The first question is from the line of Prayesh Jain from Motilal Oswal.

Sir, just firstly on this yield part, while I understand that the adjustment of the one big negotiation has happened, any further renegotiations that are expected in this year or early of next year that can impact the yield further? That's first. Second, on the yield front itself, as these new customers, particularly Jio BlackRock kind of scales up, do you think that your yields can be under pressure? Because what we understand is most of these new wins are, have a very low fees in the initial part, in the initial 2 or 3 years. So yes, that's my first question on the yield front. Second is on the non -MF businesses, particularly CAMSPay, which has seen a sequential decline in this quarter, what would you attribute that to? And how should we think about this? Yes, probably, and thirdly, on profitability between the MF business and non -MF business, if you could spell out the EBITDA margins both ways ? Those would be my questions.

Sure. Thanks, Prayesh. So, I'm sure you appreciate that our guidance with respect to prices, yield depletions, etcetera, plays out almost exactly the way we predicted to you in the last 4 or 5 years, which is that we don't want any asymmetry to exist between what we are anticipating in terms of events happening and what you see. We believe that with this large contract, 90% of that the price adjustment being in the base. For the next about betwee n 1 year and 1.5 years, there's nothing else, nothing much else to be dealt with. There could be very small events. But from a large price correction perspective and do remember that we were the first ones to indicate this in the month of January. So, from a price perspective, like Ram said, about a 3% annual depletion is something you can estimate to be in the base. And nothing much beyond that, except the balance 7%, 8% of this price adjustment will you see coming in. That's point number one. Point number two, from a new AMC and Jio BlackRock perspective, yes, a large number of them have now are going live and will go live. Typically, their accretion to overall fees and overall profitability, et cetera, is small. In the case of BlackRock, their emissions are very large. So, we will see how that scales up over a period of time. It is not true that we have given some very large price remissions. Typically, 1 or 2 of these elements are given at more, I would say, competitive pricing, but it is not that we've done anything very significant for these new logos. So we will see how this goes. Typically, our expectation is that the AuM build -out of these new AMCs is very slow amongst the new ones, takes several years, 4 to 5 years for them to scale up. So for them to have any material bearing on the P&L of CAMS always takes time, and I don't think a lot of that is going to change, perhaps with the exception of Jio. So that's answer to point number two. From a CAMSPay perspective, what you see, so you will appreciate that on a year-on-year basis, we are 26% revenue up, which is good news. From a quarter-on-quarter basis, there were some volume reductions in insurance. Insurance peaks in the fourth quarter, so whatever activity, heightened activity the insura nce companies see, we partly mirror that because all of this is a subset of the payments part of the insurance business, including AutoPay. And we are expecting some of that to come back as the first and second quarters progress. There were some lower volumes from key clients, one, largely because we are trying to migrate that very large MF distributor from other alternate platforms to our platforms, which means that the existing ACH mandates, et cetera, have to move from place A to place B. Where we had a plan, the execution has been slightly slower just given the multiple dynamics in migrating these ACH mandates, but all of that will happen. And the third is that the growth, the setting up and growth of the payment gateway business was slightly slower, was about 2 or 3 months slower than what we were thinking. So our expectation is that from this quarter, the quarter that we are sitting in July, August, September, you will see build back into the CAMSPay business. And therefore, any wrinkle that you saw from 4Q to 1Q was a temporary wrinkle. And it's unlikely that you'll see anything like that in the ensuing 3 quarters of the year.

The only one question that was on the profitability of non-MF and MF. I think they continue to be on what we used to be. The non -MF profitability, we said it's always between 10 and 15 percentage. They were a little lower on this 12% probably in the current quarter. MF continues to be 45-plus percentage. So that's the split up on MF, non-MF, probably a little lesser this time. Keep in mind the overall company margins are a little lesser, but nothing that's swung it either way.

Got that. I really appreciate the kind of guidance you have been giving us on the trend and the way it's panning out. Thank you for keeping us updated on that.

The next question is from the line of Devesh Agarwal from IIFL Capital.

Just a further clarification on the yield part, sir. If you can tell us ex of this large AMC where you had the repricing, what would have been the impact on the yield for us?

So 75% is because of that repricing?

Yes, yes, that's correct.

Right. And you did mention there is no more repricing or 95% of this large AMC repricing is in the base. But when you say no more repricing are expected, are you saying like over the next 3 to 6 months or for the next 2 years? How should we see about it?

So let me clarify that it's not as of no repricing, meaning when I say repricing, I mean the usual commercial negotiations post the e nd of the pricing tenure will happen, and that's business as usual. What we indicated was that there's not going to be anything major that's going to come around. And this is probably for the next 2 years, you will see stability on this. And I'm not saying you won't see stability post that, but I think we have visibility over the next 18 months, 18 to 24 months.

Right, sir. And when you guide for this 3%, 3.5% depletion beyond FY '26, I'm assuming you're accounting for all these new AMCs and they're gaining size, including Jio BlackRock or that will be over and above?

So as Anuj was mentioning, right, I think if you look at our asset base, it's almost like INR52 trillion, INR53 trillion, etcetera. So I think the new AMC's ability to adversely or positively affect yields is very limited. So I think we are confident of retaining within the overall guidance that we have given.

From a metric perspective, Devesh, just think of it this way that today, when you see the asset base of INR50 lakh crores under 2% of this belongs to AMCs, which were launched in the last 5 years, which means whatever was launched in the last 5 years is significantly below INR1 lakh crores. So either way, price or any other growth metric, what you would expect in the next 4 to 5 years, although the number of wins is very large, that at most, we will see about, let's say, 2% to 3% of AuM contribution from these people. And therefore, their collective ability to swing the P&L either way, I think, is very limited. So I will hold whatever I said that beyond the next 18 to 24 months, the 3%, 3.5% depletion is perhaps something which stays in the base because that is an outcome of telescopic and some element of negotiation. This was one large element that we had to set right the dialogue was old. If you ask me, it's a good thing that we've got past that event. It took us some time to get past it. And given the fact that all of that has been now written in the base between, largely between 4Q last year and 1Q this year, the costs have been managed well. And therefore, our ability to be a lot more predictable and accretive in the coming quarters is much, much higher.

Yes. So if you see our spectrum of 22 clients, there is a lump of 5 at the top, which is consistently priced. There's a lump of ano ther 6, which is AMC #6 to 11 and which are also in the similar band. So that is pretty consistent. And then as you go down, although those are smaller people. But yes, there are these 3 subgroups that you can think of the portfolio in, and they are all ve ry tightly banded.

Perfect, sir. And one last question, sir, on the non -mutual fund business. If you can again share your views in terms of the growth that we expect over the, say, next 2, 3 years and the margin, how you intend to ramp up? And what is the share that you expect of non-mutual fund business in your overall revenues in, say, next 2 to 3 years? That will be the last one.

So, no Rush, Devesh. So, like we've said in the past, so we will get the non-MF portfolio to 20% and no questions about that. Inside of non -MF, there are very strong points, which is KRA payments and AIF, which are significantly profit yielding. And then there are elements which are not making money, which is account aggregate insurance, although insur ance is getting somewhere towards breakeven, but we are funding some of these things. And then between Think, MF Central, et cetera, we are still funding some of those things. So, the non-MF business at the peak will be, let's say, 35% to 40% EBITDA in the best. And at the bottom, maybe minus 10%, which is why it converges at about plus 15%. I think what is at 40% will probably remain at 40%, what is at plus 30% will remain at plus 30%, and we are happy to keep those businesses there. The trick is to get the minus 10, minus 15 guys over the hump and get them to positive territory. And I can tell you that, for example, in insurance, we are seeing let's say, INR25 crores to INR27 crores, maybe INR30 crores revenue, we will get too positive and account aggr egated at about INR1 crores revenue we will get to positive. In most platform businesses, which have small labor, that's amount of fixed cost that we deploy between INR10 crores to INR15 crores. So, what I'm very positive about is that pouring more revenu e into insurance, into account aggregator between Think and MF Central. And MF Central is also not very far, although we've been funding it for the last 4, 5 years, but we are very sure of getting to that point. So therefore, 20% overall revenue contribut ion, getting in the next 3 years, non -MF aggregate to be, let's say, between 25% to 30% profit contribution and not between, not around the 15% is really in the realm of reality. You can expect that to happen.

The next question is from the line of Uday Pai from Investec.

Just one clarification on the yield side. So, you mentioned that out of the 0.12 basis point deflation this quarter, a large part was account of that single AMC. So, the remaining was purely on account of telescopic pricing? Or did we have any other repricing from any other customer? That's the first. And secondly, I would like to know the breakup of KYC revenue in terms of brokers and AMCs. So that's the 2 questions.

Sure. The first question, there is just o ne more customer who had a very small price reset that happened. So, it was not significant. So you could assume that a lot of this is because of the telescopic pricing. Again, as we said that going forward, there could be, there will be 0 price resets will happen. When we say price reset, it's not a significant one. Every time there is a rollover, there is some discussion depending on the growth of the AMC, there could be some moderation in rates that could happen. So, I think that's a BAU kind of event that has happened. So, nothing significant from that perspective. So predominantly, it is the major customer yield accretion that you are seeing. The second part of it, if you see from an AMC to brokers perspective, around 30% of the KYC revenue will be from the brokers and DP’s perspective and 70% will be from AMC. And that is a metric that's been trending upwards over the last few quarters.

The next question is from the line of Abhijeet Sakhare from Kotak Securities.

I have just one question on opex. So, this, generally, what we've seen for the last few years is that the first quarter opex is roughly around the 25% mar k as a percentage of overall opex for the year. So, should we assume that to continue this year as well, which automatically implies that the opex number broadly kind of settles at this level? Yes. So, any color on that would be helpful.

So, Abhijeet, I'll just split it into 3, right? So, the major cost is the employee cost, then there is the operating expenses and other expenses. On an overall, if you see year -on-year, including depreciation, we have been probably between 10% and 11% growth in the current quarter, which I think is a very moderate level. Now going forward, given the nature of the business, we do not see a significant, significant addition in manpower that is happening. So, we should actually have some cost increases happening from an employee perspective, but it will not be significant because the appraisal cost has actually been baked into this. Operating expenses is colored by OP, right? And if you see in the current quarter also, there's been a reduction in OP in the revenue as well as cost. But if you take that away, it continues to be around 13% of overall thing. And other expenses are, the first quarter, we'll see the maximum because of AMC renewals, et cetera. So while we do not foresee any big increase coming up in the remaining part of the year on any of these exceptional things coming up any of these things, I continue to hold the view that we should be able to contain the cost increase at around 11 to 12 percentage worst-case scenario or probably a little less than that on a year-on-year basis for the entire year. Whether it will be following the trend of first quarter, I think it will be with a small increase here and there because of some amount of employee additions that will happen. But overall, if I were to project a cost increase on a year-on-year basis for the entire year, I would like to keep it at 10 to 11 percentage.

Got it. Secondly, the non-MF businesses put together, I mean, there are various ebbs and flows across the business lines. But on a full year basis for the entire non -MF vertical put together, how do you think about this year's revenue growth given the first quarter, how it has panned out for a couple of business lines?

So, I think Anuj mentioned the reasons why the first quarter on a year-on-year basis, I continue to see a good, reasonably good growth, right? So, our aim is very clear, and we have the road map to achieve this 25% growth in non-MF revenue, right? On absolute terms, we ended last year around INR190 crores of non-mutual fund. And would we be able to add 25% on top of it? I think we have the path to do it. I think we have the way to do it. So, we stick to that guidance that it will be a 25% growth in non -mutual fund on a year- on-year basis.

The next question is from the line of Dipanjan Ghosh from Citi. The current participant has disconnected. So, may I move to the next participant? The next question is from the line of Madhukar Ladha from Nuvama Wealth Management Limited.

So first, really appreciate the upfront guidance on the yields. I think that was very well done and very clearly explained. My question is, first, how many of the mutual fund customers and the large ones come up for renegotiation in the balance part of FY '26 an d FY '27. If you can just sort of break down for FY '26, how many are there and then FY '27, how many of the customers do? And second question is on any guidance on capex for FY '26 and '27? And given, and the update on the technology transformation that you've been doing and moving the AMC stack on cloud. So, I wanted to get a sense of where are we? And from next year onwards, what sort of benefit it would result in, in terms of our EBITDA margins? And how should we also think about depreciation going forward? So, these 2 would be my questions.

Okay. I will take 2 of this. And on the rear, probably I would request Anuj to add some his views on this. See, from a price reduction perspective, the answer is any major coming up for renegotiating current year, the answer is 0, nobody is coming up. And for the next year, towards the tail end, there could be 1 or 2 customers who come in. But again, it's towards the tail end of next year. So you will, that's why when we kind of said to the earlier question that we do see some amount of stability for the next 18 to 24 months. I think one of the reasons was this, which is that last year has seen an overactivity in terms of prices. And so, we will see a period of stability for the next 18 to 24 months is our expectation, right? From a capex perspective, you will see I split it into 2. One is obviously the regular capex that we do, given that we have to keep pace with the growth in transaction volume with the requirements from the SEBI perspective for d ata centers, et cetera, BCP, etcetera. So that on a yearly basis, we project the current year capex to be around INR60 crores. We have spent around INR15 crores of it in the, so we're on target in the first quarter. So, we will end up spending around INR60 crores, plus or minus a few crores. That's the expectation. On the rearchitecture or the new platform perspective, and that's where the bulk of the capex additions would get added once the module starts going live. On a cumulative basis, we have spent ar ound INR50 crores on the platform so far. And I say cumulative, I mean for the last, more than a year, right? It's not in the last quarter. Last quarter, we had have spent probably INR14 crores on it. So once the first module starts going live, which we expect probably 4Q of this financial year or 1Q of next financial year, we will start amortizing that. And the amortization, we expect that the yearly amortization of the first module, we would have spent probably INR100 crores on the first module and the yearly amortization will be in the region of INR15 crores plus, right? I think that will be the yearly amortization that you will take. So that will be the increase in depreciation cost that you will start getting from, most likely from next financial year or tail of it could be in the last quarter of the current financial year. That will start impacting depreciation from that perspective. But we are also confident that the benefits that will start accruing to the business will sort of make it over a period of at least not immediately over a period of a year or 2, I think the payback will be more than adequate for people to see. And the margin depletion will be negligible, if any, over a period of, at least our projection shows the margin depletion will be negligible. And if you do get outsized benefits as we hope we will, then I think it will be accretive to the margin. But it's too early to call a specific number as what could be the benefit in the EBITDA margin because I think we have to wait for the first model to go live. We do have internal budgets and workings, but I think it's too early to expose that as a commitment from our side. We will track it very closely. And as we get closer to the first module going live, we will be able to give you a better picture on what is the benefits. But we are very clear that this will have a positive impact on the profitability going forward. Whether it is going to accrue directly from FY '27 or from FY '28, I think something that we'll have to wait and watch. But o verall, it's going to be very beneficial to the margins. on the progress of rearchitecture.

So overall, on the rearchitecture project, I think things are in very good shape. We signed a contract in June, July last year with Google Cloud. We sta rted building a team. So today, we have over 150 engineers, about 170, 180 external hires, a lot of them from blue -blooded institutions like the IITs, some Mtechs, 4 or 5 doctors, people who are applying for patents because some of this is very structured and we know what is to be done and some of that is from a tinkering approach in terms of experimenting with various things. And I think you will start seeing some announcements from us in about, maybe by the end of August in terms of what the team is doing. We haven't done any PR yet. But just to give you an example, the amount of efficiency this will add, one is just to the engineering coding and platform process. And the other is to the operations process. Just to give you an example today, we may h ave a couple of hundred people today who do reconciliation for us because we download bank statements, do matching in the system and do literally hundreds of activities to make sure that the INR300 lakh crores that reverses our system is completely pristin e and done properly in terms of reconciliation unit allotment. Once an automated platform of the kind that we are thinking comes in, the intensity of labor will go down to half or less than half. Similarly, for every process, we signed INR300 crores SMSs in a year. Today, if 1 or 100 of those SMSs have to be reconciled when they were signed, when they opened, if they bounce right did they bounce. There is a lot of manual effort in trying to figure that out. All of that will be at a click for button. Similarly, for analytics, controls kind of things, risk management, all of that will get into the purview of the new platform. So very happy with the way things are going. I think we haven't exactly yet put out any margin workings. So, I think what you guys ar e waiting to hear is that will this become kind of a cost 0 proposition in FY '27. And if yes, by what margin? And my guess is that we will be ready to share all that with you in the next maybe 3 or 4 months. There is just a vast suite of areas, in which productivity will go up, accuracy will go up, rest will come down, finesse will go up. And we do want to talk to you guys about that. But we don't want to jump the gun. I think broadly from an operating perspective, very good progress from a specific guidance on margins and net cost on this. Give it another 2 or 3 months, maybe by the month of October, we will start putting things out, which you can consume. And then obviously, we're going to continue comparing notes in terms of whether that progress is achieved or not.

Got it. Got it. Just Ram, I think you mentioned the maintenance capex for FY '26 at INR60 crores, but I don't think you gave me like the total sort of other capex amount as well. So, the total rearchitecture capex for '26. And similarly, if you could give FY '27 also some broad color on capex?

Sure. So yes, I think from a rearchitecture perspective, I did mention that we have spent from a capex perspective around INR14 crores in the first quarter. We in Q1. And we expect in the course of the year, this will accelerate, and we will spend close to INR100 crores in the current year. The spend next year will be on similar lines. The spend next year will be on similar lines because we have reached almost like a peak capacity from a people perspective and from a design perspective. So, you would expect overall the cost of the project is expected to be around INR450 crores to INR500 crores. So, you will end up spending around, by the end of this year, it will be around, cumulatively around INR125-plus crores. So, we expect a similar amount to be spent in the next year also. From a depreciation perspective, I would just like to alert that once we start amortizing this, which should be after the first module goes live, probably INR100 crores of cost get transferred from work in progress to your asset and we start amortizing. Obviously, amortization period could be higher than 3 years, but it is going to be a very valuable platform. So that's why I guided that probably you should look at INR15 crores to INR20 crores depreciation incrementally per year on the research.

The next question is from the line of Dipanjan Ghosh from Citi.

Just a few questions. You mentioned on the reduction in pricing asymmetry on the mutual fund side of the business. And I understand there have been a couple of repricing by this large player in the last few years. But let's say, 2 years out, 24 months from now, when this particular player looks at their mutual fund RTA yields, let's say, on the more dominant portion of the book, which is equities, do you think that they will feel comfortable when they compare them with the other large 3 or 4 players, let's say, 24 months, 36 months from now. So just wanted to get a quantum of whether the repricing and the stabilization is done more from a long-term perspective? Or is it just like relative divergence has narrowed for now? Second, in terms of the nature of these contracts, I just wanted to understand, are these open for ad hoc repricing also? I mean, if can a particular player always come up for renegotiation, even if the contract is currently ongoing? And third will be on the Alternatives business. If I look at the revenue trajec tory for the last 4 quarters, it has revolved around that INR9.5 crores to INR10 crores quarterly run rate despite multiple new logo wins. So just wanted to get some sense of what's happening out there?

So broadly to answer your first question on whether the, and sorry, when I said asymmetry, I meant what we know versus what you guys know. We want 0 asymmetry there and feel happy that we've been able to kill that. The mutual fund market typically honors contracts and out -of- turn requests for adjustment, I mean, it's not that it's impossible, but don't happen very often. So broadly, from a principal perspective, you can take it that. That's the way the market works. From this contract that we have discussed more than once on these calls, I think our way of servicing when it was a world of physical paper and checks and all of that, it had come to almost 90%, 95% digitally executed operation. And therefore, the request from the client was that since whatever they paid in the past, they paid in the past because of a different style of working. Now since the style of working after COVID is more or less the same. why not look at a uniform pricing. So, while you can say that it was out of turn, that dialogue started maybe in '21, '22. It took us 2 or 3 years because it was a large quantum to set right. And like I said, I'm happy that, that is now behind us. With that being behind us, I think one principle that most of these clients believe should apply to them because scope differentials are very small. There was a time when scope differentials were deeper. We were doing ABCDEF for someone. We were doing ABCDEF and GH for someone else. So, someone else had 30% more scope, was they willing to pay? The answer was yes, and that's how the market went. In a digital era, there could be a client who does 100% digital, and there could be someone who does 85%, but I don't think we have any 80% digital client. So, the kind of work, the amount of work more or less is converging, and therefore, parity becomes an argument from their side and parity in a size cluster. So, if you are in a size cluster of the top 5, the next 5, the next 5, the next 5 and the tail beyond that, do we look similar is a requirement. You guys also have access to scheme accounts. So, you can take a look yourself. But from our side, I think one thing that we have done now is that anything which can look like a wrinkle in that principle largely does not exist. You can also take a look once these scheme accounts come out. So, I think that's on e large objective that we have achieved. And we've also made sure that in some of these new clients, you may have seen one logo that we had won, let's say, at a price of 100 the competitor offered INR80 and then walked away saying you don't want to cut. 3 months later, the same guy goes back and sells at INR60. And we've said we'll let them go. We said we'll let them go. We will not talk about repricing, et cetera, with someone we've not even started business with. So, I think that principle, we've been able to establish and underwrite quite well.

On the AIF, Dipanjan, actually, if you look at the core AIF business, I think they have grown pretty well on a year-on-year basis, I think they ha ve grown if you take away the multiple size of things only from including GIFT City. They were actually, I was just looking at the numbers once you asked the question, they were actually around INR840 lakhs per quarter in the last, I think the year, they have now come up to around INR970. So pretty okay, meaning it's not going to be a 50% growth business. I think that we have been very clear with you also. I think a 12% to 15% growth business is what we see the AIF to be and upside coming in terms of GIFT City. I think it's played out that way. We'll continue to see that it's a 15% growth business. It's still a 1 5% growth business. And if GIFT City does ramp up significantly, then that could go closer to 20%. But otherwise, we feel that it's probably largely in line. And it's a highly competitive industry, but we still maintain our leadership position getting 50% plus market share and the AuM has also grown reasonably okay.

No, sure, Ram. Just one small follow -up. I appreciate on the AIF par t; it was lower in the last quarter base. But if you look at from 2Q onwards, which is last 4 quarters, it has been around that INR9.5 crores to INR10 crores. So in case you were to get to, let's say, 15%, 16% growth on last year's base, you probably have to kind of scale up the current run rate by at least 10%, 12% over the next few quarters. So, is that visibility kind of out there for you guys?

Absolutely. We are winning a lot of new logos. I think we've also have a lot of logos from GIFT City perspective. We are also getting more into fund accounting. So, I think we are confident of getting this over a period, 15% growth over a period of year. I think on a quarter -on-quarter, I think it could be 10%, 11%, 12%, that's okay. But on a year -on-year basis, I think we are confident of getting to the 15% growth. I think new logos that we are winning are for full service, as Anuj was mentioning. And the pricing is largely, well, it is not what it used to be 2 years back for sure. But I think we are getting a reasonably stable pricing for at least compared to what it was in the initial stages. So, I think 15% growth is something that we aspire for. I think we have an ability to get that.

The next question is from the line of Sabil Dabhoya from Unifi Capital Private Limited.

Congratulations on a resilient set of numbers. Sir just had one question first on the yield part, sir. So, in the last quarter, we had given a guidance of 6% to 7% Y-o-Y decline from 4Q FY '25 end yields, and this has been now sort of revised to about 8% to 9%. So, is my understanding correct?

So, I think what I had indicated in the last earnings call, if I remember right, was, yes, it was around, I think on a year -on-year basis, you will see a 7% decline in yields. I think it will be a little higher than that. It could be 8%. But again, this is an estimation of what happens in the remaining 3 quarters. So, I think the range is broadly okay.

Okay. Okay, sir. And sir, just another question was on the MF non-asset-based revenue. Sir, just if you could highlight anything unusual that happened this quarter?

So, 2 things, actually, 3 things. Number one is the NFO revenue is significantly down compared to the last quarter, and that's something that we have lived with, there are more NFOs in the next quarter, we do get additional revenues. The second part of it is OP expenses. And we've always said that OP is more an accounting thing, which is that you have to show it as you bui ld the customer, you show it as revenue and then you show it as an expense also. That's come down significantly, largely because of the lesser mail traffic and some special audits that we did on behalf of AMCs last quarter and some bulk purchases we did for their stationery, et cetera. All of it has come. So actually, the OP has come down on a sequential basis more than INR2 crores, but that's something that should not worry, doesn't worry us or anybody because there's a corresponding reduction in the expense also. It's not a margin accretive business. There is some amount of, when you say price reduction of the AMC, there is some amount of impact of price reduction on the transaction fee also. But overall, the transaction fee has remained broadly stable. There has been some reduction in OP and NFO fees, et cetera, which has kind of caused this blip in quarter-to-quarter number. But there's nothing exceptional that you need to know. This OP is something that entirely driven by the spend pattern of the part icular quarter and depending on campaigns that AMCs are running, depending on audits that we need to do, which are reimbursed by the clients, et cetera, or some of the stationary expenses. So that's predominantly causing this difference. It is a INR2.5 crores of reduction quarter-on-quarter is only because of OP.

The next question is from the line of Sanketh Godha from Avendus Spark.

If I understood it right, you are at 2.16 bps yield today. So, every quarter for the full year, it is 3.5%. Is it fair to say that 2.16% yield will see maybe every quarter kind of 1% depletion to arrive at full year of 3% to 4%. Is that a fair assumption?

Yes. I think the next quarter could be a little higher, as we said. But post that, I think that could be. We are actually in my computation around plus transaction around 2.25 bps and only on AUM around 2.13, 2.14%. We would expect at least 0.03 or something decline coming in the next quarter. But yes, overall, I think your assumption is valid.

Got it. Perfect. And my second question is with respect to payment business. See, if you can break up that payment business into MF and non -MF, point number one. And second, given insurance played a role to drive the growth, now you are getting into the cards as a payment gateway. And given it is highly competitive, how do you see it to play out, whether we predominantly MF and maybe insurance a bit? Or you think we will make meaningful inroads in cards with respect to payment.

So we have, as you know, the history historically, it's been entirely MF, but over the last few years, we have diversified successfully. My current recollection is it's around 50% plus MF and 45% to 50% on non -mutual fund is the split up of the rev enue. I don't get the exact number across to you, but it's broadly these numbers, especially given that we have signed new insurance companies, this is trending upwards from insurance companies or from a few education institutions that we have signed on. The focus, Sanket, is to diversify and to get non-mutual fund related business in. And I think the cards is one of the attempts that and we have got live. Cards, I think the possibilities are huge, especially from, if you're going to do from an insurance p erspective for premium, we have traditionally stayed out of cards because of mutual fund that was not very relevant credit cards. But now we have got into it. We've got our own payment gateway set up, integrated with Master, Visa, RuPay. And then we have started operations. We have done a lakh of transactions already in the last quarter. So, I think the cards will grow in the current quarters. I think we are on track to make this 60% non - mutual fund and 40% mutual fund as we go forward, probably in the 12 to 15 months from now. The margins could be something that we will watch out for because card transactions margins are a little lesser than what we used to in the ACH module. But I think overall perspective, we are confident of maintaining the 15-plus percentage margins as well as growing this business. The current, last year, we ended around INR50 crores. So, our internal target is to get it around INR70 crores in the current quarter. And I think we have enough tools in our hand to take it to that level.

It is true that payment will contribute a lot to it, but I think insurance wi ll also grow well, and we'll have to see whether the account aggregator and the think analytics also keeps pace. But yes, it is true that a lot of it is on these 2; insurance growing and payments growing and KRA is staying stable.

Got it. Got it. And probably the last one. Think360 has seen a bit of revival and Anuj alluded to that point in the call initially. So, this INR4.5 crores, INR4.6 crores run rate, what we are looking at 1Q for Think360 and will it hold up in subsequent qua rters? And second, just on an absolute basis, any additional revenue coming in Think360 is EBITDA accretive or not or it comes at a cost?

Sorry, what was the second question, Sanketh?

I revenue coming from... Additional revenue what you it will add up to...

I think we are at a stage where we are close to breakeven Think Analytics. I think the INR4.5 crores run rate that you are seeing will sustain, and we are hoping that it will improve in the course of the year. One of the reasons why we see the non -mutual fund margins will increase going forward is that a couple of the businesses, which is insurance as well as Think Analytics in the course of the year will turn profitable, right? Definitely be breakeven, but hopefully, we will also turn profitable. The run rate will sustain and probably there could be a small upside to it. And incremental revenue, I think the run rate is, if you get to a around INR5-odd crores a quarter, we start making money from Think Analytics. So, I think that will happen in the course of the year.

Ladies and gentlemen, we'll take this as the last question for today. I would now like to hand the conference over to Mr. Ram Charan sir for closing comments.

And thank you to all the participants for their continued interest in CAMS and for the questions that were asked. Please do reach out to MUFG or to Anish Sawlani in case you have any questions, and we'll be happy to address those. Thank you once again for your time.

Thank you. On behalf of Computer Age Management Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.