Ladies and gentlemen, good day, and welcome to Q2 FY 2025 earnings conference call of Nuvama Wealth Management Limited. Just a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. If you need any assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference call is being recorded. I now hand the conference over to Mr. Ashish Kehair, MD and CEO, Nuvama Wealth Management Limited. Thank you, and over to you, sir. Thank you. Good afternoon, everyone. I welcome you all to our Q2 FY 2025 earnings call. I have alongside me, Bharat, our group CFO, and SGA, our investor relation advisors. I'll start with a brief, high-level overview of our business, how it went for the second quarter, and then Bharat will take you through greater detail, and then maybe we can jump into the Q&A session. Before we start, I'd just like to take a moment to thank all of you, all the shareholders, all analysts who've covered us, all who have been looking to cover us as we complete our one year of listing. This is a special moment for all of us at Nuvama, as we've achieved many new milestones in this quarter, which I, as I said, Bharat will take us through when he's taking us through the detailed coverage. Coming to the results, we've achieved a very healthy quarter, this again. Our revenue almost jumped by about 51%, and profits doubled to INR 4.9 crores. Before we jump into the second of our business, I just wanted to briefly touch upon the sectoral trends, you know, which our sector is actually benefiting from. As we all know, in the last decade, the growth in the investment asset class has been phenomenal, whether it is mutual funds, PMS, AIF, equity, fixed income. Across the board, we have seen significant amount of flows and growth, in the overall AUM, that is, whole investment asset class has been able to achieve. Even today, the annual household savings that actually flows into this is just about 10% of the total financial household saving. And as we see a rise in the GDP and growth in the wealth pool, financialization playing out, pushing up markets into more tier two, tier three, tier four, consolidation of sector from unorganized to organized. I think the opportunity for this to grow by six to eight X still remains, over the next decade. I have always said the best for this industry is still ahead of us. Annual flows in the next 10 years will nearly equal the stock of the financial assets which exist today, and that's a pretty big number. That will benefit almost all asset managers, wealth managers, brokers, merchant bankers, service providers like RTA, custodians, clearing agents. Across the board, I think the sector will benefit. Coming to Nuvama specifically, in this quarter in H1, we continue to grow horizontally and vertically. Horizontally, I mean, we've deepened our presence both in the tier two cities in India, so Nuvama Private and Nuvama Wealth, adding couple of cities. We've also gone offshore, as we had mentioned last time that we had received our licenses in DIFC. Happy to state that business has commenced. We have RMs on ground there, office up and running, and transactions have started. Maybe in a couple of quarters, we'll be happy to start reporting the revenues on how that is shaping up for us. We've also added GIFT City for both our wealth and asset management businesses, more specifically for our asset management business. We now have an office there. I'll talk about it a bit more. Private assets have grown faster, more relationships have been added than H1 last year. And as far as our focus areas goes, on the private side, our ARR assets and in Nuvama Wealth, MPIS assets. These are the two areas where we focus more. They have grown more than 35% YOY. And on the next economy, private ARR, total out of the total ARR in H1, about 66% is ARR. And in Wealth, out of the total MCIS, ARR about 65%-70% in managed products, which is a clear jump over 45% that was last year. We continue to add capacity in both these segments. We've added about 60% over the last one year, 150 relationship managers. About 350 in wealth and about 13-15 in private. Vertically, also, we continue to sharpen the value proposition of our business. A heavy investment in technology on an ongoing basis. In wealth management, Nuvama Wealth, we have gone live with our One Platform, which is a single platform that is now, will now be accessed by clients, advisors or employees, and external service providers all together. We've streamlined the ecosystem starting from onboarding to transaction reporting, transaction execution. We've added family level reporting in Nuvama Wealth, which I think even in the twenty-first century, it doesn't really exist. Most of the reporting in the public market segment right now in the industry is at a house level and not at a family level. We've added that. We are doing a lot of experimentation with AI in Nuvama Private, cross-post testing, client portfolio analysis, and advisory. So I think all this will have a significant impact on productivity going forward. I just wanted to talk a bit about the yield in both the segments. In Nuvama Wealth, the yield has moved from 90 basis points to 85 basis points, purely because of the MTM in the equity assets. Equity assets MTM is about 17%, so essentially revenue growth is about 2%. And if you mathematically adjust that, yields in Q2 will be exactly equal to yields in Q1. And if you look at both the quarters without equity MTM, they sit at fifty-five basis points. Similarly, in Nuvama Private, ninety-one basis points, eighty-four basis points, and that is also only because the lending mix has come down a bit. And lending, as you understand, is a 5%-6% sort of yield business. That has an impact of five basis points, and one advisory inflow of around six crores have an impact of one basis point. So we have set it again from eighty-four to ninety, which is almost equal to where we were in Q1. In both the businesses, I would say the steady state, like in Nuvama Wealth will be between 65-95%, going up to max 1%, and private book again between 80-83 to about 98% on a steady state basis. In quarters in which we see equity MTM being lower, Nuvama Wealth yields will go up. Similarly, in which, in Nuvama Private, the lending mix will change. I think that will have an impact on the yield movement. Otherwise, at a product level, yields in both the businesses fairly steady. Coming to asset management, I think a very, very, very good quarter for us. We crossed about 10,000 crores of AUM, a very important milestone. In public markets, we actually moved the AUM by 3.5x in the last 12 months, from about INR 1,250 crores to now about INR 2,500 crores. We now have products across the risk spectrum, which is our Delta One, or what we call market-facing products, which is reflecting the medium and small cap fund. Large cap replacement product, which is 60% Delta, which is eighth largest in its category and best performing, and one absolute return product, which is a fixed income replacement, so across the three, we now have about INR 2,700 crores of AUM. Commercial real estate, we crossed INR 1,000 crores. We are looking at, we have a pipeline which is taking to about INR 2,000- INR 2,500 crores. Now we are focusing on deployments. In private capital, we continue to focus on deployments and exits, and we will think of raising a new fund in maybe next two quarters. We continue to evaluate credits, both real estate and performing credit sectors, to add to our NPO offering, and we'll see how that plays out. In after markets, Asset Services, our assets doubled over the last year with almost 70% coming from net new money. And we further improved the market share in the domestic institution business, and more than 21% of the new domestic PMS and AIF get registered with KMR clients. On the international side, we continue to add marquee global clients to our list. In securities, we now have crossed a market share of 63%. On the investment banking, our deal activity for Q2 was actually double of last year's impact. I, towards the end, I just wanted to touch on the regulatory changes, which have been announced recently, which have been playing on the minds of everybody. There are three broad buckets. One is around APMI, second is True to Label. I think, in these two, there is a extremely negligible impact on our business, because our business models bring higher revenues from these two streams, both on the wealth side and on the institute side. The third change, which I think is larger for the overall market, is on the writing of F&O. We'll have to see how the market adjusts to it. We've been speaking to a number of participants. We've also seen a lot of reports coming out, especially on exchanges, where people have tried to anticipate the volume reduction due to the reduction in number of exchanges and all. I think the answer is not so simple. People will adjust to the new regime, and over the next two to three quarters, we'll get to know. Purely systematically, when we look at the impact on us is not much, because we spoke to the institutional clients who actually trade this area in India. They say even after the reduction of profit pool and derivatives in India, it seems to be private for the next biggest market in Asia. So we are not going to take that opportunity. Having said that, we have to see how the retail behavior evolves. Retail volume going down has, again, no impact on us because we don't operate in that space at all. So all in all, I don't think it's a significant impact, that will happen on us, like it likely may happen to some discount brokers who operate in that segment. I think, that is all from my side right now. I'll now request Bharat to take you through the performance of all our businesses, and then we may answer the questions. Bharat, over to you. Yeah. Thank you, Ashish, and good afternoon, everyone. Ashish conveyed our guideline numbers. If we look at the overall quarter, both on a YOY basis or on a sequential basis, our quarter has been good. Whether it is from actually revenue growth, AUM growth, actually adding distribution capacity, adding market support in the HNI side as well as on the asset services side, investing on the tech side, both in the front end as well as on the back end, opening new locations. So I think overall, the idea to actually expanding in different businesses is going on well, and this quarter reflects the performance of the quarter. Before I go through the overall financial performance, I think I would like to share a few major milestones. Our total client assets has actually crossed two lakh crore as at end of fifteen months. Within asset management, Nuvama Private has crossed INR 2 lakh crore. Nuvama Wealth has crossed INR 1 lakh crore, as well as our asset services and custody businesses, especially in clearing businesses, has crossed 1.25 lakh crore and asset management was actually INR 10,000 crore. So this actually makes a lot of milestones being crossed at the end of the quarter. In terms of the overall performance, the assets have actually grown by 63% at INR 4.2 lakh crore. Revenue grew by around 16% at INR 740 crore for Q2. And all the businesses have double digit growth. It's not just that the market is contributing. Even the bank, the business has actually grown by 22% on a YOY basis for the quarter. Total cost grew at around INR 390 crore, which has grown by around 30%. So the growth was provided. The cost growth is actually coming from the employee side, which is more about what we have added over the last 12 months. We have added around 350-odd people in terms of our wealth business. Plus, we have actually added more capacity in the asset management side, both on the investment as well as on the distribution side. As the business grows, obviously, the cost also increases in line with that. That's one reason of the cost growth, it's grown by actually higher than the overall cost growth. If you look at the overall cost, it has come down to 63%, whereas it was at 61% in Q1 24. Overall, it actually has grown by around 77% for the quarter, and, for the H1, it has actually doubled to 484.79 crore. Happy to say that the board has actually declared the interim dividend for the FY 2025 at 0.36 per share. The ROE for the quarter was around 33.6% and H1 is 31.5%. All the numbers, whether it is growth or solely in terms of distribution side, overall ROE, cost to income ratio, everything is in the right direction. Now coming to the individual businesses. Before we go to Nuvama Wealth and Nuvama Private separately, if you look at the overall business, this quarter the revenue has actually grown by around 22% and, the cost to income ratio is broadly same as what it was last year. It's around at 63%-65%, which is despite when we added so many people over the last 12 months. This is also despite of the fact that there is a last change. As we mentioned in the quarter one, there was a revenue recognition methodology change which has happened in Q1 of this year versus Q1 of last year. Despite that, our PBT has actually grown up by 22%. So 22% growth on the top line, cost to income ratio is same, with a lot of capacity added and the PBT growth of 22%. So I think this business is on the right trajectory. And as Ashish mentioned, our focus is more on the annuity business. We call it as MPIs in our side as well as on ARR side, on the private. Other businesses have done well. Coming to the Nuvama Wealth, the overall AUM is now at around 1 lakh crore. It has grown by 60% YOY basis. The overall NNM for Q1 is broadly same as what it was last year, around INR 3,600- INR 3,700 crore. But within that, it is our MPIs, which is where the actual build-up happens. That has grown by 35%, from 2,600 crore to 3,500 crore in H1. And now within AM, if you look at what we focused more on is on the managed product, which has actually grown much faster. That has actually grown by almost like it has become double from INR 1,100 crore to INR 2,300 crore, which is where the portion of managed products within MPI has increased to 63%, compared to 45% last year. I think the idea through here is that that change has been now starting to actually happen as the focus is more on the NPI side of the business. Overall, NNM for Q2 was at INR 2,100 crore. This is the highest we have done in a quarter. That's where the Nuvama NNM has been. NPI as I said within the overall, it has actually also grown INR 5,659 to INR 19,000 crore. RM capacity, today we are at around INR 1,200, which is almost 50% higher than the what we had just 12 months before. End of September 2024 versus now we are almost 50% of the capacity. As the, as those RMs get into productivity or the operating leverage will start kicking in. Overall revenue was around INR 200 crore with a growth of 25%. If you look at the cost-to-income ratio, as I mentioned, it's around 63% or so. This is despite the capacity addition. If you remove the cost of capacity addition and the associated revenue with that, the cost-to-income ratio would have actually come down by 4 basis points or so. From our 60-65%, it would have been around 62%-63% kind of a number. Overall, PBT is strong at INR 71 crore, which is a growth of 50%. That's Nuvama Wealth within Quarter One. Similarly, if you look at Nuvama Private, the asset has crossed two lakh crore and grew by 52% as at the end of September. The ARR has actually also grew a similar fashion at around 56%. The ARR at this point is around INR 30,000- INR 31,000 crore. NNM actually grew by 50%, which is around INR 7,100 crore of NNM in H1 of this year, versus around 3,700 crore last year. Within the ARR is almost 65%-80%, as Ashish also mentioned in his opening remarks. Overall numbers are up by 22% and we are at around 2,071. We added more families in H1 versus what we added in last year. The overall revenue grew at 32%. As I mentioned in the beginning, both the businesses revenue growth is up around 22%, and the PAT is also up to the tune of 25%. Those are very reassuring. Overall, it's if you look at we are actually up at around 157 million, which is an 11% capacity addition over the year. Our cost income ratio is around 67%. Again, if I remove the growth cost as well as the associated revenue, this would have also come up by around 60 to 400 basis points on a like-for-like basis. As it is going on in the operating leverage or the productivity effect will come over the coming quarters. I think PAT was around INR 48 crore, which is up by 25%. We did mention in the beginning by Ashish that we had started our Dubai operations, and I think that's been a lot of good effect, good traction on this front, so we'll see a lot more in the coming quarters on the offshore positions. With respect to asset management, overall, assets under management has gone up to INR 10,300 crore, kind of, which is a 57% growth. I think this is public market that has actually grown by 55% over the available year. This INR 2,500 crore, we got around INR 1,500-INR 1,600 crore in our public market. Since balance has came in commercial real estate from around INR 800-INR 850 crore. Otherwise, a lot of new asset management is our Edge fund in the public market, which is actually now the largest in this category, and the fund performance is doing great in all possible cohorts wherever it is available. Even with the INR 150 crore in the commercial real estate, our commercial real estate fund has now crossed the INR 1,000 crore mark. We will see how we continue to expand the distribution as well as to the external channels. Over the last few months, what we have actually also done on the asset management side is that we have actually started adding our external distribution side. The public market fund Edge, which is today the close per stage, almost 35%-30%, come through external wealth managers. So I think as the time progresses, we will see how the external distribution. To start with, we have actually added a lot of external distribution capacity in the banks as well as the investment managers. Revenue actually grew by 45% to 17 crore. That's how the asset management perform over the group. Capital market generation in the beginning, the asset services business was actually the custodian clearing assets was actually doubled from almost 65,000 to 1.4 lakh crore. And the contribution is both from the domestic side as well as on the international side. International side, the new clients has actually contributed almost 30%-35% of the new flows in the business, and on the domestic side, our market share for the AIF and PMS has actually improved to around 21%, and similar numbers for last year, it was usually around 18% or so. On the IE side, Ashish did mention about the improvement in the market share from 5.5% to 6.2%, so I think that's reassuring. As well as on the IBD closes almost double than what we did last year. So I think that's worth implying. Overall revenue market was around INR 376 crore, a growth of almost 100% year-over-year. As you understand this business, as the ratio between the growth in the revenue versus the EBITDA is completely 4%. So when you grow your revenue by 100%, our, actually, of this business has grown almost by 150%-155%. That's how the overall capital market has performed. Nothing specific on the financial performance beyond this. I'm happy to push the Q&A session. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your 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. We'll take our first question from the line of Sanketh Godha from Avendus Spark. Please go ahead. Yeah. Thank you for the update. I have a few questions. So the first question is based on your Asset Services, how much business? So if you allude to the F&O activity, so that can have an impact. So my specific question is how the approach in one edge Asset Services, how much you would like to link it to F&O activity? And if you have any, you alluded to the point, but in the worst-case scenario, do you see this number to fall if the new rules get implemented from November? That's my first question. And maybe if you can answer the question, then I will go one by one. I have three questions to ask. Sure, sure. So, if you look at that business, it's basically split between domestic and international, so domestically, there is zero impact because domestically, basically, service, PMS and AIF, which are typically long only, or maybe, category three, category two, where the impact of this is zero. I mean, there is absolutely no impact. That is roughly 35% of the business. Balance 65% of the business, again, half of it is completely non-related to any activity which is related to F&O, so if you see, let's say one third of the clients, the clients which are affected by F&O, and if I look at the volumes which basically is largely at the retail level. For us, about 90% of the volume actually sits into expiry, out of the buy, which were there every week. So, it really doesn't matter, for the current expiries to go away. And when we have discussed with these clients, again, as I said, I mentioned, look, even if the profit pool in India were to fall by 50%, they're saying this is an extreme scenario. Even then, there is a profit pool for these type of clients in India is 5x larger than the next market. So requirement for F&O will continue. Plus, if two out of five days they need to keep the flow clear, balance three days, they don't take it up. So as I said, while the volume for brokers may get impacted, whether the volume for us in asset services, the answer looks to be no right now, which is point number one. Number two, the number of new clients which are coming in, which are of similar type, size, and scale, which operate in other markets that are now in India, and we are opening the accounts. I would say that addition itself will more than compensate if there is any fall. So right now, I may sound a bit optimistic, but this is after a lot of discussion, with all the participants is that we have come to a conclusion that the impact looks marginal, at least from this side of it. Okay. So basically, if I want to simplify your section, I know, I mean, how to and second, new client addition. So means even if the volume falls in the first quarter, new client addition should compensate. So will be not an issue. That's the way I should summarize? Yes. Okay. Yes, absolutely. Okay. And maybe just, because the margin requirements will go up on expiry date, actually it could negate because impact, because you're correct. Absolutely. Absolutely. That's on my first question. Yeah. Second was on wealth business. We saw a significant, I mean, we have seen a significant decrease in the flow in the current quarter. Is it fair to assume this happened because of the broker code change, which is prevailing in the industry today? Because b roker code, in Nuvama Wealth, the overall net net inflow in a quarter, it's about INR 120 crores as of now. We have not started pushing it a lot. I think the number will go up more for us, because as you understand, we are one of the players where we have a smaller AUM, and when we get new RMs outside, our ability to push in will be more. At the same time, if I look at historical data, it's about INR 120 crores only for the bottom net, out of the 7,100 crores of net flows. So, what this INR 6,100 crores? Because little higher, yeah. It's actually, it's not like it happened in the quarter. It's been in the offing for the last twelve to fifteen months. Like I said, when that change from upfront to trail happened in, let's say, AIF, it actually fundamentally changed our business model completely. Because, if then, let's say we started evaluating the other products in the managed product categories more seriously, and which includes, at least in Nuvama Wealth, mutual funds, PMS, that three, that order. And then we started building the proposition, we started seeing it. So it's a momentum which is catching on. It's not like suddenly in Q2 it happened. Basically, in Q2, you saw that better part of that rising trend. I think unless we see sustained corrections in the market, where people start moving out of equities as an asset class into different asset classes, I think this momentum is going to sustain and will only have a positive upside. Is it fair to assume that this INR 200 crore very sustained, and it's a brokerage system also plays out, then these numbers should look upwards like 300, assuming there is no correction in the market? Yes, yes. We are pretty confident around that. Okay. One more is on cost. See, our costing from different company level seems to be largely driven by businesses and even the flow to the CDC is meaningfully really high. Just wondering, your private and wealth cost income ratios have not improved meaningfully. And I think that holding probably is the addition. At some point in time, you think addition what happening in orange will play out, say next year or a year later? And then let me. I got your question. Let me explain. So if you just look at the additional costs for both, let's look at wealth. Wealth costs too has gone up by INR 28 crores, and in Nuvama Private, the additional costs has gone up to INR 16 crores. It has become 96, 108 has become 132. Out of that, 50% is growth cost. If you take the RMs, which have gotten hired, and you take their four-week accommodation, you take the satellite office, which is the compensation cost, the office cost, all that. Around 50% of both these cost increases is actually growth cost, which is 400 basis points. This is after taking 1x revenue against that cost. So if I say that INR 28 crore is the cost division in Nuvama Private, that means INR 14 crore out of the 28 is growth cost. That 14 has to use one X revenue. After taking that one X revenue, the cost income of 400 basis points impact. Now, if you look at our RM cohorts, again, in segment, as people move from one year to three years to five years, productivity moves from 1x to 4x to, like, 6x. If you have, and as you rightly said, if you move these people on that upward cohort with increase in productivity, the cost income will come down. And now it is a choice as to how much new RMs we'll hire. Let's say, we reduce our RM hiring in the next few months, automatically, there'll be a sharp fall in the cost-income ratio. Even if we continue to hire at the same pace as our existing base of RMs become bigger than the new RMs which are coming in, the cost-income starts improving. Got it. I got it. Yeah, and lastly, so I saw the slowdown on outflow participation. Anything to read into it or no? Nothing, nothing. It's basically it will continue. So Q1, we had one-time inflow, and Q2, there was an outflow that happened, which is why it looks like that. Otherwise, if you ask me on an annual basis, how you should see it, basically, our estimate remains that between 50%-55% of our opening ARR assets is what we will see as net new money inflow. And lastly, if you can break down your IE income, IE and IB income, would be useful, because IE is not equally. So that Asset Services itself, if you remove balance, you can divide it by a ratio of frequency. Okay. Perfect. Perfect. Thank you for the answer. Thank you. Thank you. This is the next question from the line of Lalit Deo from Equirus Securities. Please go ahead. Thank you for the question. Congratulations on the good results. Your audio is not very clear. Yeah, Lalit, your audio is very different. This is better? Slightly. Yeah. Hello, sir. You're on your handset mode right now, Lalit? Yes, yes. Okay. It's a little better. You can go ahead. Sure, sure. So, I was looking at the net new money. So we have done very, very in the market. But if we calculate the MTM gains in our AUM books, so there we are seeing some softness over there from the overall MPIS as well as the ARR assets. So just to understand what the net inflows fees, like, how much is being contributed from the equity, and how much is it debt, and what is the overall composition? So if you look at the MGM in both, broadly, it's in the range of eight to 10% annualized, like MPIS and ARR. Right now, the composition of our assets, both ARR and MPIS, is less market-linked equities, more conservative assets, more absolute return fund, more infrastructure asset fund. But if you look at the composition of net new flows, which is coming in, the proportion of equity assets are higher. As I said initially, when I was telling you that the change of business model happened over 12 to 18 months back, when we shifted our focus towards more PMS category. So incremental flows will have more equity, so more MGM-related assets are coming in. If I look at the date from which we started, equity was less, let's say about 25%-30%. Which is why, if you look at annualized MGM right now, it's in the order of magnitude of 6%. Right. Sure, sir. Secondly, so could you explain the cost between the services and the IEIB business? Because we are seeing enough improvement in the cost-income ratio over there. Overall cost ratio, if you look at Q2, in fact, services is about 40%, 40%-42%, right? Asset services, you can broadly take a cost-income ratio of between 25%-26% to 31%-32%. And IEIE, one of the institutes between 47%-55%. I mean, that is the range in which these businesses operate. Okay, like, hypothetically, if the businesses were to... If there were any adverse movement in the revenues from this business declined by 15%-20% in any adverse scenarios, then how would this, how the cost-to-income ratio would change for these businesses around the same? So to the extent of variable costs, so, I think the variable costs, variable employee costs in these businesses are higher. So to the extent if there is a revenue fall, the fall will be absorbed by the change in variable costs. Rest will be a pass-through to the previous fee. But if I look at, let's say, two, three years perspective, right now, in FY 2023, the cost income of this business was around 68-70, 60-53 in FY 2024, and this year will be around 45 or so. And let's say this business gets stabilized over the next two to three years, and the cost income goes back to, say, 65, 66, and I take a 10% up move from here. Generally, what is happening is the cost-to-income ratio of our wealth management business is coming down, because as we've added this new capacity, as becomes productive and operating leverage kicks in. In the next two to three years, that cost falls from 65% to 60%, which is our fixed strategy. Asset management moves from being a 100% cost-to-income business contribution as we move from INR 10,000 to INR 20,000 crores. So on a blended basis, our cost-to-income should be below 60% in the next two to three years, even if there is a decline in the capital market cost-to-income ratio. Sure, sir. I just lastly on the dividend policy. So I think what is being regularly announced in dividends. So going ahead, how should we look at the overall dividend distribution? Similar. So when we declared the dividend last time, we said that that was for last year, so that was about 47%-48% of last year's profit. And this time around also for H1, it was 47% of H1 profit. And as of now, as per our calculations, our retained earnings after the dividend should be sufficient to support the business growth. So we will maintain that 40%-60% range which we have indicated. Sure. Thank you. Mr. Jay, are you through with your question? Yes, yes. Thank you. The next question from the line of Jayant Kharote from Jefferies. Please go ahead. Mr. Kharote, your line is unmuted. Thank you. Two questions. First is on the translation of flows to revenues. When I look at Nuvama Private, for example, we've had very strong inflows of almost eight and a half thousand crores in the last three quarters. Now, I get that in terms of that policy change of on trial basis. But even if I look at the QOQ revenue, we have gone from 50 crores to 52 crores. I'm just trying to understand why is in the flows translating to revenue in the managed service? That's first question. It's largely trailed without, then it will take time because. And also the timing of the flows, right? Sometimes the flows come towards the end of the quarter. So from a yield perspective, if I look at the yield at a sub-product level, there is no decline in yield per se. The yield is intact, in each of the product lines in, either of the two businesses. So you will have to be patient for at least two to three quarters. So we should expect the yield to move back to that 90 basis points number as. Yes. So I'll tell you, Nuvama Private, basically this quarter, the impact on yield as a lending proportion has gone down. If you clearly see, as a proportion of income, which is the ARR revenue, lending as well, that has gone up yield by about four, four and a half basis points. So once we bring that back to the proportion, it comes back. And in Wealth, it's driven by the MCM of the broking assets, because broking for us is not a big level driver. So broking assets moved by about 13%, and broking inflows moved by 2%. That brought up the, it's totally mathematical. Hopefully, with this correction in this quarter, the broking MCM should remain flat, and it will come up. Great. And in Nuvama Wealth, sir, first of all, the numbers, thousand crore number, and from what other brief conversation, this should hold. Would you like to guide that this, this kind of number should not be given that this is spread across a larger number of thousand plus RMs, given, of course, market conditions are supportive? Yes, if market conditions are supportive, then I don't think we will see a significant drop from here. It should be in this range, maybe 10-15% can happen in any quarter. Directionally, I'm saying it can't be like it goes to 1,000 crores and all. It should remain between 1,500-1,600 to 2,200-2,300 range. Lastly, sir, on the RM addition, you had, you are at 1,200 now. What should be the case from here, this year and next three years? See, between in Nuvama Wealth, on a net basis, anywhere between 35-45 per quarter, we should add, and then we will review again towards the end of the year. Ideally, between 15-20% capacity addition should continue, but we will review again. So that's the plan broadly right now. And for Private, anywhere between 5-8 RMs maximum is what we will look right. Sir, if I could just squeeze in one last question on the distribution commission. Some of the AMCs have rationalized their commissions in equity MF. How are you seeing this play out? I know it's the first time the impact will be towards the retail guys, but maybe in some specific come to us as well. So how do we think about it? Again, not from one customer, but directionally, are there more funds that you are in discussion with because it provides, even if it takes out, how does it play at the end? For us, let's say mutual funds across both together, even at full scale basis, will become not more than, you know, 5% of the revenue, maybe 15%. We are still a early player in that. It's not that our current AUM is getting impacted. On the fresh flows, I think out of the top AMC, AMCs, there are multiple schemes available in which you can negotiate and get a good rate if you are able to deliver good placement for them. I don't think it's going to be that much. For people who are largely dependent, I think few players who are largely dependent on MF as a product, as a single product, we have PMS, we have AIF, we have multiple avenues, right, to monetize. I think there the impact will be higher, but for us, I think it's just some of the lines in which we build. Congratulations, sir. Thank you so much. Thank you. Thank you, sir. Thank you. We'll take the next question from the line of Dipanjan Ghosh from Citi. Please go ahead. Hi, good afternoon. So the first question is, again, even none of you could probably know the direction of global market. Let's say things hold at the current levels after the correction we've seen over the last one month. So then, in that case, how would you contemplate your deal pipeline in terms of assuming, let's say, 80-90% of whatever deal pipeline you have? First. Second question is, on the new flows that you're seeing, be it in private or in Nuvama Wealth, given that you have added a lot of RMs and have also in the last 12, 18 months, how the proportion between flows from new clients to existing clients have shifted, let's say, 18 months, 24 months prior to, let's say, today? Just to probably give us some understanding of how the productivity benefits shape up over a relatively longer time frame. Third is on the competitive landscape. We have seen RM exits across some funds. We are seeing some new entrants also coming to the market space. So just some color on how your sort of time both new addition of, of, I think, addition to the private and also in terms of retention, and do you expect any pressure on the cost side in the current year? Last one question is on the Nuvama Wealth. Between your customer base, because of any of the players that you have, how much of the service by your in-house clients and how much would be serviced by the external asset managers? Also, if you can give some color on the specific cost by the in-house clients versus external asset manager, I think the quality a little bit in this case. So let's start with the third deal pipeline, I think. So I think if the market sustains, then I don't see a dip from how we have done in the past. It should be in the similar range, because the number of filings which we are seeing are actually higher than what we have done, both in previous quarter. So and in terms of IPO, more the right, if, if your file is down, then the revenue will be this year, because whatever you're going to do after late October, November, December, the revenue will come next year. So we don't see a dip there happening. Plus, in our IPO rest is fixed income, that is anyway competing at its own pace, that is not impacted by the market. What of... You'll have to repeat the second question, Dipanjan. Sure. Second question was on the flow between new and existing clients in the wealth segment. Now, if you look at the flows on ARR assets and NNM assets between, let's say, existing and new, I think it's almost fifty-fifty. And in some quarters, it also goes slightly higher towards the new clients in Nuvama Wealth. So that is a healthy sign which we are seeing, at least in NNM assets, and similar ratio even in Nuvama Private. Also, I would say Nuvama Wealth, the new client flows, for the last ten, twelve months, has been higher than the older existing clients because of the number of RMs which have gotten added. And that's purely logical, because when you add somebody transfers or somebody opens an account, there's a transfer of assets which is happening and all that. Whereas, if the existing clients, only incremental flows come. That's why the ratio is like that. What was the third question? It was on the competitive landscape, RM- Yeah. attrition or retention. Attrition right now, so let's go in Nuvama Wealth, as I said, we separate the RMs in three categories. The top category is big league, which is, let's say, 60%-70% of our revenue producers. Those are the 300-400 RMs out of the entire 1,200 population. We lost two RMs in the last quarter. In Nuvama Private, both Q1, Q2, there has been zero liquid attrition. Having said that, is there pressure? There is, of course, pressure. Higher in Nuvama Private, because the number of people available in the market are lower. So there will be some cost pressure, there will be retention, which we will employ. We will also employ. In terms of hiring in both, in Nuvama Wealth is slightly easier because number of people who can give a proposition like us right now in the market are very few. We can give such a widespread product, with less pressure on insurance as a product class, these clients are normally subjected to, superior execution platform, reporting platform, multi-product access. So I think our employee value proposition is significantly superior to our competition at this point in time, so we are able to attract. Private, as I said, large number of players coming. Again, continuous investments in the value proposition, so that's why we are able to attract. So like last quarter, we hired nine RMs, and we have a decent time for Q2 in terms of number of RMs there. You already showed and people are submitting them over here. I will not hesitate to say that it is possible. It is part of business, but it, it's one of the factors that you have to complete, and you have to complete seriously on this. So the last question was on the between in-house RM servicing and external servicing, Nuvama Wealth Management, various classes, specifically. So then, I can give you the asset split. The asset split is about 80%, 20%, and between the in-house RMs and the external RMs. New money is also a similar ratio between 75-25, which is in line with the revenue. In terms of the product, the external RMs, I would say, are more transactional or investment solutions-oriented, less managed products-oriented. Managed products do more, which are our in-house managed products, like the ones which we manufacture. But otherwise, equities, unlisted shares, fixed income, in fact, those they are heavier compared to our in-house. So which is why in certain quarters you will see that the yields of revenue towards EAM, external wealth managers is higher because they're doing more transaction versus the in-house doing more managed products, so that they will build out, and that's where the revenue growth is gradual, but once it starts setting, that momentum will be faster. Just one quick question on your AMC business. I think that you highlighted earlier that when you reach around the five and fifty billion product in AUM, that is where one point can be achieved, and you've already crossed, like, hundred. So just maybe one question, one of the new product things, apart from whatever you have, you mentioned, one more maybe next two quarters. Please can you give some color on this? And the next is the debt. How should the CAGR be in that segment, let's say, for the next three, five years? One new product, one approval we've received now is Flexi Cap Ten, which we will launch, because on the long-only side, we only had a small cap, and then we had 60% large cap replacement, which has crossed 2,000 crores in absolute. So now we will add Flexi, and we will also maybe in two quarters, have a different fund, maybe real estate, non-real estate both, or only one. So that will be another product that will get added. In terms of vehicle access, we've added GIFT City for inbound for our 60% product and absolute product, because that will be extremely appealing for non-resident Indians and offshore investors, because qualification is negligible. So overall, taxation on that product will fall to 5%-10% in the GIFT City. So that is once you get added. In terms of breakeven, actually, we are already breakeven, as I said earlier, because we allocate costs, central costs, equally to all businesses, even asset management gets an equal share. So the large businesses like wealth, private, asset services, institutional equities, and asset management get a similar share. If I take it, even if I reduce it by 50%, asset management will break even. Even with allocated costs, I think now the gap you see is about two crores, two to three crores a quarter. At the end of this year, if we are able to cross, maybe thirteen thousand crores, which is one thirty billion, and out of that, if we are able to hit, let's say, essentially ten thousand crores, at eighty basis points, which is about eighty crores of fee income next year, and if our total cost is, let's say, thirty-eight in Q1, sorry, H1, maybe around next year this time, we should be on a monthly basis, start to show the growth, which on a monthly basis will look breakeven. I think by around September, October next year, and from there, depending on the asset addition, it will start growing. So if you are able to add billion dollars of asset every year, after that, the profitability curve will just keep going. Thank you for the detailed explanation and all this. Thank you. We'll take the next question from the line of Prayesh Jain from Motilal Oswal. Please go ahead. Yeah, hi, everyone. Congrats on the great numbers. So firstly, you know, while everybody's been talking about equity markets, even the debt market seems to have, you know, probably will see some interest rate corrections in the second half. Yields have already come down, and we stated Nuvama Wealth has been pretty strong on the credit side. So how do you see benefits kind of playing out for Nuvama, if the interest rate kind of cuts from here on? So actually, multiple businesses have multiple impact. If, let's say, the interest rate goes down, there will be some impact, mostly in the yields of assets or resources, but that will have some lag of 12 months, because yields are already locked in for about 12 to 15 months. There could be some improvement on, let's say, the lending side, because our yields are already quite competitive, our costs can go down. So that could be a positive impact on the NII side in the wealth management. I think barring these two, I don't see any other impact for us. On the overall business side, unless there's a positive impact on the equity side, because of the interest rate as a, in all the derivative. So broadly, overall, from a wealth management perspective, do you see the structured asset between equity, debt and others? Almost 60% will be equity and 30, maybe 25%-30% will be debt, and the balance will be alternatives. Okay. And coming to, you know, your overall RM strategy, how, you know, you alluded to what growth, what additions you're planning to do. My question was more on, you know, like just a couple of quarters back, we were discussing about, you know, growth in investing now versus kind of, you know, business. So are we, kind of, you know, the bulk of the investments have happened now or we will, it's more of a gradual addition story that we are embarking on or so what's the thought there? See, in Nuvama Wealth, we've added about 30% of the capacity in the last 12 months, right? Yeah. Now, the game is also to make this productive and that part of the activity is on. We are not, in a sense, slowing down. There will be some quarters where we ramp up, some quarters where we dial down. On a yearly basis, like this year, we will add about anywhere between 175 to 200 RMs on a daily basis, right? Which is a significant number. And we see, next year also we will continue with that, because I don't see any reason for slowing that down. So if you are able to raise, for example, add 200 people- Mm. and if I look at it from last year, we would have added almost 400 people. 337, we've already added. So let's say if we add even 70 from in the next two quarters, we would have added 400 people. So if we end up with a cost income of 65, which was without people addition in H1 last year, I think it's reasonably good to continue that, right? Try to see market share just to improve cost income. I mean, you can do that anytime you want, right? You can stop recruiting for two quarters and your cost income will improve. But if you are able to add, if you are able to maintain addition, and you're able to move people from segment one to segment three, which is five years, where the productivity jumps from one X to five X, you can have a massive impact on the business. Absolutely. Absolutely. Got that and, sir, you know, you mentioned about in the cost income, the 30% of increased costs and growth. Where else are we investing? So rest would be mix of everything, right? So there'll be some subject check. There'll also be hikes given to the existing people because of the increased business, the provision for incentives, the provision for bonuses have gone up. It's a combination of all that. Okay. The last question on the private side, you know, how is the kind of RM cost trending, you know, with hiring new RMs? What is your source of RM hiring today? It's private banks or how is it? Because whenever we attend conferences, this is the biggest discussion point about the resource crunch. You know, is it the right time to add cost? At what levels are we adding? You could give some sense there. So we will continue to add, but we will not add at any cost. That is our set philosophy, because it doesn't make sense, and it doesn't make sense for the employee also. Because they will soon realize that if they join organization at absolutely unacceptable cost, and if they don't become productive over a period of time, the strain on the organization will be such that we will be compelled to ask those people to go. So I think there are a set of people who understand this, but also understand that in this business, cost is not only cost, it's actually a combination of fixed cost plus bonus or the incentive you make, plus the piece of this organization with you. Mm. And based on a collective basis, if you're joining a platform in which there is a higher degree of certainty, there is enough coming in, there is incentive which is based on the market. There are people who understand and then take that call, and we are able to find these people. Like I said, in Q2, we were able to add nine RMs. It's not that it all happens in Q2, because you work over four, five, six months, you close with the notice periods, and then they come. So it's an activity which is an ongoing activity which keeps on seeing. So we are not in a rush that you know, we have to go and add three RMs in a week. So if we don't get, we won't get, but we are seeking to find these people, private banks. Typically, if you are hiring from a firm, which has given people stock options, and the stock has run up, and they have unvested options, those are the most expensive people, which we avoid. Just, sorry, just one more. You know, Dubai is something where we were kind of expanding and we were investing, Dubai, Singapore. Any, any incremental information there as to what is the size or- Yeah, so Dubai. Dubai now we have about three RMs, as a country head. We are now functional in the sense all licenses are there, all products which have happened. Our first set of transactions have happened. Our first set of clients have been on-boarded, last week itself. So as we say that we are now open for business, and it's progressing well. Singapore, we just have we just got the license, I think a week back. We will now evaluate as to how to move ahead. But Dubai, between the two, Dubai seems to me as a more, I would say, easier, but I would say more logical to expand first, than Singapore. This will be more private rather than wealth, right? Yeah, right now it's more private. We will also evaluate to see if there's an opportunity in wealth. Great, sir. Thank you so much, and wish you all the best, sir. Thank you. Thank you. We'll take the next question from the line of Jay Jariwala, an individual investor. Please go ahead. Mr. Jariwala? Uh, hi. There is a lot of background noise. Hi, am I audible? You are audible, but there's disturbance. Yeah. Am I audible now? Yes, please go ahead. Hello? Um, hello. Yeah, you can go ahead. Yeah, yeah. So yeah, my question was on recruitment of RMs. How much cost or how much, like, on an average, RM cost, RM recruitment cost will be, and, like, at what phase it is growing or is it, like, a second from a couple of years? Or, what will be the revenue generated in each, and, like, do you have any thoughts on that? You can just divide the total revenue by total number of RMs. For example, if you take last year, let's say, in Nuvama Private, we had about 550-560 crores of revenue and about 100 average RMs you can take, because we had about 5-5.5 crores per RM. And similarly, if you take in Nuvama Wealth, about 700 crores of revenue and about 1,000 RMs, that's the order of magnitude. And we operate at about 4-5x in terms of the principles of cost. In terms of hiring costs, it's a broad number. I mean, it depends on how many consultants you hired, but typically it's about INR 8- INR 12 of the first year compensation of the new RM size that you hire, only if you are going through the consultant. If you are doing a referral program or if you are able to reach out directly to the candidates, then those costs are lower. Sure. But it's also, like, about the RM as well. So, like, whenever we can- We can't hear you, Mr. Jariwala. Mr. Jariwala, we are not able to hear you. Sorry, sorry. Yeah. Am I audible? Yes. Yeah. Yeah, sorry for the disturbance. Yeah, so I just have one more question. So, like, there is a, like, Hello. Cost-to-income of the company has been down in this particular quarter. Like, any guidance on what can actually drop it down in the next couple of quarters? Any further guidance on that? I think it will remain similar to where it is in the next couple of quarters. But over the next three years is what we are saying, maybe capital markets will go up slightly, risk management will come down to 60%-61%, and asset management will move from breakeven to maybe 75%-80%. Therefore, on an overall basis, we will range between 55%-60% in the next three years. I mean, you have another source of- so from there, you can expect a revenue to be in next quarters, specifically, any guidance on that? It will take time for Dubai to become a meaningful contributor. So you can just look at Dubai as a new city addition in India. It's not that it will become some 10%, 15%, 20% contributor. It will take time to develop. It's a addition, it's a product addition also for our clients. It's also a new revenue source, but it's not going to become a major contributor in that sense. Sure. Yeah. Thank you, sir. Thank you for your response. Thank you. Ladies and gentlemen, due to time constraint, this was the last question. I now hand the conference over to Ashish Kehair for closing comments. Over to you, sir. Thank you. Thank you as usual for taking the time out. And as I said, this was a special one for us because we completed one year of listing and many new milestones were achieved in this quarter. Hopefully the best is yet to come, and we should be able to see you again in the next quarter. Thank you for your time. Thank you, sir. On behalf of Nuvama Markets, this concludes this conference. Thank you for joining us, and you may disconnect your lines.