Q2 18/19

Oct 29, 2018

Quarterly report

gentlemen, good day, and welcome to the Q2 FY 2019 Conference Call of Central Depository Services hosted by AXIS Capital. Questions after the presentation concludes. Then 0 on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aditya Baghul from Axos Capital. Thank you, and over to you, sir. Thank you. Good evening, ladies and gentlemen. On behalf of Axis Capital, a warm welcome to the CDSL Q2 FY 2019 conference call. We have from the management Mr. P. S. Reddy, Managing Director and CEO Mr. Bharat Sheth, Chief Financial Officer Mr. Garang Shah, Vice President and Mr. Nilesh Kithoor, Assistant Vice President. I shall hand over the call to Mr. Reddy for his opening comments, post which we will open the floor for Q and A. Over to you, sir. Thank you. Good evening, everybody. Welcome to the Q2 call and this call. Pardon me for Being holding my voice because of the sore throat and possibly thought will be done by Bharat Shek. As it relates to business, we have been doing continuously doing well in the areas that we have taken up for business. And our incremental market share continues to be about 64% even in the current quarter as well. The aggregate market share of Demat accounts is almost 47.57%. So that being what it is And on the unlisted front, unlisted companies are getting listed, it's a national business. The timeline is not prescribed, but lot of inquiries are coming and almost all about 200 applications are in the pipeline. And companies, it is mandatory for them only if they are issuing additional capital or if there is any transfers or so. The government has not fixed any time line for it, but we expect it's only a matter of time by the time our systems Both the deposit systems are ready and interfaced with MCA website for automatic download of Filings that the companies have done from the MCSI, this one will become will pick up. That's what our view. The other front section is my senior is doing as usual exceedingly well. And we have the numbers which Baragwai will speak. And the new business is National Economic Depository. It is where we have almost all signed up with 460 plus universities and that's also We are ahead of others. When it comes to the commodity depository that is work in progress and the CMCX Settlement for Mento Oil was done in the month of October, October, if I'm not mistaken, for the When oil settlement using the CCR platform, we will be doing next month also the other products. And when it comes it is work in progress, as I said, we are expecting the Non metal non agri commodities also to be notified to be handled in the commodity repositories. So once that is done, we'll be able to handle still much more business in this area. And we have also launched We have also launched the what you call VDR virtual data room, where the institutions like I mean, whenever a company goes for public, There is an activity of consultation among the solicitors, the RTAs, the legal advisers and Merchant Bankers, etcetera. So we have provided a virtual data room And that is being used by both insolvency professionals as well as by the merchant bankers. Of course, the number of issues are less. That's why it's not the prepayment. We expect it to be provide a good competition in the domestic market to the current players who are mostly Formless, okay, Formless, sir. We are also doing well in the space of EOT And of course, new entrants has come in the form of LinkedIn time, but we have continued to retain our market share and grow without any hint on our revenues on our number of companies that we are servicing at this point in time. It is too early probably, but that's where it is. And I will now hand over to Burkhwa to speak something more on these issues. Good evening, ladies and gentlemen. First, now I will give you consolidated results for quarter ended September 2018 versus quarter ended June 2018. That is quarter on quarter. The consolidated total income is up by 25% that is INR 63 crores in September 2018 as compared to INR51 crores in June 2018, mainly on account of overall improvement in operational income and around 89% increase in other income from INR 5 crores to INR 10 crores, INR 9.74 lakhs on the current quarter. Further, the profit after tax is up by 37%, that is from INR 22 crores to INR 30 crores, which was due to controlling the expenditure. The expenditure was marginally up by 2% on quarter on quarter basis, that is INR 22 crores to INR 22 crores with index. Now quarter ended September 2018 to quarter ended September 17, that is year on year basis consolidated basis. Although the consolidated total income increased by 11% that is INR 63 crores in September 2018 as compared to INR 56.4 crores in September 2017. The operational income increased by 12% from INR 47 crores to INR53 crores mainly due to increase in annual issue charges and online data charges that is KYC income. Other income has increased by 7% from INR 9 crores to INR 9.74 crores in current quarter. Further the debt, Profit after tax is up by 12% that is from INR 26.8 crores to INR 30.15 crores. The expenditure was higher by 20% on a year on year basis that is INR 18.7 crores to INR 22.5 crores. The effective tax rate has reduced from 29% to 25%. Now on a stand alone results. Quarter ended September 2018 to quarter ended June 2018, quarter on quarter basis, Stand alone total income is up by 19 percent that is INR 48.2 crores in September 2018 as compared to INR 40.4 crores in June 2018, mainly on account of overall improvement in operational income and around 81% increase in other income from INR 4 crores to INR 7 crores in current quarter. The increase in profit after tax by 35% that is from INR 16.3 crores to INR 22.10 crores mainly on account of controlling expenditure increase in operational income. The expenditure is slightly up by 1% on quarter on quarter basis that is INR 18.5 crores for June 2018 increased to INR 18.6 crores for September 2018. Whereas for quarter ended September 2018 to quarter ended September 2017 that is year on year basis, The total income up by 7% that is INR 48.2 crores in September 2018 as compared to INR 45.10 INR 10 crores in September 2017. The operational income increased by 6% from INR 38.8 crores to INR 41.03 crores. Other income increased by 14% to INR 7 crores to INR 6 point from INR 6.3 crores. The increase in PET is 8% that is from INR 20.5 crores to INR 22.09 crores. The expenditure was higher by 18% on a year on a year basis that is INR 15.8 crores to INR 18.6 crores. The effective tax rate has reduced from 30% to 20 5%. So overall, on quarter on quarter basis, which has improved very much as such. And I now open the forum for question and answer session. Thank you. Ladies and gentlemen, we will now begin the question and answer Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Prakash Kapadia from Anewedh Portfolio Management Services. Please go ahead. Yes. Thanks for taking my question. So I had two questions. If I look at the employee cost for the consolidated results, they are up 20% at INR 15.5 crores. How much of this would you attribute to newer businesses? And how much would be due to existing business? And what would be the number of employees as on Yes. See, number of employees increased from 226 to 238. Okay. And mainly in new business that is commodity business that has increased. And about salaries in salary, 1, number of employee increased second, Saying that performance bonus what we have declared in March 2019 March 2018 that has got impact And otherwise general increments are there overall. Okay. Performance base was paid in last quarter as well as this quarter or was it this quarter, No, that is early quarter and this is on a monthly basis we are paying, performance linked bonus, pro rated 12 months, but declared in March 2018. Whereas in last year, corresponding year, March 2017, whatever we have declared, we will pay. Sir, there is a difference. Understood. Understood. And sir, if I look at the CBL business, we've seen a Strong growth after some of the challenges which were mentioned in Q1 for the CBL businesses, revenues have grown from INR 9.6 crores to INR 13.8 crores. So now is that business back on track, what has Change during the quarter, if you could give us some sense on the CBL business, that would be helpful. Yes. So, Prakash, the So Prakash, the growth essentially is driven by one is the online account opening and using the other and the mutual fund investments, increasing mutual fund investors. Now the problem now is Other is banned using this e facility. Device, right? QIC. They're asking us to use a QR code. So we have already advanced the sales development, maybe very shortly, very shortly, meaning really, very shortly, We are going to deploy and replace We replaced it with QR code based other verification. Once that is done, the client will be seamlessly On boarded. As if there is a other based verification is fixed. So that will happen shortly, as I said. So we don't see any challenges in this time. Right. But yes, there is an additional cost associated with this because of the development side. But yes, it is a bad person in the text to the text center. Yes, right. Last quarter, sir, what I was Trying to understand is last quarter, there were some mutual funds and some specific challenges. So are some of those challenges or obviously Revenue growth here, as you mentioned, is a function of your online KYC or mutual fund that are drivers to the business. But Some of the challenges which we are facing, those seem to be sorted out, right? They are already sorted out, yes. And so lastly, You mentioned in your opening remarks about unlisted companies. But if we look at the government circular, it says December It is the actual deadline. So if you could give us some sense on, is there Yes, there are around, I think, 70,000 public unlisted companies. So what could be the Overall, the revenue pool is pricing clear in terms of annual fee, one time fee because Circular also mentions about They're maintaining a 2 year security deposit with us. So it will give us There's no headline of December. What for essentially saying is the transfers cannot happen maybe. That is the way that you are looking at it, okay? Okay. But any new capital that is to come in, It has to come in DMAT. Okay. So look at the company which is not raising any new resources. Then it is not required to immediately come into the DMAT. Similarly, they also said you need to give a 2 years issuer fee as a deposit. Right. The second thing is we have come out with a New tariff structure in the sense up to INR 5 crores, the current tariff is INR 9,000. Now up to INR 2,005, I'm sorry INR 2.5 crores, 5000 is the tariff that is prescribed by the agencies concerned. So Now you have one more slide is introduced so that the smaller companies are benefited and they won't resist it. Beyond that, there is no change in the tariff. Okay? Okay. So we are expecting more and more companies to do that. And we have also introduced I'm sorry, there's one more change in the tariff. The processing fee will be 15,000 instead of 20,000. That is as per our I think that is yes. I'm really sorry to interrupt, but we have participants waiting in queue, sir. So you'll have to come back with your questions. Thank you. We have the next question from the line of Dharik Patel from Active Alpha. Please go ahead. I have Couple of questions. First one is, what is the status on R Gandhi report? And secondly, Wadi, current other current liabilities have increased from approximately INR 18 crores in March to INR 50 crores in September quarter. Okay. Regards to R. K. D. Recommendations, which is precise you are talking about the term of the MD, etcetera, Okay. And as per the new regulations, even our Gandhi company also has not recommended, but say we thought it is appropriate to have proper governance structure in place. So the MD of a depository or market infrastructure institution, not just depository, be that Exchange, Clearing Corporation or a depository, cannot sell more than 2 terms of maximum 5 years each. So I have completed my 2 terms and the city when I when we went for a 5 year on my book has Given an extension of 5 years, then if I sent to Sevi, Sevi gave you only 1 year extension funding this recommendations to be converted into regulations. Now on 3rd or second October, the regulations have come. Now the regulation would say that only 2 terms that I have, 2 terms of 5 years each, They are taking 2 terms for 5 years, whichever is get hit. So Probably, I'm not sure at this point in time, we need to revise the policy and then send it to Savi. But I understand as it stands today, I may not continue beyond 31st March 2019. That's the way it is. How about, Sebi was planning to open depository services to corporate. So what is going on in this direction? Come again, I didn't understand this because Sebi, a couple of months ago, Sebi was planning to open depository services to corporates or private entities. So they'll be able to enter in depository services? Yes. Those installations are already amended with this 3rd October. The sponsor concept has gone. The holding of sponsors now they can easily divest it in whichever way they want it. And banks are free to sell out their stake, what So substantial amount of floating stock will be available. Now by this, corporates can only maximum take 15 No, I wanted to know, as in can any other corporates enter in this Depository Services business? They can enter subject to a maximum of 15%, but to SEBI approves them as a eligible fit and proper person for holding And who can enter in this business? Are there specific banks or any other financial institution or apart from them any other? There's no restriction. Anybody who is willing to put that money and then promote a company and then bring INR 100 crores, but Only maximum 15% they can hold, they can start a deposit. And the final question about the current liabilities. Yes. About the current liability, whatever is your income, what we are Annually, we are charged. So pro rata, so it shows the current liabilities. Whatever annual income what we are getting, we have pro rata it. So for 6 months, it shows as an advance written from customer. Okay, that is. We issued a issuer bill and we issued a bill in the month of April, but that is we collect it. So that is Okay. Thank you. Thank you. We have the next question from the line of Pavan Kumar from Ratanatraya Capital. Please go ahead. Hello, sir. Can I have the break up between the transaction charges, IPO, corporate action charges and annual issue charges? For the quarter, you want to? Yes. For the quarter, no? One moment, right? Yes, yes. For Q2, annual issuer charges is INR 16 crores. Okay. Large exchange charge is INR 10.26 crores. Okay. And IPO corporate expense charge is INR 6.16 crores. Okay. And online data charge is INR 10 point 1 Capital Credit. Okay. Okay. Sir, last year, we had a significant amount of income from this The IPO corporate tax and charges, but this year seems to be much more drier. So what are your thoughts on the overall? Is there any possibility of any Any growth in this or we have to cover up by revenues from the other streams? No, no. It depends on a market as such. So if market is good, more number of IPOs come, then definitely it will increase. So it depends on the market. Okay. And so we are almost So flat on the transaction charges basis, right? Correct. Okay. Fine, sir. I'll get back in the queue. Thanks. Okay. Thank you. We have the next question from the line of Agam Shah from Raj Trading. Please go ahead. Yes. Hi. Can you just help me in the first call? So the storage so what do you include in the data storage and all? Data storage, see online data services and data storage is there. Previously, physical copy at the initial stage For mutual fund investment, all KYC physical documents we were taking. We are maintaining. We are maintaining. At present also, we are maintaining for those who are 45 like Investor Accounts. So all these physical documents on behalf of mutual funds we are maintaining, so per annum we are charging On that basis. So there is a document storage, right? So in the data, NTM storage, this is the one component you're seeing, right? Like this is the only component or any other component there? Is the document storage, sir. Online data charges is a KYC charges. KYC charges. Okay. So these are the 2 components in data entry and storage, sir, right? Correct, sir. Okay. Okay. So the growth which I've seen on the quarter was due to the maybe the KYC and the mutual fund incremental and all Due to the liabilities, they have in that time. Yes. Okay. And another demodulation of the private companies part, So any tender or anything what is happening out there? Tender and means As of now, as of now, as of now, as of Correct. As of now, MCA is not mandated it. So it is voluntary for them to do it. The KME is only for public limited companies, okay. Okay. While we look at the progress of this, they will intersect other private limited companies also to go for it. Okay. And I think you're sufficiently sitting cash at bank balance with or INR 42 crores. So any branch to acquire something or as such or to make any investments as such or no? Surplus case, we are investing in mutual fund, FMCs, bonds, all we are doing. CapEx requirement, whatever, on an average, INR 5 crores to INR 6 crores that On an average, we are required. So otherwise, everything we are investing in. Investing in. Okay, okay. That's it. Okay. Thanks. Thank you. We have the next question from the line of Harit Shah from Reliance Securities. Please go ahead. Yes. Thank you for the call. Sir, you gave the breakup of issuer charges, transaction charges. Do you have the year ago figure, please? Yes. You want Yes, that's right. FY 'seventeen, FY 'eighteen, sorry. That is okay. September 17, there is a Q2 2018 what you want me to say. That's right. So we have INR 13.65 crores for Q2 2017, we are having INR 16 crores for any lease year charges. Correct. The transaction charges are flat INR 10 crores, INR 10 crores as such. Right. E working charges from INR 2.69 crores to INR 3.21 crores. INR 3.21 crores. INR 8.43 crores. Whereas IPO corporate exchange charges, INR 8.43 crores for Q2 2017, it went down to INR 6.16 crores for Q2 2018. Online data charges from INR 6.82 to INR 10.17 crores. INR 6.82 crores? INR 6.82 crores online data service, it went up to INR 10.7. Okay. Thank you, sir. Secondly, do we have a figure of the total number of the EMAT accounts as of end of this quarter or about I think 1.5 3 crore last So it is 1.60 crores for September. Hello, 1 crore.60 lakhs. Got it, got it, sir. And just one last question, the breakup of the other income, if you have that? That is mostly Investment Inca. Okay. No, sir, because there were a pretty substantial increase in the from the Q1 to this quarter. That would be what related to MTM? Yes, MTM. Okay, great. Fine. I just want to get those data points. Thank you, sir. Thanks. Thank you. We have the next question from the line of Abhishek Jain from Valium Capital. Please go ahead. Congratulations for the good set of numbers, sir. Yes. Thank you. Sir, I just wanted to understand I'm told in the like initial statement of the offset that this virtual data, this and Merchant Bankers. So how will be the markets like what will be the market size for the same? And can you just throw some more light upon the same? See, when IPOs come, the CDSL IPO, You've almost all paid about 10 to 15 lakhs of rupees for that which cut on. Okay. Can you kind of come again? Your voice is breaking. Yes. Yes. We have paid almost for 10 lakhs to 15 lakhs of rupees for 1 IPO, our CDSL IPO. And that happened to be some Australian company, okay. So for each of the IPOs, people are taking with the various vendor surveys, most of them are Foreign companies, hardly million companies there. So we work we use the network of merchant bankers. Since merchant bankers work with us also, there is a synergy out there. So using the merchant bankers, we are propagating the usage of our VDR. Our cost of investment is hardly anything. Kitchen tunneling done up and it's housed, in house and there's hardly a cost for us. That's the way. Hello? Yes? Hello, you got it? Mr. Shikishi, can you answer your question? Actually, voice was breaking. Yes. Actually, this is a software. Hello. This is a platform we are providing to the issuers, those who are coming with IPO things. So there are various what we call solid sitters and merchant bankers, auditor, everything has to be come together and whatever data they have asked you how to store in that software only. So for that matter only, We are charging to the company. At present, nobody in India is doing such type of business. And how we Yes, starting like what are the service for the same and how you see the market space of the same? No, that depends on number of months, how many months. Okay. It has just started, but it depends on number of bulk license you require to operate this account. From the space required. And space required. Can you just give me a sense of idea that how Our revenue will be shipped up. Are you shipping? No, no. See, this is a nothing stage as such. So once All the companies are going or merchant bankers are going to utilize it, then we'll come to it. As far as hardly any income is there, around 3 to 4 lek is there. But So once it is popular, then definitely we'll play. If you can more number of IPOs it comes then only. Okay. Do we get any hits Hello? Mr. Jain, I'm sorry to interrupt, but the audio is breaking from your line. Could you give us a callback from another instrument? Sir, we move to the next question. We've lost the audio for this participant. The next question is from the line of Amit Chandra from HDFC Securities. Please go ahead. Hello. Hello, Yes, sir. Thanks for the opportunity. So as you mentioned that around like 200 private companies are in pipeline. And in this quarter, we have seen like you have seen private companies coming from This is public Yes, it's public undertakes. Yes, it's for the public undertakes. But the growth we're seeing in the annual issue charges just like on quarter on quarter versus 2.1%. No, no. It was applicable from October, no? October onwards. So next quarter, you will get something. Okay, okay. So in this quarter, when we read like Nothing is there. Yes. Okay, okay. And sir, in like you mentioned the revenue for annual issue charges, transaction charges, IP and online data charges. So except that the others we are seeing a very steep growth. So others basically consist of free cash, the e voting and on all the other small social revenue. So what is the reason for huge jump in the others, which is INR 10.5 crores, I think? No, that means, see all 5 I told you annual issue charges, transaction charges, e working charges, online data service, This has a major out of INR53 crores, this has a major component of it, INR 16 plus 10, INR 26 plus 10, INR 46 crores belongs to that. Okay. And INR 6 crores of Yes. So it comes to INR42, INR45 crores. These are the main components as such. Right, right. So That's what I'm saying. Apart from that, so the total revenue is 53%. So apart from that also, we are seeing huge jump in the others components. So as compared to last quarter, so Yes, yes, that is One crore is there instead of INR 31 crores, INR 31 lakhs to INR 1 crore because of this it includes That is for an investment participation that Okay. FPA monitoring, what we are seriously doing, No, current portfolio of business monitoring. Okay. They have been divided to both the depositories and then almost all 1800 to 2000 Companies have chosen CDSL. There we are charging INR25,000 per annum for the BSE 500, LSE 500 companies and for all the rest of the companies is RMB10,000. So that is the maybe Yes, that's contributed about it. Okay, sir. And sir, we have seen huge jump in the online data charges. So, Gunal, your comments on the stability of this huge jump, so we expect this run rate to continue? Or Just a one time thing that we're seeing or there is a change in the way the mutual fund do the KYC or how the competition is reacting to it? Competition is not a worry, because we have Almost on 1.7 plus crore KYC records with us, okay? If all KYC is there, Then that particular intermediary has to necessarily come to me not to go anywhere else. That is the kind of business rule, regulatory rule that is set up. The only thing is the e KYC, which are doing well earlier, now that has been stopped for some time. Hopefully, this QR code business will be able to relaunch that. We are opening online Ola. We have a product called Ola, online account opening where seamlessly investor come to the broker site, he opens D MAT account, he opens trading account, he does KYC also. In that case, after doing it, it gets settled in I mean, it resides in CBL. That's how this product was made. Now that we are restructuring that, so probably except for the gap that we have experienced maybe for the last 1 month, 15 years to 1 month, This will again pick it. That's what I said. Okay. Because it all depends on the markets, unless the investors come to the markets to Buy and sell or do some investment in the market, we will not get this kind of cost. So, Banu, can we attribute like platforms like Paytm and XeroDAU who have started selling mutual funds online. That is also a major contributor to this? XeroDAU is doing exclusively with us. So The KYC is only with us. So that doesn't matter. Okay, sir. And sir, in terms of like technology expenses also, there has been a steep increase, 44% quarter on quarter from 2.4 to 3.4 crores. So any kind of investments you are doing in terms of upgrading our technology? We have done new Oracle licenses we bought because of the increase in the work because based on the CPU, their licensing works. So when we are hitting about 70%, 80% capacity utilization, we have added some more CPUs, so we had to take additional license. That is the reason why you said. And regarding the other income, so we have seen some volatility in the last 2, 3 quarters. From here on, we can expect stability in the other income or still we have some we have a portfolio which is very much prone to the The volatility in the markets. I thought it would be like stable growth. You want quarter on quarter how much margin can we grow? So, there was stability there, yes. Yes, that's right. The revenue streams are safe, But yes, there will be a fluctuation in the amount of income that each one of them contribute depending on the market. Okay, sir. Thank you. Thank you. Thanks for the Sir, please go ahead. Thank you, sir, for giving opportunity. Sir, I just wanted to ask that in this quarter, The annual issue charges have increased 17% year on year. So traditionally, what we thought was that the annual issue charges more of a Low growth, 6% to 10% kind of a business stream. So can you tell what is what has Been driving this 17% growth year on year in the annual issue charges. Is it that the number of companies which have been Dematerialize has increased in this period because the fee has not been revised upwards. Annual issue charges, we are charging on 2 basis, 1 either on a flat basis or on a folio basis, whichever is higher. Right. So last year, because of more number of IPOs and because of Good market conditions, more number of IP was there, so number of polyols increases. So that has got effect in this. As on 31st March, What as on 31st March 2018, whatever number of volumes are there, on that basis, we are billing the company. So because of that only. Okay. So previous 31st March number of folios you are billing in this year? Yes. Correct. Every day. Okay. Okay. And so my second question is, so for the unlisted public companies, So we have 200 applications till now. That is what in pipeline, which you have said. So from the MCA website, what we come to understand is that there are 64,000 odd companies. Okay. So when it is a listed company, they have to mandatory dematerialized with both NSDL and CDSL. But in case of these companies, they can choose between one of the depository. So right, Raj. So what advantage do we have that we can attract maximum companies to our side visavis the competitor. So and also like such a small amount of companies have been Registered till now, only 200 out of 64,000. So what is, Madhul, your thought about it? What is the time line which you think that More and more companies will come by this year and next year. Do you have any sense for that? So if you could answer that question. See, The tariff being the same with both depositories, what drives the company is the service? Among them are coming directly, especially as groups they are coming. If it is a big industrial group, they are bringing all their issues to us And seeking some discount in the processing fee. We are not giving it in the annual issued charges. So that is the way they are looking at it. But The RTS are the ones which are maximum supporting us. So we hope once the online application processing is released, okay, which is where IZAL also gets created online. So admission will happen online. That's the way we are going. We are the companies are not required to enter the data themselves. It will download from MCA site. It will take by the end of November, we are expecting that portal to be up and running at both the ends, both the depositors are through that. So once that is done, probably the actually, the it will pick up. The growth will pick up. That's what I was saying. Okay. But do we have any specific Advantage over our competitor that we'll be able to other than the discounts on one time fee, which are that even the competitor might be able to offer. Yes, but our marketing teams are on the street all the time, okay. As I said, relationship works as a business and our business development teams are constantly pursuing the companies, especially those who are using e working services, those who are using FPA or marketing services as well as the IEPF Accounts they opened. Good number of companies have chosen CDSL over the competition. So I think that will help us. That's the way I can at this point in time. Okay. Thank you. That answers all my questions. Thank you. Thank you. Before we move to the next question, we would like to request participants to limit their questions to 1 during the initial round. We have the next question from the line of Giriraj Daga from K. M. Visalia Family Trust. Please go ahead. Yes. Hello, Tim. Just a follow-up on the online data services. When you mentioned that we are going to QR code, sir. How the competitors are picking up this matter? So mostly all everything is moving from database QR code or there's a different mechanism there? Even QR code is also online available. Essentially, what it will happen is In this, let me go to other site. We will download the QR code digitally signed one way from seamlessly. And then that QR code is read by the depository or the service provider and then embed that data into the application. So everybody else has no choice but to do it. There's no other way. Okay. So there's no More or less, I'll be on the same page in terms of competition also. Yes, that's right. Okay. This is the last small accounting. Why the debtors have moved up 50% like debt rate receivables compared to September quarter? Trade receivables because of this annual issue of charges, That's around 70% to 80% pays in Q1, Q2 and balance always. So based on 31st March, if you compare, Debtors are more during this period. Under the 50%, from KRW 18 crores to KRW 27 crores. Because of that. Okay. Thank you. Thank you. We have the next question from the line of Pawan Kumar from Rudnathria Capital. Please go ahead. Sir, about the tax rate, what is the sustainable tax rate that we can assume? This quarter it has been 25, whereas last year it was 29 around? It depends on the mark to market investment where other incomes are more, My tax rate would be accordingly adjusted as such. And capital gain benefits and capital Losses are there that I can adjust it, indexes and benefits. Can you give any breakup On how much was the capital gain and how much is the normal proportion in the other income? Capital gain would be around Exact figure I don't have right away, but I can give you a better one. Okay. But for the full year, would it be fair to assume a 30% tax rate? Effective tax rate comes to 25%. Okay. Otherwise, 29.12 is a normal tax applicable to us. Okay. Since we are under INR 250 crores revenues, it doesn't our tax rate is not 25%? No, it is 25% only. 25% plus 12% surcharge and 4% education surcharge, it comes to 29.12%. Okay. Fine, Gordon. Thanks. Thank you. We have the next question from the line of Mansi Shah from Capro Capital. Please go ahead. Hi. Sir, could you please repeat the market share data? Market share data. We are having a Crore 60 lakhs account. Okay. And other competitor has Crore 70 7 lakhs account. So we are having a 47.57 percent market share. Okay. Okay. Okay. And for incremental market share? Incremental market share comes to 64%. Okay. And sir, in terms of the KYC business, what is the market share? We have our numbers. And normally, we know what the competition, 4 of them are there, What they are holding. Our market share works out to be about 60%. Okay. Okay. That's all. Thank you. Thank you. We have the next question from the line of Aditya Baghul. Please go ahead. Hi, sir. Thank you for taking my question. I just have one question. We have about 6 20 to 6.50 odd crores of cash and investments in our books. Is there a plan to increase our dividend payouts? I think our dividend payout was about 37% last year. Dividend payout ratio on consolidated basis, 42% was there last year And on standalone basis, 57%. Okay. Sorry, sir. And dividend yield of 1.5% is there, which is quite good. Right, sir. But is there a plan to increase? Because I don't think we have immediate to use for such high levels of free cash on our balance sheet. Yes, yes. We definitely Consider your Surajak. Sure, sir. Thank you. Thank you. The next question is from the line of Dharlik Patel from Active Alpha. Please go ahead. I just wanted to confirm, the incremental market share you mentioned is 64%, right? Yes. Yes. For second quarter. Same, I think, was 71% in Q1 FY 2019? Yes. Correct, correct. You are right. So that's coming down, right? Yes. Yes. That's like quarter to quarter, yes. All right. Okay. Thank you. Thank you. Ladies and gentlemen, as we have no further questions, I would like to hand the floor back to the management for closing comments. Please go ahead, sir. I wish Nokia had to divide in the prosperous New Year and maybe you look forward to increasing the working capital The company, maybe some of the sponsors may be divesting keen to divest Moody. So with that, I thank one of all. Thank you very much, Olaf. Thank you, gentlemen. Ladies and gentlemen, on behalf of AXIS Capital Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you, Mr. Hadith. Thank you, sir.