Operator: Ladies and gentlemen, good day and welcome to Anand Rathi Share and Stock Brokers Limited Q2 and H1 FY 2027 Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, 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 your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Diwakar Pingle from EY for the opening remarks. Thank you and over to you, sir.
Diwakar Pingle: Thank you. Good evening and welcome to the Q2 and H1 FY 2027 Earnings Call of Anand Rathi Share and Stock Brokers Limited. The company has published its results and uploaded investor presentation on stock exchanges and its website. Before we begin, a disclaimer. Some statements made on today's call may be forward-looking in nature. These statements are subject to risks and uncertainties and may cause actual results to differ materially from those.
Operator: I am sorry to interrupt you, Mr. Pingle, but your voice is low. Thank you.
Diwakar Pingle: Such statements are based on management's current beliefs and assumptions and on information presently available to management. Participants are cautioned not to place undue reliance on these forward-looking statements when making investment decisions. To take us through the results and answer your questions today, we have with us Mr. Pradeep Gupta, Chairman and Managing Director, Mr. Roop Kishor Bhootra, Whole-Time Director, Mr. Tarak Shah, Chief Financial Officer, and other members of the management team. I will now hand the call over to Mr. Gupta for his opening remarks. Thank you, and over to you, sir.
Pradeep Gupta: Thank you, Diwakar. Good evening to you all, and a warm welcome to our Q2 and H1 FY 2027 Earnings Call. We all are experiencing a certain environment of a capital market due to geopolitical tension, rising interest rates, persistent inflationary pressure, and impact of El Niño across various global economies. As a result of this, market sentiment in our country has remained relatively subdued. Before discussing our performance for the period, the secondary market. Sorry. The secondary markets continued to exhibit some turbulence during the reporting period. The Nifty 50 declined by 5.22% on a quarterly basis and 1.3% on half-yearly basis, including a 6% correction in September. The weakness was more pronounced in several large cap and sectoral indices, reflecting a more cautious risk environment and softer market sentiment.
Pradeep Gupta: However, beneath this short-term volatility, the structural drivers of India's capital market remain firmly intact. The quarter witnessed significant deepening of India's capital markets, supported by rising investor participation across the primary market, direct equities and mutual funds. IPO activity remained buoyant during the quarter, with 108 companies raising over INR 90,000 crore, reflecting stronger issuer confidence and healthy pipeline of business seeking access to public markets. The mutual fund industry quarterly average AUM increased by approximately 3.5% from INR 84.2 lakh crore in Q1 FY 2027 to INR 87 lakh crore in Q2 FY 2027. While closing AUM moderated to INR 82.64 lakh crore in September, largely reflecting debt fund outflow and market movement, it remained 9.3% higher year-on-year basis. Investor commitment through systematic investment plan, which is SIP, also remained exceptionally strong.
Pradeep Gupta: SIP contributing across the INR 10 crore milestone in August 2026, with monthly SIP inflows reaching to INR 32,490 crore in September 2026, extending the trend of sustained retail participation and reinforce the growing preference for long-term wealth creation through financial assets. The primary market presented an even stronger picture after a measured Q1 FY 2027, which witnessed 46 main board and SME IPOs, raising approximately INR 6,567 crore, accelerated sharply in Q2 FY 2027. With as many as 108 IPOs raising approximately INR 90,000 crore during the second quarter. Consequently, H1 FY 2027 recorded 154 main board IPOs, which raised almost INR 96,585 crore. This is compared with 186 IPOs, raising INR 71,000 approximate crore in H1, representing almost 36% growth and capital raises.
Pradeep Gupta: Finally, it is encouraging to see the retail investor participation in capital markets continue to strengthen, which is net addition to 31.1 lakh demat account during September 2026, with overall demat account base in India nearly about 24 crore versus 22.5 crore at the beginning of the year, which represents almost 7% growth in the interim period. This broadening investor base is also driving increased adoption of financing-led investment solutions, with industry margin trading facility book growing by almost 41% year-on-year to INR 156,261 crore as on 12 October 2026. Together, these trends underscore the growing maturity of India's capital markets. These developments reinforce the long-term opportunities for Anand Rathi Share and Stock Brokers Limited, as investors increasingly seek integrated broking finance and distribution solutions. During the quarter, our MTF books grew by 38% year-on-year basis to INR 1,499 crore asset under management, which has increased by almost 29% year-on-year.
Pradeep Gupta: Our asset management has grown by 29% to INR 99,990 million, while assets under custody grew by almost 13% year-on-year to almost INR 1.15 trillion. This metric reflects deeper client engagement and continued trust in our platform. We also continue to witness a gradual evolution in our revenue mix. While broking and related services remain a significant contributor to overall revenue, non-broking business has steadily increased in their contribution over the years, improving the diversification and resilience of our earning profile. Our investment in technology and digital capabilities continue to deliver strong outcomes. Digital platform contributed 36% of brokerage income in H1 2027, reflecting continuous focus on building a seamless, scalable digital ecosystem. Looking ahead, we remain focused on scaling our financing and distribution business, increasing engagement with existing clients and further strengthening the contribution of recurring revenue streams.
Pradeep Gupta: We continue to target margin trading book size for approximately INR 1,750 to INR 1,800 crore by the financial year 2027, and there is going to be a growth of about 40% in AUM of our distribution business by the end of the current financial year. With that, I would now hand over the call to Mr. Roop Kishor Bhootra, Whole-time Director, who will take you through all the detailed financial and operating performance of the company.
Roop Kishor Bhootra: Thank you.
Pradeep Gupta: Over to Mr. Roop Ji.
Roop Kishor Bhootra: Thank you, Pradeep Ji. Good evening. Building on the healthy business momentum highlighted earlier, our company delivered a steady financial performance during the quarter. Revenue from operations increased 20% year-on-year to INR 2,732 million in Q2 of FY 2027. While the H1 revenue from operations grew 21% year-on-year to INR 5,193 million. PAT grew 50% year-on-year to INR 419 million in Q2 of FY 2027, with a margin of 15%. For H1, PAT before exceptional items increased 60% year-on-year to INR 810 million, while profit after tax, after exceptional item, stood at INR 653 million, representing growth of 29% year-on-year. The growth came from continued momentum across our broking and non-broking businesses. Broking and related services revenue increased to INR 1,551 million during the quarter, from INR 1,158 million in Q2 FY 2026, reflecting a YOY growth of 34%.
Roop Kishor Bhootra: While H1 broking and related services income grew to INR 2,831 million from INR 2,267 million in H1 of FY 2026, reflecting a 25% YOY growth. Equity cash continued to account for a majority 52% share of broking revenue during the quarter and half year period, reflecting our focus on delivery-led and client-centric participation. Within the non-broking segment, interest income from margin trading facility increased 36% year-on-year to INR 496 million during Q2 of FY 2027, while H1 of FY 2027, MTF interest grew 43% year-on-year to INR 924 million. Distribution income stood at INR 327 million during the Q2 of FY 2027 and INR 603 million in H1 of FY 2027 respectively. Further, our distribution AUM has increased to INR 99,990 million, with a YOY rise of 29%. The continued expansion of these businesses is improving earnings visibility and is strengthening the quality of our revenue profile.
Roop Kishor Bhootra: As of 30 September 2026, we have achieved an MTF book value of INR 14,993 million against our year-end guidance of INR 17,500 to INR 18,000 million. On overall basis, we have already achieved almost 57% of our target in H1 of the financial year. Further, our distribution AUM grew by 29% as of September 2026, compared to, again, the March 2026 overall guidance, 40%. So in both these segments, we were able to do better than the target, whatever we have set for ourselves. Client engagement remained healthy during the period. Total clients increased to approximately 10.5 lakh as of September 2026. Around 55% of our clients have been associated with us for more than three years, reflecting the strength of our relationships and the trust reposed in the Anand Rathi brand.
Roop Kishor Bhootra: Additionally, 71% of our active clients are located across Tier 2 and Tier 3 cities, providing us with a broad and diversified franchise. As of 30 September 2026, our pan-India network comprised 99 branches and 1,071 authorized persons across 314 cities. This extensive distribution network continues to support client acquisition, engagement, and servicing across geographies. We remain focused on maintaining a prudent risk management framework while supporting business growth. Our debt equity ratio stood at 1.02 as of 30 September 2026, and we continue to maintain disciplined leverage and adequate liquidity as we scale our MTF and other growth initiatives. Going forward, our priorities remain clear: deepen client relationships, increase product penetration, strengthening technology-led services delivery, and maintain a balanced mix of broking and non-broking revenue.
Roop Kishor Bhootra: I am happy to share with all of you that the last quarter we have achieved our highest ever revenue as well as highest ever profitability. Thank you. Now we can open the floor for the questions. Thank you.
Operator: Thank you so much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone 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 question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question comes from the line of Saket Kapoor from Kapoor and Company. Please go ahead.
Saket Kapoor: Yeah. Namaskar, sir. I hope I am audible.
Pradeep Gupta: Yeah, Mr. Saket, go ahead please.
Saket Kapoor: Sir, firstly, with the hardening of the bond yield in the government securities market, what exactly is our book and the thought process being debt market participant, our participation in the debt market and any timeline you want to share or any idea of how we are going to take advantage of since the yields are very attractive and there are good set of investors that have investments or have the nature to invest in these products. Now the government yields for 10-year in about 740. So what is the thought process and our current book, if you could share color on the same.
Pradeep Gupta: Thank you, Saket. Saket, as you know, our company is largely driven towards equity and equity-related products. Very smaller amount of investments towards debt is being recommended or probably being invested by various investors into debt and debt product. So in a segment of customers, that is where we are talking about asset allocation. That is one of the parts for those customers. And within that, in these kind of debt instruments, the investment of those customers are very minuscule. So it doesn't matter to us, number one. But number two, having said that, in terms of market scenario, since interest rates are on a rising trend, markets are uncertain, and overall global scenarios suggest that in future also, due to inflationary pressure, I think interest rates are further going to strengthen.
Pradeep Gupta: Probably you may see certain interest rate hike scenario globally as well as probably as a result in our country also. So I think investing in government security, allocation towards the government security from a one-year perspective by getting that interest yield benefit is good. But in a short term from next three to six months, one has to constantly watch what is going to happen, because if the interest rates are going to rise, your yields are not going to be that much. So I think this is a catch-22 situation, and based on that, I think I would ideally suggest on a short-term period, one has to invest or one want to invest can look at it. But from a long-term perspective, they have to still wait and watch is something from a debt perspective.
Pradeep Gupta: However, our always advice is going to be from a long-term perspective, mid to long-term perspective, one should look at equity because equity is something is going to grow, and we believe the kind of growth which is happening in our country, I think the returns in equity, investment in equity is going to yield much better return than debt. And post-tax return on equity side is always going to be better. Thank you.
Saket Kapoor: Yes, sir. The view prerogative is correct. But on the longer part of the yield curve and investors having four, five years horizon, and particularly as you alluded to the allocation part, I think these are very good times for investing community to allocate money also to the debt market. Secondly, sir, when we see that our broking firm has organized, I think various events. I think the G200 was the last one that was held in the month of September. Just a small request on the part of being an investor in the analysis community.
Saket Kapoor: If some further details could be shared or uploaded through your website in terms of the participating company, our coverages on the same and some synopsis of the same, of the G200, that would suffice lot of interest and that will give us more color and more thought process to review our investment. I think that was a very strong gathering that happened sometime in the month of September last week. If we can provide further updates through our website or through the exchanges medium, that will create the interest for the investing community and your clientele at large. That's from us.
Pradeep Gupta: Yes, Saket. Thank you for bringing to our notice. I believe a note on the G200 summit is already been shared. We keep on doing lots of investor seminar, investor education program, and these kind of a meet. Surely we will. If not available, then I will surely make it a point that we should share after completion, whatever our inputs which we are getting, and definitely inform to you guys. Thank you.
Operator: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. Our next question comes from the line of Rajesh Mantri with FortuneX. Please go ahead.
[Analyst] (FortuneX): Hello. Thank you for the opportunity. I had two basic questions. I wanted to understand that, the distribution income has just grown by 4%, whereas our AUM has grown at around 29%. I just wanted to understand what is the reason for this divergence, and how should we see it going forward?
Pradeep Gupta: Yeah, Mr. Rajesh, since you are seeing and comparing this on YOY basis. Last year, there are certain revenue which is coming from an upfront commission or upfront revenue perspective, where probably we have done few deals or we have done certain businesses where we got an upfront businesses and trail incomes were not happening. We are moving towards trail businesses or trail income constantly, and that is the reason there is an aberration of kind of a thing which you have noticed in terms of revenue side. This is not going to be a continuous phenomena over a period of time. As you have seen, our AUM is constantly increasing. Second, another factor which one should consider, whenever you see there is a growth in AUM, the impact of growth is coming over a period of time.
Pradeep Gupta: Constantly you will see the revenue will start trickling in because we are generating revenue based on trail income on a trail basis. I am happy to share one more data point, that as on today, our distribution income, our trail income, which is coming, which is a non-broking coming from a non-broking businesses, has already started covering our 75% of salaries as of now. Our endeavor is constantly how we can see that our revenue stream should be static, our revenue stream do not have any kind of a volatility of market. To do that, we are constantly looking at it, that our trail income should constantly cover first to our salary and then post that, how we can start generating that revenue, expand that revenue to cover our overall cost of the company.
Pradeep Gupta: Once it will start happening automatically, our dependency or our volatility of revenue on the market process is going to reduce to a negligible level.
Roop Kishor Bhootra: Just to add to this. In mutual fund side, actually, the regulator has changed the rule in last financial year, where earlier for any ARN transfer, so transfer of the mutual fund from any other distributor, the income credit was not available for six months earlier, and rule has got changed. Now the cooling period is 12 months. So that has also impacted because our collection is comparatively better. Out of that particular collection, whatever the ARN transfer is taking place, naturally sometimes the time period which has increased, and because of that also the commission has reduced on a partial basis. But now since that particular policy is on since last, I can say, almost a full-year, automatically the revenue has started further increasing in terms of that trail revenue going forward.
[Analyst] (FortuneX): Okay, sir. That was quite helpful. Sir, just wanted another understanding on employee strength have increased by around 31% in this quarter. Can you let us know what are the drivers for the increase, and was it just one time such as increasing salaries itself or something like that? Or this will be the relatively higher compared to going forward?
Roop Kishor Bhootra: Yeah. So there are two things which are happening. One side, naturally, we are expanding our RM base on continued basis at one side. Second side, we are strengthening our product team also because we keep on adding the multiple products. But one important change which took place in last quarter, where few of the employees where the services were obtained from the, I can say, outsourcing. So those employees also we have taken at our own payroll. Because of that, in last quarter, you find in number terms, a major change. But on overall basis, we keep on adding almost, I can say, 150 employees. Almost we keep on adding on continued basis. So that is to grow our this particular business going forward also.
Pradeep Gupta: So in this, the change in salary side, which you are seeing is largely one time kind of impact which is happening over here. Over a period of time it will subsidize. But as Mr. Bhootra said, constantly we are increasing our RM base, constantly we are increasing our employee base. So that impact will constantly coming, which is to grow our businesses largely.
[Analyst] (FortuneX): Okay, sir. Thank you so much. That is it from my end.
Operator: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. Our next question comes from the line of Juhi with Arihant Capital. Please go ahead.
[Analyst] (Arihant Capital): Hello, sir. Sir, am I clearly audible to you?
Pradeep Gupta: Yeah, you are audible, Juhi. Please go ahead.
[Analyst] (Arihant Capital): Okay. Sir, congratulations on number part. I have couple of questions. Sir, first question is that October has seen an improvement in margin sentiment. So have trading volumes recovered versus Q2 levels?
Pradeep Gupta: Yes. So far, equity market, cash market related volumes are concerned, you see there is a constant, consistent growth. So far, derivative capital market related volume, if you really see they are static or lower than earlier times. So obviously our company is more tuned towards cash market volumes. As and when these cash market volumes are better and doing good, our broking revenues are also improving constantly, and that's what is happening in our side.
Roop Kishor Bhootra: The other side, one more important part is there. On F&O side, at exchange level, the volumes fall was comparatively higher because of the changes in RBI circular towards the capital market exposure. Many proprietary broking houses volumes got reduced. But overall, since we don't have any proprietary-related volumes, so we were able to actually improve in terms of our total volume versus the exchange on the F&O side also, other than the cash market. So in fact, last quarter, if I will say on YOY basis as well as from the previous quarter, on broking side, comparatively better as compared to the industry, we were able to do that particular.
[Analyst] (Arihant Capital): Okay, sir. Thank you. Sir, I have another question, which is that any new business segment that management is looking forward to the next 2 to 3 years?
Pradeep Gupta: Juhi, I think so far as new business segment is concerned, I think we are constantly strengthening and consolidating our existing business lines. As we have disclosed in the past that we have started insurance, that is what we are stabilizing and strengthening that. In distribution side, we are constantly bringing products. We are already there in mutual fund and PMS, and now we have started looking at AIF as a product. So we keep on looking at product, but not a business segment. So far as business segment is concerned, another area which we are looking at, we have already and we were working on that particular business side, is an NRI kind of a businesses. That is a segment we are constantly strengthening at our end. So this is the game plan.
Pradeep Gupta: Till the time we reach to a specific level, these segments we are growing continuously and constantly.
[Analyst] (Arihant Capital): Okay, sir. Got it. I am following up on the same, that if you are saying that on product part, you are diverging. At the same time, can you give me guideline about the segment mix for next 2 to 3 years?
Pradeep Gupta: Segment mix, you are saying? I didn't follow. Can you just repeat it again?
[Analyst] (Arihant Capital): Yeah. Whatever you mentioned, the products you are trying to diverge and to bring them to scale.
Pradeep Gupta: Right.
[Analyst] (Arihant Capital): What is your guideline for that product mix by next two to three years? That how much shares or on what products you are targeting?
Pradeep Gupta: Okay. To be really frank with you, I think we are constantly looking at broking and non-broking side of our business. Largely, we have divided two different business vertical, broking and non-broking. Whatever products which are being added, largely being added towards non-broking side, right? That is becoming larger and larger. As we have said that we are going to grow our broking business by about 15% to 20%, and we are going to grow by about 30% to 35%, in certain cases, 40% in our non-broking segment side. That's what our broader understanding and the broader criteria which we have set for ourselves, and we are working towards it.
[Analyst] (Arihant Capital): Okay, sir. Thank you, sir.
Pradeep Gupta: Non-broking businesses consist of distribution business as well as margin trading facility businesses.
Operator: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and 1. Our next question comes from the line of Diwakar Pingle from EY. Please go ahead.
Diwakar Pingle: I think I will kind of focus a little on the area that we did well this time around in MTF business for group cash. My question to you, Mr. Pradeep Gupta, is what proportion of MTF growth came from existing clients versus new MTF users?
Pradeep Gupta: Thank you, Diwakar. Typically, the MTF business is largely to our existing clients only. It is not that we are bringing and capturing new clients when we started MTF from day 1 because of MTF reason. Lots of inherent in-house demand is available. We are a little bit choosy in terms of providing MTF facility because largely we are seeing those clients, those customer base who are active in cash market segment, who wants to avail this facility and wants to expand their return on investment. To those clients selectively we are going ahead and providing this facility. That is how we are doing. There are lots of inherent strength or inherent demand is already available. Having said that, if any new customer coming with larger portfolio investing with us and wants this flexibility, we are looking at that also, but based on internal guidelines which we are seeing.
Pradeep Gupta: Our own inherent demand is already there with us, and we are constantly feeding that demand to those customers.
Diwakar Pingle: Pradeep, maybe I just have one follow-up from that. What is the current borrowing cost in MTF book versus a lending NIM and how has this spread evolved during the quarter? Maybe Salil can chime in as well.
Roop Kishor Bhootra: In terms of our borrowing cost, it is there around 9.5%. The positive part, even after this, like I mentioned, because of the RBI circular, almost INR 300 crore related impact was there to the company. Then also we were able to maintain our cost at this kind of level, and gradually we are further reducing that particular cost. In terms of NIM side, we are able to generate almost 4.5% kind of NIM in terms of our MTF book. In conclusion of your earlier question, I would like to highlight one more important data point. Our average book size per customer is below INR 17 lakhs. Our book is very well diversified.
Roop Kishor Bhootra: As Salil rightly mentioned, we are actually choosing in terms of selecting the client base and in terms of also giving a particular client a particular value, and all those things are linked with the network and other things. Considering all those things, our NPA into MTF book is zero. We have started this activity 8 years back, and so far in the last 8 years, we are able to maintain it at zero, and we will be able to continue to manage the risk related to this MTF.
Pradeep Gupta: Thank you, Gunjeet. Are there any other questions, Danish?
Operator: Sure. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. Our next question comes from the line of Avnish Tiwari with Vaakarya. Please go ahead.
Avnish Tiwari: Hi. In your MTF business, can you articulate any changes you would have made over the last quarter, either in terms of margins or kind of security selections or kind of client selection or any other change you would have made over last quarter?
Roop Kishor Bhootra: As such, we have not done changes in terms of our policy, which was there. The important thing which is there, in terms of a client limit side, earlier also we were selecting and we were keeping a particular limit for a single client along with their network. The same thing I can say still continue. The second important part which is there earlier, like total from regulator side, it was almost 2,000 stocks were allowed. Whereas from the company side, we are keeping restrictions, and we are not allowing all the stocks, almost 1,000 stocks are allowed. Those things are still continued. The important part which is there, in some of the customers where comparatively a much high value needed and customers are giving comparatively better yield. At those customers base, we are able to have some sort of relaxation in terms of rates or other things.
Roop Kishor Bhootra: Otherwise, we are continuing with the same scheme. Along with that, as I have mentioned, we are able to continue with the yield, whatever we were generating earlier in terms of NIM.
Pradeep Gupta: Avnish, to answer your question, we haven't changed our policy. The policy remains same. We are constantly looking at it and we are constantly working on it. As you know, as and when this MTF book stocks are being added into the kitty, we evaluate and until and unless our team is not really confident, they do not add those stocks in the book.
Avnish Tiwari: Okay. Does it bring any strategic benefit apart from the P&L income it brings to you? Does it also bring any strategic benefit at customer level, more stickiness, or they do more business on other side of your P&L?
Pradeep Gupta: Yeah, it's a good question, Avnish. See, basically, as you know, by philosophy, we always encourage investment and investment-driven approach for most of our customers. The idea is pretty simple. Customer should earn, and based on that customer's earning as well as continuity of that customer, we should be able to generate our business. Based on that, most of the thing or most of the advice which is going, most of the suggestion which is going towards the customer side is for investment. That is the reason when a customer starts investing in equity market, capital market, whenever he needs or wants to leverage to a limited purpose for a limited purpose and wants to increase his ROI, return on investment, we are providing the support of this MTF book.
Pradeep Gupta: This is for existing customer, for cash market-related activity on their investment and to leverage so that they can increase the return on investment at their level.
Avnish Tiwari: Can I ask one
Pradeep Gupta: Similarly, in turn, we are also generating certain amount of alpha on interest side, as well as our broking is something which we are generating from.
Avnish Tiwari: Can I ask one more question? Which part of market it is largely deployed to, like large cap, mid cap, small cap, or micro cap? If you look at your own book overall basis.
Pradeep Gupta: There is no fixed criteria of large, mid, and small. As I said, there are about more than 2,000 companies being registered and given by stock exchange side. We have our own criteria to evaluate. Based on our evaluation, wherever we find that the stock makes sense for providing that margin trading funding requirement, we consider that. There is a committee who looks into those parameters which are being set, and then they are evaluating if they find based on liquidity, based on profitability, based on continuous performance of that particular company and various other parameters where we see the risks are low, where we see the investor is not going to make losses at their own book, we provide this facility to them and add them for an MTF book.
Operator: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and 1. Our next question comes from the line of Pravina M. Dali with Motilal Oswal Financial Services Limited. Please go ahead.
[Analyst] (Motilal Oswal Financial Services): Hello, sir. I just wanted to know about the net cash position. It has declined significantly from approximately INR 2,700 crore to around INR 900 crore. If you could elaborate on the key reasons for this decline or maybe provide a breakup for the major factors.
Pradeep Gupta: Can you just repeat the question? You are talking about which figure?
[Analyst] (Motilal Oswal Financial Services): Net cash positions, sir.
Pradeep Gupta: Net cash.
Roop Kishor Bhootra: Net cash positions. Okay.
[Analyst] (Motilal Oswal Financial Services): Yeah.
Roop Kishor Bhootra: Yeah.
Roop Kishor Bhootra: I would like to highlight here that the clients’ margins which are there with us, naturally, we are deploying the same with the stock exchange in turn. As you know that with the changes in the RBI circular post that, few of the clients who were keeping money with us and were deploying in form of FD, few of the HNI clients had converted those, I can say, cash deposit into G-Sec form. With that particular thing, naturally, the FD portion with the bank of balances will also be down simultaneously. Otherwise, if you will say on our own book side, actually, the bank balances has increased and our FD has actually increased.
Roop Kishor Bhootra: If you will see our income on the interest side, the cost has reduced simultaneously because a few of those high value customers, they were receiving the interest and in turn the same was given. Both the sides, the interest income related to those portions are down, but overall this is actually our income has increased because of this MTF book and our own FD book. The other side, the cost of interest actually has reduced.
[Analyst] (Motilal Oswal Financial Services): Okay. You are saying the clients which were keeping money with you have taken it out?
Pradeep Gupta: Yeah. Absolutely. Those clients who are keeping their margins in cash format with us.
Pradeep Gupta: for creating a bank guarantee or giving them limits. They withdraw the money.
[Analyst] (Motilal Oswal Financial Services): Okay.
Pradeep Gupta: They converted that cash money into a government security and provided security, a margin to us. So obviously that cash outflow has happened and still we are managing, maintaining the customer's margin by way of government security, right?
Roop Kishor Bhootra: Yeah. So effectively
[Analyst] (Motilal Oswal Financial Services): Okay
Roop Kishor Bhootra: their cash margin forms has changed, and because of that our balance has changed, but overall the business-wise it's intact.
Pradeep Gupta: Business is intact and cash flow-wise, I mean, it is a change, format change in cash flow. That is the reason we are saying cash outflow and converted into a security side. Right.
[Analyst] (Motilal Oswal Financial Services): Okay. Thank you, sir.
Roop Kishor Bhootra: Thank you.
Operator: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. This call is no longer being recorded. As there is no further question from the participant, I now hand the conference over to the management for the closing remarks. Thank you, and over to you, team.
Pradeep Gupta: Thank you, investors. Thanks a lot for your participation and the questions being asked. The company is constantly and continuously working towards the growth path. The main theme is how this growth is and should be achieved without having the volatility of capital market. We are working towards it, and I am sure the whole team of Anand Rathi Share and Stock Brokers Limited is committed the growth of about 15% to 20% on our top line and about 25% to 30% on the bottom line. My best wishes to all of you for the same. Thank you.
Roop Kishor Bhootra: Thank you.
Operator: Thank you so much, sir.
Roop Kishor Bhootra: Thank you.
Operator: Ladies and gentlemen.
Roop Kishor Bhootra: Thank you.
Operator: On behalf of Anand Rathi Share and Stock Brokers, that concludes today's call. Thank you for joining us, and you may now disconnect your lines.
