Ladies and gentlemen, good day and welcome to the Q1 FY27 Earnings Conference Call of Canara Robeco Asset Management Company Limited. As a reminder, all participant lines will be in the listen -only mode and there will be an opportunity for you to ask quest ions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I will now hand the conference over to Ms. Savli Mangle from Adfactors PR. Thank you and over to you.

Thank you, Ryan. Good morning, everyone and a very warm welcome to our Q1 FY27 earnings conference call. To guide us through the results today, we have the senior management team of Canara Robeco Asset Management Company Limited, headed by Mr. Rajnish Narula, Managing Director and CEO; Mr. Ashwin Purohit, Chief Financial Officer; Mr. Gaurav Goyal, Chief Business Officer; and Mr. Atit Turakhiya, Head, Corporate Development and MIS. Before we begin, I would like to state that some of the statements made in today's discussion may be forward-looking in nature. The actual results may vary as they are dependent on several external factors. With that stated, I would now like to hand it over to Mr. Rajnish Narula for his opening remarks. Thank you and over to you, Sir.

Thank you, Savli. Good morning to everyone who's on the call. Thank you for joining this call today. We trust you reviewed our results and presentation. I will begin with a brief perspective on the broader industry environment, followed by key trends in th e Indian mutual fund landscape, and then cover our performance for the quarter. On the industry and market environment, Q1 FY27 witnessed continued global and domestic market volatility due to geopolitical developments and macroeconomic uncertainties. Despite the volatility, benchmark indices recovered during the quarter. Nifty gained approximately 7% and closed at 23,865 as on 30th June, 2026. Broader markets also recovered, supported by improving investor sentiment. On the mutual fund industry overvie w, the closing industry AUM reached approximately INR82.2 lakh crores, growing at 10.5% year-on-year. Structural drivers for the industry remain strong, which are growing retail participation, wider geographical penetration, diversification across asset classes, expanding investor base. On the company operational highlights, I'd like to point out our closi ng AUM stood at approximately INR1.2 lakh crores. Quarterly average AUM increased by 7% year-on-year. Our asset mix stood approximately at 91% equity and 9% debt. Individual investors contributed 86% of our AUM, while institutional investors accounted for 14%. Approximately 24% of our AUM is from B30 locations. Distribution network expanded to over 56,890 empaneled partners. We continue to make investments in digita l platforms, enhanced investor experience, operational efficiency, and investments in the investment team and research capability. I'd like to invite Mr. Ashwin Purohit to discuss the financial performance in detail. Over to you, Ashwin.

Very good morning to everyone. It gives me pleasure to present you the financial highlights. Revenue from our operations stood at INR116.20 crores versus INR97 crores in Q1, which is 20% year -on-year growth. The total income stood at INR145.80 crores compared with the INR121.30 crores in Q1 FY26, which is again 20% on year -on-year growth. Profit after tax stood at INR75 crores, registering 24% year-on-year growth. With this, I will open the floor for the questions. Thanking you.

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. We take the first question from the line of Sucrit D. Patil from Eyesight Fintrade Private Limited. Please go ahead.

Good morning to the team. I have two questions. The first question to Mr. Narula is , just a forward-looking guidance on how do you intend to position the company for long -term sustainable growth in FY27, balancing product innovation, digital transformations and investor trust while ensuring differentiation in an increasingly competitive asset management landscape? Just want to understand your plan of action on this. That's my first question. I'll ask my second question after this. Thank you.

Well, thank you very much. Well, we are an equity -focused fund house, as you're aware. That continues to be the strategy going forward. We do believe that equities market will outperform other asset classes going forward over the long-term. So, I think we are very well positioned to actually capitalize on the growth story in India, given the construct th at we have in our asset mix. So, we will continue to also invest in digital platforms, engage more with distributor partners to make sure that our growth story continues. We will also focus on product launches and also diversify from the mutual fund into other spaces which are available for us.

My second question to Mr. Purohit is, given the rising compliance costs and market volatility and investments in technologies, what are the key financial levers you prioritize to maintain profitability and sustain stability across equity, debt and hybrid segments in FY27? Thank you.

Well, let me answer that question. It's a broader question in terms of how do we manage costs and profitability going forward. Our cost-to-income ratio for us -- we like it to be below 40. That's where we like it to be. We are well within that range. So between 38 to 42 is the range we like to play in. So, we always keep an eye on the cost-to-income ratio. Costs are a certainty, revenues sometimes when markets are volatile may not be and we are very cognizant of it. But you're absolutely right, there is rising costs of compliance within the regulatory framework, but that's good for the investors and to make the ecosystem far more stable. But we are very well positioned, as you can see from our results as well. Our Q1 results have been pretty good in terms of profitability.

Thank you and best wishes.

Thank you. We take the next question from the line of N ihal Shah from Prudent Corporate Advisory. Please go ahead.

Thank you for the opportunity and congratulations for the results. So, last time you were saying that you are investigating the reasons why the yields have gone up on a quarter-on-quarter basis and this quarter as well we've sustained the yields, I guess 3 basis points it has increased as well. So, what are the reasons why the yields have gone up?

Okay, I'm going to give this to Atit to respond and I will also add.

So yes, as you can see our yields have gone up. There were multiple factors to the change in the yields. The way the industry is structured is that the yields are based on the TER slab structure, which is relate d to the AUM of the company. So, there may be reasons while the market had taken a downturn which resulted in higher TERs, which also contributed to the yields going up. Apart from that, obviously, there are other factors also that have helped us with costs also, which we have managed to control in terms of the overall costs that have been part of the TER. So that all these factors cumulatively have enabled us to increase the yields.

If I can just add to Atit, we have a perspective on yield. We like our yields to be in the range of 35 to 38. That's why we would like -- we're comfortable with that range. It allows us room to go in for some asset classes or some types of product structures which may be lower yielding but will add to your AUM and growth, and it doesn't add to our cost base in terms of the investment team or the operations team or the sales team we need for it. So, there is a huge leverage there. So, for example, going into passives will certainly bring the yield down over time. But because of the fact that there is -- it goes -- the revenue from there will straight go to your bottom line because ther e's no added costs to it. Yield for us in our business is certainly an important factor but not the only factor we look at while building our business.

Okay, so can we expect some new products in the passive categories what you are hinting from here?

Well, it's certainly a part of our short -to-medium-term strategy. Currently, we are focused on coming up with a new product which will be launched on the mutual fund space in the next two to three months and then in the short-to-medium term passives is certainly an option.

And how many NFOs are planned for this financial year if you can throw some light on it?

We generally target about two in the financial year, but they're subject to of course board and SEBI approval.

Okay, thank you. Thank you very much.

Thank you. We take the next question from the line of Pratee k from Monarch PMS. Please go ahead.

Hello. So, could you help us to understand that out of this 20% revenue growth, how much contribution is from the yield improvement and how much is from mark-to-market gains and net inflows?

So over here, the operational revenue we have said INR116 crore s from INR97 crores. So that INR29 crores is the mark-to-market and rest is -- that is over and above INR116 crores actually. So, INR145 crores includes INR29.64 crores as the mark-to-market.

Okay.

So, the operational profit in percentage terms is 20%, which is without the mark -to-market included in it.

Okay, so if you could give us some color on the net inflows and how do you expect it to be in let's say short-to-medium term?

Unfortunately, Prateek, we do not share the information with respect to the net inflows, so mark- to-market is in line with what the market would have gone up.

Okay, thank you so much.

Thank you. We take the next question from the line of Siddhant Mayecha from Tusk Investments. Please go ahead.

Hi Rajnish, hi Ashwin. Thanks for the overview. Could you help us with some color on the treasury book, which is the investment book of INR735 crores? How much of this would be equity and what percentage would be debt approximately?

The total value of my investment is INR110.25 crore s, which is skin in the game and rest is on the debt, means overnight fund and the income fund which is we have invested. This skin in the game is only investment which SEBI suggests for and the mark -to-market on that is INR65 crores, which is INR176 crore s is the total value of skin in the game. There'll be 10% value of the debt also because we have a skin in the game 10%. So, the balance is debt.

The balance is debt. Okay, got it. Because there's been INR30 crores mark-to-market gain, right? And if I look at it, Nifty's grown only about 7%, so we are just wondering how is the debt book driving this INR30 crores mark-to-market gain?

INR30 crores includes my 8.5% debt realized gain and rest is the mark-to-market.

Okay. And just one last question, how do I read or kind of what are the levers that are leading to the 20% operating revenue growth because quarterly AUM growth has only grown by 7%, but operating revenue has grown by 20%? So obviously one is the yield expansion, which has been about 5% I think. Where is the rest coming from?

Well, the rest at the moment, as you can see, is improvement in yields. That's one of the factors and cost efficiencies.

Sorry, the second part was, could you repeat that? One is yields and second one is?

Cost efficiencies.

Cost. But even on the rev side, right? B ecause rev has grown by 20%. So, I'm not looking at cost.

Yes, but I'm just giving the total profitability picture.

Got it. And is the -- one last question from my side, is the MTM on the debt book on your investments, is the MTM only realized in Q1 every year or is it every quarter?

Every quarter, sir. End of every quarter we book the profits on the debt portion.

Okay. And so safe to assume that out of INR700 crore s treasury book about INR600 crores is debt?

Yes, sir.

Okay, thank you. Thank you so much.

You're welcome.

Thank you. We take the next question from the line of Sonal from Prescient Capital. Please go ahead.

Hi, this is Sonal Minhas sir. Am I audible?

Yes, we can hear you.

Sure. Sir, I was just trying to back calculate the net inflows from the data that has been reported. If I look at your closing quarterly AUM for equities in particular and that has grown quarter-on- quarter by around 13 odd percent. And if I just consider BSE500, that has grown by around 12, 13 odd percent thereabouts. And you have schemes running from larg e cap, mid cap to small cap. So, is it safe to assume that the delta between the two is basically the net inflows that your company has seen?

I'm going to let Gaurav, who heads CBO, take this question.

Thanks for asking that question. So of course, as you are aware, I think it will be -- we have products across the various categories and fairly only comparing it with BSE 500 will be not judicious.

On the equity side, as you rightly pointed out that we have witnessed about 13 %, 14% of quarterly growth on the AUM but it is spread across the products and of course different products have different growth metrics which we have achieved.

Got it. Okay. The second part, sir, I wanted to understand given that, which is a more zoomed out question, that there are more mutual funds coming from PMS side, coming from some new fund managers as well. Your large and mid -cap scheme, your flexi -cap scheme and small -cap schemes have been doing fairly well in the past. But if I just foresign this based on quartiles basically, and one year is too short a term period, but the quartiles if I see the numbers, how would you say is your performance vis -a-vis similar schemes? Because that directly determines the net inflows for the scheme. So, have we seen you holding to your quartiles? Have we seen you going down in quartiles? Anything in that regard, just want to understand here.

I'll just make a more broad comment. We see all funds go through cycles. So, you will find funds that will be in quartile one at some point in time and may slip a quartile or two thereaft er. But the important thing is what's the quality of the underlying portfolio? As you know that we invest in quality stocks and if you can even point out one investment in a portfolio that's not good, we'll be happy to look at it. But we -- the investment team firmly believes in the portfolio construct and their conviction in terms of the stocks invested and they're happy to ride it out volatility. There are times that certain sectors may not be in favour at that point in time, but if they have a more medium-to-long-term view on it, they will stay invested. So that's the broader strategy. But yes, there's a -- this is one of the most transparent jobs there is in the industry where someone's NAV or performance is out there on a daily basis for everyone to see and every fund manager tries to make sure that they are in Q1.

Got it, sir. I must say that your portfolio build -up is really good. So that's a side comment from my side. Thank you. I'll fall back in the queue. Thank you.

Thank you.

Thank you. We take the next question from the line of Khushi Jain from Negen Capital. Please go ahead.

Hi, good morning. Thanks for the opportunity. I just had two major questions. One was aro und the SIP flows in the Q1 FY27. So, I think we've just added quite a few distributors but the SIP account we've lost by the time of June end. So, what are your thoughts or any guidance for FY27- '28 regarding the SIP accounts?

I'm going to get Gaurav, our CBO, to answer this for you.

Yes. So, I think SIP as we all are aware, I think the first quarter of this year, we have seen in the industry also that due to the market volatility, we have seen in terms of the higher

discontinuation. I think a bit in the last month it is showing some improvement in terms of that number. As far as SIP is concerned, I think clearly we have stated it earlier, it is part of our core strategy and we continue to make our all efforts to ensure that okay, we continue to strengthen that entire overall piece because SIP overall is a structural stor y as far as India is concerned and we will continue to -- we are continuing to work with multiple channel partners strengthening that entire SIP franchise for us.

Just to add to what Gaurav said, if you look at the total value of the SIP, it's actually grown and it's now about INR41,000 crores in terms of AUM. The SIP AUM has actually grown in value and it's now INR41,000 crores in terms of contribution to our AUM.

Understood. And my next question will be around like what percentage of our schemes that we managed has beaten the benchmark over the last 12 months and the last 36 months?

That data is actually available for you on our website. So please, I would encourage you to look at that. I don't have that number offhand with me, so I don't want to take a random guess on it.

Okay. Thank you.

Thank you. We take the next question from the line of Raghvesh from JM Financial. Please go ahead.

Hi sir, congratulations on a strong set of results. Had a couple of questions. First on the yield side. So, while we were expecting some moderation for the larger AMCs, they have reported no impact of the n ew expense ratio norms. I think it's similar for you guys as well given that the revenue yields have held up. But given that the larger AMCs have been able to cut back but my base case would have been a yield expansion for Canara Robeco. So, any color on that? Have we maintained our distributor commissions while the larger ones have cut and does that translate into higher flows going forward? So that's my question on the revenue side. On expenses side, I had a couple of questions. First on the ESOP expenses. I mean, I think even in this quarter the ESOP program has not been launched. Would you like to give some kind of guidance on when it will be launched and what will be the P&L impact? Secondly, on the -- I think some decrease in cost Q -o-Q, is it totally attributable to the NFO expenses we had in the last quarter and does this return in the next quarter given you're, launching another NFO in the next two to three months? So these were my questions, please.

Okay, I think there are t hree parts to your question. So, I'm going to get Gaurav to answer a couple of them. But on the ESOP one, there's already an ESOP program that is on, which was there at the time of the IPO. And as and when we plan the second round of ESOPs, we will let you know. But I'm going to get Gaura v to respond to your question on yields and distribution commissions.

Yes. So, I think as Rajnish in his comment has already made in terms of our overall strategy on the yield has been -- we have an indicative range which we are comfortable with and that continues -- we continue to achieve that. However, specific to in terms of certain questions which are regarding this quarter and on the distribution commissions, clearly, I think these are our partners and in earlier calls also Rajnish has stated that we continue to work in a way so that it's a win -win partnership with our distributors and these are all long-term relationships. And therefore, with that lens and approach, we have been kind of investing in our partnerships. In the entire marketplace, all the distributors, all the partners are a lso aware the kind of microscopic structure which has been there in terms of the expense ratios and with the recent changes which happened in terms of moving from TER to BER. We have been able to, of course, work out partnerships and in a way so that it remains beneficial for both the partners. And in combination of that, which is both in terms of working on our expenses and working with the partnerships to continue with our sharing with them, it has filtered in terms of margin improvement basis.

Got it. And on the cost with NFOs? So , is it right to attrib ute the additional cost total to NFOs in the last quarter and does it come back in 2Q?

Yes, sir, actually last -- I think it's a fair assumption to make that a lot of the cost last quarter was with respect to the NFO that had come in.

Thank you. We take the next question from the line of Lalit Mohan Deo from Equirus Securities. Please go ahead.

Yes, hi sir, good morning. So just two questions. One, could you spell out the segment -wise yields like ; equity, debt and liquid funds? And so just on the second side , while we have mentioned that we are looking -- we might be looking to launch two NFOs in a year -- in a financial year, just wanted to understand do we also have any plans to launch any fund in the newer space which is the S IF category because a lot of the AMCs are now looking to launch funds within that space?

Okay, so I'm going to get Atit to respond to your yield question, your segment -wise yield, and I'll take the next one.

Yes, so for the quarter, the first quarter segment -wise yield was as follows. Equity yields were in the range of 39 bps to 40 bps. Fixed income yields were somewhere in the range of 27 bps to 28 bps. Liquid and overnight yields were 2 bps to 3 bps. On an overall basis, we were in the range of 37 bps to 38 bps.

And on the space of the product that you were referring to, which is SIF, it's certainly an important product category. It's certainly on our radar, but for us, it's about focus and sequencing it. So, from a sequence perspective, we would make sure that we are launching products on the

mutual fund space followed in the short and medium term with passives and in the short and medium term with SIFs as well.

Sure, sir. Thank you. Thanks.

Thank you. We take the next question from the line of Nilesh Doshi from Prospero Tree AMC. Please go ahead.

Thanks for the opportunity. Am I audible, sir?

Yes, sir, you are.

Thank you, sir. Sir, my question is regarding the quarterly average , AUM. Sir, our quarterly average AUM on a quarter -on-quarter basis increased by only 1% in spite of our 91% contribution from the equity and equity has performed better in quarter 1 ‘27 at least for the small cap and mid cap compared to the quarter 4 ‘26. So why there was a only 1% improvement in the quarterly average AUM because the AMC charging the fees on the everyday , daily AUM and it is not improving. Is it the reason of the underperformance of our schemes or very minimum inflow of the fresh funds, sir? Please explain.

I'm going to get Gaurav to respond to your query.

Yes, sure. Thanks for asking that question and I think let me just take this opportunity to put some color to when you look at in terms of the industry growth and when you look at our growth. So, if you look at the industry growth, I think largely the industry growth has been very concentrated and as you rightly pointed out, few of the categories, some of these categories and particularly when you look at the highest net flows on the hybrid space has been in arbitrage, on the equity side has been in small cap and mid cap. So, it's pretty concentrated, growth which was there. Having said that, I think the way, our growth is positioned and the way I think we have positioned our funds is , how do we get equitable growth ? And some of these gaps as Rajnish also pointed out that we are continuously building up that growth. So last quarter growth is only in terms of from a n industry perspective is and largely when you see its few categories, while in our case what we have seen is that okay, we have other funds also which have grown in our case.

Okay. So can we expect there will be some improvement in the quarterly average AUM in the coming quarters compared to the -- because the only 1% growth will remain the stable -- stability of our income, it will not provide the major growth in the coming quarter. Can we expect the some major growth in the quarterly average AUM?

Well, that's the endeavor of the company. We like to see growth. As you can see that we are focused on two key parameters, which is growth in AUM and profitability. We look at both and

try and balance it out going forward. So clearly both -- we have eyes on both of them. And yes, the endeavor is to keep growing that segment for us.

Okay. And sir, my last question is regarding to SIP. One participant had asked the question about the SIP, but my question is that, we are losing the number of accounts on the quarter-on-quarter, if you compare the year-on-year basis or quarter-on-quarter, we are losing the number of active SIP accounts and so the SIP contribution. What the exactly -- what step -- because in the last con -call also you have mentioned that the some drive has been initiated to reactivate the old accounts or the join the new SIP accounts. But the result is not seen. Are we doing anything specific to reactivate the SIP accounts?

Yes, I'm going to get Gaurav to respond to this.

Sure, I think as we have stated it earlier that SIP is one of the core strategies which we are pursuing and in terms of our SIP initiatives in last call we alluded various initiatives which we are taking. As I'm sure you will appreciate that these are like retail distributions and in terms of the initiative which we are taking, they are -- while they are -- already we have put them into the action, you will see in terms of the gradual results improving there on that side.

Just to add to Gaurav, the initiatives we've put in to focus more on SIPs take time to actually show results. So, we request your patience to see the results coming forward. But we're in the right direction, so we are putting investments behind that strategy.

Thank you, thank you, sir. That's all from my side and all the best, sir.

Thank you, sir.

Thank you. We take the next question from the line of Utkarsh Somaiya from Eiko Quantum Solutions Private Limited. Please go ahead.

Thanks for the opportunity, and I think you've already answered this question, but just can you help me understand the 20% year-on-year growth that you have seen? I believe the break-up of that is around 7% has come from increase in quarterly average AUM , and the balance 12% has come from the yield. So, can you help us understand how the yield has improved given the environment?

It's like we answered, a lot of it is the multiple factors that have helped in building up the yield. Like I mentioned, that TER slab structure also has played a role in that, plus we managed to reduce some of our costs which are part of the TER also. So cumulatively all of this has helped in building our yields up.

Okay. And two more questions if I may. One is, how should we look at your cost-to-income as you scale? Can you help us understand how we could model that? And secondly, you've lost some market share on a quarter-on-quarter and a year-on-year basis. So, do you see that turning or changing going forward?

So, on the cost -to-income ratio, I'll take that question. On the market share, I'm going to get Gaurav to speak -- to take that question. So, the cost-to-income ratio is something that we keep an eye on. We've always maintained that we like to play around 36%, 37% to about 40%, 41%. That's the range we'd like to be in. It gives us room to make investments. There are lots of areas that would need investments going forward. AI is one of them, for example. So clearly that's the range that we'd like to be in. I'm not giving one fixed number but giving you a range. I'm going to get Gaurav to answer the second part of your question.

Yes, sure. So, I think when you look at in terms of the market, I'm sure you'll appreciate that there are a lot of spaces where whether it is in terms of passives and ETFs, that's the combination of the entire market if you look there. While we are more active focused, active equity focused as an AMC at this point of time. As far as our products are concerned, I think in the active equity space, we continuously as part of our strategy continue to work with multiple channel partners and on multiple products. And that's where I'm sure when you look at in terms of our AUM growth, you will find that , it is much more equitable and distributable rather than very concentrated growth. So, while concentrated growth is what we have seen in terms of largely in the market as I alluded earlier when you look at in terms of the larger net flows which have happened in the market. For us, as part of our strategy which is in terms of achieving growth which is much more equitable, much more across the products, much more diversified. So that is the strategy which we have adopted and that may result in some kind of monthly numbers which are not in line as per the expectation, but I think we are more focused on pursuing our long-term strategy to achieve our medium and long-term objectives.

All right, thank you. Good luck.

Thank you. We take the next question from the line of Mohit Mangal from Centrum. Please go ahead.

Yes, good evening and thanks for the opportunity. So, I have got two questions. First is I just wanted to know what is your policy of commission structure? Is it different for banks and mutual funds or is it uniform across distribution channels?

So basically this, it is not information that should or be in public domain. It is unique and it is an agreement one-on-one with each distribution partner. So, to me, that is not something that I can comment on more specifically, but on general basis, Gaurav has already alluded to the fact that we work with partners and we make sure that it is a win-win for both. So, depending on their standing in the market, the assets that they have in the industry and versus the kind of business opportunities we see for ourselves, there is a, an equitable arrangement that we have with each distribution partner.

Understood. Secondly, basically I wanted to know how much has Fintech been important to you because direct kind of is around 27% to 28% of the overall pie. So just wanted to know what is the role of Fintech in this?

Of course, I think as part of our strategy we work with multiple channel partners and that is how which is reflected in our AUM mix across the distributors and Fintech's are also one of our integral important partnerships which we have and that is how when you look at in terms of our direct share which is in line with the industry. So, we continue to work with all our partners across the channels.

Okay. I mean, if you guys just see how much is Fintech as a percentage of direct, that could be helpful?

So, I think that is something which we do not disclose growth and it is not available in the public domain but I think clearly from our AUM mix of across the partners and across the both the regular and direct will give you some color in terms of how we are placed and which is in line with the market.

Understood. Thank you and wish you all the best.

Thank you. We take the next question from the line of Rohan Nagpal from Helios Capital. Please go ahead.

Hi, thanks for taking my question. So, if I just look through the scheme financials that you have disclosed, there seems to be a certain seasonality in the management fee yields across the last three years on financials that have been published and the gap is quite significant north of 10%. So, could you sort of talk through the factors that are driving this seasonality in the yields?

So just a more broader response. We are an equity-focused fund house. So, changes in our market volatility either positive or negative would impact our total AUM as well, right? So to that extent, you could argue that it could be seasonal, but I don't see it as seasonal because we look at long- term trends, right? While quarter-on-quarter is a way to look at it and take a pause, but we are building businesses for long term. I mean, we want this company in a way to survive forever, so to speak. So for us, it is more long term and therefore over the long term it evens out because our construct is 91% equity, you will find a bit more variations that you referred to.

Just I am looking at this as a function of AUM. So I think first half, second half fiscal '24, the yield was 32% and 37%, '25 it was 32% and 37% again, '26 it was 35% and 38%. So I am just trying to understand why the yield itself, I mean, the AUM and the absolute management fee I can I understand, but why would the yield move by that much between the first half and the second half of the year?

Yes, so I think it's also to do with the way you account for it. Yields, generally on a quarter-on- quarter you estimate what the expenses are and in the last quarter is when you actually finalize the expenses. So, you will find that variation coming in because at the end of the day on quarter-

on-quarter it's on an estimate basis and in March because you're closing your books, it's the final number.

Understood. Okay. That's helpful. And sir, in terms of the cost efficiencies which you talked about driving an increase in management , in the yields that you're generating, could you just provide some colour on exactly what these cost efficiencies are? I'm is it fair to assume that these are costs that are borne at the scheme level that are sort of being brought under control and therefore there's more that flows to the AMC?

Yes, they're more related to the scheme levels. So, it's there on the rest of our book we continue to invest in our business, whether it's people or infrastructure.

Understood. Okay. Thank you.

Thank you. Participants who wish to ask a question, please press star and one. We take the next question from the line of Sonal from Prescient Capital. Please go ahead.

Hi, this is Sonal again. I had a follow -up question regarding the equity yields. Given that we move from TER to BER, there is this bump in the yields. Given that the AUMs have been range- bound and the markets have been in range -bound as well, are we expected to hold on to these yields or pass some bit of this to the distribution in the near term, maybe next one year, two years just wanted to understand that?

Yes, so the, I mean, we hope the market will stabilize in the next quarter or two, so we'll see how it pans out. But we do expect the yields to be in the region somewhere in the region of 36 bps to 40 bps in terms of the equity. So, in that region we expect it to be, but it obviously will rationalize out over the period of the next quarter or two.

Okay. Also wanted to understand, not that I'm asking numbers in absolute terms, but if you were to fore sign ourselves onto how much money we leave on the table for distributors, would we be like top of the stack or would we be bottom of the stack basically in terms of how distribution basically deals with us, works with us. If you could just give a subjective comment? that'll help us understand.

So, I think it's, it would be fair to make a statement to say that the mutual fund industry per se is a distribution-led business and therefore they need to be fairly and adequately rewarded for the efforts that they put in. I think we'd like to be competitive in that space, but we would like our funds to sell based on performance.

Got it. All right. Thanks for answering my questions.

Well, I'd like to thank all of you for participating in today's conference calls. I'd like to thank you for your support. I wish you all the very best for the remainder of the year. Good luck and have a nice day. Thank you.

Thank you, sir. On behalf of Canara Robeco Asset Management Company Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your line.