Q2 20/21

Oct 27, 2020

And welcome to the CDSL India Q2 FY 'twenty one Earnings Conference Call hosted by Access Capital Limited. Please note that CDSL does not provide specific revenues or earnings guidance. Anything said on this call, which reflects CDSL's outlook for the future which could be construed as forward looking statement, must be reviewed in conjunction with the risk that the company faces. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Aditi Baghul from AXIS Capital Limited. Thank you, and over to you, sir. Thank you, Stanford. Good morning, everyone. On behalf of Axis Capital, A very warm welcome to the Q2 FY 'twenty one conference call for CDSL India Limited. At the very outset, let me just take this opportunity to congratulate the entire team of CDFL for a spectacular Q2 performance and consistently so. So to take us through the nuances of the results, we have the senior management here, represented by Mr. Nehal Borov, Managing Director and CEO Mr. Girish Ameysara, CFO Ms. Naina Ovelkar, COO Mr. Sunil Alwaras, Chief Operating Officer, CDSL Ventures Limited and Mr. Nilesh Kippur, AVT. Now without taking too much time, I will hand over the call to the management For their opening remarks, post which we will open the floor for Q and A. Thank you and over to you, Nehal sir. So first of all, I would like to thank the AXIS for setting up this call. I would like to wish everyone a very, very good morning. I welcome you all to the CDSL's quarterly conference call for quarter ended December 30, 2020. And I trust that all of you and your family members are safe and sound and secure. I am joined on this call by the other senior members of our executive management team who will who would be all happy to address any questions that you may have. So for the call, I would like to first start at really at the Macro theme, CDSL continues to promote the idea of Atma Nirbhagination, which is the self sufficient, Ing investor. The increase in the number of DMed accounts Created in this quarter is the highest in the history of the company. We are happy to be the place as well as a market infrastructure institution from a depository standpoint where the investors prefer to go. And that is driven by 2 key things. One is that we would like to focus on the Software and Technology, we would like to make it as easy, secured, for all people to connect. And the second big theme is that our systems and our platforms would like to make it as easy for the users So that they can do it themselves. And for us, these are the 2 key themes on which we would be Building our future business. So as we all know that financial numbers is something Which is kind of a byproduct of the work, the platform and the services which we are doing. And our constant effort and endeavor is to ensure that our technology is new, is kind of Sound, safe and secure, for which more and more people, I think, we have just really scratched the surface where More and more people are wanting to join the securities market ecosystem and we believe that our Main effort is to create a safe, secure and convenient platform. Our hope is that Our financial numbers continue to grow, but our main focus or our main theme It's more than the financial numbers. It should provide a sustainable, consistent, safe and secure platform where Really, the people at large can come to and really create that trust among the securities market ecosystem. In terms of talking about CDSL's business in the last quarter, CDSL has seen a volume increase in the number of DMAT accounts. We have added around 29,000,000 DMAT accounts in the last 3 months, taking the number of DMAT accounts to 2.61 crore, we've become the largest Depository for some time now in terms of the number of demat accounts and we continue to grow. Our effort and endeavor is again to create a safe, secure and convenient platform for which more and more people would In terms of our distribution platform, CDSL has around 5.93 deposit cardiables, It's already available in around 20,500 locations, which are across the country. This represents around 94% to 95% of the pin codes. And this is steadily growing Even though we have practically covered the entire span of India. These depository participants consists of all parts of the securities market ecosystem, be it clearing members, banks, custodians And Beyond Banking Finance Company. We have also continued to bring in new services In line with the requirements which are there in terms of the current COVID-nineteen, We have been successful in creating a service where all these annual general meetings Can be held for the video conference facility and CDFL is very proud to announce that a large number of companies have used And continue to use our services for creating the annual general meeting platform with the video conference facility. In terms of the size stack, the subsidiary service of to vote to an POC service is also growing with each passing day. With this, we have also created some kind of Value add services for the company where we help companies communicate with their shareholders by providing an e mail service Where they can forward their requisite documents to the shareholders in a safe, secure and convenient manner. So with this, I would like to give these are my Brief comments. So just before I hand it over to the Chief Financial Officer, I would like to thank All the stakeholders, be it the existing customers, DCs, issuers, regulators, As well as the entire CDSL team of the employees who have worked very hard during these unprecedented times And ensure that the company continues to grow. So with these words, I'll hand it over to the Chief Financial Officer to take us to the Thank you. Thank you, Nehal. Good morning, everyone. Speaking on our financials, we have seen a healthy growth in this quarter with an year on year increase of 68% in our consolidated net profit. Total income on a consolidated basis for the quarter, September 30, 2020, has increased by INR INR 32 crores, which is 46 percent INR 101 crores compared to INR 69 crores for the quarter ended September 30, 2019. Similarly, the net profit after tax on a consolidated basis for the quarter ended September 30, 2020, is increased By INR 19.81 crores, which is 68 percent at INR48.87 crores from INR 29 crores for the Quarter ended September 30, 2019. Now talking about standalone results. Total income on a standalone basis for quarter September 30, 2020 has increased by INR 26.5 crores, which is 51% At INR 79.15 crores from INR 52.58 crores for the quarter ended September 30, 2019. Similarly, the net profit on a stand alone basis for the quarter ended September 30, 2020, has increased to Increased by INR 16.11 crores, which is 73% increase INR 2.38 crores from INR 22 crores for the quarter ended September 30, 2019. With this, I will hand over to Sorry, Sunil Alwaris to give an update about the operation of our wholly owned subsidiary, Mesos CDSL Ventures Limited. Over to you, Sunil. Thank you. Hi. Am I audible? Yes, sir, you are. Yes. A very good morning to all of you and a warm welcome to all the participants this morning. I am Shameel Alvarez, the Chief Operating Officer of CBSL Ventures Limited. We are very happy to inform that due to the extremely buoyant market conditions, CEL's KRA volumes increased by 117% as compared to the first half of FY 2020. The number of KYC Can you just speak up a little bit? Yes, sure. The KYC records in CBL increased from Lakh 14.57 lakhs to sorry, to Lakh 14.57 lakhs from Lakh 6.7 lakhs To close at 2.43 lakhs as on 30 at September 2021. Record that you have fetched increased from 26 increased by 26.11 percent from Lakhs Sorry, 2.35 lakhs from 28 lakhs. The CKYC record what we processed, there was a marginal dip to Lakh 5.84 lakh from Lakh 6.74 lakh. The number of RTA companies which we have serviced on a cumulative basis has increased to 539 as of 30th September as compared to 296 companies as on 30th September Got 2020. We are also processing the Didu claims of BP and JJB Wise Scheme, which has Increased by 109%, that is this year we processed to the first half 50,910 record As compared to 24,350 records. Coming to the financials of Q2 FY 2021 as against Q2 FY 2020, the revenue from operations In Q2 FY 2021 increased to INR18.65 crores from INR13 crores. That was an increase of INR5.65 or 43.46%. The total income increased from INR 16 crores to INR 21.08 crores. That was an increase of INR 4.97 crores or overall 30.97%. The overall expenses, which were INR5.98 crores increased to INR7.18 crores in this quarter. And the profit after tax for this quarter was INR 10.54 crores has a gain from INR 7.61 crores. That was an increase of almost 39%. With this, I'd like to hand over the mic back to Axis Capital to take the meeting forward. So shall we open up for Q and A? The first question is from the line of Kunal Dhanvi from Banyan Tree Advisors. Please go ahead. Yes, thanks. Thanks, Niyal, for the opportunity and many congratulations to the entire team for a very good performance. And I hope everybody is safe and fine. My first question relates to I just wanted a sense on granular revenue breakup. I understand that we have put in this time around in the presentation between, say, transaction charges and annual issue charges. I wanted to understand more in terms of How much it came from, say, IPO and how much was from Sledge? And specifically in the Sledge business, what was the contribution of onetime Sledge revenue? What was what is something that is a recurring revenue that occurred in the quarter? And second question is on if you look at For the presentation, we have talked about increase in the debtor provision. So can you just throw some light and give some color on how Could one read into it, whether it is one time acceleration and how what would be the normal run rate for that? And the third question is on the National Education NAD, which we had dropped. We were not given that Project from the government in large financial years. However, I hear that CDSM still is trying to monetize the same project. Any thoughts on the same would be really helpful. Thanks. Yes. Okay. Thank you for the question. On your first question, I'll ask the CFO to answer. But before I go on to him, I'll just give you a broad perspective that The new system of the margin pledge is more is not very One time income, please. It's a new way of where the securities market is. Sir, can Yes. So you can hear me now? Yes, sir. Yes. So in terms of New system, it's a new way of doing business in the securities market in terms of the way The securities would be pledged. And this is expected to go on As a normal routine income basically every month, you do not provide Because these are just very basically the early times as to how much would be the trends on that. So it's part of the overall income which we are taking. Matt, the first so before I hand it over to Sifu to give you more of the details, I'll answer your I'll answer basically the other question you had in terms of the provision. So I think on the whole, the provisions we've had reasonably in terms of the times which we are in, There has been some amount of slowdown in terms of the Operates in which they have to pay the fees to us. But we are very, very hopeful because as we have seen Towards the later part of the quarter, a lot more companies have actually come back and speak to us. So there is really a standard update in our process that if we don't pay the fees, there are certain kinds of VAT actions which would be placed. So we are hopeful that probably it will be slightly late. So in terms of ensuring that the financial statement that True Other gives increased The provision, but we are hopeful that by the end of the year, we should be able to be at the same levels as has been in the previous years. So the first query, I'll hand it over to the CFO. And then after that on the Zumrada Labs, the operator will answer the question. Sure. Thank you. So at the outset, I had informed that total income is INR 101 crore, Out of which INR 89 crores is total operating revenue, which is 88% of total income. The breakup of operating revenue is transaction charge of INR 31 crores, which is 34% of operating revenue. Annual issuer charge of INR 22 crores, which is 24% of our total operating revenue. Then comes online data charges, which is pertaining to CVL, which is INR 13 crores, 15% of total operating revenue. IPO corporate action is around INR 7.8 crores, which is 9% of our total operating revenue. E working charges are INR 4.38 crores, which is 5% of our total operating revenue. And the statement, cash statement that we send, which is around INR 1.85 crore, which is 2% of our total revenue. This covers almost 90% of our total revenue and remaining are other charges. I hope I have answered your question. Sure. That is helpful. Yes. Is the third question we answered by Sandeep? Yes. So far as the National Academic Depository Project is concerned, you may be aware that The MHRD and UTC have now appointed DigiLocker to implement this project. So both the deposit, we will not be handling this project anymore. But since we already have some cost and we have a domain expertise of almost 10 years on this project, we decided to offer our services as a private service provider to many of the academic institutions, primarily because When we used to visit these academic institutions to admit their evolved into the Into the academic depository, we found that many of them required help in creating the awards, etcetera. So we are looking at as an opportunity to You provide our services as a private service provider. And so far, we have About 10 academic institutions have shown their interest and signed up with us, which we think is a good beginning on this. How many academic institutions? Sorry, I missed that. So far about 10 have signed. Okay. So basically, we'll be charging for it, whereas DigitalOperator and The government, they won't be charging it. So it could be the service that would differentiate us from them. That's So in case we sign up anybody, they have to accept our charges, only then we will be onboarding them. Sure, sure. That is really helpful. I'll get back in the queue. I think that I have done it. Thanks. Yes. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference call, Please limit your questions to 1 per participant. For any further questions, you may come back for a follow-up. The next question is from the line of Varun Goenka from Nippon Mutual Fund, please go ahead. Yes. Good morning, everybody, and Hardi, congratulations for such super set of numbers for last 6 months, I mean, for both the quarters. I had two questions. 1, If you could again come back to the same answer we've been asking you for last so many quarters, Why is CDSL really accelerating its market share versus our peer? What is it that is working for it? Maybe some comments on the systems or where is the market share coming from? Maybe some of the newer age brokers, Are we gaining share there? Your comments will help. And secondly, our annual issuer charges, I think they get They come up for revision every 5 years and that is next year. Some comment there will help. Yes. So on the first one, as I answered in the last investor call, we are a market infrastructure institution. Our intent is to create Most of the dedicated technologies have easy to use services and platforms. So how many people would like to use would be the value add or the value which they see in our platform Vis a vis the, basically, other platforms. So where we see ourselves, Yes, we are our focus as well as is to ensure that we give the most Sophisticated services and platforms at reasonable cost and try to create more of a value Proposition for anybody who is wanting to come within our platform and that is In my considered opinion, and this is a personal opinion, is the reason why more and more people are wanting to come and come on to the CDSL Our focus is not to increase the number of people, but to ensure that our platforms remain They're secure and they will be easy to use. And what is Access in terms of volume of people wanting to It's kind of leading on because our intent is to create the safe secure platform which we have. That's number 1. In terms of the issuer fees, this is something which Aditi would have to take into Consideration, yes, we are due for an increase. But I don't know whether In the circumstances which we are in, where most of the companies have not really grown to the extent that they should have, Whether we would want to increase it in this year or we'll have to see whether we'll postpone it by some time. So that is something which we believe is within is not within our control, it's within the control of Ready. But however, our focus as well as our intent is that we continue to basically More and more companies onto our fold so that even if the revenue remains constant, the I'm sorry, Even if their rate remains constant, the total income would continue to grow. Right. And just to clarify on the first point of CDSL gaining share, are there any particular measurements that You benchmark against, for example, turnaround time in account opening. Is yours significantly better versus the peer Or the downtime in systems much lower than the peer? Is are there any There are Yes, yes. So basically, there are various means in which we will be constantly seeing the systems are Really creating the value for the person using it. And it will be difficult to really let down each one of them. It's more of creating a platform and an ecosystem, which constantly creates value per person at a low cost. And I think that's really our focus as well as basically our endeavor. We have an inclusive approach. So the number of deposit participants, for example, Yes, CDSL. Our power is higher than our competition. So our intent Ecosystem. And let me see, I'm constantly I'm sorry, your last point was not completely audible. Your voice is cracking. If you could repeat that, please? I'm saying the number of deposited participants, which we have here is far higher than our competition. So we have basically an inclusive approach. So again, our focus is to ensure that we create A technology platform which is easy to use, safe and secure and then kind of leave it to the market So really figure out where the table find more value involved. Sure. I'll come back in the queue with more questions. Thank you so much. Thank you. The next question is from the line of Anand Latta from HDFC Mutual Fund. Please go ahead. Sir, am I audible very well? Yes, you are. Okay. So just wanted to understand on the transaction revenue, so can you give some color like what was the number of transactions we had this quarter And vis a vis the number of transactions that the overall market has reported, how has been our trend in number of transactions? Like what was the number of transactions we did in Q1 what was the total number of transactions in the market? And is there any way can we capture this data in terms of number of transactions happening in the market? First thing was that. Second, of the INR 2.6 crores demat account holder, what is the active demat account we have? And how this number was in Q1 and same quarter last year? How this number was? Okay. And And lastly, on the pledge revenue, sir, if you can quantify how much was the pledge revenue this quarter? Yes. So in terms of transaction revenue is a mixture Of many, many things, it's not only the unbound of transfers which take place. It's so it will be difficult to Quantify and put it as one single number because that will not lead to the proper conclusion in terms of the growth because it's a mixture of many, many Such variables which are out there. So in terms of that, in terms of the number of the demat accounts, We grew at around 29 lakhs in this quarter, around 90 Well, DRAC was in the previous quarter. And in the last in the same quarter last year, It was basically, I think around 7 to 8 less. There has been Significant number of VMAT accounts which have been opened during this period quarter. And as I mentioned in my speech, This has been really the highest number of beem accounts which have been opened in a particular quarter. Yes. So your third question on the revenue of the pledge margin pledge. I think as I said, it will be very early times. It will not be fair to really put out those numbers because this has only started on the 1st September, which is 1 month into this 20 Club. And what we give He is kind of a fixture in terms of the transaction revenue. I will tell you to the CFO if we can get any So in terms of active Demat account, you didn't indicate that. Of the 2.6 core Demat account we have, how What proportion is activity mat accounts on that? I think a significant portion would be early activity mat accounts, significant portion. No, we don't have an actual number which we put out, but it's a very high number, which is really And so on the transaction charges, does the transaction charges also include the hedging charges or this I'm sorry, can you come again? The transaction charge of 30 odd Kotu pizza, which we have reported, Does this include the pledging charges as well? And what are the other variable charges in the transaction charges? So apart from the transfer charges, Present is included and what other I'll ask, I'll ask to answer it. So the margin plate charges are including in the transaction charges revenue that I had shared earlier. And if you look at our website on the charges, you will come to know what all are included in the transaction charges. It's a quite long list. So I would request you to go to the website. So I think that it can just name 2 or 3 names the ones with Hello? Yes. That's okay, sir. That's from my side. Thank you. The next question is from the line of Prakash Kapadia from Anaveat Portfolio Managers. Please go ahead. Thanks for taking my question. Congrats to the entire team for the good work, which has been continuing for last many, many quarters. I had 2 questions. 1, if I look at our OpEx, it is down around 3% in the first half. So Apart from employee cost, any major items which are seeing a downward trend and where we've negotiated some of the Appreciated some of the costs due to the COVID, if you can share some insights. And second half, how do these Costs look like. And secondly, despite we seeing a robust 67%, 68% Profit growth, our cash flow from operations in the first half is just up 28%. So any specific items which are In nature and will reverse in the second half and cash flow also should improve in the second half or by the year end? Yes. So I would just ask CFO, Jerry, if you can answer those two questions. With respect to the 6 months expenditure that you are comparing, if you recall, we last year, we had a SEBI PSL project Then in the subsidiary, CDSL Ventures Limited, the cost towards that was around INR 6.5 crores, Which is compensating, which is not there during this quarter. In the entire sector, Abhushar, right? Yes, yes, yes, yes. Okay. And assuming that, that doesn't come, this muted cost should continue in the second half At that time? That would be a forecasting. Yes, we don't give any future But I think as an overall theme, our basic effort is to ensure that Under control. However, there will be certain increase as we go forward. So let's see how it goes. Yes. And on the cash flow, Girish, if you can give some color? See, basically, we during this first Cash flow wise, we have not incurred any major capital expenditure. So It may continue it may remain at this place this particular level. Okay. I was looking at operating cash flow, not just CapEx or even investing or free cash flow. I was just looking at operating cash flow. Let me come back on this. Sure. And lastly, Sunil mentioned there was e KYC, there was some increase and KYC also seeing an increase. So Is e KYC an ancillary to KYC and for growing eKYC businesses, KYC business The right metrics to look at or eKYC is a separate business model and a potential revenue by itself? No, it is basically a part of one it's a way of doing it. You have a physical way of doing and know your clients or you have a easy way of knowing your client. But this will become kind of easier for it to open. I'll ask Sunil to answer that question. Yes. To answer your question, e KYC would be a Business head by itself in CVS and it will facilitate the number of KYCs which ultimately gets Added to the KRA. So if somebody does an e KYC or he does a synthetic KYC, ultimately it has to get added to the KRA. So The way the world is moving to a digital mode currently, e KYC will definitely facilitate The number of KYCs into the KII, that is how we are looking at it. I hope that answers your question. And is Sunil a possibility of Tapping or cross selling this business to banks or other financial institutions given the way the world is, is that a Business opportunity which can be seen for top It is a business opportunity on paper. But right now, As for the regulation of UIDI, if I onboard anybody, the entity I have to recommend that entity to SEBI And SEBI will recommend that entity to UIDI and UIDI to DFS, and that's how they will get the registration. Now given that sort of a situation, if that entity is not registered with Sebi, I will not be able to recommend it to Sebi. So I think right now it will be limited only to capital market intermediaries. Thanks a lot, I'll jump back. Yes, thank you. All the best. Thank you. The next question is from the line of Hiten Jain from Invest Cross Management. Please go ahead. Yes. Hi. I had a question on your other expenses. So Edmond and other expenses up sequentially by 26% and tech expense is up sequentially by 42%. Can you just explain what is driving this? I'm starting, then your voice was not clear. Can you repeat the question? Yes, sure. Am I audible now? Hello? Yes, you're audible, but your voice is a little It is not absolutely clear. So some parts of your questions were not really understood. Can you just speak? Yes. My question was on other expenses. So from your presentation, where you are giving the various heads of expenses, The tech expense is up sequentially by, I think, 20% more than 20% and same as admin and other expenses. So can you just explain these cost items? Are they linked to some revenue sources? Yes. So I think, As I said earlier, our entire depository operations is going to be based on enhancing Our sophistication and basically IT and Technology. So there is going to be a constant endeavor to ensure that our platforms become easy to use. And therefore, that is going to translate into some amount of the expense being spent on the Software, hardware as well as basically the applications which we have. And that's why there is an increase. And it Done in a very, very it's done in a manner that it will give a long term play In terms of ensuring the ease of the operation. As well as the admin cost We grew also some of basically the SMSes, which we are required to send. These are the new kinds of Platforms which are going to come up and said we have asked both the depositories To send basically the SMS for each transaction, which is going to be done and now it's being mandatorily done Through this particular system, so that has caused us to increase in terms of the outlook. Understood. And another question was while you answered that, but just wanted some more clarity on this provisions for doubtful debt. So while that is up 100% year on year, you also said that it will reverse at the end of the year. So I'm assuming that accounting is a base It's not saying we are hopeful given that the situation is that most companies because of the national lockdown, There are most companies which were not working were shut down. So slowly they have started to open up and we are hopeful that these deals will get. But sir, even sequentially, the number is quite up quite high. So even in 1 quarter, Q1 'twenty one also lockdown was there. Is it that there was some seasonal element here? Yes. The fees are charged at for the entire year for the company. That happens in the end of the Q1 and beginning of the second quarter. So there will be in terms of how much Payment people are making in terms of that we start seeing. But as the year progresses, this is what we have seen in the past that normally companies do pay off. And we come down to kind of a steady number, which in terms of Basically the amount which we are able to recover. Understood. This is quite clear. Thank you so much. Thank you. The next question is from the line of Yash Neerukar from BPFAS Mutual Fund. Please go ahead. Yes, hi. Thanks for the opportunity. So basically, I just had to get a clarification on the point which you mentioned earlier So since the project is handed over to Digi locker, You said you have signed like roughly 10 institutions and DigiLocker won't be charging them whereas you guys will be charging them. So could you just Like how exactly is it going to work? Because if DigiLock is running these services for like without a charge, so how would it work for you guys? Yes. So I'll ask Sunil to answer that. See, currently, DigiLocker is still cutting up its infrastructure you take some more time for them to really set up what the academic depository because it took us almost 3 years and they have to set it up from scratch. That is point number 1. Point number 2 is, why we are offering this service to academic institutions, which basically many of them are still holding their awards in the physical form and all of that. So it's like a back office or we are creating and all of that. So it's like a back office where we are creating for the academic institutions where they can All these awards in the digital form and if later on they want to share it with Digi Law Firm, they can do it. That's not a problem. But in the interim, like if a student wants to verify the awards or a verifier wants to verify, it is already available with us And he has a choice of verifying it to us or the whole locker has in any way. But if he does it to us, There will be a charge application. As of now, the awards that we have are not available in the future. Okay. So in a way, think going forward, you will be sort of meeting with Digitaloka? No, we are not really competing with them. I mean, we'll be charging and they're not charging So it's not really competing with them. They are basically facilitating academic institutions to convert their awards into the digital And there will always be, what to say, phase where we'll be converting and then they will be uploading. So during that I think that is where many of the students will be able to access and verify their revenue. And ultimately, the way like To give you another example is between the CKYC and the KRA. So the CKYC just charges INR 1 for a record for fetching and we charge INR 35 rupees. Many of the intermediaries are very comfortable, especially from KRA because it can depend on the that particular the veracity of that event. Okay, got it. And secondly, also what I wanted to know about is the infrastructure which you guys are building. So most of that is in house, right? You're talking about the academic deposit fee? No, it's the same infrastructure we are talking about. I'm just talking about the whole Yes, yes, our entire technology has been owned by Yes, sir. We have, directly the outside software vendors as well as the hardware providers, which kind of link up, but the entire technology is owned by us. Okay, okay. So just a last small question, because in the past, ever since March, since the lockdown has happened, We had seen this astronomical growth in the number of demat accounts opened. So has that growth sort of tapered down or You're seeing the same kind of growth even in this quarter and like this month as well? No. So Yes, I will not able to talk about this month. Whatever we will put out, we'll put out on the CDSL site website. But that is what I said that second quarter has been really the highest number of Demat accounts and basically Basically, the history of the company. So there has been a growth over the Q1 also. The next question is from the line of Ashutosh Somani from GM Financial. Please go ahead. Thanks. So thanks for taking my question. Incorporating the suggestion of having the revenue breakup in the slides. Just wanted a clarification, have I heard you correct on the e voting charges being INR 4.38 crores in this quarter? That's right. And what was it last quarter? It was INR2.48 crores in September 2019 quarter and 17 lakhs in June 2020 quarter. Okay. So, sir, there is a Clear significant jump from a YOY perspective in e voting charges, right? Remember, they used to be below INR 4 crores on an annual basis in fiscal 2020, And now it is 4 crore on a quarterly basis. So you will see a lot more traction in e voting? So I think this is where we See that because of the virus which has happened, the COVID-nineteen crisis, more and more people are really using these kind of platforms as we see. But what I've seen is that a lot of people are finding basically the ease of doing it from their homes rather than having to come to the physical location. So I do expect that once you're used to a certain ease of doing things, it should probably go on even after things really Basically open up. So but what we have seen over the previous year is that there are The number of companies which are doing that service with us has also significantly increased. And that is partially because there has been a national Lockdown, etcetera. And also that our systems have been fairly simple to really access and people have found it extremely easy and secure. Thank you. The next question is from the line of Praveen Guru from ICICI Securities. Please go ahead. Hello. Yes. Thank you for taking my question and congratulations for a good set of numbers. My question is around the pledge revenue. So can you give an update that what are the number of pledges which are getting created in the system Right now, so right now, I'm moving after Q2, FY21. And How sustainable this ledger has been till date? Can we get a answer on it? So we don't have the actual number of margin ledges, which are being Check out on the website. So I'm sorry, I'm not able to give you the number of margin pledges. But all I can say is that the system of margin pledges It's basically here to stay. It is the way of growing business going forward. And there is definitely a value proposition In terms of ensuring that BO, the beneficial owner, is able to see that whether its shares are actually getting pledged, repledged to the Trading member, clearing member or the clearing corporation. So it's bringing in a lot of transparency into the system. It's also ensuring that only once the pledge flag has been removed can we Sell the securities. So this kind of an unauthorized sale, which could happen as Would not happen. It's making the entire system very safe and secure and also bringing the transparency. So I think given all these factors and plus there is basically a study has mandated This is the only way of basically here to stay. Thank you. The next question is from the line of Alok Shah from Monarch Network. Please Yes. Thank you for the opportunity and congratulations on a great set of numbers. My question pertains to an extension of your last answer on fledged But while it might be difficult for you to really break down the numbers and kind of with transaction charges Expleghed revenue. But when I look at the first half numbers over, say, for that matter FY 2020, there's been a meaningful amount of increase. And that's been a factor of multiple aspects. Trying to sustain this maybe not FY21, but Right. Thank you, too. What do you see that as a possibility? And would you kind of try and give some thoughts on how do you See the transaction and credit line item move forward. So we don't give any Future statements on how this will pan out in the subsequent quarters. Our focus and our endeavor is to ensure, as I said, moment the infrastructure of a Demat account is created and it creates a value Proposition, basically the focus that securities market as the volumes grow that is going to lead to a Significant increase also in the number of VMAT transactions. But I'm sorry, we will we would not be able to give any kind of Basically, the reply in terms of whether this can Okay. So I take the point, sir. But at least can you share some thoughts on While you have disclosed a number of beneficiary accounts which have got added, and somewhere during the conversation, you also mentioned the percentage of active clients, Would that also have shown a meaningful increase? I mean, you have a 2.6 crores BEO account Of which, at any point, 20%, 30% actively trading, has that number gone up to the same extent or a higher So again, it's very difficult to give overall principle, but I think what has been seen is that Lot of people which earlier used to basically open a particular account and wait for some time before they transact, That, in overall time line has basically, the general trend has been the people generally trade As soon as they really open that be met accounts. So that is what we are seeing that more and more people are And that can be seen in the overall volumes also in the market, that the volumes in the stock exchanges I've also increased significantly over last year. The delivery based volumes in terms of the value Has also gone up significantly over the previous year. So these are some of the trends which we see And we are hopeful that this will continue. The important thing is we are creating the sophistication, The structure and the value, so that more and more people will continue to use that platform. So this is helpful. I'll come back into the question, please. Thank you. The next question is from the line of Varun Goenka from Nippon Mutual Fund. Please go ahead. Yes. Thank you for taking my question again. So could you help us understand over the next 2, 3 years what Could be our major investment areas, both in terms of numbers and also the areas that we're looking to invest. See, I don't think we'll give you the numbers, but we don't talk about the future. That's part of our overall Strategy and policy also. But in the broad areas, software technologies It's going to be core area. Cybersecurity is going to be another very, very important area because there is Push from SEBI also. And we also feel that as the number of accounts grow, this is a very important part So we really continuously being basically financed. These are the 2 or 3 key areas. And obviously, we need The sophistication of the basically the employees. So these are very, very specialized employees, which are there which are needed out here. So as our key operations grow, we will need that kind of so really the employee Sure, sure. And because our treasury yields are falling, obviously, It's getting lesser and lesser attractive to keep it in fixed income. So What are we looking to do towards our payout ratios or cash? What do you mean by that? It's payout ratio in what we pay the shareholders in terms of Yes, dividends. With that, we have really an overall Policy, I think everything is okay. And the other thing which is worthwhile to note is the percentage of total income which relies on this It's very low. The treasury part of the total income is not really significantly high. It's basically the operating income which Yuri is driving that. And we are our payout ratio It's basically based on the percentage of basically the operating income and operating profits, Which we have. So I think on a I think we should be able to ensure that we would able to have the same amount As we go forward, but this is something which we'll see in the future. Okay. And would we have any role in the account aggregator Initiative that has been under works that is probably That will probably see the light of the day. That will have to be seen how that really goes forward. It would be very difficult to comment till the formal structure is already approved. And any movement on that proposing of a single account for all financial instruments? Yes. Work in progress. We see how it goes forward, but it is yet work in progress. Okay. Thank you so much. Thank you. Thank you. The next question is from the line of Hardik Jain from Whitestone Financial Advisor. Please go ahead. Yes. Good afternoon, Saif. Most of my questions are answered. I just missed one thing. And you're saying what is the online data charges for the quarter analyst that you? Aras, it's CFO. Yes. It is INR 13 crores, whole line data charges for September 2020 compared to INR 8.1 crores in September 2019. Okay. So, for 2019? Okay. So when we see this other operating income Of 37 crores other operational income, so this 37 crores includes online data charges, which is 13 crores And IPO, which is around INR8 crores and e voting, which is around INR5 crores, so that totals up to INR25 crores, INR26 crores. So what would be the other 9, 10, close. Basically, we recover so other charges from depository participants like User facility charges, settlement charges, account maintenance charges, then other small charges. So all these small charges put together Around 10%, and almost 90% area I had covered in my initial question. Do you want me to again repeat it? No, no, that's it. Thank you. Thank you. And one more question, sir. This e voting charges that we have, this also includes the Online AGNs that we are conducting, that is also part of the e voting charges which are charging companies for online AGNs that we are conducting? Yes. Okay. Thank you. Thank you. Ladies and gentlemen, due to time constraints, we will be taking the last question from the line of Devansh Ngodia from SIMPL. Please go ahead. Yes. Thanks for the opportunity. Asad, just a couple of questions. So one is, in case of a non payment of annual issuer charges, can you help us understand how does the Compliance work, I mean, let's say, after what period of time, what actions happen for non payment? 2nd is, if you can just elaborate on the relationship with Upstox and 5 Pesa. So for Zeroda, we know that they are exclusively with us. But the second and third discount brokers, I mean, are they on both the platforms or they are within an SDL? And also, you can if you can help us understand what is our wallet share with both of them? Thirdly, in case of eAGM, I mean, so there have been some AGMs which are supposed to happen in June, which did not happen and then They are postponed to September and which were already supposed to happen in September, they did happen. So any number like percentage of the AGMs for the quarter which Happened in this quarter, so the meaning what is the meaning portion? So if you can just help us understand Actually, we don't comment on specific people whether they are with CDSL or not on clients and customers Because I think that is privy to basically how we are doing. The important thing is that we are ensuring that we are creating a value Proposition for our platforms. And I think basically each of the people are free to go to Where would they wish to and where would they see value they are going to come there? It will be difficult for me to give you that answer whether and so person is on the platform or not? Sorry, what was your first question? I'm sorry, I've missed that. Sir, I mean, how does the compliance work, let's So there has been some bad debt. And these are really up and forth And then, Debbie prescribed compliance is a standard in operating Procedure that if you would not pay then there are certain shareholding patterns, which they are required to file their compliances would also would not be available. And hence, to really ensure that They would need to pay up otherwise they would not have a shareholding pattern with them. This is a broad standard operating procedure. Okay. And in case of EAGM, I mean, if you like, I mean, because there has been some pent up for June, which did not happen. If you can comment, the percentage gains that we've That's further extended it by 3 months. MCS extended by 3 months. So basically AGM season should Continue for another 3 months. So this is something which is going to go on till that particular final Date is there. And normally, our trend has been that most companies wait till the last date in September To finish the year in 2018. But now since there has been an extension of 3 months, which has been given, so they will probably Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Aditya Baghu for closing comments. Yes. Thank you. So a big thank you to everyone who have participated in the call. Nehal, sir, I'll hand the floor back to you for any closing comments. No, I think I have made my comments to various replies, just stay safe, stay secure. These are some of the times which we don't see it often. It's important to keep yourselves safe and secure. And I hope the very best Thank you, Nehal sir. You can close the call now. Thank you very much, sir. Ladies and gentlemen, on behalf of AXIS Capital Limited, that concludes this conference. We thank you all for joining us and you may now disconnect your lines.