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and right now we are talking about motilal oswal financial services numbers and Mr Ram Agarwal is joining us to discuss the numbers uh Mr Agarwal let me clarify that you know uh some of the people actually on street are looking at your Consolidated numbers but if we look at your operating uh metrics that has actually shown a very sharp Improvement and understandably so being a capital Market oriented company and one of the leading companies in that you must have captured uh you know the entire momentum but talk to us about how segments have been this quarter uh good afternoon You Know M as a capital Market participant has to be seen uh there at least on the quarterly basis it has to be seen only on the operation side of it because that's where we have a control that's where the execution is there and the investment book which is Mark to Market that will keep fluctuating from quarter to quarter and uh on a three year four year basis you can see what is our experience and the so what happens is that uh about 75% of the book value is in the mark to Market kind of situation and that is that gives us about 18% 17 18% compounded return for last 5 10 15 years so that's one part of it but quarter and quarter it can be positive it can be negative so the real uh thing to watch quarter and quarter is the operating side of and operating side has been kind of this is a really one of the best performance with over 90% kind of a growth year on year for the quarter uh and broking of course has uh broking and wealth management have been in the Capital Market segment have been one of the best performing kind of a segment of our businesses that's why I clarified Mr agal for our viewers to understand that operating metrics should be seen and not uh the mark to Market when that get gets captured and Consolidated it actually doesn't give the right picture if I were to look at your segmental performance Capital Market Market wealth 6 68% Improvement in Capital Market almost 80% in wealth private equity and asset management also up 20 and 30% each uh talk to us from here on uh do you see the momentum continue for next couple of quarters what is the visibility of the various segments you're seeing right now as we stand see Capital Market is all about how the market is expanding if you look at the demed accounts between January 20 and December 21 in 24 months the uh the demed accounts have gone up from 40 to 80 million that's about 40% compounded growth in the just the number of clients and then the uh the uh the trade per client and revenue per client and profit per client everything has gone up so we are adding uh I'll tell you 17 18 19 in those years we were we were adding per year in 12 months we used to add about a lakh customer today we are adding uh this quarter itself we have added about6 million customer so I think it is unprecedented boom in terms of client Edition expansion of the market and uh if you look at the NSC turnover you must have seen the St number it is year on year 57% increase so uh so it is I think virtual uh what has happened in last two years is quite a remarkable thing on the uh on the Capital Market side and I think we are headed for from a 80 million customer base on a basis of about 3 and a half million per month we are headed for about 150 million in next two years or maybe even less than two years because LC uh issue is there and that itself can add few 20 30 million additional uh demad accounts uh in in very short while so I would think that we are headed to double again in next two to maybe at Max three years so I think the buoyancy in the expansion of the market new client Edition and uh operating leverage for the businesses is going to continue for I I I would think that for next three years at least uh Mr gal I mean if you after your experience of over 30 years see bcy to continue medium-term there must be reason to it I know that mwal is also putting a kind of a strategy in place which is a fital kind of a strategy you're not only going deeper into the parts of the country but also upgrading your Tech capabilities and all of that and you had a digital day so talk to us about how both the strategies are helping you Garner more uh customers your acquisition is a very healthy fast clip 9 month is showing 50% surge in Acquisitions yeah so you know we have taken a stance that uh uh digital see markets are going to be expanding more on the digital side and actually the whole business is digital whether uh it is a digital with advisory or without advisory so when you do it without advisory it is purely digital because there is no intervention of any of the advisors so we think to make money in the market because our Moto is to help people make money in the stock market not burn themselves so if if our Moto is to help them make money in the stock market you need help uh uh handholding you need lot of advisory you need lot of research and after that also it is tough but still at least if you if you bring the investing culture because the econom is going to expand lot of savings are going to come in the market so there is an opportunity for us to serve the customers in terms of helping them make money in the market and that's where the advisory piece come and that's where fital thing comes now fital my sense is going to be about 25 to 20% or maybe even smaller in terms of turnover but uh but the value added will be a lot more and there we are seeing that less and less competition and on digital side more and more competition is coming and more and more players are coming so we are saying we'll stay in digital and we have enough actually the is enough for everybody right now the way the pace at which Market is expanding so uh we are doing what we can do and uh and that's how we are strongly positioning for the transaction business and on top of it eventually as you go along I think the cross- selling of the valuated products like PMS mutual funds uh deposits and the aifs and whole lot of stuff insurance and all that will ride on the advisory product so that's how the uh uh funnel will be built and my sense is that it is going to be very interesting when the fixed income has collapsed and uh the participation is increasing so both coming together expansion of the market is going to be quite sustained right mwal out of all the segments of your business where are you the top management mind share is actually being devoted most right now to develop right now and it is also showing the Maximum Traction so actually all the businesses are led by competent CEO and uh CEO uh one is the T and second is the competence of the co but I I think some of the businesses like I banking which was kind of uh extinct just three or four quarters back that's coming back very strongly and you are going to see in Q4 and following quarters even bigger traction uh then private Equity is uh private Equity is uh uh looking like I mean having huge Tailwind thanks to expansion of the market again warm Market that we are able to raise one of the largest fund raise of about 4,000 crores in a very short period of about six months and uh with with Ian there is a tnd collection itself so those things are going to have a dramatic effecta in next year uh 22 23 when you look at our uh landscape changing of course the broking itself will keep moving the way it is moving we might try to gain some market share but some of the other businesses like uh uh I banking private Equity then wealth management these have now follow an effect of the expansion of the market and my sense is that uh those are the businesses which will have a larger impact in the pnl though the driver of the Core Business I mean foure core of the thing which is 55 60% that is broking that I think will continue to be so uh but you know I we also seeing that a lot of competition now developing in the asset management side of the business yes one is uh heightened uh competition uh many of our fund manager friends themselves are floating big AMCs and gobbling up other AMCs and all of that plus the PMS side of the asset management sector is coming up aggressively again and the uh passive side where margin profile is slightly lower so how is how are you tackling all the three changes happening in the the asset management business yeah so passive side we were among the first to start our ETF business way back in 2008 and uh we pursued it for four five years and then we had kind of said that market is uh we are way ahead of time in terms of ETF and Market is not ready but in last two three years it has picked up well so here we are I think among the largest foreign uh uh ETFs to be distributed in India led by NASDAQ and S&P 500 so uh yes so that that business is going to pick up and uh uh so there is no performance issue in that uh but in active management mutual funds uh and PMs I think performance is a big thing and it is again a performance I would say a lot of it is to do with the style what is style is in favor at what point of time so we have had little challenges in last two three years so uh so what happens is that uh when your style is in favor you get tons of money and there is no dir of money I think uh are more money than what you can manage uh so I would think that uh uh it is not about the market share in any of Capital Market business because Capital Market Per Se the way it is expanding the economy is expanding at say 11 12% nominal your savings are growing at maybe same 12 1% but the the share of the financial savings because of the collapse in fixed income in equity side is growing at maybe 18 20% so there is there is enough and more for every player the issue is that how competent we are so we we are focusing more and more on competency building rather than choosing market share right Mr agal we'll let you go on that one thanks so much and congratulations once again and good luck for coming quarters as well thanks
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