49 minutes, 38 seconds think it's still evolving uh you know there's a whole series of longshot opportunities which are available in 49:45 49 minutes, 45 seconds that SIF space um some of them over time uh once we have the ability to execute 49:52 49 minutes, 52 seconds them in a way that it makes a material difference to the investor right I mean I can charge higher fees if the investor ends up with a riskreward ratio or with 50:01 50 minutes, 1 second a return which in his mind is superior to what he's getting from the MF product then of course I would like to earn a higher yield but I think it's still very 50:09 50 minutes, 9 seconds early days over there to give you a guidance on that but if I can offer a product with superior risk return longshot etc of course I would certainly 50:17 50 minutes, 17 seconds like to retain a higher yield for myself understood so so are kind of you know exploring that area. Uh I mean uh is is there anything in the pipeline? 50:27 50 minutes, 27 seconds I think the first product will be you know just little bit more than a plain vanilla product. So I would not expect 50:34 50 minutes, 34 seconds it on the first product. Uh but we are trying to launch some uh in that longshot space over time. It's still in 50:42 50 minutes, 42 seconds sort of testing phase which could use quant. uh if we launch that successfully and you know we are able to build the track record certainly we would like to 50:51 50 minutes, 51 seconds position that as a differentiated product and we would like the benefit of that to reflect in my yield but again 50:58 50 minutes, 58 seconds I'm you know if you just look at the market I'm sure you've seen the data yourself I think it's very early days the space is still evolving in terms of 51:06 51 minutes, 6 seconds what does the product offer and B does it really meet the need of an investor which the traditional mutual fund 51:13 51 minutes, 13 seconds product is not able to offer. I don't think we have solved this both ways. I think the whole industry is trying to figure this out. 51:21 51 minutes, 21 seconds All right. No, no, I think that's helpful and very clear. Wish you all the best, sir. 51:27 51 minutes, 27 seconds Thank you. Next question is from Vijaya Rao from BB Capital Markets. Please go ahead. 51:37 51 minutes, 37 seconds Vijaya, your line is unmuted. Please go ahead with your question. 51:41 51 minutes, 41 seconds Yeah. Am I audible now? Yes, please go ahead. Yeah, thank you sir. Um please uh provide us uh the eels breakup of the segment equity, debt, liquid and ETF. 51:54 51 minutes, 54 seconds And secondly um your funds uh are not per are little underperforming. uh what 52:02 52 minutes, 2 seconds are you doing in this um uh respect uh so that uh your uh overall grows uh 52:12 52 minutes, 12 seconds little u smartly these are two uh questions from my side so vij I'll provide the yield uh breakup 52:21 52 minutes, 21 seconds uh equity and hybrid is 75 basis point uh ETF and index fund put together is around eight cash and arbit around 10 52:30 52 minutes, 30 seconds basis point and income fund is around 18 to 19 based points. So combined put together depending our asset mix is weighted average yield is around 32. 52:43 52 minutes, 43 seconds Yeah. And the second question sir what uh uh can you give color on how your 52:50 52 minutes, 50 seconds funds are performing? If not then what are you uh doing to uh have more funds on the uh on the in the first quartile? 53:03 53 minutes, 3 seconds Well, I would love to do anything if you have ideas about how I could get all the funds into first quartile simultaneously but I'm not sure having been a fund 53:11 53 minutes, 11 seconds manager for many years that there is any easy way to do that. But you know I look at it now from a business angle and from 53:19 53 minutes, 19 seconds a business angle I'm saying that I've got to make sure that I've got fence funds uh which are ringfed for different 53:26 53 minutes, 26 seconds market seasons because what will be the market season which will cause a fund of a particular market cap or fund of a 53:34 53 minutes, 34 seconds particular style to do well uh what season it will be is not in my control. 53:39 53 minutes, 39 seconds But what I can do is make sure that my strategies either by number or by AUM though I can really control number not 53:47 53 minutes, 47 seconds AUM are distinctly positioned from each other. So that is something that I think we have established quite well in terms 53:54 53 minutes, 54 seconds of saying what is in our value oriented strategies what is in our blended strategies what is in our quality growth strategies. I would only say our biggest 54:03 54 minutes, 3 seconds problem has been more in the quality growth which to my mind is more a function of the season of the market. Of course, there are things that we could have done better in terms of stock picking. That's a continuous process. 54:14 54 minutes, 14 seconds But essentially, the season did not match what those funds were trying to do. In the GAP side, uh, which is the blended side, you could say there is 54:22 54 minutes, 22 seconds some scope to improve execution. Those are, you know, tinkering that we continue to do. But I feel very positive 54:29 54 minutes, 29 seconds that maintaining this diversified uh you know set of funds which are a pro 54:35 54 minutes, 35 seconds uh uh uh operating across the spectrum may not result in all my funds being in top quartile at the same point of time 54:43 54 minutes, 43 seconds but at the same time it gives me a platform which is a lot more sustainable through market cycles. So I think that's a conscious choice that we have made 54:52 54 minutes, 52 seconds that we would like the platform to be diversified. We will tolerate the cycles that come. We will back our fund managers through the cycles. We engage 55:01 55 minutes, 1 second with the marketplace to explain how these funds are differently positioned. 55:05 55 minutes, 5 seconds We engage with the market to try and explain to them how they can exploit the positioning uh uh you know that we have developed for each of these funds to be 55:14 55 minutes, 14 seconds able for for them to meet their investment goals and their aspirations. 55:19 55 minutes, 19 seconds So to my mind that's the way to do it rather than uh saying that you know I would like all the funds to be in top quartile. What I have seen as a fund 55:26 55 minutes, 26 seconds manager if you aim for the first quartile you will get there at some point of time but when the market season reverses it directly causes you to swing 55:34 55 minutes, 34 seconds to the back foot. So I'm approaching this as a business platform and saying how do I build diversity across my platform which will make my business less cyclical and more sustainable. 55:46 55 minutes, 46 seconds Yeah true sir very helpful. I was more uh uh inquisitive about the measures you are taking. Yeah, that's helpful. Thank you so much. 55:57 55 minutes, 57 seconds Thank you. 56:00 56 minutes Next question is from the line of Mahesh A, an individual investor. Please go ahead. 56:07 56 minutes, 7 seconds Uh hello. Hi. Uh my question is to Yri sir. 56:11 56 minutes, 11 seconds Uh congratulations of being uh sorry to interrupt Mahes. Can you use your handset mode please? Sure. 56:20 56 minutes, 20 seconds Uh, is it better? Yes. Yes, please go ahead. 56:26 56 minutes, 26 seconds Oh, great. Uh, hi. Uh, my question is to Vitri, sir. Um, so I want to understand more of uh balance sheet perspective. uh 56:34 56 minutes, 34 seconds we hold almost 4,000 or 4,500 crores of uh cash and investments on our book at 56:40 56 minutes, 40 seconds consolidated level and this equals to uh almost 35 40% of the total market cap. 56:47 56 minutes, 47 seconds Uh and then I look at the risked AMC's this is significantly on the higher end. 56:52 56 minutes, 52 seconds So I want to try to understand uh how do you look at uh this investment and cashbook from a strategic perspective 57:01 57 minutes, 1 second and is there any way u you are planning to create uh uh value for shareholders through this this part of the balance 57:09 57 minutes, 9 seconds sheet as in uh any buyback plans given given the valuations are on the lower side and also uh the latest buyback 57:18 57 minutes, 18 seconds reform announced in the budget. So how do you see this significant portion of our balance sheet? 57:26 57 minutes, 26 seconds Uh yeah okay thanks Mahes. Uh well I mean we have that amount of cash on our books also because we are a very old 57:34 57 minutes, 34 seconds institution. Uh and we have built up that balance sheet over time through the uh you know good work that we've done in terms of serving investors and that's where that cash balance has come from. 57:43 57 minutes, 43 seconds Um but as you would be aware uh in recent years whatever we are generating in terms of profits uh we are pretty much paying that out in large measure 57:52 57 minutes, 52 seconds back to the shareholders by way of dividend. So we will continue that policy there is no need to add to that cash pile. uh but we also believe 58:00 58 minutes company of our kind uh there is a need to have some investment uh or rather some liquidity on the books some uh cash 58:08 58 minutes, 8 seconds on the books there could also be opportunities down the road uh in terms of you know M&A etc so we will not add 58:16 58 minutes, 16 seconds to that cash in the future because we will keep dividending out but no other plans to do anything dramatic with the 58:22 58 minutes, 22 seconds cash at this point of time okay and that's thanks uh and just Follow up on the dividend side. Uh the 58:30 58 minutes, 30 seconds last couple of years uh we declared some special dividend as well in addition to regular dividend and this year I believe it's all the regular dividend but going 58:39 58 minutes, 39 seconds forward uh uh do you have a guidance on a percentage of profits that we intend to declare as dividend or is it um 58:48 58 minutes, 48 seconds volatile that that we saw in the last couple of years. So how do you uh give guidance on the dividend policy going forward? 58:57 58 minutes, 57 seconds Well, if you look at the trend line, I'm not discussing policy, but if you look at the trend line, I think including what we've just announced today, which was 40 rupees, I think roughly we are at 59:05 59 minutes, 5 seconds about 93 95% 95% almost in terms of a trend line. I think that's a good way to think about it. The trend line itself is 59:13 59 minutes, 13 seconds suggestive of our basic view that there is no need to add any more cash on our books. We have enough liquidity for any 59:20 59 minutes, 20 seconds corporate optionality that we might want to preserve. anything that we generate uh you know uh in the businesses we are happy to just give it back to shareholders. This is not a capital intensive business. 59:32 59 minutes, 32 seconds Okay. Thanks. That's all. This Thank you. Next question is from the line of Mandra A from Investor. Please go ahead. 59:46 59 minutes, 46 seconds I'm sorry Mander. No, use your handset mode please. Please uh address yourself and uh now uh yeah please go ahead. 59:56 59 minutes, 56 seconds Uh so uh I joined a little late. Could you help me with industry alumin reaching approximately 80 lakh crores? 1:00:05 1 hour, 5 seconds How is UTI positioning to capture the larger share and expanding this price? 1:00:14 1 hour, 14 seconds Yeah. So uh you know we are very happy that the industry is reaching new milestones and that just reinforces the 1:00:22 1 hour, 22 seconds belief that people have in the mutual fund penetration and in mutual funds overall and for us we are focusing on 1:00:29 1 hour, 29 seconds three clear growth areas. We will continue to deepen our retail participation particularly in the SIP and in the long for the long-term flows. 1:00:38 1 hour, 38 seconds At the same time we will not only reach out to the metro cities but we are also strengthening our distribution in the P30 cities and the emerging markets and 1:00:47 1 hour, 47 seconds as vet mentioned that you know we are focused on broadening our equity funds to ensure that at any point in time some 1:00:54 1 hour, 54 seconds of the funds require and or are able to cater to the requirement of the investors. 1:01:01 1 hour, 1 minute, 1 second uh we also mentioned that we are very strongly investing in our technology as well as in process improvement and therefore also in our communication. So 1:01:09 1 hour, 1 minute, 9 seconds we are well poised to lead and create new possibilities to participate in this growing uh mutual fund journey and as we 1:01:18 1 hour, 1 minute, 18 seconds discussed that we are also looking at launching new passive funds so that investors can achieve their life life cycle goals. 1:01:27 1 hour, 1 minute, 27 seconds Does that answer your question Mandra? 1:01:31 1 hour, 1 minute, 31 seconds Got it sir. Got it. And secondly like what trend are you seeing in investor behavior during the volatile market? Is 1:01:40 1 hour, 1 minute, 40 seconds there any change in the ticket size or the participation pattern? 1:01:46 1 hour, 1 minute, 46 seconds Yeah. So as we discussed that you know we have seen over a period of time that investors have become more resonant and they understand that this cyclist or 1:01:55 1 hour, 1 minute, 55 seconds volatility which is there in the market will go away eventually and they believe in the long-term growth story of India. 1:02:01 1 hour, 2 minutes, 1 second So we don't see so much of you know redemption pressure that we used to see in the earlier years because investors 1:02:08 1 hour, 2 minutes, 8 seconds are now aware about how these markets are functioning. uh having said that March is generally a period when you see a lot of SIPs getting closed because of 1:02:17 1 hour, 2 minutes, 17 seconds multiple reasons. One is people start their SIP in the month of April and their natural cycle closes in the month of March. People look to change their 1:02:25 1 hour, 2 minutes, 25 seconds SIP because they would have done some portfolio readjustment. So those things will always happen and that will show you a higher redemption of SIPs in the 1:02:33 1 hour, 2 minutes, 33 seconds month of March. But overall if you look at the trend and if especially if you see the month of February the trend has been very encouraging where we saw a 1:02:42 1 hour, 2 minutes, 42 seconds drop in the uh number of SIPs which was being stopped at the industry level and that number was even better in if you look at UTI's overall SIP book. 1:02:55 1 hour, 2 minutes, 55 seconds Got it sir that was really helpful. Thank you. Thank you. 1:02:58 1 hour, 2 minutes, 58 seconds Thank you. Next question is from the line of Risha Sha an individual investor. Please go ahead. 1:03:06 1 hour, 3 minutes, 6 seconds Uh good evening sir. I just saw one question basically on the industry slides. So we have been seeing you know there are there's a cut competition in 1:03:14 1 hour, 3 minutes, 14 seconds this space with the fintex and everyone coming with their products now. So in such an competitive environment how are 1:03:21 1 hour, 3 minutes, 21 seconds we seeing the key distribution on UTI is the is there any sustainable visibility over there? 1:03:32 1 hour, 3 minutes, 32 seconds Yes. So if you look at uh you know we have been doubling down on our distribution specially with the banks as well as with the fintex and uh these are 1:03:41 1 hour, 3 minutes, 41 seconds two segments where which are growing and especially the fintech because there are lots of new fintech which are coming and the younger generation find it very easy 1:03:50 1 hour, 3 minutes, 50 seconds to invest through a fintech platform. So we have increased and uh you know our engagement with them and we are seeing 1:03:58 1 hour, 3 minutes, 58 seconds good traction coming especially from the fintech platform. Uh yes sir that uh answers my question. 1:04:08 1 hour, 4 minutes, 8 seconds Congratulations on the good set of number. Thank you. Thank you. 1:04:12 1 hour, 4 minutes, 12 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand over the call to Mr. Vitri Subramanyam for closing comments. Over to you sir. 1:04:26 1 hour, 4 minutes, 26 seconds Thank you for that Mrs. Sri. Uh thank you everybody for joining us here on this call today. Uh hope we've been able to uh you know provide you an insight 1:04:34 1 hour, 4 minutes, 34 seconds into what our thoughts are uh and how we are looking to move ahead in the future and look forward to engaging with you again next quarter. Thank you. 1:04:43 1 hour, 4 minutes, 43 seconds Thank you. Thank you. 1:04:44 1 hour, 4 minutes, 44 seconds Thank you sir. Ladies and gentlemen, thank you for joining the call. In case of any queries, feel free to connect with ad factors investor relations team. 1:04:52 1 hour, 4 minutes, 52 seconds You may now disconnect your lines.