Angel One Limited (ANGELONE) Earnings Call Transcript & Summary

Good morning, members. I would like to extend a warm welcome to all of you joining us for our 27th Annual General Meeting. The Company Secretary informs that the requisite quorum for the meeting is present. I now call the meeting to order. In compliance with circulars and directions issued by MCA and SEBI, the Company has convened this 27th Annual General Meeting through a video conference. The company has taken the requisite steps to ensure that the members are able to participate seamlessly in this meeting by willing itself of the services of NSDL. This has helped us to conduct the meeting through video conferencing, thereby enabling active participation of members at this AGM, remote e-voting and e-voting during the meeting. This meeting is also being live streamed on NSDL's website and the YouTube channel. Technology has provided all of us with a bridge to connect with each other as and when we so desire. To ensure wider participation from our shareholder family, from different locations in India and abroad, we are conducting a third Annual General Meeting post listing virtually. Let me now introduce you to our Board members and our company's key managerial personnel. Mr. Muralidharan Ramachanrdran, Lead Independent Director and Chairperson of Risk Management Committee and ESG Committee. He is also a member of Audit Committee and the NRC. He is attending this meeting from Washington, D.C.

Hi, everybody.

Ms. Mala Todarwal, Independent Director and Chairperson of the Audit Committee and the Stakeholder Relationship Committee. She is also a member of the NRC. She has joined the meeting from Mumbai.

Hello.

Mr. A.K. Sridhar, Independent Director and Chairperson of NRC. He is also a member of the Audit Committee and the Risk Management Committee. He is attending this meeting from Mumbai.

Hello. Good morning, everyone.

Mr. Kalyan Prasath, Independent Director. He's a member of Risk Management Committee and the CSR Committee and the Stakeholder Relationship Committee. He's attending this meeting from Madurai.

Good morning, everybody.

Mr. Krishna Iyer, Non-Executive Director. He is a member of the CSR Committee and the ESG Committee. He is attending this meeting from Pune.

Hello, everyone.

Mr. Ketan Shah, Whole Time Director, joining from Mumbai. He is a member of Risk Management Committee.

Hello, everyone.

Mr. Amit Majumdar, Whole Time Director, joining from Mumbai. He is a member of Stakeholder and Relationship Committee.

Hello, everyone.

Mr. Vineet Agrawal, Chief Financial Officer, joining from Mumbai.

Hello, everyone.

Ms. Naheed Patel, Company Secretary and Compliance Officer, joining from Mumbai. Also attending this meeting are Mr. Viren H. Mehta and Mr. Jaikishan Wadhwani, representatives for Mr. S.R. Batliboi & Company, LLP, statutory auditors of the company; Mr. Vaibhav Dandawate, representative for Messrs MMJB & Associates LLP, Secretarial Auditor of the company; Mr. Sanket Shroff and Mr. Punit Rathi, representatives of KPMG Assurance and Consulting Services LLP, internal auditors of the company. Ms. Ashwini Inamdar represents for Messrs Mehta & Mehta Practicing Company Secretary, who have been appointed as a scrutinizer to scrutinize the e-voting. Since the notice has already been circulated to members, I take the notice convening the meeting as read. Attention of the member is drawn to the fact that the statutory audit report on financials have no observation or qualification and is taken as read. Further, I would like to draw your attention to the remark of the secretarial auditor in the report for FY 2022, '23, kindly be informed that the Board has taken note of the remark of secretarial auditor and clarifies as below. One, the composition of the NRC is not in compliance with provision of Regulation 19 of the SEBI LODR for the period of 1st April 2022 to 17th May 2022. Further, the company has affirmed the said regulation is in compliance in the corporate governance report for the respective quarters, which was erroneous. However, the composition was duly constituted with effect from 18th May 2022. Our explanation pursuant to the provision of the SEBI LODR third amendment, which came into effect from 1st January 2022, 2/3 of the members of the NRC shall be independent directors. As of 1st April 2022, the NRC of the company had 5 members, of which 3 were independent. The company interpreted that at least 3 members of the NRC have to be independent, being 2/3 of 5, which arrives at 3.33%. However, the stock exchange clarified that the higher number of the decimal is to be considered and the number of independent members of the NRC shall be rounded off to 4. In view of the above, the company reconstituted the NRC on 18th May 2022, and made good the compliance with respect to the composition of NRC. Second remark, there were some e-form filing pending with respect to the allotment of shares and charges with the MCA due to a technical issue at the V3 portal. Our explanation is a common concern faced by companies. However, the company will endure to file the form as soon as issue with MCA is resolved. I extend my best wishes to all of you and hope your loved ones are safe and healthy. I would also like to express my heartfelt gratitude to you all for your continued faith in us, which has always encourage us to move forward and achieve dynamic milestones during our journey. India is poised to make a significant leap into a global economic order. The country is on the track to become the third largest economy in the world by 2027, heralding an era of explosive and sustained economic growth for its people. Importantly, the trajectory and the magnitude of this growth is already bringing in enhanced living standards and improved lifestyle beyond the top 30 cities and other urban centers, presenting significant growth potential. We are living in an India of tomorrow, a nation that is preparing to reap the benefit of this growth potential, which is being driven by a massive tidal wave of digital transformation. The exponential growth of financial literacy as well as the ever-increasing use of smartphone and the Internet. Indians are remodeling their saving habits by embracing dynamic new avenues of wealth creation instead of relying solely upon traditional asset classes. India's digital stack has empowered millions to enter the investing fold, giving them an opportunity to capitalize on India's growth story. The growth in number and the scale of investor has accelerated the adoption of fintech platform as they offer exceptionally simple onboarding and engagement processes, making them easily accessible to almost everyone in the country. Simply put, these platforms have democratized the investing ecosystem by empowering millions to ascend the economic pyramid. The growth of this platform also reflects India's continuously maturing capital market, which has witnessed quantum changes over the past 30 years. The biggest change has been the significant expansion in both depth and the size as more retail investors participate and companies approach market to meet their capital requirements. Thanks to the technology-driven information revolution, retail investors now have an access to a level playing field, enabling them to make educated decisions. Digitization has fueled this large-scale growth in retail participation and democratization amongst investors. The progressive financialization of household saving is exemplified by the growing base of demat accounts, which stood at around 114 million as of March 2023, leading to an exponential increase in India's market capitalization from INR 4.9 trillion in FY '97 to over INR 256 trillion in FY '23, thus making India the sixth largest equity market in the world. The share of retail investors expanded to 36.5 percentage and 27.7 percentage in the equity cash as well as derivative turnover in FY '23 from 33% and 23%, respectively, in FY '16. This sustained growth has been possible due to a strong regulatory environment commensurate with the complexity of Indian capital markets. I strongly believe that the regulatory framework will keep evolving as the regulator continue providing stronger guardrails, especially for the growing retail investors. Such interventions consolidate the confidence of retail participation, thereby aiding the growth of industry. We continue productively collaborate with the regulators in their endeavor to make the capital market resilient and safe for their participants. Despite this healthy growth, India remains a largely underpenetrated market with just over 8% of the total population having demat accounts and over 2% being active on NSE. In terms of market capitalization to GDP, India still has a significant dream to grow. I strongly believe India is on the track to become one of the largest capital market in the world. We are witnessing transformational changes around technology and innovation, which presents us with an opportunity to empower 1 billion Indians to make informed choices in their wealth creation journey. Angel will be a leading player in mobilizing a substantial portion of household savings into avenues of wealth creation. Over the past few years, Angel One has [ meta-forced ] into a fully -- a future-ready fintech business through a multidimensional evolution, with a aim to developing a sustainable and profitable digitally-powered financial service institute, with significant strategic, financial, operational progress over this period, Angel One has demonstrated resilience to weather local and global turbulence and uncertainty. Amongst the signpost of our persistence and superior digital playbook, we have achieved an astounding 8-fold growth in our client base. Our net revenue has increased fivefold, and our profits have soared tenfold over the past 3 years. The Indians of today demand a frictionless experience in their investment journey. Aligned with this, Angel launched its Super App across all platforms to address the wealth creation, aspiration of every Indian. During the year, we successfully migrated and transitioned all our clients to a new app. It will be fair to say this is perhaps one of the largest migration in digital space achieved by any company in India within the shortest possible timeframe. This app will be a prime driver for Angel to become a trusted fintech brand, empowering 1 billion lives by leveraging power of data and technology. Angel will reap long-term benefit as we deliver on 3 strategic focus: one, achieving market leadership; second, augmenting AI/ML capabilities; third, increasing customers' lifetime value. Super App is a vehicle through which our strategy will be executed. We have been buoyant by its success as evidenced by strong growth in monthly unique SIPs during the first quarter of its full-fledged rollout. This diversification will further broaden as we offer other financial products to be the evolving need of our clients. Through this strategy, we are confident of entering into a long-term relationship with our clients, thus harnessing the true potential of our Super App. During the year, we continued to invest in expanding our tech capabilities and infrastructure and commissioned a new data center, which will enable us to leverage our new ML-based data science programs and serve our clients more efficiently. We also invested in strengthening our human capital in the domains of technology, product development, digital revenue, acquisition functions with critical and niche talent coming from leading technology companies. Their hands-on experience in building planet-scale consumer-focusing retail products and the solution will be reflected as our Super App evolves going further. The Angel One team has been further strengthened with the addition of Mr. Amit Majumdar as an Executive Director of Strategic Initiatives. It gives me great pleasure to welcome Amit, who has had considerable experience in BFSI, health care and consulting business and has also been associated with Angel One in the past. Amit brings deep rigor and innovation to our business cycle as well as our growth and profitability. He will oversee various strategic initiatives Angel One wishes to explore. Regarding our operational and financial performance for FY '23. I'm delighted to state that Angel continues to create newer benchmarks. During the year, we expanded total client base by 49.5% year-on-year to 13.8 million as we onboarded 4.7 million clients, making Angel one of the largest retail stock brokers in India. With this, we garnered 12% market share in India's demat account and 18.4% market share in India's incremental demat accounts. Our digital engagement capabilities exhibited sustained improvement in our share of active clients on NSE to 13.1 percentage. We nearly -- with nearly 4.3 million clients, thus including us among the few players to maintain the consistency of positive trajectory. Scalability is one of the pillars of Angel One's digital capabilities, and this was best illustrated when our client executed an average of INR 13.6 trillion in a day -- daily turnover across nearly 926 million orders on our platform. We grew our overall retail equity turnover market share to 21.8%, and our commodity turnover accounted for 51.4% of our market share during the year. Angel has always focused on unit economics and run a profitable business. while prioritizing clients' interest and enhancing their experience, we made remarkable progress in FY '23, as we achieved revenue of INR 30.2 billion, representing a growth of 31.5% over the previous year. Correspondingly, our operating profit grew by 42.9% over the last year to INR 12.2 billion, further expanding our operating profit margin to 53.3% in FY '23. Our PAT from continuing operations increased by 42.4% over the corresponding period last year to INR 8.9 billion. On the cohort basis, we have seen healthy revenue over the 5-year period and beyond. Our digital business model demonstrates further improved revenue progression in clients continuing their journey on our platform. with a very healthy LTV to CAC of 7.8x based on the first 3 years of aggregate client revenue, we believe, as our clients spend more time on our platform and consume more services, this LTV to CAC multiple will have a long runway of growth, thus signifying a robust annuity nature of the business. On the balance sheet side, cash and cash equivalents increased to INR 54.9 billion. Our investment in Super App and commissioning of a new data center led to an increase in our fixed asset to INR 2.5 billion. Our net worth increased to INR 21.6 billion. Our FY '23 return on average net worth stood at 47.5 percentage. We continued our journey to maximize shareholders' value with an aggregate dividend payout of INR 39.9 per equity share, which translated into an all-time high payout of 37.3 percentage of the reported PAT. This reflects our endeavor to provide attractive return to our shareholders while continuing to invest in the growth of the business. Our strong governance policy, robust internal control system and effective shareholder communication differentiates us from our peers. We are respected in the industry for our disclosure standards and have created benchmark in the systems and processes. We support empowering the youth to make informed investment decision through a wide bouquet of digital content. At Angel One, we have continued to learn, build, grow efficiently, while expanding our client base and diversifying our product offering with the depth and breadth of our fintech capabilities and our strategy to maximize lifetime client value, we remain well positioned to leverage emerging opportunities. For FY '24, our key focus will be to strengthen our AI capabilities across the entire value chain of the business. As we introduce more products, this initiative will enhance the experience and engagement of our clients, leading to expanding revenue streams and better margins. I'm excited to share that the Angel is at the cusp of building a distinctive asset management business. Having received in-principle approval as a sponsor in February 2023, the full-fledged launch of this business is still a few quarters away. The asset management business will catapult your company into a different league of a diversified fintech businesses as we capitalize on the space just as we have done in the broking industry. We will continue to focus our mission of democratizing the culture of investing in equity and catering to all segments of our target client across smaller towns and cities. This will further enhance our ability to play a larger role in expanding India's journey of financial inclusion. I would like to take this opportunity to offer my gratitude to our board, our stakeholders, the government, business partners, lenders and the shareholders who have trusted and supported us in our journey. I would like to thank the regulatory authority for their consistency in proactively taking decisive step to protect the interest of retail investors and making Indian equity secure and widely accessible. Finally, my sincere thanks to the entire Angel One team that has worked tirelessly to deliver the highest level of service. We strive to continue our progress with optimism while driving our fintech playbook and building on the achievement of FY '23. I will now request Ms. Naheed Patel, our Company Secretary, to explain the general instructions regarding participation and voting at this meeting to you all.

Thank you, Chairman. Good morning, dear members. A warm welcome to all attending this 27th Annual General Meeting of our company. I hope our members are safe and healthy. The facility to join this AGM through video conferencing is being made available to all the members on first come first serve basis pursuant to the regulatory requirements. For the smooth conduct of the meeting, members will be kept on mute mode by default to circumvent any disturbance. During the question-and-answer session, we will announce the names of the preregistered speaker members for this meeting. Thereafter, speaking facility for the respective members will be unmuted by the moderator when his or her name is called out. Members while asking questions or seeking clarifications are requested to keep their video on, use their earphone or handset. In case any member is facing any technical problem with the video transmission, they can ask questions through audio mode. If there is any connectivity issue at the speakers' end whereby, we are unable to connect to the speaker, we would request the next speaker to join. And once the connectivity is restored for the earlier speaker, he or she will be requested to speak after the other preregistered speakers have completed their turns. In the interest of all the members, I would request the speakers to respect their questions to the matters being transacted at the meeting, and keep their comments brief and avoid repetition of questions. As per the provisions of the Companies Act 2013 and the SEBI LODR regulations 2015, your company has provided the remote e-voting facility to the members through NSDL platform to cast their votes prior to the speaker. The cutoff date was 16 June 2023. The remote e-voting commenced on Sunday, 18 June 2023 at 9 a.m., Indian Standard Time and concluded yesterday, 22nd of June 2023 at 5 p.m. Indian Time. Members as of the cutoff day only shall be entitled to cast their votes. Members who have not cast their votes through remote e-voting and who are attending this meeting will have an opportunity to cast their votes during the meeting. The voting window is already open for all the members and will also be available for the next 15 minutes after the conclusion of the meeting. Members who have cast their votes through remote e-voting will be eligible to participate at the AGM but will not be eligible to vote again at the AGM. Members can go to the homepage of NSDL and cast their votes during the meeting. As regards voting, at this meeting, there will be no voting by show of hands and the resolution set forth in the notice are not required to be proposed and seconded. All the requisite statutory registers, including the register of members, register of directors and register of director shareholding are available for inspection in [ private mode ] Members seeking to inspect the same, can send a mail request to the company's e-mail ID [email protected]. As this meeting is conducted through audio-video means, the proxy facility is not necessitated and accordingly, have not been provided. During the meeting if a member needs any assistance or have any queries regarding participation or e-voting, the shareholder may refer to the frequently asked questions for shareholders, an e-voting user manual for the shareholders available at the Downloads section of www.evoting.nsdl.com. or writing e-mail to [email protected]. You may also contact the helpline 1800-1020-990 or 1800-22-44-30. The details are also mentioned in the notice of the meeting.

Thank you very much. We will now move to the question-and-answer session. The names of the registered speakers will now be announced. I request our Chairman, Mr. Dinesh Thakkar, to interact with the speakers. I now call upon Mr. Hardik Jain, who is the first speaker shareholder. His DP ID is 1202890001251367.

Yes. Can you hear me, sir?

Yes, I can hear you.

First of all, sir, you've done a commendable job. What you have done in the last 3 years is really -- very, very nice. And the way you have distributed dividends is also very appreciated. So now I have a few questions about the business and the balance sheet. Sir, in the balance sheet, you mentioned that we have around 21,000 authorized persons in the network. So now what I assume is we are a fully online kind of a business where we acquire clients online, so what is the role of this authorized person and do we also intend to expand our physical network in future? This is my first question. So secondly, by when are we planning to start our AMC business? And in the annual report that you mentioned that it will be a digitally powered by a [indiscernible] based recommendation engine, and it will be different from the normal AMC business that we see today. So can you please elaborate on this? What are we exactly trying to do in this AMC business? Thirdly, sir, we have 55% market share in commodity turnover, which is very nice. But what do you think is the reason for such high market share? And what we have done differently from our competitors because this -- such a high market share is very, very unusual. Also, sir, at the time of account opening, do we charge anything to our customer? And if yes, what are the charges and how much? And how much cash do we have on our books, excluding clients funds, which belongs to us? So this is one thing because I could not understand from the balance sheet because there are many clients funds also in the cash and bank balances. Now there were talks about market timing extensions, is there any update on the same and how it can affect us. So we have a big margin funding book, so just to understand the risk side, how much percentage margin we take from the clients and what is the average interest rate that we get here. Our trading software and more importantly, the Super-App. So is it entirely developed in-house or it was given to some external agency to build the software and also the maintenance of the software, is it entirely done in-house? Or it is done by some external software company? Sir, income from depository operations last year was INR 126 crores and it reduced to INR 100 crores this year despite our number of demat accounts, which have opened, which has increased drastically, so if you can explain why the income from depository operations has decreased despite that. See, other operating income has INR 265 crores. That is mainly transaction charges net of payouts to the exchanges. So I assume that this is -- the exchange charge, your transaction charge is based on some slabs depending on your turnover, so does exchange give you a refund on a monthly basis? Is my understanding correct, if you can explain this. Last 2 questions, sir, sorry. Advertisement and publicity expense last year was INR 376 crores. So do you have any budget that you have made for this year or next year, how much you want to spend on advertising and publicity going forward. And lastly, sir, we have more than 1 crore customers who log into our app on a daily basis. So we have very valuable data on -- like age profile, income profile of these customers, so what are other various ways that you are thinking to monetize this kind of valuable data? Yes, these are my questions, sir. I hope to receive answers on them. Thank you.

Hardik, thank you very much for the compliments, first of all. And I think you have taken care of all shareholders' questions, and you have covered almost all questions what a shareholder would like to ask. Okay. Let's go one by one. So you have asked about authorize a person. I would request Ketan to answer that.

Yes, sure. So authorized person, the channel is very, very important for us, for a client acquisition and servicing them. As we move on to Tier 3, Tier 4 kind of cities for the penetration, this channel is going to play a very important role. If we look at the revenue contribution, the AP channel has contributed 23% of our net booking in FY '23 versus 25% in FY '22. I hope that answers your question.

So then on AMC business. See, the reason we chose to go to AMC vertical was that we feel that there's lots of opportunity when it comes to including lots of people who have not yet come to equity market. These are the people who live in rural towns and all that. And as you know, that most of our customers come from Tier 2 and beyond, so we believe that passively managed funds, smart beta product and some portion of actually managed fund would be something which will differentiate our offering from many traditional players. So I think there's a big scope for Angel to play that role, where we are able to like expand this reach of equity through passively managed fund, index fund, ETFs and all that. So our model would be primarily passively managed funds and smart Beta and [ cons ] and all that. Some portion may be in actively managed fund because people -- retail people love to be into small and mid-cap where coverage is very less, so we feel some [ torque off ] all that things would be necessary to give some better performance. On your third question, commodity turnover, why it is so high and what is the differentiator that we have built. I'll request Ketan to answer this.

So Hardik, I mean there are multiple reasons, and I'll share one by one. So one foremost is that -- the first important reason is that we were the first to introduce option on our platform, right, the Super-App that we are talking about for transacting options on commodity. Second is that our product experience on this platform is far superior than others. We also provide research advisory for that segment. So basically, when we offer this product on our platform, we got that first-mover advantage and we garnered a healthy market share gain. And the last but not the least is that today, we are operating commodity and equity business under the same license, which allows us giving a fungibility of margins for both the segments to our customers. So these are the few reasons because of which we have garnered a decent market share in commodities.

Okay. On your fourth question regarding account opening charge. See, the day when we digitized, we believe that we have to give best service to customer at the best price. So our -- like unite wise -- if you look at unit wise [indiscernible] returns and all that, they're decent enough what we want to see, as I said, that more and more people really joining equity market, so we don't want to create any hurdles. So there are no account opening charges, and we are the best price in the industry as of now. And second, if you look at services that we offer, like advisory, research and margin trading. So if you compare to our industry, always our focus is how to optimize our cost and how to scale up our business, so that we are able to provide lots of kind of advance service without any price to our customer. So to answer your question, we don't charge anything for account opening. Now on your fifth question, which is how much cash -- okay. Vineet, if you can answer that, how much cash and all that.

Yes. Thank you for asking this question. Our own cash as of 31st of March, net of the client funds that we have is about INR 1,250 odd crores.

Okay. And on your question of -- about market timing extension. See, you must have read in newspaper and all that, that discussion is going on. Nothing has been formed out yet. Our view is that this extension should be like allowed because then only retail will be able to participate. And there are lots of volatility because of U.S. market and all that. That is our view, but when it comes to regulator and all that, it's just at a discussion stage, we haven't heard anything concrete from regulatory yet. . Seventh, your question is on margin funding book. Vineet, if you can answer that.

Yes. So we offer margin trading funding to our clients for up to 80% of the purchase value of the equities in the cash delivery segment. And this is in a graded manner, so it depends on the quality of the stock funded. The interest that we charge to our clients for the MTF is 18% per annum.

On your question of trading software, Super-App, whether it's in-house or all that thing. So just to answer that, okay, all our development of technology back end, front end, including Super-App, is all in-house. Maintenance is in-house. So we have a team of around 600 engineers on technology and product side, and we have a decent amount of team on data science and machine learning also. . Your next question on income from depository. Okay, Vineet, if you can answer this?

Sure. So the income from depository operations, it reduced, as you rightly said, and that's primarily because the cash delivery orders were lower by about 20% year-on-year. And this has a direct impact on the depository operation because we recover basis the number of orders executed on the cash delivery segment.

Okay. On your next question about operating income of INR 265 crores about that transaction charges and all that. See, there is a slab for customer. And because of our huge volume, our slab with exchange is different. So it's not that the exchange refunds us, the charges are at that level where our volumes are. On your next question, advertisement and -- okay. expenses. Vineet, if you can answer this?

As a matter of policy, we do not give any guidance in terms of how much are we going to spend in the current financial year as compared to the previous financial year. But most of this advertisement and publicity is spent towards client acquisition, some part of it is also spent towards branding and publicity expenses.

On your next question of 1 crore customer, and we have valuable data, how do we leverage it. As I said, that we are building kind of like a big team on AI and ML and FY '24 is dedicated and focused how to leverage this data for the benefit of customers so that we are able to sell multiple products. So yes, we are investing heavily on AI/ML technologies and data science. And progressively, you will see that we would be one of the players who would be using this data science in a very kind of like different way where we are able to pinpoint customers need and the requirement and product which would be suitable to that person. Thank you very much Hardik for all these questions. I hope we have answered all your questions.

Thank you for patiently answering all my questions. I really appreciate it.

We now call upon the next speaker shareholder, Mr. [ Vinod Agarwa, ] having DP ID IN30311610678714.

Respected Chairman, Dinesh Thakkar ji, good morning and regards to everyone. This is the third AGM that I'm joining virtually with you since your IPO and this is the third meeting after the IPO. So I'm joining from the first meeting of your company post-IPO. I compliment for achieving a very good financial figures sir. Your revenues were high by about 21%. your PAT was high by about 42%, all are very good, sir. And of the business segment, broking and depository business, you had INR 441 crores of revenue in the broking side and the client in the funding side, you had INR 261 crores revenue. The overall revenues were about INR 3,061 crores, sir, it's very good, sir. My 2 or 3 small queries, sir. One is on - on 1 page you mentioned dividend as INR 39.9 and on Page 87, when I added up, the dividend for the financial year comes to INR 42.10. All the dividends that you have declared for the financial year, '22, '23, which is mentioned on Page 87, that adds up to INR 42.1. So a little dichotomy. I don't know. I don't understand that, sir. And I'd like to know, is the company also giving the stock lending and borrowing scheme to the customers of Angel One, I'd like to know, sir. And sir, company I'm sure will be doing better as the financial inclusiveness of the country's population is getting and the economy is going to $5 trillion also -- sooner, $5 trillion soon. And even the company is going to launch AMC business. We already have an AMC product for third party which is about [ INR 21 billion ] under management. But when we launch our own, we also will have our own AMC business, and that also will give us good revenues and based on the profits of the company. Sir, another thing that our current market price is about INR 1,600 today, sir. And I just would like to know if the company thinking of sub-dividing the share or giving out the bonus, the reserves are good, the company's performance is good, even the EPS is good, sir. Do consider this, sir, I wish the company all the best. Signing off. Vinod Agarwal from Mumbai. Thank you, sir.

Thank you very much, Vinod ji. Thank you for your wishes, compliment and blessings. So on dividend front, Vineet, you have any explanation or we can write back to him?

Sir, upfront -- so Vinod ji, what we have declared in Page 87 is including the dividend that was distributed -- the final dividend for last year, which was distributed in financial year 2023. And the INR 39.9 is the current year's dividend for -- including the final dividend. So INR 35.9 plus INR 4 equals INR 39.9. So that's the gap. So one is on cash basis and the other is on the declared basis.

Just 1 second. Because you just mentioned, the dividend declared, the board of the meeting declared the dividend on 20th April, [ INR 2.25 ], these are the dividends declared sir, on Page 87. When I add up those dividend declares within the year from April till March, that comes to INR 42.1.

Yes. So the dividend declared on 20th of April was actually paid in the financial year 2023, which was pertaining to financial year 2022. So cash basis, it's INR 42.2. And on declared basis for the last financial year from 1st of April till 31st of March, including the final dividend, which will be approved by the shareholders is INR 39.9.

On stock lending and borrowing, Ketan, if you can just throw light on that.

Yes. Sure. So Vinod ji, as long as our systems and processes are concerned, we have that capability to offer SLBM but unfortunately, the volumes are not there in that segment, and there is no much interest shown from the customer side. As and when the volume comes, definitely our customers will be able to take a benefit of that.

I feel if you started the -- volumes will start because you've not started it, the volumes are not there. It is a paradox sir, one after the other. The cat comes first, the mouse comes late. And you just start it, sir, you will get. And it's a higher-margin business. Most of the companies have 10% or 15% of the SLBM rate that they take. .

Point noted. Your point on AMC, we have been always strong on our distribution business. So after this Super-App launch, we are going more aggressive in terms of getting into very far away pin codes and all that, and we have seen a good traction for this quarter. And plus, when we launch our own AMC, this will be unique products, where we want to bring in more customers who are low ticket size, so when you look at equity, equity can easily give a CAGR of 12%, 13%, which is far more better than any kind of risk-free asset, FDs and all that. So our endeavor would be to create awareness about equity class and make it available to people who have very low ticket size. So let us hope that we are successful as successful as we are into broking and clear some big disruption in AMC business. Your fourth point on subdivision of stock. We have taken a note of it. Whenever it is needed, our directors, consultants, everybody feels that it is necessary, we will not shy away, we will take that step. Right now, we don't have any plans. It will remain as it is. Thank you very much for all the questions, and thank you very much for your best wishes, and being present in all AGMs all the years.

Thank you, speaker shareholders. Thank you, Chairman. We now move to the closing comments from the chair.

Thank you. Thank you very much for questions and your suggestions. Hope we were able to satisfy all the answers and queries raised by you all. I want to thank you all for your participation and constructive suggestions and comments. I now request our members who have not voted earlier to cast their vote on the matters set out in the notice. The e-voting facility will remain active at the NSDL e-voting website for the next 15 minutes to enable members to cast their vote. Ms. Naheed Patel, Company Secretary has already briefed you on this meeting's voting process. The consolidated result of the remote e-voting and e-voting during the meeting will be announced within 48 hours from the conclusion of the meeting and made available on company's website, on the website of NSDL and on the website of Stock Exchange. All resolutions as set out in the notice, receiving the requisite number of votes will be deemed to be passed on the date of the AGM. Now we call the formal meeting -- formal business before the meeting as over, the meeting will conclude at the end of 15 minutes from now. Once again, I thank each one of you for attending this Annual General Meeting today. I sincerely wish that you and your family members stay safe and healthy, in the times ahead. Thank you very much for attending the meeting. Have a good day. .