Good evening, ladies and gentlemen, and welcome to the earnings conference call of ICICI Securities Limited for the quarter ended September 30, 2022. We have with us on the call Mr. Vijay Chandok, Managing Director and Chief Executive Officer, Mr. Ajay Saraf, Executive Director, Mr. Harvinder Jaspal, Chief Financial Officer, Mr. Vishal Gulechha, Head Retail Equities, Mr. Anupam Guha, Head Private Wealth Management, Mr. Subhash Kelkar, Chief Technology and Digital Officer, Mr. Chetan Karkhanis, Head Digital Client Execution and Co-head New Solutions Group, Mr. Nilotpal Gupta, Head Data Science Unit. For the duration of the presentation, all participant lines will be in the listen-only mode. I'll be standing by for the Q&A session. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. The business presentation can be found on the company's corporate website, icicisecurities.com, under Investor Relations. I now hand the conference over to Mr. Vijay Chandok, MD and CEO, ICICI Securities. Thank you, and over to you, sir. Thank you very much. A very good evening to all of you, and a warm welcome to the ICICI Securities quarter two earnings call for fiscal 2023. First of all, let me take this opportunity and wish you in advance a very happy Diwali and season's greetings to all of you and your families. I'm sure, and I do hope that by now you have already perused through our investor presentation, which has been uploaded on our website. What I'm gonna do right now is I'm gonna start with a very brief highlights of the industry performance and what transpired there during this quarter. Thereafter, I will take you through some of the key aspects and the finer points of our performance during this same period. Talking about the industry first, as compared to the previous quarter in which the industry witnessed moderation across most parameters, I think there were some encouraging signs visible this quarter. I'll first highlight these encouraging signs. First and foremost, the F&O trading activity continued to grow with the ADTOs, or the average daily turnovers, growing sequentially by 25%, compared to 11% sequential growth that happened in the previous quarter. The second positive point to take away was that the cash volumes in this quarter was actually flat, compared to the previous quarter, halting a sequential decline, after Q5. I think it's a notable development in the industry. The third point is what was observed is that the flows into SIPs for mutual funds, systematic investment plans for mutual funds, continue to show an increasing trend, and it's actually grew 4% sequentially. While these were some of the positive takeaways for the industry during the quarter, on the flip side, I'll highlight a few points as well. On the flip side, the newcomers, the new DEMAT accounts that opened during this quarter continued to witness moderation. In fact, on a sequential basis, it declined by about 11%. The NSE active clients for the industry declined actually by 2%, -2% sequentially. This is the Q1 decline after more than three years. NSE active at the end of this quarter came in at a lower level for the industry compared to the end of previous quarter. The gross flows in equity and debt mutual funds also declined by 11% and 1% on a sequential basis. Clearly these are some signs of slowing in the market. When it comes to ECM activities, equity capital market activity, the fundraise showed a degrowth sequentially and obviously the reason for that was that the primary market activity remained quite weak amidst all the uncertainties in the market space. Against this kind of a backdrop, as you would have observed, our revenue for the quarter for ICICI Securities Limited grew 9% on a sequential basis and 1% on a YOY basis and came in at INR 865.6 crores. The profit after tax increased by 10% on a sequential basis and came in at about INR 300.4 crores. However, when you look at it on a YOY basis, it declined by about 14%. When you look at this YOY decline, you could attribute this predominantly due to our continued emphasis on franchise-enhancing spends, which we are doing to harness the medium-term growth prospects of our industry. The other notable point that I would like to talk about our financial performance is that the board of directors today have approved an interim dividend of INR 9.75 per share. In the context of these somewhat uncertain market conditions. Our company redoubled our efforts and continued to work on four key focus areas, and I'll take you on the nuances of these four key focus areas that this company focused on. The first important focus for us was improving market share across various areas of business. The second was diversifying the mix of our revenue and intensifying the focus on the wealth franchise of the company. This was with a view to reduce revenue cyclicality in our business model. The third focus was on cost efficiencies without compromising on growth opportunities. Lastly, the focus was on building a product proposition pipeline to be future-ready, as the opportunity keeps unlocking for the various product propositions that we offer to the customers. I'll now take you through each of these four areas and how things have played out. Coming first to the market share. We continued to witness some green shoots in the retail derivative market share, and during this period it increased by 20 basis points and came in at about 3.7%. I'm also encouraged to share that there was growth in all the underlying parameters of number of customers, orders and so on and so forth. Our retail equity market share increased by about 90 basis points on a sequential basis and came in at about 10.6%. We continued to maintain a leadership position with regards the MTF business. In this area, our market share improved further by about 60 basis points, and now it stands at approximately 23%. The commodity trading segment for us seems to be performing again in an encouraging way, and we continue to gain market share there. For the end of quarter one, the market share was at about 4.4%, and I'm happy to again report that this has increased to 5.5% in quarter two, FY 2023. With regards to incremental DEMAT market share, for this quarter, we increased our share from 6.5% to 7.6% sequentially. While we have gained market share on most of our parameters, our NSE market share actually marginally declined by about 20 basis points during this quarter and stood at about 8.2%. In this context, we continue to guide you not to look at this NSE active market share parameter on a standalone basis. Our performance in this quarter is a testimony to this as we saw growth in revenues and gain in market share, in the context of what NSE active market share came in as. We continue on this subject to focus on acquiring better quality clients as we move forward as well. Coming to our second area of focus, which is diversification of revenues. Reducing cyclicality has been an important part of our strategy and we've been stressing on that time and again. Quarter, despite the cash ADTOs falling by 21% and the capital markets being muted in the current quarter as compared to the corresponding quarter last year, our revenue actually grew by 1% on a YOY basis. I think this outcome is clear testimony to our continued focus to diversify and texturize our revenue base. You would recollect that we have been focusing on scaling up MTF, client, increasing distribution revenue from multiple products that we've been systematically adding over time, and strengthening of course, our derivative proposition, which tends to have a less cyclical behavior as compared to cash and sharpening our focus on wealth franchise, which also tends to display a much more sticky behavior. Going forward as well, we will continue on this journey of diversification of our revenue and focusing on generating multiple sources of revenue which meaningfully contribute to reduce the proportion of cyclical component. The cyclical component in our revenue, which is now only cash broking and the capital markets business. Since I specifically mentioned to you about our wealth franchise, I will like to highlight the scale and strength of this franchise. Just for your reference, any customer having an AUM of more than INR 1 crore with us is classified as a wealth customer. While this segment existed for a long time, it was actually three years back in 2019 we made this segment a key focus area and pivoted from a product-centric customer organogram to a customer-centric coverage organogram, and we accordingly aligned KRAs of the leadership team. We increased our offerings in this segment to capture the entire financial ecosystem relevant for these wealth customers, and also added our proprietary portfolio management schemes. You would also recollect over time, we've added products like Masters of the Street, premium portfolios, retirement solutions, ESOP finance, margin trading facilities, and more recently even loans through our partners. To the existing bouquet of products which we offer to these wealth customers. Our efforts have started yielding results and I would again be encouraged to highlight to you that we have today become a significant wealth franchise in the country. The qualifying AUM of wealth customers for us now has crossed INR 3 trillion during this quarter. As we have grown this segment through a customer-centric strategy, we have witnessed some very interesting customer behavior which I want to share with you. The first point that we have observed is that the AUM and the revenue persistency of this wealth segment is much higher as compared to the other segments. It is demonstrated by the fact that the average customer retention rate at the end of one year is 98%. When it comes to average AUM and revenue persistency, it is actually 120% and 111% at the end of one year. This is calculated by taking the average of one year retention across seven periods, starting from financial year of 2015. Clearly a high persistency business when it comes to customers, when it comes to AUM, and when it comes to revenue. Secondly, we have also observed that the AUM revenue and ARPU of these customers in the wealth segment actually increases with vintage. As the customer continues to stay with us, more and more ARPUs start coming from these customers. That's a trend that we have also observed in this segment. The third nuance that I want to highlight about our wealth business is that there is a reasonable secular trend of customers who have an AUM of just under 1 crore INR, and many of them are breaking into the 1 crore INR AUM club and becoming part of our wealth franchise. This, along with our new customer acquisition that the wealth management team does, has today given us the ability to add anywhere between 1,500-3,000 customers to the franchise of our wealth business on a quarterly run rate basis. Having spoken about the second point, which is diversification of revenue mix and our wealth franchise, which is adding greater stickiness to our total business model, I'll now shift to the third area of focus, which is with regards to our cost. Cost for this quarter has actually increased by 8% sequentially and by 20% on a YOY basis. In line with our broad guidance, our cost-to-income ratio has been flat. The increase in cost is mainly on account of the finance cost, which is linked with the MTF, business. This has actually increased. Employee costs relating to the areas where we are adding, heft in our manpower strength, and also some technology costs. As we move forward, we just wanted to assure you we'll continue to look at costs in a judicious manner so that we don't miss out on any of the growth opportunities and franchise-enhancing opportunities. At the same time, run it efficiently, to keep, keeping in mind the impact on our P&L. Finally, the fourth point that we focused on during this period is about the product launches and the initiatives that we have done to continuously modernize and make our platform, make our app future-ready. In this context, there were some very, very interesting developments during the quarter, which I will highlight. The first one is that we launched a product for our traders, the derivatives segment, a product called Flash Trade. There is no such equivalent product in the industry, today, and it has been very well received on our platform, and we are shortly looking to launch the same version of it on our app. The second, interesting product was a launch of an integrated watchlist, which enables customers to look at all kinds of asset classes under one screen and provides a single screen trading experience on our website. Again, this is a fairly unique proposition, for ICICI Direct to offer to its customers. We also launched something called the Smart Order Tool. This Smart Order Tool enables customers to place orders based on rules and these rules which can be set by the customer and executed at the swipe of a smartphone screen. Also, happy to share with you that during this quarter we soft launched our super app. This super app integrates all products offering that we do. Equities, F&O, currency, commodities, mutual funds, insurance products, global investments and very shortly, loans, all of them in one place to our customer. During this quarter, we also entered into an exclusive partnership with IDFC First Bank to offer three-in-one broking services, a service which is very similar to what we do with ICICI Bank. We've added one more bank as a partner during this quarter, and the service has now been launched in the marketplace. As far as our issuer and advisory business is concerned, we have a strong IPO pipeline of about INR 54,000 crore, spread across 28 deals. In addition to this, we also are running 16 approved mandates where the amounts of the IPOs are yet to be decided. We are optimistic that as and when the market sentiments improve, many of these deals will be executed as quite a lot of them are, r eady to launch kind of a stage. Having said that, I would say that as we move forward, the very short-term, near-term outlook remains uncertain considering the rising inflation, the interest rates, the geopolitical tensions. All of us are aware of all these factors. However, despite these short-term uncertainties, we continue to believe strongly that the medium- to long-term growth story of the industry remains actually very strong. Our key focus areas, as we continue to pursue these opportunities will be, number one, to gain market share across products like derivatives, equities, mutual funds, insurance and loans. Number two, to diversify our revenue stream by reducing proportion of revenue from cyclical components and grow our wealth franchise, which offers stickiness and depth to the business model. In line with our approach to enriching our disclosures, we have added some more information this quarter which pertains to derivatives and cash broking revenue split. This is available in our presentation. Some of you might have already noticed it. We also have given data with respect to the number of customers who do MTF with us. We've also enhanced the disclosures that we do with respect to our wealth franchise, all available in our investor presentations. I'm gonna now end this commentary and open the call for any questions that you may have. Thank you so much. Over to you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question, you press star and one on their 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. Reminder to the participants, anyone who wishes to ask a question may press star and one at this time. The first question is from the line of Sahaj Mittal from HDFC Securities. Please go ahead. Hi. Good evening, everyone. Thanks for the opportunity. Mr. Mittal, sorry to interrupt you. The audio is very low from your line. Is it better now? Yes, sir. Please proceed. Hi. A couple of questions from my side. Sir, firstly, I mean, what is your outlook on the option volumes given the pace of growth in the industry? How sustainable do you think are these volumes? That would be my first question, and maybe then I'll follow up. Yeah. Thank you, Sahaj. Well, if you look at past as an indicator of what's happened to volumes, I think it's been a secular growth trend, not just quarter-on-quarter, but for several years now. Having said that, we do not want to double-guess the movement of how options will happen from here onwards. We are very clear it is one of the important line items. It's an area of importance and focus, cannot be ignored. We have been a late starter in this space. We have started investing through tools, apps, experiences and products, plans, and we'll continue to press the lever very, very hard to gain market share there. We are very clear we are not a one-horse pony or one-trick pony, as you call it. We will focus on multiple products across the spectrum of financial services that we've been highlighting, which is across savings investments as segment one. Obviously, wealth being part of that. The protection insurance space is number two, and the loan distribution space is number three. We will press our pedal in all these three baskets of opportunity. Right. I mean, deep diving on the options side, I mean, if you could give us some color around the retail customers. What is the median size of the order in options, in terms of the number of lots in a single order, and how does it trend maybe in a bull market or when markets fall down? Because the option volumes have continued to improve, but is there a trend in terms of the number of lots or the order size, how the retail investors actually trade in the market? For example, like most customers trade more than three lots in order or something of that sort, the median size. Yeah. Sahaj, we have not disclosed the number of lots, et cetera, in every order. See, our focus largely is on increasing the customer base for each and every product, and so as for the derivatives also. I can say that this quarter, I mean, we did reasonably well and touched our highest number of customers in derivatives and other two metrics like number of orders, as well as the total volume were on a higher side. These are the important parameters. Of course, market plays a very important role. I mean, the entry and exit given. The volatility also plays a very important role because that decides the premium that, the number of lots is again a derivative of the premium which is charged on every lot. In a volatile time, the premium goes up, and that is where customer will be able to buy less. Stable period, the premium goes low and more number of lots can be bought. I mean, the focus clearly is on increasing the customer base using all kinds of enablers like Flash Trade, the integrated watchlist, easy margin product, which we have introduced, and we'll continue to focus on that. We'll keep increasing our disclosures from time to time as we've enriched our disclosures back this time as well. Let me just, address one just point. I don't know if you're what you're trying to drive at. Our derivative business is fairly granular. It's not concentrated, if that's what you're trying to understand. Right. Got it. Sir, I mean, some sense on the order size, if you could give, because given the kind of increase of the derivatives in the overall broking, right, it is very important for being a broking company, if you track a broking company, to understand the size of these orders, right? Even from the customer behavior point of view that, if these customers are coming from the tier two, tier three cities. Sahej, I'd just like to clarify, don't view us as a broker, please. We are not a broker. We also do equity business. We are far more broad-based equity business. You know, this quarter would be about, broking would be just 40%, and a reasonably large proportion of that is derivative. It's increasingly becoming a small part of our business. We are actually broad basing to become a financial services player. Just request you to consider us in that context but coming specifically to your question. Yeah. Sahej, I think Vishal clarified, Vijay also referred to the fact that we have a slightly granular kind of a franchise. Having said that, I mean, of course, whether you look at lots or whether you look at ADTOs or number of orders, our sense is that there is a lesser linkage to market cycles on derivatives if you look at the correlation compared to cash equity. That's why I think over a long period of time, we've seen growth. I think whatever parameter you look at it, whether lots or orders or this thing, it I think the trend is similar. I don't think we find any different trends. Also, incrementally, as you rightly said, a lot of customers are coming from tier two, three towns. They are joining this. Our aim is to kind of how to simplify their experience. We've launched a couple of products, in this light, in this quarter, which we have mentioned. That helps us, in kind of simplifying the experience and making it relevant even for the young, new to market, new joining. That's our approach. Got it. Just to get some sense on the employee strength, on which side of the business are we hiring the manpower? Yeah. The manpower side is being largely technology is a big zone. Second is data sciences. Third is digital marketing. Fourth is certain roles which require supporting digital. You know, where digital journeys drop off, we pick it up through calling activity and then put it back on track. Broadly, I would say these four areas. Thank you. Mr. Mittal, may we request that you return to the question queue for follow-up questions? Hello? Yes, Mr. Mittal, may we request you to please. Just one last question maybe. So, sir, I mean, on the penalty charges under the peak margin regulation, have you provided for it or have you paid? I mean, there was some regulation from the NSE. No. Sahej, actually in our kind of a model, what we do is we collect any kind of a upfront penalty prior. Whatever margin is required to be collected before placing the order is collected, only then an order can be placed. We have very strong processes in place. Therefore, that may not be relevant for us in terms of getting a penalty on upfront margin. Yes, I understand that in the industry there's a lot of discussion happening. At least, from whatever the applicable circulars are, we have been compliant with them and therefore no such provision. We haven't collected any penalty charges from the customer. Is that the right answer? Okay. As I explained, in our case, if you're talking about a circular which says that no upfront penalty can be passed on, in our kind of a model, we collect the margin before the client places an order. We do not have a scenario where a client can place order without giving the margin prior to placing the order. We do not have that scenario. Thank you. Mr. Mittal, may we request that you return to the question queue for follow-up questions? Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. If you have a follow-up question, we would request you to rejoin the question queue. The next question is from the line of Nidhesh Jain from Investec. Please go ahead. Thanks for the opportunity. Sir, the question is on wealth franchise. When the customer crosses INR 1 crore AUM, I guess, how the life for the customer and how our approach to that customer changes? That is the first question. Second is how many of the customers that we have added on to that franchise of 1,500? That's from the existing ICICI Securities customers and how many are the new customers to ICICI Securities? Yeah. Hi, this is Anupam Guha here. I head the wealth practice. You know, the moment a customer crosses INR 1 crore, obviously, we have, as you're aware, that in Private Wealth we have close to 500 odd team members, and we have a very seasoned relationship team as well. Our entire model of engagement is an omni-channel model, where while we have the ICICI Direct platform being available, but we have a relationship manager who handholds the customer. You know, the way we look at our entire practice is that we focus on getting more clients into our ecosystem and really engage on an asset allocation model. The way we approach is that the metric that we would want to look at is, are we growing the overall AUM? Once we have the AUM, which is nothing but a share of wallet and the trust of the customer, then based on the market scenario, we are able to advise, recommend the customer across the asset classes. One of the other things that, in fact, Vijay Chandok in his opening comments he also spoke about is really the proposition that we have enhanced for our HNI customers. If you were to look at the proposition on equities, we have direct equities, we have managed equities through mutual funds, PMSs, AIF, both Category three, long/short, private equity. On the fixed income, right from government securities at one end to mutual funds on the other, global investments offshore. You know, we have got almost the entire works, and we are really able to engage with the customers right from wealth creation, preservation, and all the way up to wealth transfer. That's really our model, like classical private banking, the way we do. The only thing is that, as a franchise, we have almost 70,000 customers, 70,000 plus, who are at crore plus, and that really is a differentiator, which, really makes us unique. The other thing, the other question that you asked was, really about the new to ICICI. What's happened is that, obviously, the franchise is 20-year-old ICICI Securities, 20 years plus, and, we have a lot of clients whom we've not been able to deepen mine. With data analytics now what's happened is that obviously we are able to get many surrogate data points, which actually allows us to know the net worth of the customer and hence our approach and our engagement is far more sharper. Which is why you are able to see the kind of trends and growth in terms of the count of customers actually being able to add. It's a combination of both upgrades, improving our engagement, cross-selling and new client acquisition as well. Thank you. Mr. Jain, we request that you return to the question queue for follow-up questions. The next question is on the line of Dipanjan Ghosh from Citi. Please go ahead. Hi, hope I'm audible. Just a few questions from my side. First is, if I look at your SIP flows and look at it more from a YTD perspective, it seems to have dropped, whereas for the industry side, I understand it has increased significantly. If you can shed some light. Second question is. Yeah. Yes, sir. Sorry. Voice is not very clear. Your voice is very muffled. Can you just repeat your question? It's not clear. Sorry. Is this better? Yeah. Maybe you're very close to the receiver or something. Just can you recede a little back and speak? Sure. Just give me one second. Better. Now it's better. Yes. Now I can hear you. Yes. On my first question I was asking, if I look at your SIP flows, that seems to have dipped QoQ. If you can give some color on that, because for the industry, from what I understand, it increased. Second, on your other distribution revenues, that has also seen some amount of moderation during the quarter. Lastly, if I look at your insurance yields, that seems to have gone down. Is it like your overall increase in volume is led by more of non-life or crashes sort of products out there? These are the three questions. Yeah. Let me take one by one. On SIP, our flows have been stable at about INR 400-420 crores. That has been the run rate that we have been operating at. Today, we have about 1 million SIPs operating on a monthly basis, which are live, which keep getting triggered. In the industry, if you look at it, I mean, we would be probably the fourth or fifth largest players in terms of flows. Yes, on a quarter-on-quarter basis, there could be some variation, but I think, with respect to both the competitive position, absolute number of SIPs getting triggered and the flows, it has been relatively stable, so nothing really much to highlight over there. Your second question was with respect to the other distribution revenue. The other distribution revenue, on a sequential basis, there were two reasons primarily. One was on, in terms of, the distribution of some of our PMS, AIF, and HNI-centric products. There was a relatively lower distribution fee in this quarter because last quarter we had reasonably high fee over there. So that was one reason. The second reason was that, some of the IPO distribution fee was there last quarter, which was relatively lower, slightly lower this quarter. These are the two predominant parameters. Actually, the two things that have actually gone up on a sequential basis is one, the loan business, where if you look at it, our loan dispersal for the quarter has now started touching almost INR 900 crore. So from about INR 600 crore run rate this quarter of about INR 900 crore. This product actually did well in this quarter sequentially. The second product which did well was the fixed income basket, where also we have seen sequential growth and some money which has started coming into the fixed income basket. Your third question was with respect to yields on insurance business. There also on a sequential basis as well as on a YoY basis, we have registered growth in insurance income. The yield one is a parameter of mix both two types of mix, one, the mix between new business and distribution and renewal. Second, within new business, there is a mix between unit linked versus the non-unit linked. These are some of our parameters. It is in that range. New business yields are in the range of about 20-odd%. The renewal is, as we know, relatively lower. It's more of a mix impact. This business registered a growth both on sequential and as well as on a YOY basis. Thank you. Mr. Ghosh, may we request that you return to the question queue for follow-up questions. The next question is from the line of Prayesh Jain from Motilal Oswal. Please go ahead. Yeah. Hi, good evening, everyone. Just to continue the previous question. On the SIP we had a run rate of INR 13.2 billion in Q4, and we are down to INR 11.9 billion now in this quarter. There seems to be a sharp fall against it, and this is completely against the industry trend wherein we are possibly much higher from what we were there in Q4 for the industry. I think that this could explain that as to what really is different happening with ICICI compared to the rest of the industry. Secondly, on the prime income fee, we've possibly seen for the first time a sequential dip. Any thoughts there as to what's the trajectory and why the dip? Lastly, any thoughts that you can share on the cost-to-income ratio of this 1 crore plus kind of clients that you are talking about in terms of the wealth side? What kind of profitability is there on these clients? Yeah, those would be my three questions. Yeah. Prayesh, I'll again take one by one. The first one is on the SIP. As I said, I mean, yes, about INR 1,200 crore is the number for this particular quarter. It was slightly lower than last quarter. First, I would like to contextualize, as I said earlier, also by saying that, in terms of both number of SIPs and in terms of flows, it continues to be above INR 400 crore plus 1 million SIPs. However, there was some impact on account of transition of the new regulatory directive, whereby the payment has to be directly made instead of through the pool account. We have kind of had some transition issues which impacted SIPs for a limited period of time. As I responded earlier in terms of run rate, I mean, that resulted in some pauses if the payment instruction did not get executed, which has got revived. We have kind of specifically engaged and revived those. That was a transient impact which impacted the flows. There is nothing specific to highlight structurally on the SIP. We continue to be, I think the fourth or the fifth largest player in the country in terms of incremental flows into SIP. That was with respect to SIP. I missed your second question, Prayesh. I'll come back to that. Sorry. Yeah. Prayesh's second question was that why there is a dip in prime fee in this quarter. As you know that we have made prime plans lifetime plans, there are less renewals because all the plans above 999 now carries a lifetime value. But the focus clearly is on getting more number of customers using this kind of proposition. We have increased our sourcing in 999 and above plan. As you know that when we get a prime customer, prime fee is only one small component of overall ARPU which we generate. Our large focus is on to get the complete wallet share, which includes, the brokerage part, the MTF and many other incomes through other products. That is the single reason. In terms of number of plans, I think we have done reasonably well and more number of plans in Q2 in comparison to Q1 as far as high value is concerned. Prayesh, if I may come to the third question that you asked with respect to the cost to income for the wealth business. If you refer to our presentation on slide 33 and 34, you will see that those details are disclosed. I'll just kind of read out the numbers. On a full year basis, if I look at fiscal 2022, our cost to income for the wealth franchise business was 45%. For the Q- Current quarter, which is Q2, it was 54%. It is broadly in line with, I mean, the trajectory that we have seen at a company level for the reasons that we have articulated. I have to kind of highlight over here is that this cost-to-income, the way we disclose is on a gross basis, which means that if I have an MTF income, the interest income is also gross in the revenue, and the interest expense is also included in the cost. If for example, if you were to remove this impact and say that NIM as revenue, then the cost-to-income ratio would be slightly lower at maybe about 48% for Q2. Thank you. Mr. Jain, we request that you return to the question queue for follow-up questions. The next question is from the line of Aejas Lakhani from Unifi Capital. Please go ahead. Yeah. Hi, team. Congratulations on the results. Your efforts are helping gain market share and thank you for the additional disclosure. My first question is that, in the journey of migrating, the customer through Prime where he's paying a lower brokerage and thereby still being retained, and that has impacted of course the absolute cash brokerage revenues. Where are we in that journey? So, has that migration that you wanted from Prime already taken place or still there is scope? The reason I ask this is because your absolute cash revenues are, down, say, from INR 180 crore Q2 last year to about INR 180 crore this year. So where are we in that journey of migration? Yeah. See, as far as Prime is concerned, all the plans are open for the entire set of customers. There is no selective selling which is happening. We do market Prime plans across all sets of customers. The objective is not to look at one quarter in particular. I mean, the entire purpose of the Prime is to get customer for lifetime. You know, if it can help us managing the attrition better, getting the revenue better, making him take many other products which sell, and also if it can help us in acquiring more customers from market, activate our non-traders and stock traders, I think overall things are working well for us. It is reflected in our MTF book, it is reflected in equity market share and in many other parameters. We don't look at it at quarters. Rather, this is a very long-term game. When it comes to long-term, and dividends are definitely visible now. Okay. I'll just try to rephrase that. This cash segment income that you're sort of receiving, given that ADTO remains the same, is there any more migration left because of which we may see a decline in this? Or is this the base from which you expect cash segment level income to keep going up? Yeah. I would say the large migration has already happened. I mean, as I said that the Prime plan is open for fairly long time now, and even the lifetime proposition is open for customers, it has been Q2. Large part of the migration is already over. Of course, customers from time to time, they enter in a lower value plan to start with, and then as they experience their own potential, they experience the market opportunity, they keep upgrading. That journey will continue. As far as inventory is concerned, I would say that the large migration has already taken place. Got it. That answers my first question. Second, sir, how do you think I should look at client additions for the rest of the year? Yeah. If you look at new client additions, we are broadly in the ballpark of around 450,000-460,000 customers per quarter. While obviously it will depend, you can see that the market has been showing a declining trend sequentially now from quarter four versus quarter one versus now quarter two. Each quarter has been lower than the previous one. That's why I said short-term headwinds remain. Our endeavor would be to broadly keep our market share in this story intact, new customer addition. To some extent, it would be fair to say that, we will, our numbers will depend on what's the number of newcomers coming into the market. Broadly trying to maintain this kind of a range, the market share that we have, which is broadly in that 7%, it's varied between 7%-7.5%. Our endeavor would be to keep it somewhere there. I mean, we are not chasing new customers for the sake of numbers. We are chasing for the sake of quality. Certain channels and the quality surrogate indicator is channels. There are certain channels where it is very nice and certain channels where we get numbers which are not so nice. I think numbers is one part of the story, but the channel mix is important for us. You know, last few quarters we've been putting massive emphasis on getting the channel mix better. I think there is some green shoots visible in that effort, get your channel mix right. Numbers on a standalone basis, if you chase them, you'll find some growth in one story and then nothing really will transpire in revenue sense. Got it. The investment and trading income and other revenues this quarter has seen quite a big flip. Could you just comment on how we should look at it from a trajectory perspective for the next few quarters? Is that a one-off, and how should we look at cost to income for this? Yeah. It is two things. Treasury, yes, we had a good quarter this time. I mean, the kind of positions that were available, opportunities that were available in the market, we were able to leverage that. It was one of the better quarters that we had in treasury. They primarily came out of the mark-to-market and investments that we have done in debt instruments. That I would not say would be kind of you cannot use the Q2 as a sustainable runway. You could see some moderation in Q3, Q4 in the treasury income, the trading segment income. On the second part, other income, yes, there was INR 5.7 crores worth of interest that we got on prior income tax refunds. We got decisions in our favor, which is what we have. If you look at our performance note, we've mentioned that reason. About INR 5.7 crores out of the other income that you've seen is a one-off for this quarter. Thank you. Mr. Lakhani, may I request that you return to the question queue for follow-up questions. Next question is from the line of Pujen Shah from Congruent Advisors. Please go ahead. Hi, sir. One question. What value we have paid to Multipie for acquiring the whole team and stuff for that? Sorry, your voice has faded out. Can you just repeat your question? Yeah. Now am I audible? Yeah. Got it. Yeah. What value we have paid to Multiply for the acquisition? We have not put that out over here. It's a principal-to-principal transaction that we did, a bilateral transaction, but it's nothing very material, is the guidance I can give. Okay. Thank you so much. Thank you. Reminder to the participants, anyone who wishes to ask a question may press star then one. We have the next question from the line of Sanket Godha from Spark Capital. Please go ahead. Thank you. Thank you for the opportunity. Sir, I just have one question, with respect to how the NIM with respect to MTF and ESOP book is playing out. We see that in the current quarter, despite MTF book increasing, rather, I mean, this is positive action because if you calculate the yield, the yield on MTF book comes to closer to 9%. But the MTF income has come off a bit, maybe because of decline in number. Just wanted to understand basically how the income moving over last few quarters. Yeah. Two things over here, Sanket. One, on a quarter-on-quarter basis, the average book is actually slightly lower from Q1 to Q2. The exit is higher, but the average is slightly lower. However, on NIM basis, we, depending on what the yields are, we get about 3%-4% as NIM. Currently, I mean, as you rightly said, it's about at 9%, 9.2% would be the gross and our cost of borrowing would be in the range of, let's say about 5.5%-6%. Three percent to 4%, it kind of varies in that range. That range, did it come set, Harvinder? Because I just wanted to understand, given we have gained that so much of market share from the last two years, 533, 50 basis points. Whether this market share gain came at the expense of little margin compression? No. Yeah. Sanket, marginally because obviously there is always a lag where you make pricing adjustments. We have increased recently our pricing where we have gone from, let's say the best plan that we had used to offer a pricing of 7.9%. Now the best plan offers a pricing of about 8.7%. Those are some changes that we have done recently where, which I think for a full quarter the impact would not be visible, but the yields could go up going forward. Yes, for the quarter on an average, there was a minor compression. Got it. The last one from my side is that, given how disclosed for the first time the brokerage income broken down into cash and derivatives for the retail segment. Just, if I do a calculation, I see that the cash yield has come down from 9.4 basis to 7.8 basis from year-over-year basis, and it has remained flat on sequential basis. This compression, because we are still on SLBM basis, still is it largely because of the Prime and tilt trade? And the 7.8 is the kind of bottom we need to see going ahead, assuming that the intraday and liquidity broadly remain similar. If you make that assumption, yeah. Vishal tried to explain that in response to an earlier question as well, Sanket, that today we have a substantial migration to Prime plan which has happened. We launched towards the end of Q4, we launched these lifetime variants. That was in March. Q1, we have seen a round of people who opted for lifetime variants, which also kind of stabilized. If the mix is constant, there may be some, I mean, I'll not say that it's absolute zero. There may be incremental migration, but I don't expect that to be substantial going forward. In terms of our revenue contribution also, you would have seen that for the last four quarters, the Prime revenue contribution has stabilized at about 70%-72% of our overall portfolio. We expect stability over there. Again, the assumption I'm making, and as you started with that, the mix of intraday and delivery remaining similar. Got it. Finally, we have seen a bit of contraction in the derivatives segment. Since you said half the time that we have seen market share increasing this year. Now since it is 3.7%, means any number you have in your mind by end of the year what you want to touch or an aspiration number what you have, just to have it maybe in the next six quarters with respect to derivatives market share. As guidance, we have a number in mind for, say, internal guidance for sure. Can we expect this 3.7% to incrementally improve for us? Maybe it can go beyond to those numbers in one way if I come to it was around 6.2%. Can we expect that number to come? If I would be in your place, I would expect an improvement. Okay, sir. Thanks. That is for my question. Thank you. We have the next question from the line of Dharmesh Ketish, individual investor. Please go ahead. Thank you for the opportunity, sir. I have my broadest question. Like, if we see the recent comments from Zerodha's founder, he has said that due to the regulatory requirements of settlement periods, they may feel an upward pressure on the brokerages. I understand that ICICI doesn't have this pressure because for us, funds of the client in ICICI remain in ICICI's client account. Actually, he does the trade. If there is upward pressure on the brokerages, it will indirectly benefit us because we are already very established in this sector. Right, sir? Yeah. What is your question? Sir, my question is that if there is a pressure on the discount brokers, brokerages, it will indirectly benefit us with when we should be able to gain much higher market share when pressure on the brokerages in that area. Yes, sir. Certainly, as per what you just said, yes, I also went for that read. If there is an upward pressure and there is indeed an actual translation of that upward pressure in terms of, discount brokers increasing brokerage, it certainly makes us more competitive in the marketplace. That should be a plus for us. We have nothing to lose with an increasing brokerage and everything to gain in an increasing brokerage scenario from the discount brokers' side. Okay, sir. We don't feel the cost pressure right now also, right? Because of this regulatory, because we may also feel it. No. You answered the question because we do not actually keep the float. I mean, predominantly, as you correctly pointed out, we have a block model and not really a model of, float. The float model is there only for a few plans, which is a very minuscule part of our overall story. We also found that, the money in that came back within a short period of three, four days. Virtually the entire money, in fact, that money has crossed the money that went out in those specific accounts. Having said that, to your question, the only observation I will give is that right now I think SEBI is having circulated a discussion paper on the ASBA model kind for secondary market. Now, if something like that comes, I think that will have a meaningful impact on the float opportunity for discount brokers, and that could be a very material. I would say that would be a more significant pressure point on discount brokers than the current regulation. Okay, sir. Thank you, sir. Just one more thing is that, thank you for conducting this call at evening times than 2 o'clock, afternoon or morning, because most of the players do that, and as later investors, we may not be able to join the call. I would request you to keep following this model. I don't know follow this, but in the future also, I will also participate. Thank you. Thank you, Thank you, sir. Thank you. We appreciate and all the best to you. God bless. Thank you. If there are no further questions from the participants, I would now like to hand the conference over to Mr. Vijay Chandok for closing comments. Thank you very much for hearing our narrative patiently and also the questions that you asked. In case there are any follow-up questions or unanswered questions in your mind, please do not hesitate to get in touch with us. We'll be happy to address any questions that pop up in your mind. You know whom to contact. All of us are available. The IR team, myself. Look forward to hearing from you, keeping in touch, and I wish you all a very, very happy Diwali. Take care and stay safe. Thank you, very much and good night. Thank you. Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.