Billionbrains Garage Ventures (NSE:GROWW) Q2 2027 Earnings Call

0:01 Good afternoon, ladies and gentlemen. Welcome to Billionbrains Garage Ventures Limited, All Gross Q2 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the management's opening remarks. Please note that this call is being recorded. Additionally, please note that this earnings call is scheduled for a duration of forty five minutes. If you wish to ask a question, please use the raise hand feature available on your Zoom dashboard. We will announce your name on the call and unmute your line, post which you can proceed with your questions. For today's call from the management, we have Lalit Keshri, cofounder and CEO Billionbrains Garage, cofounder and CFO, Lalit Bimini, group head finance, and Shiv Dalam, head of investor relations and corporate development.

0:52 I now hand the call over to Shiv. Thank you, and over to you. Thank you, Ashish. Thank you, everyone. Good afternoon, and welcome to the q two FY twenty seven earnings call on October 14. Our results and shareholders letters have been updated on the exchanges along with KPIs on the investor relations website. For for our investors whose analyst is a bot, there's also an earnings pack that we started updating on our website. We would like everyone to take a note on the call that some of the statements that we make may be deemed as forward looking and carry risks. They're not guarantees of future performance, and the actual results will differ... May differ. On that short introduction, I'd like to just open up the flow for calls.

1:44 Thank you. Yeah. Yeah. Ladies and gentlemen, we will now begin the question and answer session. In order to ensure management is able to answer queries from all participants, kindly restrict your questions to two at a time. We'll take our first question from Sumit Sinha. Mister Sinha, please introduce yourself and go ahead with your question, please. Yes. Thank you very much for taking the question. So just another question between, you know, the... Your interplay between cost to grow and cost to serve. Is cost to grow obviously came down pretty dramatically this quarter. Is that a function of the fact that cost to serve went up, or was it just a function of the fact that the market was not suitable, so you decided to pull back on on this spend? So I think... Let me take this.

2:34 So the cost to grow and cost to serve, first of all, is, like, very independent cost in some ways. Cost to serve primarily has cost related to transactions and cost related to technology from our side. And whereas cost to grow is primarily, you can say, related cost where we spend some part of that in brand building, some part of that in performance marketing as well. So what happened, I think what you saw in last quarter, we did a branding event in IPL, and there was a cost attributed to that IPL piece. They didn't show up in this quarter's cost to grow. Because of that, the cost to grow actually was lower.

3:24 Whereas cost to serve, the reason it was higher was independent of actually cost to grow. And we have actually explained that in our shareholders letter as well. There were multiple, I think, two or three different reasons why it went up. So one reason was basically the... There's a AI related cost that started coming now because we started focusing a lot on AI. Second piece was because of AI itself, actually, some of the compute cost has also went up. Second piece is actually the number of trading days in last quarter was higher. And because of that, also, the compute cost goes up because we actually use compute more on the trading days and significantly lower on non trading days.

4:13 And the third piece was due to one time, there was a issue that we faced because of... And, you know, on a particular expiry date, the files got delayed. And because of that, there was a onetime hit of around ten to thirteen crores rupees, and which is also kind of part of cost to serve in this year... In this quarter. So because of these three things, the cost to serve went up and cost to grow went down because of IPL not being there in this quarter. Got it. Got it. No. I understand that those are independent. Just wanted to make sure that they were... One did not... As you saw, cost to serve increase, it wasn't that you've managed the cost to grow. Second thing is in terms of cash, obviously, we'll hear more about what Chevy decides to do by the end of this week.

5:03 Any thoughts there? Any... You know, what are you expecting to hear from them? And if things go as per your expectation, when do you start... Expect to see volumes start to kind of come back to normal normalized levels? So I think cash are... We see the... We... If you look at the circular, it... Both the options that has given in more or less are not going to impact derivatives as a segment because the closing of derivative segment will either be, like, 100% based on or will have a weighted average. Even with weighted average also, the large part of the weight will come from the VWAP piece compared to the cash piece. And, hence, our expectation is that it will go back to, like, normal in some ways.

5:51 We are also waiting for the circular to understand the date from which this will be applicable. And we think that from the date becomes applicable, it... The, like, the normalization will be much faster, but it will depend on from the... From... Or from which date it becomes applicable. Got it. Thank you very much. Thank you. I now invite. Kindly introduce yourself and go ahead with the question, please. Yeah. Hi, everyone. This is from, and congrats on a good set of numbers. Firstly, just wanted to touch base on the margin trade funding book side. We saw some bit of moderation and steadiness in... During the quarter, and then towards the end, again, you started scaling up. So what really went through there, and, you know, how should we then see the trajectory going ahead on this?

6:50 So I think, like, stocks is volatile. Right? So, basically, whenever some stocks goes down, people try to kind of take positions at that time. And when it goes up, they try to kind of square off some of those positions from a profit perspective. So there is always a volatility in terms of when the book is getting built and when the book kind of kind of goes down. Another reason can be, in some cases, there are stocks which come into, like, a circuit or it changes from a group fund security to where you can't do MTF. So, basically, all those things actually have a lot of... Everyday changes effectively. But what we are seeing is, on average, we are able to add, like, $607,100 crores on a quarterly basis.

7:40 And our expectation is that trend should continue. And, obviously, we are still highly underpenetrated from both customer as well as the market share perspective. And we expect this to keep on growing for the foreseeable future. And... But, obviously, on a... Between the quarter of... There will always be some days in which it goes down. Some days, it'll go up. Any strategy approach that you would have taken of realigning the stocks that you kind of fund and the amount of funding that you do on certain stocks because of the med cap rally and everything, would you have realigned that in terms of any risk risk measurements that you would have done? So that we keep on doing on a, like, a continuous basis.

8:30 So this is, a underwriting in some ways on a stock level that we try to run it on a daily basis and see if we want to kind of add a stock, reduce a stock, or change a haircut on them. There are obviously optimizations possible in some of them, which are in pipeline where we can probably do a better job in kind of changing those haircuts on a slightly earlier frequency or not necessarily a frequency, but also review probably slightly better. And even we have done some such changes, but that's not the reason why probably the volatility was there in last quarter. The volatility was actually independent of that. Okay. One question financials was your employee cost seems to have gone down from $1.82 crores in one q and even $1.73 crores in fourth quarters to more like $1.69 crores.

9:25 How should we read at this, and how should we take the trend going ahead on this? Dalit, do you wanna take that? Overall, our cost to operate has remained flat quarter on quarter, and, typically, we look at this cost from a cost to operate perspective, which includes my people cost, my g and a, and the CSR spends. So my CSR spends is the only increase from the last quarter. Specific to this line item on the p... On employee expenses, I think structurally longer term, the cost will remain in line with how it was in the last quarter. Although the... Although q one also had the impact of one time kind of slight impact of appraisal cycle, which has got little normalized, but I don't think you should think about that the cost will come down from here.

10:26 No. So my question was more on, you know, what was the one... Because you would amortize the variable pays. Right? Not not take it one time. And... Or if you take one time, then then possibly this is a more normalized run rate, and this is something that we should work with. And then probably only first quarter is where we should take a variable pay number and then work accordingly. No. The point I was trying to make is variable pay, we typically amortize over the period of the years of, let's say, twelve months, and it is amortized over twelve months. But this particular quarter had some of the blip as a number of the people have come down, and then, again, we have we have hired them. So there's a short term blip. But, structurally, the cost is going to go up. Got it.

11:19 This last Abhish, I request you to join back the queue, please, as we are participants waiting for their time. Sure. Thank you. Next question is from the line of. Kindly introduce yourself and go ahead with your question, please. Hi. Thanks a lot for the opportunity. Answer for them from Jefferies. So my first question was on competition. So we have seen, you know, some, you know, the discount brokers reducing the, you know, the brokerage by half. You know, then there are other brokers who are offering AI led tools. Just wanted to understand that, you know, how are you seeing, you know, the competitive landscape evolve, and, you know, how are you trying to now protect your more... Sorry, you know, your customers against competition? So if you could give us some color there, that would be helpful.

12:09 Secondly, on the margin lending book, wanted to understand that, you know, in in March when the market saw a dip, but there was some one off cost that was there in the book. Did a similar thing happen this time in September as well? Or if not, then, you know, what did you change, you know, to really avoid this? If you could give us some color there, you know, that would also be helpful. And lastly, you know, on The US stock side, you know, I understand that, you know, you have launched, you know, that on... In in... You're testing that product. Wanted to understand what has been the initial feedback, if you would give us some color around that. And how is the new product pipeline? You know, how are you thinking about that? Recently, IRDA has proposed significant reduction in commission. Could that become an opportunity for you guys? Could, you know, insurance become a product opportunity? So if you could give us some color on the product opportunities, you know, that would also be very helpful.

13:06 Thank you. So... No. Thanks,. I'll answer three questions, and then I'll leave the second question. I I I forgot... I I forgot to record that. But let me answer the first one, which is competition. So, see, I think in consumer... Any consumer product, there's always... We are seeing multiple players and so on. And the way we have thought since the beginning is to kind of be paranoid about the markets and focus on the customer. And the moment you start following competition, then you kind of get biased and start thinking like them. And we fundamentally believe in kind of having the first principle insights, like, you know, firsthand insights about the customer and continue building.

14:00 And that has worked so far good for us. And from the pricing perspective, like, we believe that if we are giving more value to the customers than what we are charging, I think customers will be happy. They feel fair and so on, and we'll continue doing that. And on the AI side, I mean, if you look at GROWW, I don't know if you use... Like, we have kind of added significant number of features and tools of which kind of help customers to make right decisions and and everything. So that is the first one. Maybe I'll jump to the third question, and then we can move... Come back to the second. It is other US stocks. So it's it's kind of very, very early. Just kind of test... Started testing the water.

14:45 The feedback is really good from the customers. But as we do with every product so far, like, as we have done with any product that we have launched so far, we go slow. We kind of continue listening to the customers and, you know, keep making changes on what they are saying and continue launching. So as we speak, the product is being kind of getting kind of visible to a lot of customers, and let's see how how it goes. On the new product pipeline... Yeah. No. Just one, you know, clarification, Lalit. You know, when would the full launch take place? You know? When would you move from beta to full? So we... I don't think we have the timeline like this. Like, what we have, like, fixed set of feedback, and we continue getting those feedback. We could kind of keep building that.

15:38 So I don't I don't know. Yeah. No problem. Yeah. On the on the new product pipeline, see, right now, like, few of the products are already kind of... You have talked about the... So US stocks is one of them. MF Prime, we spoke in the last call, and that is that is going on in the Bell side. One thing that we'll talk... We... I think we we we spoke in our newsletter also, like, you know, the the company that we acquired now that integration has been done. So a lot of their products, we are kind of... They're getting mainstream across multiple apps and so on. And and then as... And there are some products that, you know, we are kind of still kind of figuring out and working on, and we'll probably in a in position to talk about them in in in future calls.

16:30 Sure. Sure. Ishan, can you answer? Ishan or Giovanni, can you answer the second question? I'll do that. So I think it was about NTF. I think there are, like, lot of policy level changes that we implemented after what happened last last quarter... Last to last quarter. And we have seen goodness coming in the last quarter as well. Obviously, I can't tell you each of those rules in some ways, but where I think we are investing a lot of effort is, one is how do we make the policy, first of all, strong, and the second piece is how do we actually implement that policy almost in the real time? Because policy is as good as the execution of that policy in some ways. And we have focused a lot on kind of making sure that the execution of that policy is, like, much, much better.

17:27 Another thing that we have realized, I think we are, again, trying to improve in our policy itself is we don't need to look at our balance sheet or our kind of book in this. We have to start looking at the industry level book as well. Because in some stocks, even though we might have a smaller market share, but if the book is significantly large at the industry level, so when a bad time comes, the days to sell becomes really important. And in such stocks, we are more proactive now to exclude such stocks from... Either exclude such stocks from our MTF approved list or actually have a much higher haircut compared to what the regulator... Regulated required haircut.

18:18 Our haircut can be higher than that as well. So there are stocks where... Which have actually ran up significantly, and the book also has ran up in them. And we are actually sitting in some cases, right, 80% as haircut, which effectively means that we are only funding 20% in that case. So such rules are really helpful because in a bad times, you will be able to kind of... Even 80% down, you will not be able to kind of... You are still able to recover your capital. I think that's how we are looking at focusing on both of these levers on haircut as well as changing the approved list more frequently and almost in the real time basis. Got it. So is it just... You know, is it fair to, you know, then understand that there was no one off cost because of the MTF and, you know, the sharp market move in this quarter?

19:11 So, obviously, there will be some cost of MTF into this, but there is no, like, one off cost as such. Got it. Understood. That's okay. Thank you. Thank you. Our next question is from. Nidish, kindly introduce yourself and go ahead with your question, please. Hi. My name is. I'm from Investec. So broadly, if you look at it, I think this is the first time we are even publishing the wealth related AUM. So because MF Prime is very small, I think you can assume that it's not a significant part of it yet. But, obviously, that's probably the fastest growing part at the same time. But we don't want to disclose too much into those numbers.

20:08 The number of users have gone up by almost 50%, I think, on a q on q basis. So Correct. Majority of the addition is because of Other operating income. But I think this time, we have also clubbed the wealth management business in the operational KPIs. And so so that explains the difference between active users of last quarter versus what we have disclosed this time. Right? Or Active user is, I think, independent of this. So the active user count for the last quarter in the recent disclosure is different from the active user count of last quarter disclosures.

20:56 It might be, but that number should not be significantly different because active user hasn't significantly changed because of including wealth. Wealth is MF Prime, if you look at it, earlier was not there, and every customer was coming on normal MF. And that piece was anyways adding customers. So the growth you can assume is coming from that, but the system users are actually included now in active customers. And because of that, probably that number is changing. Sure. Second question is on the broking business. So if we look at our market share for last three to four quarters on cash and derivatives, that has been broadly around 15% in cash and 11% in derivatives. Though our market share on NFC active continues to increase upwards of, I think, 23, 24 or even higher.

21:49 So why that is not reflecting in our cash market share... Cash and derivative market share? NFC active market share is not reflecting into that. And what is the right threshold you think is possible for us to reach in cash and derivatives ADT market share? So our expectation is longer run, we can come to that similar level. But, obviously, it's not a quarter to quarter basis that every quarter will have the same increase or there will be increase in every quarter as well. But we should look at from a long term perspective. The expectation is that as our customers becomes older, they will do larger turnover per customers. And as our kind of more and more products come in or more and more features also comes in, for example, NTF is doing... Growing as the NTF percentage goes up, the cash turnover will go up. So this is more like a fundamental growth that we will see, but it might not show up in every quarter because there...

22:49 The volatility is still there on a quarterly basis. But if you look at on a y o y basis, the market share will keep on growing. And so, basically, over longer term, whether your cash market share and f and o market share should trend towards NFC active market share, or is there a... Because there is a wide difference between the two numbers. One is 15, and another is 25, 26. So You see, average age is also very different. I think probably it take ten years to reach to those numbers, but it will converge one day, which might be, like, infinity in some ways. And last question is on the request you to join back, please, as we have other participants waiting for data. Thank you. Next question is from. Kindly introduce yourself and go ahead with your question, please.

23:39 Yeah. Hi. This is from ICC Securities. My question was on the order per ADTV kind of a ratio if we see. This was declining. But this quarter on a quarter on quarter, we have seen a increase in order per ADTV that has led to your revenue being flat in broking despite a lower volume. So any kind of reason of, like, why this would happen in q q two? So first of all, I think both are not correlated because the order size and... I don't know. Actually, you're talking about stocks revenue or you're talking about derivatives in this I'm talking about both stocks, derivative, and commodity. All of them has been sequentially reported better order for ADT. We can... If you can use a lot of order intensity that has gone up sequentially in all the categories. So that's why your your volumes are down, right, sequentially, but the revenues are quite quite largely unchanged.

24:49 So, honestly, I think we don't look at all of them together. But if I look at, let's say, commodities, commodities, the revenue is dependent on orders, not on EDTV. So every order is charged at 20 rupees, same as with equity derivatives. The difference we have seen, it depends on the asset class that customer actually... Or an asset value, you can say a contract that customer is trading. If customer trades on gold versus customer trades on crude versus on natural gas, the ticket size significantly changes. Same is the case in cash also. ETFs have a different ticket size compared to small cap or mid cap. And hence, in the revenue only changes for cash, actually, but everything else, the revenue is 100% linked to orders, not linked to actually.

25:43 In cash, it's a mix of order size as well as number of orders because our pricing is a mix of both. It is 10 basis points or 20 rupees, whichever is lower. So if you look at our brokerage income per order on cash side is actually more closer to, like, $15.16 rupees compared to in equity derivatives and commodities where per order, it's 20 rupees. So it's really not correlated with EDTV as much as we give EDTV numbers because we are... That is publicly available number for us to calculate the market share and stuff. That's why we are actually reporting those numbers as well. Understood. So one last thing about this is, like, did September have a significantly larger order compared to...

26:34 You know, because you don't give monthly. So I was just wondering because September had a significantly higher volatility. Would it be materially higher? So I think bit... August was probably the lowest is one way I can look at it. I don't remember between July and September which one was higher, but August was the lowest among three months. Understood. Thanks a lot. I'll get back in the queue. Thank you. Next question is from Sanket. Sanket, kindly introduce yourself and go ahead with your question, please. Yeah. Thank you. This is Sanket from. So so my my first question is on your derivative revenue.

27:21 So so the... Our market share broadly remains stable on ADTV, but given given we have introduced nine fifty nine web based trading power trading tools... For for power traders, is is that has... I mean, the contribution of that has increased, or how has it played any role for for for reporting a flat market share or or growth? Just just wanted to understand then how do you look look look this to play out going ahead? That's my first question. So let me take this. Basically, the nine fifteen is not a significant contributor to the trading volume today. And we... Obviously, our expectation is that the day we get a, like, a significant PMF on that product, it will start contributing significantly, and the market share can grow even faster.

28:15 But today, that is not the reason why that is not a contributor to the market share or even revenue, etcetera, from a material perspective. But, Ethan, do do you see this to play out more more internal customers graduating to power traders, or you think you can attract the external power traders who are active with some other brokers and given you provide much better futures maybe... And and therefore they come on your platform. I mean, from a revenue growth point of view, how do you see this to play out? Whether it is external guys coming on your board or on on on your platform or or the internal guys graduating to to to PowerTraders? So our expectation is obviously to kind of increase the market share in the PowerTrader segment. And hence, the focus was not on our customer graduating, but the focus was on customers from other platform coming to us and hence, increases overall market share for us.

29:15 I... That's why I was thinking this hasn't been yet kind of proven from our side. That's why we are not even talking about nine one five too much because that's not adding significantly to the revenue or to the turnover today. Got it. Thank you. Sanket, I request you to join back, please. Thank you. Next question is from Abhijit Sakhre. Abhijit, kindly introduce yourself, and go ahead with your question, please. Yeah. Hi. This is Abhijit from Kotak. I had a couple of data questions. If you could give the number on net inflows on the platform. I didn't see the numbers getting reported for this time. Secondly, on cost to grow, generally, if we look at this number, it's it's up and down a lot, but on average, it's about $1.20 crores a quarter. Even this year, I think over the first half, it's about $1.25.

30:08 Should we kind of assume that to be the run rate for second half as well? And Sorry. Go ahead. Yeah. One last question, Ishan, on on impact of gas. I just want to kind of follow-up on that given the statement that you expect cash to really, you know, help improve the volumes. But if you actually look at how August panned out, by the end of August, I think volumes had recovered a fair bit. So I'm not... I mean, I'm just trying to figure out whether you actually expect the removal of cash to really, you know, improve the volumes in a in a big manner or the system has already adjusted a fair bit. Got it. So I'll take, I think, cash one first, then it's easier. So we don't expect it will go up. The way we are expecting is it will normalize the problem that it created.

30:56 And now... Because the... There are multiple variables that affect the volume. So volume is one. I think somebody else was also asking the volatility whenever it increases, increases volume. And anything, like, for example, disruptions, like, where cash, for example, would have a negative impact on volumes. So both of them can counterbalance each other in some cases where you see the volume normalize, but normal for every day is a different in some ways. With and without cash, the expectation is that it will change. Now will it change with volatility or without volatility is more to be seen in the future. On the second piece on cost to grow, I think we've been talking about that roughly we spend between 400 to 500 crores a year.

31:48 And in a good year, obviously, we'll end up spending 500 plus as well. But in a bad year, we might end up spending, like, more closer to 400. So, like, you are correct that our average is around $1.25 today. But next quarter, if it... If market does well, we'll probably spend more than that as well. But if market doesn't do well, we might do lower than that as well. So there will always be a... Some bit of flexibility that we will have to make sure that we don't overspend when market... It's not worth spending in a bad market, and hence, we reduce cost. You know, if market does well, let's say, in q four or in q three as well, we might end up spending even more than $1.25.

32:34 So it will depend on how market does or we... Where we see, like, demand coming from. Thank you. Next question is from. Shrenik, kindly introduce yourself and go ahead with your question, please. I... My question was answered, so I'm skipping it. Thank you. Next question is from Manish Oswal. Manish, please introduce yourself and go ahead with your question, please. Yeah. My name is Manish Sostwal calling from Nilrubank Securities. My question on the... One quest... I mean, the company is focusing customer form...

33:19 For business growth. Right? So if I ask you how you track this metric called customer... Product per customer, how the progress the company is making? And secondly, a question on AI. So AI total investment the company is making at AI front and both from a use case of revenue maximization as well as the customer experience cost reduction. Can you make some comment on that? It will be quite quite useful for us. Thank you. Nalit? So so I think you are... I'm sorry. I I missed your second question, which was about AI. So, I mean, my question is use of AI. So what kind of investment the company is making on AI front first?

34:09 And secondly, how we leverage AI with respect to revenue maximization as well as customer experience on the platform and cost reduction in the business? Yeah. Yeah. Sure. So first thing is on AI, as we spoke, like, we are we are using it in multiple ways. One is, of course, how can we shift things faster for customers? How can we ship better quality product to customers? And then how can we improve customer experience better? So revenue maximizing, typically, if you have seen us, we... The first way we think about it is how we kind of improve customer experience. And then if customers like everything and revenue happen. So it's more like customer first and then everything everything later.

35:12 And on, yeah, investment side, like, if you ask, like... So there are... On productivity side, like, we use a lot of tools. We have kind of... As... Again, as our philosophy is we like to do everything in house, so we are building, like, our own in house stack. So it also reduces, like, per token cost. So, like, if we if we if we had used, like, all the kind of commercial kind of models, our cost would have been much higher. And we do the kind of number of tokens that we consume is much, much higher. But because of our per token cost, we kind of... We are able to kind of save lot of lot of money as well. I hope that answers your customer...

35:58 The... So so I... Answers your question. The first one is how is product per customer growing? Do we have data? Yeah. So I think broadly, we are... More than 50% of our customers are today using more than two products, and actually more than 5% are using more than four products today. So we keep on tracking these matrices. We are obviously kind of rehashing some of these things because the number of products are increasing very rapidly, and how do we actually engage more and more with our customers. The thought process is basically, again, instead of looking at product per user, look at one customer and what all products that customer needs and make sure that all those products are served by us is, I think, the way we look at it from a fundamental perspective. But, obviously, product per user is a, like, a averaging of all of that.

36:54 But a lot of time, happens is customer actually uses only one product because that's the only product that is relevant for them. And we don't want to kind of force customer or push customers to use multiple products. It is about their need and how can we be... Become, like, the most or only platform that they are using is more important for us than number of products that they are using. K. Thank you. Next question is from Sarang Saneem. Sarang, please introduce yourself and go ahead with your question, please. Hi. Good afternoon. This is Sarang from Coaster Park Advisors. Just two questions. Firstly, considering the good growth that we saw this quarter, is there a way that we optimize the float income, or has anything changed here?

37:46 And secondly, on our lending book referring to the PLN lab, what are the changes that we made in the last two quarters, and how should we see the scaling? Lalit, Giovanni, you want to take it? On the lending side, the last two quarters, we have, in fact, launched our loan against shares product. And the early two quarters, I think we have seen good traction in the... In that. On on the p... On the personal loan side, the business has been same as gradually growing over the... Over quarter on quarter. What was... Sorry. What was your second question,?

38:34 Yeah. The first question was on on float income. Are we optimizing something here, or has anything changed that we we are able to generate better yields? No. Float income, we... There is no change because there are two... You have to look at it from two perspective. One is our own treasury. So on our our own treasury side, it is the... We make investments in NCDs and bonds and mutual funds debt... Mutual funds. Largely, it is... The returns are as per the... As per what is getting generated from the market, whatever you'll see there. And on the on on the money which we have collected from customers as part of the wallet, that is typically... You you don't have much option there. You can only invest in certain set of FDs, which are prescribed by saving and exchange.

39:25 So you won't see much tax... Change in the yield there as well. Got it. So it's the treasury that's making the sense. Okay. Thank you. Thank you. Next question is from Pranuj Shah. Pranuj, please introduce yourself and go ahead with your question, please. Hi. Thanks for taking my question. This is Pranuj from three p Investments. My first question is on, you know, if MDR and UPS implemented under under the current framework, how much of an escalation does it lead to your cost to serve? If you can answer that. My second question is on The US based investing. Could you explain the OpEx structure over here? I think you guys make $1 or 0.1 based on the transaction value.

40:12 So how much has to be shared with the partner in US, or is there any fixed cost associated with it? And lastly, you used to give broking transacting users up till the last quarter. If you could disclose that number. Thank you. Yeah. I think, again, I'll go with the last question. Think q two u is more or less broken transacting users, so that's why we thought probably q two is a better metric than looking at broken transacting users. So it is much closer to that. On the UPI piece, I think we are still figuring out. We won. Obviously, there was a circular out, and it got delayed. And the second piece is there are recommendation made from our side, service side, to actually have a different pricing when it looked at the capital market use cases, and we are still awaiting finally what will be the final outcome.

41:09 Our expectation is not going to be a material change to our cost in any case, but the... Obviously, it'll depend on how much actual number that comes out to be. Because if the number is point 4%, which they are charging for others or point 02%, the difference is huge. And I think it's point 02% for capital market investments. So But the discussion is still on... The capping is on what 300 rupees capping is Oh, 5 rupees. Yeah. Insane today. And I think if the capping is lower, that number becomes, like, immaterial. But if the capping is, like, very high, then we have to evaluate how to kind of solve for this.

41:58 But you would look to increase the costs on your entire rupees. 20 rupee that you're charging currently, you may have to re... Reevaluate that? Not necessarily. I think we need to... First, I think we have to make our case to make sure that it doesn't go that high. Like, 300 rupees is not affordable either for us or for the customer in such cases. Because a lot of time, customer doesn't really actually transact also. They add money, and then they don't transact. Still, if you end up paying that cost, it doesn't make sense for us to pay that cost in some ways. But, obviously, we have to work with the regulator on this and figure out what can be done for us on this. Understood. Understood. And then the lump sum mutual fund investments, you guys won't be liable to pay. Right? That will be the mutual fund house that will have to pay it.

42:51 Understood. Understood. Sir, in the broking of that --, I request you to join by the queue, please. Yeah. Thank you. Next question is from Dipanjan Ghosh. Dipanjan, please introduce yourself and go ahead with the question, please. Hi. This is Dipanjan here from Goldman Sachs. Few questions from my side. First, on the other operating income, I think there has been some reclassification also that you have done. But on a mixed basis, I think on a quarter on quarter, there has been decent increase. So just wanted to get some color, is it led by distribution income, IPO led revenues? I mean some color on that. Second, I think for the past few quarters, we have been sustainably seeing rise in your cash realizations.

43:39 Now I would presume a lot of it has to do with the increase in the MTS book. So by any chance, is it possible if... Or you have done some exercise to understand what percentage of cash turnover is led by MTS? I mean, I mean, you have any color on that part. Yes. Those are the two questions. And one data keeping question, if you can just give the employee number as on date or as of September 30. Yeah. Lalit, do you want to take this,? On other in... Other income, we have we have a re... As of now, regrouped the IPO income plus BSD income, which were earlier part of stocks revenue.

44:31 And what was your second question? Sorry. Yeah. Let me... So, basically, the second one was on the MTA portion as percentage of cash. And, Donovan, just to follow on this first one, I just wanted to understand what led to the growth in other operating income during the quarter. Yep. So this quarter had a... We have seen about 30 IPOs happening in this quarter. And some of the large IPOs, in fact, happened this quarter, which includes your SBI, AMC, NSC, and that all these have overall contributed significant revenue to the other income line item. And second is we typically get a BSDA revenue from from, like, authorities in terms of how many new Demet accounts we are adding in the industry.

45:19 So that income has also been accrued in this quarter. Yes. Yeah,. Yeah. The second one was on the MTS portion as a percentage of cash turnover. Just to understand, you know, how much more scope is there for the cash realizations to go up. Today, I think that piece is slightly above 5%. And we obviously... As the book grows, that number will keep on going up. I think we expect at least in the foreseeable future, that number will kind of go up. But, again, percentage of EDTO can vary also. It's not directly proportional with the book. It depends on the churn also.

46:06 If the volatility is high, actually, that goes up. If the volatility is low, that might actually go down as a percentage as well. So it's not necessarily that it will keep on going up every quarter. But in this quarter, the volatility was high. That's why probably it contributed more. Thank you. Ladies and gentlemen, we will take that as last question for today. I will now hand over the conference to mister for closing comments. Thank you, and over to you. Thank you, everyone, for attending the q two call. Any follow-up questions, please do reach out to the IR team and the shareholders. We have... You have all our details on the IR website as well. Thank you very much, and look forward to having this again next quarter.

46:55 Thank you, members of the management. On behalf of Billionbrains Garage Ventures Limited or GROW, we thank you for joining us, and you may now exit the meeting. Thank you.