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00:00Motilal Oswal Financial Services. I spoke with a group CFO, Shalivardhara Shah,
00:04and he spoke about the company's growth outlook going forward. Listen into a slice of that.
00:09I think on the capital market segment, what we are seeing is industry first is adding
00:15almost 4.5 million Demat accounts. So that has been the hook actually for the entire growth.
00:21And that Demat account rate is improving on a y-y basis by almost 50%,
00:27which is resulting into a lot of clients entering the equity capital markets.
00:35And more particularly for us, I would say that that entire segment where we are adding a lot
00:42of clients is now of course getting positioned as a wealth management segment for us.
00:48The focus is actually to not only gain market share on the volume side,
00:56but also build a large revenue market share model.
01:00There we have actually been very successful if you see the growth rate for us. We've grown
01:06actually on a y-y basis by 70%. Of course, sequentially the quarter was largely flattish
01:12because April and May were slightly slower months, but I think the entire momentum has
01:17caught up from the June month where we are seeing a lot of base expansion and even a lot of growth
01:23in our distribution assets because that has actually grown well, which is the next trigger
01:29for us. And those assets have actually grown 59%, which is our annual recurring revenue assets
01:36on a year-on-year basis. The focus continues to remain for us
01:41as an advisory driven house, that is our strength. Our strength has been equity advising
01:45and that model has been very well time tested for us, which is building the growth.
01:54Okay. Just talk us through, you know, how one should look at the wealth management lever
02:01therefore. You're likely, my understanding is you're tapping into clients from capital markets
02:08to venture more into wealth management. And as you make that journey, the numbers for wealth
02:15management are starting to add up and reflect. Talk to us about what, what are the constraints
02:22in this industry? That's point number one. Is it a lack of good relationship managers?
02:28What is it that you are facing in terms of constraint and what's helping you stand out
02:31and grow so rapidly? Yeah. So clearly, I think this segment is a segment of
02:39mass affluent customers and typically more HNI clients also for us because we typically see where
02:4710 million plus is typically the demand average ticket size for our clients. 70% of our AM is that
02:55today, I think. So there are two kinds of players typically in the market. One is the discounting,
03:01discount brokerage houses, basically who are into the platform model where typically execution
03:08is the key through the app. And the second is basically players like us who are very well
03:13focused on building advisors and building the relationship with the client because client
03:19needs are also changing only from a transaction driven approach to more investing. And that is
03:26where we are positioning ourselves as a trusted advisor for our clients. So we've built this
03:32advisory model with almost 2000 advisors in this segment, which is catering to a base of almost
03:409 lakh active customers. And today, I think the challenges are really for the industries
03:49from a regulatory perspective, what is coming in because a lot of regulations are under revisited
03:56by SEBI. And basically what is happening is that a lot of this is changing the play model for the
04:04discount houses also because the players like us would better the competition intensity because
04:10the regulations are more towards a lot of these discount houses actually announced
04:15increase in the pricing also, whereas we are already on the full service pricing model.