SMC Global Securities Limited — Call Transcript 2025

Aug 2, 2025

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Date: 02/08/2025

Listing Operations Listing Department BSE Limited, National Stock Exchange of India P J Towers, Dalal Street, Limited, Mumbai-400001, India Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra Scrip Code : 543263 (E ) Mumbai – 400051 Debentures Scrip Code : 939657,940327, 940317, 940325, 939647, 940321, 940319, Symbol : SMCGLOBAL 939655, 939639, 939643,939651 and 940323

Subject: .:- Earnings Call Transcript –Q1-FY26

Dear Sir/ Ma’am,

In compliance with Regulation 30(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Part A (15) of Schedule III, please find attached herewith the transcript of Earnings Call for Q1 FY 2025-2026.

The above intimation is also being made available on the Company's website at www.smcindiaonline.com.

This is for your information and records.

Thanking you,

For SMC Global Securities Limited

SUMAN Digitally signed by SUMAN KUMAR KUMAR Date: 2025.08.02 17:07:10 +05'30' Suman Kumar E.V.P. (Corporate Affairs & Legal), Company Secretary & General Counsel Membership No. F5824

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SMC Global Securities Limited Q1 FY’26 Earnings Conference Call July 28, 2025

Moderator:

Ladies and gentlemen, good day and welcome to the Q1 FY’26 Earnings Conference Call of SMC Global Securities Limited, hosted by XB-4 Advisories.

As a reminder, all participants' lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on a touch-tone phone.

Please note that this conference is being recorded. I now hand the conference over to Mr. Gautam Kothari from XB-4 Advisories. Thank you and over to you, sir.

Gautam Kothari:

Thank you. Good evening, everyone. Thank you for joining us on the Q1 FY’26 Earnings Conference Call of SMC Global Securities Limited.

Joining us today on this call are Mr. Subhash Chandra Aggarwal – Chairman and Managing Director, SMC Group, Mr. Mahesh C. Gupta – Vice Chairman and Managing Director, SMC Group, Dr. DK Aggarwal – Chairman and Managing Director, SMC Capitals Limited, Mr. Ajay Garg – Director and CEO, SMC Global Securities, Mr. Anurag Bansal – Full-time Director, SMC Global Securities, Mr. Himanshu Gupta – Director and CEO of Moneywise Financial Services, Ms. Shruti Aggarwal – Full-time Director, SMC Global Securities, Mr. Pranay Aggarwal – Director and CEO of Stoxkart, Moneywise Finvest Limited, and Mr. Vinod Kumar Jamar – President and Group CFO.

Before we begin, please note that today's discussions may include forward-looking statements which reflect the company's current views and expectations. These statements are subject to risk and uncertainty, and the actual results may differ materially.

A detailed safe harbour statement is provided on the second-last page of our earnings Presentation, which is available on the Stock Exchanges and the Company's website as well.

With this, I now invite Mr. Subhash Aggarwal to share his opening remarks. Over to you, sir.

Subhash Chandra Aggarwal: Good evening, everyone, and a warm welcome to all participants on this call.

I trust you’ve had the opportunity to review our Q1 FY26 financial results and earnings presentation, which are available on both the stock exchanges and our website.

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Before discussing our financial performance, allow me to provide some context on the broader industry landscape and recent developments that have shaped the business environment.

The broking and financial services industry is undergoing a pivotal transition, shaped by regulatory changes, including stricter F&O norms and revised expiry cycles, alongside global uncertainties. These factors have led to a temporary dip in derivative trading volumes and client activity, despite robust retail participation marked by 8.4 million new NSE demat accounts in FY25. While intermediaries face near-term revenue pressures, long-term growth drivers such as digital-first investing, product innovation, and expanding Tier 2/3 market penetration remain strong, with SEBI’s measures aimed at fostering greater stability and transparency in the capital markets.

India’s NBFC sector has displayed resilience amid evolving macroeconomic dynamics, though credit growth is expected to moderate to 13–15% in FY25–26, down from ~17% over the last two fiscals, as per ICRA. Retail and MSME lending remain the primary growth drivers, with demand supported by improving borrower credit profiles and steady disbursements. However, NBFCs are adapting to tightened RBI regulations, such as restrictions on default loss guarantees for fintech-originated loans, and are recalibrating pricing and provisioning, particularly for MSME borrowers. Despite these adjustments, asset quality has remained stable, and the sector is poised for sustainable recovery, aided by favourable borrowing conditions and rising demand from underserved segments.

The life insurance industry has sustained double-digit growth projecting India’s life insurance market to grow at 10.5%; double the global average of 5%, driven by rising financial awareness and product diversification. Premium collections for April–May FY26 have already crossed ₹52,000 crore, up ~11% YoY. The general insurance sector saw a temporary moderation but continues to gain traction on the back of increased corporate and retail risk coverage needs, with digital channels increasingly driving distribution. Insurance broking remains a key beneficiary, leveraging the structural demand for protection-oriented products. As macroeconomic conditions stabilize, both life and non-life segments are poised for a strong rebound, supported by digital penetration and evolving customer preferences.

We view this phase as a strategic inflection point rather than a setback. Regulatory measures may cause initial friction, but they are crucial for creating a more transparent, disciplined, and resilient market ecosystem. For well-positioned intermediaries like us, this environment opens opportunities to consolidate market share, enhance customer trust, and scale digital offerings.

While current financial indicators such as order counts, margins, and return ratios may not fully reflect this transformation, these represent temporary adjustments. With the stabilization of trading patterns, we expect more robust, sustainable growth supported by

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sound regulatory foundations and a maturing investor base, including the continued expansion of new retail participants and SIP investors.

Now, let me walk you through some key performance highlights for SMC Global Securities.

Despite facing regulatory headwinds, we are pleased to report that SMC Global Securities delivered quarter-on-quarter Revenue & EBIT growth across Broking, Distribution & Trading and Financing business segments.

In Q1 FY26, our consolidated revenue stood at ₹425.1 crores, marking a growth of 0.9% on a quarter-on-quarter basis. Our EBITDA came in at ₹100.3 crores, reflecting a strong 59% growth Q-o-Q, while our PAT stood at ₹30 crores, delivering a growth of 632% compared to the previous quarter.

In Q1 FY26, our extensive network comprised 2,137 authorised persons across 412 cities, truly reflecting our pan-India presence. We had 6,811 financial distributors, and our mutual fund AUM stood at ₹4,519 crores.

In our NBFC operations, we are active through 42 branches across 9 states.

Our insurance vertical continued its growth momentum in Q1 FY26, operating through 8 branches nationwide, backed by a robust network of 16,102 POS agents and 356 MISPs.

While Q1 witnessed some pressure due to external factors, we remain confident of a revival across all verticals – Broking, Financing, and Insurance – as market conditions normalize and investor sentiment improves.

Our diversified business model, growing nationwide network, and continued investments in technology position us strongly to drive sustainable and long-term growth.

With that, I now hand over to Mr. Vinod Kumar Jamar, our President & Group CFO, for a detailed overview of our financial performance. Over to you, Vinod Ji.

Vinod Kumar Jamar:

Thank you, Subhash Sir, and good evening to everyone on the call.

Let me now take you through our financial performance for Q1 FY’26 on a consolidated basis:

For Q1 FY’26, operating income stood at Rs. 425.1 crores. Operating EBITDA was approximately Rs. 100.3 crores. EBITDA margin came in at 23.6%. PAT stood at Rs. 30 crores with a PAT margin of 7.1%. Segment-wise performance, in the broking distribution and trading segment, Q1 FY’26 revenue was Rs 274.9 crores. Branch network expanded to 210.

In broking, over 26,000 new clients were added during this quarter. Wealth advisory AUM reached Rs 1,007 crores, a 6.2% increase compared to last year. Mutual fund AUM rose to Rs

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4,519 crores, an 8.2% increase compared to last year. We added 1,095 new SIPs in this quarter. In the financing segment, Q1 revenue was Rs 51 crores, showing a growth of 25% quarter-on-quarter. NBFC AUM stood at Rs 1,191 crores.

GNPA and NNPA were 3.9% and 2.6% respectively for the quarter. In the insurance broking division, Q1 FY’26 revenue stood at Rs 116 crore. Total insurance policies sold over Rs 232 thousand in Q1 FY’26.

With this, we conclude our remarks and open the floor for Q&A. Thank you.

Moderator:

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions, may press “*” and “1” on their touch-tone telephone.

If you wish to remove yourself from question queue, you may press “*” and “2”. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The first question is from the line of Deepak Jaggi from Vyom Investments. Please go ahead.

Deepak Jaggi:

Hello, sir. Thank you for conducting this call. So, my first question was EBITDA margin has expanded sharply QOQ. EBITDA rose significantly QOQ. I just needed an elaboration on that. And my second question is what will be our future outlook for revenue and profitability going forward in FY’26?

Subhash Chandra Aggarwal: Over to Jamar ji.

Vinod Kumar Jamar:

Hi, Deepak. This is Vinod Jamar. Actually, our EBITDA margin grew up QOQ because, in the quarter ended March 31, we had an investment loss of Rs 9.33 crores. Whereas in this quarter, we had an investment gain of Rs 5.81 crores. So, that was a major driver. Apart from this, our arbitrage income also improved. These were two major factors, among other things.

Deepak Jaggi:

Okay. And, sir, what will be revenue and profitability outlook for the remaining quarters?

Vinod Kumar Jamar:

We are hopeful that we will keep the growth momentum continued. We will have a top-line growth of around 10-12% and bottom-line growth of around 15-20%.

Deepak Jaggi:

Okay. And, sir also, I had one more question could you give some of your take on your NBFC sector? Why is it facing challenges to grow?

Vinod Kumar Jamar:

Mr. Himanshu Gupta will be taking this.

Himanshu Gupta: Hi, Deepak. I think you are referring to the changing AUM over the quarter.

Deepak Jaggi: Yes.

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Himanshu Gupta:

You can see that the AUM has not grown during the quarter. So, there are a couple of reasons to it.

First of all, given the stress in the SME portfolio overall in the industry, we have tightened a lot of underwriting policies. As a result, the fresh disbursement numbers have gone down. this is the first reason.

And going forward, our team, the sourcing Channel and the sales team, they have been trained to get the business as per the new policy. Initially, it is taking some time. But we will cover up the business momentum as per the new underwriting policy. That is the first reason. Secondly, I talked about it on the last call as well that we have discontinued large-ticket loans and focusing on the retail loans, particularly in the LAP segment. If you compare it over the last period, particularly, there used to be a disbursement of about Rs. 50 crores on an average in that product, which is not there in quarter 1. And correspondingly, we are also running that book down and had some foreclosures during the quarter 1 for large-ticket loans to the tune of about 40 crores.

Cumulatively, this rundown impact is coming from reduction in the large exposure and tightening of the underwriting policies.

Deepak Jaggi: Okay. Got it. I will join back the queue if I have any questions.

Subhash Chandra Aggarwal: Thank you Deepak.

Moderator:

The next question is from the line of Preemal D'Souza, an individual investor. Please go ahead. Hello.

Preemal D’Souza Good evening and thank you for this opportunity. My question is, in the recent years, broking advisory and PMS businesses in India have grown significantly due to increased retail participation. How does SMC Global plan to differentiate itself from the competition and position itself to stand out in this crowded market?

Subhash Chandra Aggarwal: Okay. Madam D'Souza, you see, competition is always there. We always face competition, and we are investing in technology to face any competition because nowadays broking is like a technology company. We are investing in technology and we are improving, and every time we are making our products more innovative and research-based and efficiency-wise we are improving our app. All those things we are going to chase the competition.

Preemal D’Souza Okay. Thank you so much.

Subhash Chandra Aggarwal: Thank you.

Moderator: Thank you. The next question is from the line of Pulkit Gupta from SBS Brokers. Please go ahead.

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Pulkit Gupta:

Himanshu Gupta:

Yes. Good afternoon, sir. Thank you for the opportunity. My question was also mostly on the NBFC side. We have seen that the revenue had actually seen a 15% decline, which I think Mr. Himanshu had talked about, where large-ticket loans had come down. But the other thing that I had noticed was that the EBITDA has also dropped about 30% and the asset quality had actually declined. So, what is the explanation for the asset quality? I mean, we have seen that the NNPA has actually grown from 0.9% to 2.6%. And we have also seen a very sharp drop in the PCR.

So, we have got your question, Pulkit. So, the first point that you highlighted is the decline in the total revenue. So, I believe you are comparing year-on-year numbers for quarter-ended June 30th. If you will see, there was an item in the corresponding quarter last year of net gain on fair value changes of about Rs. 17.5 crores, which is Rs. 4.7 crores in this quarter. So, that is the abnormal gain that we had last quarter under this head. Otherwise, the interest income has gone up if you compare year-on-year figures. That was number one.

Number two, regarding the asset quality. The GNPA numbers have gone up, that is primarily because of stress building up under the SME sector in the market. However, in our portfolio, the GNPAs are mainly constituted by the secured portfolio, which are backed by the immovable property and the properties are legally verified and we are undertaking recovery measures whenever we want to repossess the property or engage with the customer and some of the customers are paying the amount. It is a matter of time and those high GNPAs that you are seeing in the current quarter as well as the last quarter, we are very optimistic and hopeful that we will recover those GNPAs, and probably in the coming quarter, you will see much better portfolio quality number in terms of GNPAs, and that is again the same reason why the PCR is low because these GNPAs are backed by immovable property and we have adequate coverage. But still, we have made a little higher provisioning based on the property value that we have.

Pulkit Gupta:

Himanshu Gupta:

Okay. So, if I understood you correctly, you are saying that the GNPA increase has essentially been because of the increase in asset quality stress in the secured segment. So, you are not looking at any stress in the unsecured part, which is close to about 37% of your book.

That's correct. But however, you know, the delinquencies have slightly gone up in unsecured book as well, given the market scenario. However, in the last one and a half year, we have started taking guarantees under various guarantee schemes available from central government. We see less delinquencies due to the tightening of underwriting policies as well as the guarantee coverage that is available on the unsecured book. There is nothing to worry in the unsecured book, and the unsecured book, anyway, we are reducing over period, if you see. Over the last couple of years, we have reduced unsecured exposure from 50% to 36%, and going forward also, we will continue to do that and bring It down to 25% - 30%.

Alright. So, would it be possible to then have a sense of what is the breakup in the slippage between secured and unsecured? The fresh slippage that you would have seen?

Pulkit Gupta:

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Himanshu Gupta: It's not readily available with me right now. We can share these numbers, but to give you a rough figure, 80% of the incremental slippages are from the secured book. Pulkit Gupta: Okay. My second question is essentially on the insurance bit. So, what would sort of be the reason for the decline that we have seen in the insurance business also? I mean, the insurance broking business. We have seen a 9% decline in the top line. YOY again.

Subhash Chandra Aggarwal: Praveen ji, you take up or Sakshi, you take this question.

Sakshi Mehta: Hi, Pulkit, thank you for the question. So, the main reason for the decline in the insurance brokerage is basically by 8% our general insurance business has declined because the motor industry is seeing a downfall. But we hope in the next quarter it will increase. Pulkit Gupta: Okay. So, this entire drop in the overall revenue is attributable to the drop in the motor vehicle segment?

Sakshi Mehta: Yes. So, basically 90% of our revenue is from the MISP vertical, which is the motor insurance vertical. The main reason is that only.

Pulkit Gupta: Okay , So, I was just saying that I would assume that that would also be the reason for the fall in the EBIT also that we have seen in that segment. Sakshi Mehta: Yes. Exactly. Pulkit Gupta: The propounding motor vehicle sales. Sakshi Mehta: Yes. But we hope to improve it in the coming quarters, yes. Pulkit Gupta: Okay. And how has been the life insurance bit over there? I mean, that also has increased slightly by 1% from 8% to 9%? Because it has declined? Sakshi Mehta: Yes. So, life insurance has also seen a dip in the revenue as compared to the YOY numbers because of the major group insurance climb that we had in the last quarter. But we are again looking forward to the client retention in the coming quarters. That will also improve in the coming quarters, the life insurance segment.

Pulkit Gupta: Okay. I will join back in the Q&A session. Thank you. Sakshi Mehta: Sure. Thank you. Moderator: Thank you. The next question is from the line of Jitesh Jain, an individual investor. Please go ahead. Yes, Mr. Jain. Go with the question, please.

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Yes. Hello. Am I audible?

Jitesh Jain:

Subhash Chandra Aggarwal: Yes, you are audible, Mr. Jain.

Jitesh Jain: Yes, sir. My question is that, like, already there are big players like Zerodha and Groww. So, how SMC Global, like, dominate the differentiation in technology and how it inspires the retail young investors? So, this was my query. Pranay Aggarwal: Okay. Hi. I didn't get your name. Jitesh Jain: My name is Jitesh. Jitesh Jain. Pranay Aggarwal: Okay. Hi, Jitesh. This is Pranay Aggarwal. We have launched a discount broking of our own called Stoxkart. Stoxkart is a 100% subsidiary of SMC. So, you can say Stoxkart is competing in the market with the likes of the brokers you just talked about. At Stoxkart, we have a different kind of strategy-We have gone ahead with software as a service model. We believe that the trading platform is essentially the product we are offering. We have invested a lot in technology over the past one year, and as a result, we have launched an app which is Stoxkart and it has been rated 4.5 plus on Google Play Store and App Store. I am happy to inform that we are growing month on month. Even in May, I can say in this quarter, we have nearly tripled the number of accounts we opened in Q1. By the trend line from the first month, we will probably triple the accounts opened in Q1. I think your question was mostly about how we are competing in the market. So, do you have something else which I can talk about? Jitesh Jain: Actually, there is one thing. Because already, Zerodha and Groww are also providing the discounts. So, how it will be a KPI for? Because already, they are the big players in the market. So, I just need to understand about the KPI. Because how it would be differentiated. Because as you mentioned just now, you are providing discounts and things. But same strategy has been also provided by them also.

Pranay Aggarwal: So, we are running on a different model. We are running on a subscription model. As I told you, we provide software subscriptions. A client can basically pay just Rs.99 per month and do unlimited trading on our platform on the Stoxkart app. This is a kind of a software as a service model, and we are growing our subscriber base. it's like Rs.99 per month and Rs.699 per year- Both options are available to the clients, and they can choose either model to subscribe to the platform. This is an innovation in the industry that we brought. This is kind of apart from the existing models existing in the industry which others are providing. You know, even our cost of acquisition has come down a lot since we launched this model, because a lot of clients are organically coming to us because of this particular problem we are solving in the market.

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Jitesh Jain:

Pranay Aggarwal:

Jitesh Jain:

Pranay Aggarwal:

Moderator:

Ayush Seth:

Himanshu Gupta:

Okay. Right. Sounds fine. I don't have any query as such. Because, fine, I just need to think. Because what happens, when I see the result and when I see the, as you mentioned, the consumer cost acquisitions. When I compare the costs, it would be like Zerodha and even Groww their acquisition would be even into a very less favourable cost. So you are like very acceptable. Like, fine.

Right. So, just to give you an idea. Our cost of acquisition has come down from around Rs.1000 per account to around Rs.200 per account since we launched this model. And our ARPU is about the same in this model as well. If you talk about industry, industry average ARPU per active client for a discount broker is around Rs.2000 from brokerage. There are other schemes of income also, but from brokerage it's Rs.2000 per active user. The activation ratio is around 20-25% on an average. If you talk about per client not on active client, it comes down to Rs.500 or Rs.600. And because we are taking subscription upfront, all our users are paying customers. They are not just opening an account without intention of trade. Our ARPU per client comes down to the same level as other brokers. If that answers your question and the cost of acquisition is significantly less.

Okay, fine. Thank you.

Thank you.

The next question is from the line of Ayush Seth from AS Investments. Please go ahead.

My first question was, can you provide insights into the asset quality including the trends in the collection efficiency and the gross and net NPA, as well as if any stress pockets are emerging into the business?

Yes. Hi, this is Himanshu. I'll take this question. As we discussed earlier, there are certain delinquencies that have been observed during the quarter, particularly in the secured portfolio. As a result, the GNPAs have gone up and we are taking appropriate measures like we have SARFAESI rights, and we are in active discussions with the client. We are very hopeful of getting the recoveries done. Some of them would happen in quarter two and the rest of them, we are hopeful to get it done during the year.

This was the major trend that you were asking and on the top of it, we have now been focusing on the retail portfolio. The average ticket size of the new book (LAP portfolio) has gone down to around 10 to 15 lakhs, compared to the old book, which was around 1.5 crores in the last portfolio. That will also help to avoid spikes in the delinquencies numbers in certain quarters.

We have already implemented that since about two quarters and we have been building the Micro-LAP book, which has reached over Rs. 35 crores. We have also started taking CGTMSE

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coverage on the unsecured portfolio for all the loans which are getting disbursed since about a year ago. That is also helping us to reduce the delinquencies.

Ayush Seth:

Okay, sir. So, basically, I also had a second question. So, it was regarding how would you describe your capital position, sir? Are there any considerations or plans for fresh capital infusion into the near or medium term?

Himanshu Gupta:

We are open for capital raise. For debt facilities, that is a continuous process which we do on a regular basis from banks as well as through NCD mode. Regarding the equity infusion, we will evaluate it as and when it is required. Right now, the capital adequacy is around 43%. So, we are very comfortable.

Ayush Seth: Okay, sir. I also had one question regarding the insurance broking segment. Just wanted to know that we saw a drop in gross premium collections in this quarter. So, basically, do you consider this to be a seasonal situation or an indicator towards to a broader trend?

Sakshi Mehta: Hi. This basically is due to the seasonal nature of the industry. Premiums in last quarter of the financial year are always higher. That is essentially seasonal.

Ayush Seth:

Okay. Thank you.

Sakshi Mehta:

Thank you.

Moderator: Thank you. The next question is from the line of Deepak Jaggi from Vyom investments, please go ahead.

Deepak Jaggi: Yes. Hello. So, thank you for the opportunity again. Yes, sir. Just I wanted to understand that as you said that your revenue from stoxkart on a yearly subscription basis is Rs. 699 rupees. So, how is the trend of acquisition of the customers? How are we on boarding new clients every month? Can you give us some elaboration on that?

Pranay Aggarwal: Yes. Hi, in the Q1, we opened around 11,000 accounts from stoxkart. We have launched this plan in mid of the month of May itself. So, you can say in one and a half months primarily this acquisition took place. The trend is continuously increasing. In Q2, we are seeing a trend that probably will triple this account count.

Deepak Jaggi: Okay. And sir, how is our full-time broking segment performing as through the stoxkart currently it is a very small part of the broking segment. So, how is that going?

Ajay Garg: Hi, I am Ajay Garg. Even in full-service broking, because of these new regulations where the weekly options has been only one contract, one exchange and increase of margin on expiry date and less FPI activity because industry-wide There was a dip of around 25% in the volume after Q2 in the last year. So, as compared to Q4 last year, this year Q1 has been almost steady. But if you compare it with the Q1 last year, in SMC, there is a dip of around 20%

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whereas the market has dipped around 25%. So, we are better off that way. And as even Subhash ji pointed out that we are spending a lot on improving technology and you see cake size is increasing day by day. 27,000 crore SIP AUM was there in the month of June. We do have largest number of IPOs and today we do have 19 crore Demat accounts though the unique numbers are much lesser. So, what I feel that the penetration is still very low as in India. If you see the penetration, it is around 5% to 6% only. So, we have a long way to go and there is a room for everyone. So, SMC do have presence in more than 400 cities and we do have more than 2200 franchise networks and around 200 branches all across India. So, in Q1 and even in Q2, because of various state tariff global cues and because of some uncertainties, the market was a bit spectacle but I think the second half should be much better. Q2 even we have to observe but second half should be much better and we can see a very good growth in this year by the year end.

Deepak Jaggi:

Okay, sir. Got it. And sir, my last question is that in going future, what we do want to be a discount broker or a full-time broker? What will be our major focus on?

Ajay Garg:

Basically, like there is a room for both the things. So, because in discount brokerage, the client is of his own. In full brokerage, it is the relationship. At the end of the day, because I head a full broking arm, so I feel that at the end of the day, client has to make profit. So, we do have lot of branches like around 2000 to 2400 physical offices and we do have a big research team. Our research is also very good. We do have very good tools and now the Algo circular has come. So, now the algo based trading would be leveraged to the retail clients. So, we do have edge as far as this thing is concerned. Discount brokerage has also revolutionized. It has like without discount brokerage and without the technology, this number would not have been Rs. 19 crores from Rs. 4 crores pre-COVID. So, it is very good for financial inclusion and I feel that we are still at a very nascent stage and there is a room for both discount as well as full booking.

Deepak Jaggi:

Okay. Thank you so much, sir.

Moderator: The next question is from the line of Preemal D'Souza from an individual investor Please go ahead.

Preemal D’Souza: Hello. This question is to Mr. Subhash Aggarwal. The question is, in a recent online interview, you mentioned a target of reaching Rs.8000 crore in AUM. Could you please elaborate on the key strategy or the growth drivers that will help you achieve this milestone and the timeline you are aiming for?

Subhash Chandra Aggarwal: Which target we have given? You are talking about mutual funds?

Preemal D’Souza: Sorry?

Subhash Chandra Aggarwal: You are referring certain figure. What is that?

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Preemal D’Souza: No, I saw an online interview on YouTube. So, you had mentioned that you are reaching for a target of Rs. 8000 crore in asset under management. So, I wanted to know what are the growth drivers and the timeline which you are aiming for.

Subhash Chandra Aggarwal: Okay. So, that is, we have around 4500 mutual fund AUM distribution team. So, we can achieve Rs. 8000 crore in one year. Preemal D’Souza: In one year? Okay.

Subhash Chandra Aggarwal: Yes, we are trying to achieve that. Okay.

Preemal D’Souza: What are your growth strategies for this?

Subhash Chandra Aggarwal: Yes. Actually, through our app, we are procuring mutual funds and we have so many distributors. It's more than 6000 distributors. By that, we can achieve. So, within one year, we are targeting to achieve. Preemal D’Souza: Okay. Thank you so much.

Subhash Chandra Aggarwal: Thank you.

Moderator: Thank you. The next question is from the line of Anuj Dutt, an individual investor. Please go ahead. Anuj Dutt: Thank you, sir. So, I wanted to know, how viable is mutual fund distribution as a long-term revenue stream? What is the value of the ongoing shift between direct and regular plans?

Subhash Chandra Aggarwal: Anurag ji, you are there?

Anurag Bansal: Yes I'll take this question. No doubt, we can see some shift from indirect to direct. But again, cake size is increasing. Further, we are very small in the pond as of now. We are just at Rs. 4500 crores of AUM. We have grown approximately 17-18% in last couple of years, and we are targeting much higher growth in coming years. That will definitely add to our top line and bottom line. Anuj Dutt: Okay, thank you. Moderator: Thank you. The next question is from the line of Deepak Jaggi from Vyom Investments. Please go ahead. Deepak Jaggi: Yes, sir. Thank you for the opportunity again. So, sir, as you mentioned that you are targeting 8000 crore AUM in mutual fund in next one year. So, basically, I just wanted to understand how we are going to achieve that.

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Subhash Chandra Aggarwal: Actually, earlier we were not providing back-office software to our mutual fund distributors.

Now we are able to provide it and with the support of the IT technology, we are hopeful that our mutual fund AUM will be double within one year.

Deepak Jaggi :

Okay. So, are we also doing any marketing strategies or any other such thing?

Subhash Chandra Aggarwal: Anurag ji, you can take this question. Marketing strategies.

Anurag Bansal:

We have already started all that. We have completely revamped our strategy. As I said earlier, with the complete changes in our back-end and front-end systems, we will be definitely targeting a much higher amount.

Deepak Jaggi:

Okay, sir. Thank you.

Moderator:

As there are no further questions from the participants, I now hand the conference over to Mr. Mahesh C. Gupta for closing comments. Over to you, sir.

Mahesh C. Gupta: Thank you all for joining today's earning call. We trust you were able to address your queries effectively. Should you have any further questions or need more information about the company, please feel free to reach out to our Investor Relations Advisor at XB-4 Advisory. Stay safe and healthy. Thank you very much to all. Thank you.

Moderator:

Thank you. On behalf of SMC Global Securities Ltd, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

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