My first question is in terms of net flows. I think we had a very good quarter with around 15 -odd billion of net flows. But having said that, I think majority of them came from the Quant Fund that we launched in the quarter. So can you explain your strategy if you would launch new NFOs in Financial Year ‘26?

So Mohit, we have recently got a regulatory approval to launch a multi-cap fund, and that fund is already open for subscription from 29th of April till 13th of May. Apart from multi-cap fund, we don't see any pipeline as far as the diversified equity is concerned. There will be some launches on the ETF and the index fund, depending on the appetite. But apart from that, on the diversified equity fund, we don't foresee any NFO launches.

All right. My next question is towards the tax rate. So we saw a very high tax rate in Q4. What was the reason for that?

Q4, I think overall tax rate, if you compare, it is because of a change in the deferred tax liability on account of the budgetary regulation change where the indexation benefit was withdrawn. Because of that, the taxation rate has increased by almost around 2.3%.

Okay. But going forward, from '26 onwards, it will be normal tax rate, right?

Yes, on a book rate, we see in the range of around 23% to 24%.

23% to 24%. Okay. Lastly, in terms of yields, how should we see that going forward? And if you could spell the yield for equity, debt and liquid for the quarter?

So as far as the book yield is concerned, equity and hybrid fund, our book yield is close to around 75 basis points. Equity and Index fund is around 5 to 6 basis points. Cash around 9 to 10, and income fund for around 22 to 23 basis points. So the weighted average yield is around 34 basis points. Going forward, we expect maybe a dilution of max to max 1 or 2 basis points in yield, mainly because of the higher proportion of ETF AUM that we have. And we continue to receive very high inflows on the ETF and the index fund. Because of that, there might be an equity dilution of around 1 to 2 basis points.

Thank you. We have our next question from the line of Parth Agarwal from Bastion Research. Please go

I have a question regarding the Opex cost, which has increased significantly this quarter. Is it attributed to only NFOs? Or is there any other reason?

It's not actually NFO. Just to highlight that over the last 15 months, we have opened more than 91 branches. Some of those branches were opened in the previous quarter. Some of those renovation expenses to open these offices have come into this quarter. On an aggregate basis, if you see, in spite of opening of 91 branches over the full financial year, on a year -on-year basis, the overall other expenses have increased by just around 6%. We have been able to rationalize the cost on many other aspects. And in spite of the number of branches increasing from 164 to 255 as on 31st March, the operating expenses are well under control.

So can I expect this ₹ 90 crores of run rate to continue in the FY '26 as well in subsequent quarters? Or is there a possibility of it getting normalized?

No, I think, 7% to 8% inflation increase on these numbers, you can assume.

These number means FY '25 numbers or quarter 4 FY '25 numbers?

No, the overall FY '25 number.

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

Sir, just 2 questions. Firstly, on the international side. So we have seen some decline in the AUM side of it. So is it majorly on account of the M-to-M losses? And how should we look ahead for FY '26 and FY '27 in the international business?

So the major decline, yes, both on a quarter-on-quarter basis as well as on a year-on-year basis has been a mark-to-market impact in 2 of our main fund - UTI Innovation Fund and UTI Dynamic Equity Fund. With respect to the outlook, I think Vetri, you may take up.

Yes, I think we are continuing to see good engagement from institutional investors showing interest in India. So hard to give any guidance on exactly what the numbers will be, but I think we are quite encouraged by the trend of conversation we are having w ith global investors who are looking for investment products, which can allow them to participate in Indian equity markets.

Sure, sir. And sir, on the employee side, so we have seen some additions in the employees in this particular quarter. And also on the employee expenses, like on the stand-alone side, we have seen some decline for this whole FY '25 on an annual basis. So how should one read into it for FY '26 in terms of cost as well as new headcount additions?

The guidance that we have given in an earlier call as well, at least for the stand -alone entity, for FY '25, '26, we don't foresee our employee cost rising more than 300 basis points over FY '25 number in spite of annual wage hike of 7% to 8% in this partic ular year. On a consolidated basis, this number could be around 150 to 200 basis points more, primarily because we are investing heavily in all the 3 subsidiaries. UTI International, as Sandeep rightly pointed out, we have expanded our pr esence in Europe as well as U.S.A. So there might be some additional headcount recruitment over there. UTI Pension Fund, we are expanding our POP business. There also, the headcount of employees in the FY 24-25 has increased by almost around 40, and we expect a similar run rate to continue. So on a consolidated level, the employee cost on FY '24 - '25 number could increase by around 400 to 500 basis points. But on a stand-alone, we believe that it should be in the range of around 250 to 300 basis points. And this projection number does not include any additional ESOPs, which may be granted by NRC in this particular financial year.

Thank you. We have our next question from the line of Prayesh Jain from Motilal Oswal. Please go ahead.

Just a couple of questions. Firstly, our fund performance seems to have improved in the last few months. When do you think we should start seeing some improvement in market share on the equity side? We still -- on a quarterly basis, we still have seen a decline in market share, right? Or this was just about steady market share, so when do we see an improvement in market share on equity plus hybrid?

This is Vetri here. So good question. As I said earlier, for the full year, almost 5 7% of the equity hybrid AUM is in quartile 1, quartile 2. And when you look at it sequentially, it sort of keeps improving as you get closer to the end of the year. In our experience, normally, you need at least a 12 -month strong number to start turning the corner, which I think we saw in the last two quarters, we started to see that inflection point. And the strongest numbers typically show up 18 months, 24 months into the cycle because remember, for many people, including gatekeepers who approve products, typically, the 3-year number of performance is what actually plays a very critical role in their filtering. Not each and every individual, but many of the platforms, many of the gatekeepers and distributors typically tend to look at 3 years. So we would expect that during the course of this year, we'll certainly be well into the 18 -month, 24 -month period, there should be a significant improvement in those numbers. And anecdotally, we already know that some of the products have received new approvals at different national and banking partners. So all of that will contribute, we hope, to a gain in market share during the course of this year.

Any indications on your existing schemes apart from NFOs, what has been the flow trajectory, whether it's been positive and what will be a flow market share except NFO?

Sandeep here. We have seen good traction on our hybrid funds also, and that is reflected in the net sales that we have seen in our hybrid funds. That is one positive, which is there beyond the sales which are coming in our equity NFOs. Also, our large and mid-cap has seen good traction in the last financial year. So these are some of the funds which have done well for us in the last year.

And just to add to what Sandeep said , Vetri here again. For a while now, our focus has been largely on trying to get investors to look at the hybrid solutions for a variety of reasons, our view on valuation, our view on the best way to navigate volatility and also sort of make the investor journey smoother. That's been a big focus. And I would say a significant part of the traction we have seen in turning around flows during the course of this year has actually come from the hybrid funds.

Generally, with fund performance, you need to have your sales force on the ground really gaining traction and initiatives by the company should be. So any new initiatives on the sales front that you guys will be taking to capitalize on this improvement in fund performance?

No. See, so far as the sales is concerned, as Vinay mentioned, we have opened large number of offices. Our interactions with all channels of distributions like Bank as a distributor or national distributors or MFD, very intense conversation we are having. And we have seen the inflow in the previous year, the last financial year, in almost in all our equity schemes. So backed by the very good performance, our track record, consistency in the team and very able, now sales team on the ground with our great relationship, we are quite confident that going forward, our sales number will be quite better.

Just a clarification on the employee cost front, what you mentioned was the stand-alone employee cost would go up by 3% Y -o-Y. And on a consol idated basis, it would go up by 5%. Is that the right way to understand?

Correct.

Thank you. We have our next question from the line of Dipanjan Ghosh from Citigroup. Please go ahead.

Just a few questions from my side. First, on the SIP flow number, just for you guys, can you just kind of split it between different channels or a ballpark qualitative understanding of that? And second, on these lines, when the market has seen some margina l dip in the SIP number, be it in terms of gross flows or new registrations, how has been the trend for you across channel partnerships or customer cohorts? If you can give some color on that? And the second question, when I look at -- and this is not for the quarter, but annually, when I look at your RTA payouts, they're significantly higher than what I look at it for peers. I just wanted to understand, is there some other additional work that the RTAs are doing for you? And can there be some headroom on that part over the next 2 to 3 years?

RTA payout, you are seeing on the AMC financials?

Yes. On the AMC financials.

On the scheme financials, basically, when I do the bottom-up from the scheme accounts?

So scheme financials, I think all these rates are pretty much standardized across industry players. So whatever dissection you do across categories, I think we are pretty much in line with the industry players.

On the SIP flows, we have seen marginal, but continuous increase in our monthly SIP inflows throughout the Financial Year ‘25. Our SIP gross sales and folio account on a year -on-year basis have also grown by around 23% and 14%, respectively. So we still have some comfort level there. Our focus right now is on the on-ground activation for education around the long-term investment in SIPs. If you look at the share by the channel, the highest share in SIP flows was from the MFD chan nel, which is about 51%, followed by direct and RIA channels, which are in the range of 15% to 20%. If you look at the 4 quarters, the contribution of the direct channel to SIP flows remained at around 17% to 18%. And in absolute number, there has been a continuous increase quarter-on-quarter basis. We have similar trends in other channels. So for UTI, there hasn't been really a slowdown in the SIP numbers.

Thank you. We have our next question from the line of Abhijeet Sakhare from Kotak Securities. Please go ahead.

I have a couple of data questions. So when I look at the UTI International financials, there is a sharp drop in investment and other income line from ₹ 112 crores to ₹ 31 crores. I wanted to understand if all of this is due to the mark-to-market impact only. And this is in context of the breakup of your own investments, right? When I look at that number, it's close to about ₹ 600 crores. So in that context, that decline in investment and other income seems to be a pretty sharp drop. So some clarification there, please.

Yes. So out of that ₹ 600 crores, only ₹ 450 crores is actually invested into equity funds, majorly into UTI Innovation Fund and Dynamic Equity fund. And ₹ 108 crores is actually a sovereign ETF fund and Balance Fund. You don't have any mark -to-market issue as far as the ETF is concerned. But both on Innovation Fund and Dynamic Equity fund, you need to appreciate that apart from the market impact, there is also a currency impact. Currency has fallen sharply over the last year & so and especially in the last quarter. It's actually a dual impact of market depreciation as well as the currency impact. So the entire impact in the investment income is primarily because of mark -to-market impact in UTI Innovation Fund, Dynamic Fund and UTI Balance Fund, which the company has i nvested as a seed capital investment into these funds.

And second, again, on the international business, is it possible to share what is the staff count just for this entity?

Standalone or quarterly basis?

The number of people in the international business. Number of employees.

30. It's close to around 30.

Okay. Got it. And sir, just last one on the yields. You mentioned it's about 75 basis points. But now given that we are expecting flows to recover, going ahead, do you expect any drop in realizations in the equity side?

Yes, some dilution could happen. We have also rationalized some of the distributor commissions, older AUM, which had been impacting our margin over the last 4 to 5 years and market has corrected. So that rationalization we have already carried out. We believe that rationalization will cushion some of the decline in the yield that may happen because of fresh inflows under equity and hybrid fund.

Got that. And again, on this point, sir, is it possible to quantify what would be the amount of savings because of the commission cuts? And are they already fully reflected in the numbers?

No, these are not reflected. This is implemented from this particular quarter. This will be visible in the next quarter in earnings. Difficult to quantify, but the only guidance that we want to provide is that this will provide some cushion in equity yield dilution going forward.

Thank you. We have our next question from the line of Krunal Shah from Enam Investments. Please go ahead.

So my first question is regarding the UTI Retirement and UTI International business. So if I see the operating expense of these 2 businesses, it has gone from ₹ 135 crores in FY '22 to around ₹ 221 crores in FY '25. So that's a sharp jump. Simultaneously, the revenue has not increased too much. So just one point I want to understand is where will this cost stabilize? And what is the kind of return that we're expecting from these costs that we're incurring?

So I will take these 2 questions separately. On UTI International, some of these operating expenses have increased because of our branch expansion in Europe and U.S.A., where there have been a onetime establishment cost as well, including the very high compliance c ost. Those expenses are already being factored into. We believe that for FY '25 '26, this should grow at a similar run rate only. In terms of monetizing when these expenses will actually result in revenue, I think, we are already in discussion with a few of the partners. And once the fresh inflows come, this investment will actually justify. With respect to UTI Pension, I think, you need to understand that out of 3 basis points that we are earning from PFRDA, 1.5 basis point is paid back to PFRDA as marketing activity. So this 1.5 basis points that we are paying back to PFRDA is actually coming as an other expenses, and these expenses keep on increasing in line with the AUM movement. So since UTI Pension has seen almost 18% to 20% increase in the AUM, that has resulted into increase in other expenses. Also, we are expanding our geographical presence for UTI Pension Fund. We have already opened 41 branches, which are part of UTI branches only. Because of that, at a UTI Pension level, some of these Op ex costs are on a slightly higher side. But this particular business generates revenue. As you can see, almost around ₹ 55 crores to ₹ 56 crores of profit is being contributed by this particular entity at a consolidated level. I hope I answered the question.

Yes. To some extent, yes. So just one point on UTI Retirement. So our share of the business in terms of the AUM has gone down from like 25.8% to 25%. But my understanding was that you are supposed to get a fixed amount every time from PFRDA in terms of AUM flow. So why our share has declined in that case?

No, there are 2 type of allocation. One is for the public sector employees, another which we grow and market from the private sector. From the public sector, this generally is defined in the beginning of the year for the full year. But so far as the market is concerned, it depends upon our marketing and the sales capability.

Okay. So this is, sir, in relation to the private sector, wherein we have not had the same share as in the government business. Is my understanding correct, sir?

Yes, You're right.

Okay. Okay. And one last question. So we incurred a Capex of around ₹ 50 crores in FY '26. Could you just help me understand on what expenses this Capex was incurred?

As highlighted earlier, we opened 91 branches over the last 15 months. Major part of these Capex relates to those offices. Plus , in FY24 we have upgraded our IT infrastructure. There are some Capex costs relating to IT infrastructure as well.

Okay. So from next year onwards, will this cost go down significantly now, the Capex amount?

Yes, the Capex amount should go down. I don't think we will be opening such high number of offices in FY '26. But on the Pension Fund, since we are expanding POP business, there might be some Capex cost on the pension fund business.

Thank you. We have our next question from the line of Vineet Nandwani from NJ India Investments. Please go ahead.

I just had 2 questions. So first one is that can you elaborate on the net gain on fair value changes. So like weren't there M-to-M gains on the debt investments in this quarter?

So this quarter, the major impact in M-to-M investment is actually coming from UTI International, where we have a mark-to-market impact of close to around ₹ 65 crores. As I highlighted earlier, mainly in 2 of our funds, UTI Innovation Fund and UTI Dynamic Fund. On the AMC balance sheet, I think the impact is just around ₹ 2 crores. But at a consol idated level, the major impact is actually coming from UTI International.

Okay, sir. And sir, just for Q4 FY '25, can you help me understand how is the core PAT being calculated from the PAT attributable to the owners of the company?

Yes, core PAT is your management fees minus the total expenses excluding minority interest. It does not include your investment income.

The first question, on performance. I just want to understand as to how do we plan to sort of sustain the strong performance over a longer period of time, given the fact that historically, we have seen some larger AMCs with episodes of strong performance followed by some deterioration.

Sure. So Vetri here, I will reply to that. So one of the things that we've been conscious about for a while now, I would say, is that while we run with one investment process on the equity side, we run schemes, which are actually quite different from each other in terms of their pos itioning. And when I say positioning, not just the SEBI grid, but literally from a style perspective in terms of their positioning. And one of the reasons why we do that is to be able to always at any point of time, irrespective of what the market season or market cycle is, you have differentiated strategies, which for investors who are looking at what's doing well in terms of the tables, wherever their choice of looking at fund ratings are, there is always some UTI product, which is appearing over there. Our thought process over there is to always segment the market in terms of saying whatever be the cycle of the market, these are the strategies, which could be aligned with what is doing well in the market, which could be products you would wish to look at. But from a communication aspect, what we also do is based on our fund management view, have a clearly articulated go-to-market strategy, which positions the funds which are backed by performance at that point of time, and simultaneously talk about the funds where we think the cycle might turn favorable in the future. Because what we have seen over a period of time is that as the market gets more evolved, we are seeing distribution partners, advisory partners approach the business very differently. One, they want funds, which will run strictly as per the mandate. So once they understand the positioning, they understand the cyclicality. But they also want guidance from us in terms of where we think funds with current weak performance could turn around. So this is part of our template now of saying how do we sort of de -risk the business model, de -risk it by having diverse strategies and talk the language of performance and opportunity in the marketplace at all points of time.

Understood. That helps. The second question is to Vinay sir, just a clarification. You mentioned equity yields could sort of contract by about 1 to 2 basis points in the next year, right?

No, I said overall yield of 34 basis points, that might contract because of the growth in the ETF and the index business.

Okay. So you mentioned the overall yields and not specifically equity?

Yes.

Thank you. We have our last question from the line of Apoorv from Whitestone Advisors. Please go

No, I don't think that. Even the operating income has actually held up. Apart from mark -to-market depreciation, there have been no impact as such.

This was the last question for today, and I now hand the conference over to Mr. Rahman for closing comments. Over to you, sir.

Thank you very much, and thanks -- I would like to thank all of you for your participation. Thank you.

Thank you.

Ladies and gentlemen, thank you for joining the call. In case of any queries, feel free to connect with Adfactors Investor Relations team. You may now disconnect your lines.