Supratim Datta earnings call questions

Billionbrains Garage Ventures Limited CC-Jan26.pdf · 2026-01-14

Hi, everyone, this is Supratim from Jefferies. Thanks for the opportunity. I have two questions. I mean, I was starting with the partnership or, the stake sale to State Street on the AMC side. If you could give us some color around, how you see this partnership playing out over the next 5 years, what's the roadmap for the AMC business? And while it has scaled up fairly significantly post your acquisition, just wanted to understand how is this State Street partnership going to be an inflection point for this business? And where do you see this, breakeven and move over the next 5 years? So, that would be helpful. And moving to -- my second question, which is on the wealth piece, that you are developing, wanted to understand why is the Fisdom revenue? If I back it out, it seems like it's only INR 29 crores for this quarter. So just wanted to understand, the run rate last year was somewhere around INR 40 crores per quarter. So, has there been any change or is it being reported differently? So if you could give some color on that. And again, there on the wealth piece, how are you seeing that build out over the next 5 years? How are you going to differentiate with offerings that are already there in the market? That would be very helpful. Thank you. Harsh Jain: Yes, so I'll take that. Thanks for both the questions. So on the investment that we are making in the asset management business, and especially the partnership with the State Street, see, we see that the asset management in general in India is a huge potential and the very, very high growth left in the next few decades. And State Street being one of the world's largest brings a lot of global practices that helps us build the business in India. It's very early stage in our asset management also. We have launched almost 2, 2.5 years back and we've seen very good growth in terms of new customers coming in. And the AUM has also grown steadily. But there's a lot of capability that we need to build over time. And this partnership will help us build that quicker. It'll help us build with a lot more credibility and also be able to have a lot of global access for the Indian investors and likewise for the foreign investors for our products. So this is the thought process with which we want to go ahead with now. And the broad contours will, they will get to know more in future and we'll talk about them. On the wealth side, again, we just recently, October is when we consolidated the acquisition. So there's a lot of work going on the wealth side from a strategy point of view, how we build it, how we are building both for the existing Groww customers and for a lot of affluent customers who want to come in for these services. But very early stage for us to talk about what will be the differentiator and how will it play out. We are working on different parameters on that. From a P&L point of view, I think this consolidation will continue. I mean, there's some time with still a lot of integrations are happening. And we will, it's very small both ways as compared to the overall P&L of Groww. So we will start specifying the details and the transitions in the near quarters. Supratim Datta: Got it. And if I could just squeeze in one more on that wealth piece, what is the kind of synergies on the cost side that you expect, Harsh, now that it's been integrated and you have seen the business for 2, 3 months now? Harsh Jain: So, see, a lot of synergies in the wealth business in general, but also depends on how the scale-up happens. So today we see a lot of affluent customers on Groww are acquiring those services, which we are not offering now. With this acquisition, we are able to plan how we will be offering it to them. So customer acquisition cost when it comes to Groww customers using these services becomes almost zero for us. But having said that, it will not be 100% the same customers. There will also be growth coming in from the other channels. So it will evolve over time. And probably sometime once we have done the integration completely and we are able to scale it is when we can talk about the colors of how the cost and the different kind of cost will look in this business. Supratim Datta: Sure, that's helpful. Thank you. Moderator: Thank you. We'll take the next question from Sucrit Patil. Please accept the prompt. Introduce yourself and proceed with the questions. Mr. Patil, please unmute yourself. As there is no response, we will move on to the next question, which is from Madhavan S. Please accept the prompt, introduce yourself and proceed with the question. Madhavan S: This quarter the revenue was increased. Earning also was -- earning, but they're also increased. Whether you have any, but the expenses are also increased, but net profit is lower than last quarter. Revenue increases, net profit reduces, but EPS higher. Is there any plan to distribute interim dividends or final dividends? Ishan Bansal: Sir just to clarify this, the profit on quarter-to-quarter actually increased. On year-on-year basis, there is a decrease actually and that's what is primarily because of one-off reversal of - that happened in the last year. So on a quarter-to-quarter basis, actually there is an increase. Madhavan S: Is there any plan to declare that interim dividend at all because you have not declared any dividends till date? Ishan Bansal: Sir, we have just got listed three months back and we are still in a very high growth phase. We are still building new businesses where we have raised money in the IPO also to invest in those businesses. And once our growth is probably letting us give dividend also, we will start giving dividend, but we are not expecting to give dividend in the near future. Madhavan S: Okay. Thanks so much, sir.