Angel one ltd (ANGELONE) Q1 FY24 Earnings Concall Transcript

Angel one ltd (NSE: ANGELONE) Q1 FY24 Earnings Concall dated Jul. 14, 2023

Corporate Participants:

Hitul Gutka — Head-Investor Relations

Dinesh D. Thakkar — Chairman and Managing Director

Vineet Agrawal — Chief Financial Officer

Devender Kumar — Head-Online Revenue Management

Saurabh Agarwal — Chief Experience Officer-New Business

Ketan Shah — Chief Strategy Officer

Ankit Rastogi — Chief Product Officer

JyotiSwarup Raiturkar — Chief Technology Officer

Deepak Chandani — Chief Data Officer

Bhavin Parekh — Head-Operations, Risk and Surveillance

Analysts:

Swarnabha Mukherjee — B&K Securities — Analyst

Prayesh Jain — Motilal Oswal — Analyst

Nitesh — Investec — Analyst

Sumit Rathi — Centrum PMS — Analyst

Gautam Jain — GCJ Financial Advisors — Analyst

Pallavi Deshpande — Sameeksha Capital — Analyst

Sanketh Godha — Avendus Spark — Analyst

Sumit Jankar — Sai Ganga Nivas — Analyst

Sahil Shah — Bridge Capital — Analyst

Hardik Jain — White Stone Financial Advisors — Analyst

Pratik Shah — Investor — Analyst

Prathamesh — Proinvest Nirmiti — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the Angel One Limited Q1 FY’24 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.

This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectation of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.

I now hand the conference over to Mr. Hitul Gutka from Angel One Limited. Thank you, and over to you, sir.

Hitul Gutka — Head-Investor Relations

Thank you, Ryan. Good morning and welcome everyone. Thank you for joining us today to discuss Angel One’s Q1 FY’24 financial and business performance. The recording of today’s earnings call and transcript will be uploaded on our website under the Investor Relations section. The financial results, investor presentation and the press release are also available on the website. For today’s call, Angel One is represented by Dinesh Thakkar, Chairman and Managing Director; Vineet Agrawal, CFO. We also have the other senior leadership team of Angel One on the call along with SGA or IR consultants.

The leadership team will give us a brief overview of the operational and the financial performance of the quarter gone by, followed by a Q&A session. Please note that there may be certain forward-looking statements during the call, which must be viewed in aggregate with the risk that the company faces.

With this brief introduction, I now invite Dinesh Thakkar for his opening remarks.

Dinesh D. Thakkar — Chairman & Managing Director

Thank you, Hitul. Good morning, everyone. I’m happy to share that Angel One has continued to deliver strong performance and I will take you through some of the key development of the quarter and important initiative we have lined up during the financial year. Vineet will walk you through our financial performance thereafter.

During the quarter, we maintained our focus on investing in technology and product to offer our clients a seamless experience on all of our digital platforms. We endeavor to develop a user-friendly platform for new to market clients while making it swift for experienced traders. We continue to refine our customer journey on our Super App, shipping out key functionalities and announcement regularly. This has led to a further improvement in our overall NPS to historic app.

I’m happy to share that Angel One features in the top 15 club of free finance app across Playstore and Appstore, outperforming many of our peers as we complete with banking, payment, lending, wealth apps. We’ll be rolling out several exciting features this year, such as the always on order feature, which will enable client to place order at any time of the day, including even when they’re out of the network, does improving engagement with our app.

We are also developing an — we are also developing an advanced conditional order platform on which a statement will be translated to an order via a large language model. We have further announced our SmartStore, a marketplace offering a wide range of exclusive rule-based FinTech apps, getting to clients’ diverse needs. It’s integration with our SmartAPI facilitates great execution for client. In addition, the SmartStore provides educational resources including blogs and webinars that keep clients updated with the latest trend and insight in the investment space. We are in the process of announcing the SmartStore basket in a manner that is relevant and comprehensive across all the financial needs of our customers.

Angel One is a dominant retail focus FinTech platform with a large and growing client base. With our focus on a more comprehensive financial services playbook, we commissioned the direct mutual fund journey on the Super App, which has been a resounding success. This model has witnessed a fore full growth in registered SIP to over INR4,30,000 in quarter one FY’24 over a sequential quarter.

I’m happy to share that Angel One is among top two players in India in terms of incremented registered SIP in June 2023. Next, we are building partnerships and journeys to operationalize the distribution of consumer credit products, which is expected to go live over the course of the year. This year we have planned a formidable brand campaign to enhance awareness of our full stack FinTech platform, which aims to address all our customers financial needs and aspiration.

Our network of authorized person, AP, the affiliate business channel, we match one of the important growth engine in the business. We continue to dominate the industry with the largest network of authorized persons in the country at over 21,000 channel partners. As of June 2023, we further augment and build greater efficiency in the channel, ensuring highest level of compliance and governance, and to facilitate the APs to serve their clients better across multiple asset classes. We have further upgraded the NXT platform, which is an industry first dedicated digital platform to them.

For us to capture the full potential of our distribution capabilities of digital financial products, we believe all affiliate channels, including IFS, insurance agents, MFS, are extremely important. This channel represents large untapped potential for us. With our ability to harness big data at Angel One through our AI/ML capabilities in discerning patterns, trends and the preference of customers and to offer service digitally, our FinTech DNA will be able to better empower such affiliates to serve a larger audience than has hit or two been possible. This will further enable them to expand their product market, thus ensuring customer retention, besides this will help us fulfill our aspiration to positively influence the lives of underserviced population of the country, which relies purely on such affiliates for achieving their financial goals. Our comprehensive digital capabilities combined with such affiliate channel, serving a large customer base will foster a mutually rewarding partnership. We are in a process of hiring a Chief Business Officer, affiliate channel to comprehensively capture this large potential.

Since we now have a large pool of clients and a huge data lake, we are focusing on better utilizing this by further augmenting our data analytic capabilities. Over the past nine months, we have centralized several actual data sources to produce track-based dataset on a common data platform. This centralized database collects, integrate — integrate various eligible client data, including user persona, engagement, trading behavior, product touchpoint attributes, click stream data and transition data. This comprehensive repository empowers our product tech and growth function as they gain whole holistic insight into client’s behavior and preference to further personalize engagement, thus improving client satisfaction and detention.

During the quarter, we collaborated with U.S.-based service provider to conceptualize and implement GPT driven chatbot for our customers for support system. The chatbot is being trained on a large language model with our client specific and other temporary data. This initiative has resulted as delivered a 70% success rate as of now. We aim to incorporate real time insights into a conversational model and go live during the current financial year. To scale this up more effectively, we have expanded our management bandwidth with on-boarding of Mr. Deepak Chandani. As Chief Data Officer, Deepak comes with a strong ground grounding in business intelligence, data analytics and data science, and possesses strong AI/ML-related capabilities, having led this initiatives in his past assignment with companies such as British Petroleum, UBS, Apple, and Infosys.

In our pursuit to become India’s most trusted and preferred FinTech brand, we will continuously explore the opportunities that are synergic to this objective. In this context, we are also exploring in our organic acquisition and partnerships, partnerships opportunity across the consumer financial products and service landscape, including core tech, product distribution platform, WealthTech, learning and content engagement platform, which would enhance and complement our existing and future offering.

Last but not the least, it gives me great pleasure to announce that we have been ranked 52 amongst top 100 best company to work for in India by the Great Place to Work Institute, besides topping the FinTech category and also being amongst top 25 in BFSI sector. This achievements are possible because of our firm belief in our core values of innovation, speed, thinking big, collaboration, trust, and customer centricity, thus bringing about a collective sense of purpose and passion amongst all Angelites.

Coming to the operational performance in quarter one FY’24, we continue to demonstrate healthy progress. Our overall NPS continues to grow handsomely. Angel’s share of India’s incremental DEMAT accounts stood at 21.3% as we concluded the quarter with a total client base of over 15 million. Our orders are key revenue driver for our business remained robust at 249 million with the underlying EBDAT of growing by 23% quarter-on-quarter to nearly INR23 trillion. As we continue to expand over market share in overall retail liquidity turnover by 175 bps quarter-on-quarter to 24.5 percentage.

I hope this insight has given you a flavor of our tech-driven business and our efforts to have a more integrated financial product suite. Vineet will now take you through our financial performance after which we will be happy to answer your questions.

Vineet Agrawal — Chief Financial Officer

Thank you, Dinesh Bhai and good morning everyone. FY’24 has commenced on a positive note for us, as we surpassed the 15 million clients marked in June 2023 and achieved our highest ever market share across retail overall equity turnover and NSE active clients. Whilst the business continues to be on a very strong footing, quarter one FY’24 has its own peculiarities in terms of 3% or two lesser number of trading days compared to quarter four FY’23, impact of annual increments and continued investments in tech and product. To this extent, quarter one has to be looked at slightly differently.

In quarter one FY’24, our total gross revenue stood at INR8.1 billion. Gross broking revenue was lowered by 4% sequentially to nearly INR5.6 billion accounting for about 69% of our total gross revenues for quarter one FY’24. Share of F&O segment in gross booking revenue reduced to 84% in quarter one FY’24 from 87% in quarter four of FY’23. Contribution of cash and commodity segments expanded to 10% and 5% respectively as compared to quarter four of FY’23. Approximately, 78% of our networking revenues are contributed by clients from direct channel and 22% by our clients associated with the affiliates channel.

It is important to note that as clients mature on the Angel One platform, their contribution to the net broking revenue continues to remain strong. This trend is evident from the rising share of net broking revenue from two to three year cohort in quarter one FY’24. This cohort has consistently grown over the quarters and now stands at 22% up by almost three times from 8% in quarter one FY’22. The longevity of these young new to market revenue generating clients on the platform is further being fortified through various initiatives, developments, and offerings across the entire spectrum of Angel One Super App platform.

Interest income, which includes interest earned from client funding book and from deposits with exchanges grew by approximately 6% quarter-on-quarter to INR1.4 billion. This accounted for about 18% of total gross revenues in quarter one of FY’24. Ancillary transaction income linked to the turnover stood at approximately INR0.7 billion accounting for 8% of quarter one FY’24 total gross revenues.

Employee benefit expenses, which stood at INR1 billion in quarter one FY’24, include the impact of annual increments to employees. Non-cash accrual of costs towards annual grants of stock options and proportionate accrual of the budgeted variable pay for the current financial year. Other opex for the quarter stood at nearly INR2 billion, which grew in line with our operations driven by spends on client acquisition, software connectivity and maintenance expenses, DEMAT charges, CSR and other expenses.

Our consolidated operating margin for the quarters stood at 48.6% versus 51.2% in quarter four of FY’23. It may be recalled that in quarter four FY’23 employee benefit expenses had a one-time positive impact of INR405 million on account of reversal of stock option grants and year end variable pay provision leading to a higher than usual operating margin percentage. Therefore, on an adjusted basis, there is a 7.4% decline in EBDAT on a sequential basis from INR3.3 billion in quarter four FY’23 to INR3.1 billion in quarter one FY’24.

Similarly, on an adjusted basis, our consolidated profit after tax from continuing operations declined 6.9% quarter-on-quarter from INR2.4 billion in quarter four FY’23 to INR2.2 billion in quarter one FY’24. The board has approved distribution of 35% of the quarters post-tax profits as first interim dividend to the shareholders aggregating to INR775 million. This translates to INR9.25 per equity share. Period end cash and cash equivalence increased to INR66 billion on the back of increase in client margins.

Client funding book remains stable at INR11.4 billion as of June 2023 compared to INR11.5 billion as of March 2023. Consolidated net worth of the company grew by 9.6% to INR23.7 billion. As we continue to operate the business within the desired margin profile, our quarter one FY’24 analyzed return on average equity remains a healthy 39%.

With this, I conclude the presentation and open the floor for further discussion. Thank you.

Questions and Answers:

Operator

Thank you. [Operator Instructions] Our first question comes from the line of Swarnabha Mukherjee with B&K Securities. Please go ahead.

Swarnabha Mukherjee — B&K Securities — Analyst

Hi, sir. Thank you for the opportunity and good morning. So couple of things that I wanted to understand was, first on the employee expense side, if you could give us a breakup of fixed and variable components and how to think about this for the next three quarters. So is the variable component provision of this quarter or would it be spread over the next few quarters as well, which means that we should see a rate of in a similar level about this? And also your comments on the any add-on interest cost that you are highlighted INR40 crore to INR50 crore earlier now that it has gotten shifted by couple of months. So is there a kind of a change in guidance from your side regarding that? And then I would have a follow-up on also on the client acquisition. So after your answers, maybe I can ask that?

Dinesh D. Thakkar — Chairman & Managing Director

Sure. Sure. I will let Vineet answer your two questions. Vineet, if you can just take it over.

Vineet Agrawal — Chief Financial Officer

Sure. So now we do not disclose the breakup of the fixed and variable employee cost. And to answer to your question about how much of the variable cost has been factored in, this is spread over the entire year. So one-fourth of the budgeted variable pay for the current financial year would be part of the Q1 expenses. And then proportionately, it’ll be spread over the other three quarters.

Your question about the update on the additional expenses that we are going to incur because of the circular, well, it’s more or less in line with what our guidance was in quarter four, and we continue to maintain that guidance. Again, that depends on the movement of the turnover and volumes on the platform, but I mean the variance could be maybe 5% or 7% here and there. That’s it. Not more than that.

Swarnabha Mukherjee — B&K Securities — Analyst

Okay. Understood. So in the balance sheet on the borrowing front, so that number is over the last two quarters, around INR750 crores to INR750 crores. It used to be upwards of INR1,200 crores two, three quarters back, even before you had the additional working capital requirement for paying out clients on by the first week of every quarter. So can you point to the reason why this borrowing numbers have come down from INR1,200 crores plus to this INR800 crores around?

Dinesh D. Thakkar — Chairman & Managing Director

Sure. So largely, our borrowing is linked to the onward lending that we do towards MTF and T plus seven. So as this number has come down over the last quarter or so, similarly the borrowing has come down and again, whatever cash we generate from the business quarter-on-quarter that is again fed back into the business to fund the MTF and the T plus seven.

Swarnabha Mukherjee — B&K Securities — Analyst

Sure, sure. Very helpful. Just quickly on the client acquisition. So I just looking that — looking at your numbers over the last six months around 2.5 million customers have been added, but if you look at the active clients number, so it has gone up by around 0.2 million only. So just wanted to understand, whether you are seeing any different trends in terms of activating these clients of what it means for your payback periods at the current standpoint?

Dinesh D. Thakkar — Chairman & Managing Director

Yeah. Thanks. Devender, if you can just answer it.

Devender Kumar — Head-Online Revenue Management

Yeah. Hi Swarna, this is Devender. So if you look at the overall market, Swarna, the overall market has also has been adding very large amount of clients, where the total base of clients is almost does INR12 crores now. And if you look at the active base of NSE, which is close to INR3 crores, so if you look at from an overall industry point of view, the overall active base, which is the active participation of retail, has been subdued in the last two quarters. And as a result of the same is reflecting in our case as well, where our active base is kind of — has been stagnant or let’s say has been stable to an extent. But from an overall point of view, during this period, when we look at our market share in terms of NSE active client, we have been gaining market shares almost 2 percentage point is what we have gained in the last two quarters, which is reflective of the robustness of the way we have been doing our digital business.

From an overall per se, I think, we are launching multiple services on the mutual fund sign and we have plans monetize or let’s say provide various kind of products and services to our clients, which will further enhance the active ways that we are going to look forward at. So that precisely is the reason.

Dinesh D. Thakkar — Chairman & Managing Director

Swarnabha just to add, what you need to also monitor is the number of orders executed on our platform because that is something which translates into revenue for us. And if you see and as I mentioned in my comment that our two to three year — one to two and two to three year client base has been giving us higher revenues. So that kind of shows the stickiness on the platform. So that is something that people need to be aware of. As a percentage it may [Technical Issues] active client versus the total client base, but it is more important to see the number of orders and the longevity of the revenue generating clients on the platform.

Swarnabha Mukherjee — B&K Securities — Analyst

Yeah. Yeah. So like justify your calculate [Technical Issues] 2.5, I mean, that come — number comes around 10%, but I’m pretty sure that you’ll be actually activating more customers because few older ones might actually be also dropping out. Just wanted to understand that, if I were to just look at the incremental customer base [Technical Issues] but compared to the market, what you are seeing, do you see your rates kind of activation rates to be on the higher side, maybe not as much as on the peak of the market, but right now on the higher side compared to market? Or would we be fairly at a similar level?

Vineet Agrawal — Chief Financial Officer

So from an overall point of view, if I look at from an industry point of view, the overall industry activation rate is close to 25% and we are close to 30%. So we are doing better than what the industry average looks like. But no, in the long period of time, we are looking at with the current market outlook in the current market conditions, this has remained subdued. And we feel that it’ll in line with what market performance and market behavior is looking like in the coming time, but we are doing better than our peers than from an industry point of view with our overall rate being 30% in comparison to the industry data of 25%.

Dinesh D. Thakkar — Chairman & Managing Director

Just to add to that Swarnabha, see this is a very interesting data point because it only shows a client who traded once in the trading 12 months that client might have done number of orders instead of one, but that somehow is not being captured in this data point, which is available for the industry. Therefore if — to that extent, you can’t really concentrate on this data point.

Swarnabha Mukherjee — B&K Securities — Analyst

Got it. Got it. Very helpful, sir. Thank you so much for the detail answer and all the best for upcoming goal.

Dinesh D. Thakkar — Chairman & Managing Director

Thank you.

Operator

Thank you. Our next question comes from the line of Prayesh Jain with Motilal Oswal. Please go ahead.

Prayesh Jain — Motilal Oswal — Analyst

Yeah. I had a few questions. Firstly, if I look at the industry, the MTF book has been on the rise, but for us it has been kind of a steady trend rather than any impact from the peak, we are on the much lower side. So what is the reason? Why we have not focused on this business, given that, the margins have been — margins have been much — the peak margin amongst have kind of made it much better than the earlier scenario? That is first. Second, wanted to check, with respect to the threshold level of the broker wide limit, where are we and what happens in case we hit that — hit those thresholds? In the past, I think there has been some mention about having a different card and getting implementing the same there, but is it really possible to do that execution? That is my second question. And third one is, you mentioned in the opening remarks about focus on the AP network. Does it mean that we are kind of changing our approach and seeing that on the lower tier or tier three and tier four towns, you need stronger presence through AP network? How should we read into this?

Dinesh D. Thakkar — Chairman & Managing Director

Yeah. See on your first question about MTF book, as I always maintain my plan that we are not into kind of like everything in margin funding, lending and all that. Mostly, it doesn’t kind of like bridge funding given to people who are trading in cash and they want some fund for. So like their interim need. So we are not very much focused to increase our margin funding book beyond it is a part of service that we provide in our brokerage book. So we don’t do resolve funding and all that. So we believe that as market like small cap, midcap, we’ll see already there will be a proportionate growth, but to expect a linear growth in MTF that is not our focus.

Okay. Second on our threshold cancel limit, I think still we are far away from that, but we have enough cancel like contingency plan to take care when we hit that. On your third point, on affiliate channel, we should look at India, that population, apart from digital, there are lots of population who are dependent on bit assisted model. And when it comes to — when we are going into all services beyond broking, you look at mutual fund, if you look at insurance and lending products and all that, still, it is like an assisted kind of like a model. So to have a proper focus and have a market share and leadership position in all segments that we’ll be offering on our FinTech platform we thought this to have a scale in all offering that we do.

Plus, if you look at the platform that we provide to our affiliate channels, it is high on technology. Now when we talk over data science and all that today, here if you look at affiliate channels, they’re unable to guide customer very effectively, because of lack of information and data with them and with kind of like competency that we have to build technology and to build platforms, which with terms like AI/ML tools, we believe that you’ll be able to achieve a better market share across all the product offering, be it on digital platform or B2C, or be it people who want an assisted model in products like mutual fund, insurance and lending products and all that.

There’s the reason we want to create a proper focus division, who does not miss out on any terms like market share across all this [Technical Issues] or focus remains on being a technology player. Using this technology data science, so that we are able to be effectively and expand this market across all categories.

Prayesh Jain — Motilal Oswal — Analyst

Okay. Got that. Just a follow-up on the second question. So what are the contingency plans in case you retract threshold level?

Dinesh D. Thakkar — Chairman & Managing Director

See, like there are lots of terms and things, which can be worked out. See today, we allow like clients to keep, do trading on all kinds of instruments and all that. So when time comes, we’ll be very specific in terms of what — how we can save that bandwidth. Apart from that like we have like one more membership that with us. So we can split that business also. So that is not an issue when time comes, we’ll address it appropriately. Right now, I don’t think we — that is like under our consideration to see that how we are going to take care of threshold.

Prayesh Jain — Motilal Oswal — Analyst

Okay. And Dinesh, just one last follow-up. When you mentioned that, MTF book is not a focus area and just more of offering to the customer, but don’t you think this is a — this is a very — this is a very safe business now and relatively much safer than what it used to be earlier and can be a very good revenue stream and profit stream for you. So why not increase the focus in this product and or improve the offerings that we have currently? Or do you see that, because on our platform the cash volumes are much lower and you don’t earn a lot of revenues out of the cash delivery segment. You would want to focus, continue — focus will continue to be on F&O segment and not so much on cash segment. Is that the way to think about it?

Dinesh D. Thakkar — Chairman & Managing Director

No. That is wrong way of thinking, Prayesh. As in that our focus on retail lending is there. We would like to be a leader in that. What I was trying to say, when you look at this lending book, it consists of retail lending and plus many other components, H&I and all that, that we are not interested. The focus is not to increase this MTF at any cost. We are a focus player. So we want to achieve more market share, better market share in retail segment. See, retail segment, if you see, we are growing, but retail does not work in a linear way, because when they find some good opportunity on option side, they’re very active on option side. Suddenly when you see small and midcap picking up, they’ll come to cash segment.

So my point is that when it comes to retail offering or retail requiring this cash and service, we would be very aggressive. We would like to have a highest market share. But being focused on MTF and trying to go into other segments, where we’re not interested to sell other kind like needs of that customer, we would not like to, just for the sake of increasing market margin funding book would like to go into that segment. That is what I meant.

Prayesh Jain — Motilal Oswal — Analyst

Sorry. Thank you so much for all the detailed explain. Thank you so much. All the best.

Operator

Thank you. [Operator Instructions] Our next question comes from the line of Nitesh with Investec. Please go ahead.

Nitesh — Investec — Analyst

Thanks for the opportunity. On SIPs, so when we are think about they have become number — number two player in SIPs. Is it on number of — the number of SIPs and does it include all the participants including banks, non-bank? And how will be the — our positioning in terms of value of SIP?

Dinesh D. Thakkar — Chairman & Managing Director

Okay. Saurabh, would be right person to answer this. Saurabh, if you can?

Saurabh Agarwal — Chief Experience Officer-New Business

Thanks. The number includes banks, non-banks, FinTechs, everyone. So we are second overall in the market. In terms of the value of the SIP, this is not an information that we disclosed proactively, but we’ll be in line with most other players in terms of direct mutual funds in the market.

Nitesh — Investec — Analyst

Sure. Secondly, how are the trends on the payback period, which used to be two quarters earlier? How are the trends for this — in this quarter on the payback side?

Dinesh D. Thakkar — Chairman & Managing Director

Vineet, if you would like to answer this?

Vineet Agrawal — Chief Financial Officer

So Nitesh, again, we would want you to concentrate more on the LTV to CAC. Of course, the payback remains more or less in that bandwidth, but it’s more important to understand what the LTV to CAC is, and that, as we explained in our presentation, it’s a very healthy eight times the CAC. So I think that is more important a metric to concentrate on.

Nitesh — Investec — Analyst

Sure. And lastly, when — so when you’re talking about this affiliate channel strategy, we already have some 21,000 channel partners and probably as we scale it, this number may become much larger. So do we have also plans to have insurance booking license, because without insurance booking license, the value preparation on the insurance side would not be that material?

Dinesh D. Thakkar — Chairman & Managing Director

See currently, like we are in that process of creating this — strengthening this vertical. So in terms of granular detail of this content business model in our FinTech channel, that you give us some time, we’ll be more clear and give more disclosure by the next quarter.

Nitesh — Investec — Analyst

Sure. Thank you. Thank you. That’s it from my side.

Operator

Thank you. Our next question comes from the line of Sumit Rathi with Centrum PMS. Please go ahead.

Sumit Rathi — Centrum PMS — Analyst

Thank you for giving me the opportunity sir, to ask this question. My questions are partially answered, but wanted to check that our active client as a percentage of gross client has been in a declining trend, and that you rightly said, it’s been with competitors also. But how do we see this trend getting going forward? This is — or would it get stabilize at what level? If you can give some color on that.

Dinesh D. Thakkar — Chairman & Managing Director

Sumit, activity of a customer depends on market conditions that we are into kind of an technical market, where we see activation of customer, for a year, it appears to be normal, but if we track it month-on-month [Technical Issues] appear to be going up and down. So my point is that we are introducing lots of services to make this customer base active. What is important that — what is the lifetime value we are creating from a customer? Are we able to extend that? That is where our focus is. Our focus is not on day-to-day what customer is doing, but we try to compare ourselves with competition and all that. But our journeys that we are building on FinTech is far different than what industry is building. So slowly progress you will see. We also wanted activation ratio often customers should increase and that customer should become active on many other products which may not be captured by NSE’s database.

Sumit Rathi — Centrum PMS — Analyst

Okay. Makes sense, sir. And lastly on the ESOP cost, how would the trajectory be going forward if we have to see like next two, three years down the line?

Dinesh D. Thakkar — Chairman & Managing Director

Vineet, if you can answer this?

Vineet Agrawal — Chief Financial Officer

So I can’t give you forward-looking kind of number, but for this year, the budgeted spend on ESOP is about INR50 crore, INR55 crores.

Sumit Rathi — Centrum PMS — Analyst

All right, sir. And any update on our AMC business launch, where we are progressing in that, like, that would be my last question?

Dinesh D. Thakkar — Chairman & Managing Director

Vineet, if you can answer this?

Vineet Agrawal — Chief Financial Officer

Sure. So we are in the process of creating the entire infrastructure and the organization. We’ve already incorporated the asset management company and the trustee company. And hopefully, in the next couple of weeks or three weeks, we should be able to file our application for final approval.

Sumit Rathi — Centrum PMS — Analyst

Okay. And with the final approval, what time does it take to really launch the products and all that?

Vineet Agrawal — Chief Financial Officer

Well, it depends. Normally, our understanding is, it’ll take about two quarters for SEBI to come back with their final approval and immediately, we can launch schemes.

Sumit Rathi — Centrum PMS — Analyst

All right, sir, thank you. Thanks a lot for all the clarification.

Operator

Thank you. Our next question comes from the line of Gautam Jain with GCJ Financial Advisors. Please go ahead.

Gautam Jain — GCJ Financial Advisors — Analyst

Good morning. Congratulations for good set of numbers and thanks for giving opportunity. My first question is how much is the gap between us and other top two player in terms of rank-based on NSE active client?

Dinesh D. Thakkar — Chairman & Managing Director

See that data is available on the website. Somebody can answer Bhavin or Ketan?

Ketan Shah — Chief Strategy Officer

Yeah. Yeah. Hi, the top two players —

Dinesh D. Thakkar — Chairman & Managing Director

No. No. What is the rank he is asking? The rank, I think right now we are in terms of stock active client we have served, right? [Speech Overlap] That is his question.

Gautam Jain — GCJ Financial Advisors — Analyst

Gap between our market share and top two market share?

Dinesh D. Thakkar — Chairman & Managing Director

Gap between market share you are saying?

Gautam Jain — GCJ Financial Advisors — Analyst

Yeah.

Dinesh D. Thakkar — Chairman & Managing Director

You can just share the number.

Unidentified Speaker —

Yeah. Yeah. 66 is the number one. 14.5%. So today — so our market share is 14.3% in the June month, they’re just checking the top player that is close to 20% market share. So the gap is —

Dinesh D. Thakkar — Chairman & Managing Director

Gautam, let me clarify. See, this gap does not show you anything in terms of revenue and all that. So this would be a wrong parameter for you to track. But we are giving you data, but if you look at the revenues and all that that would be far more better [Technical Issues] of types of business and where a particular player stands.

Gautam Jain — GCJ Financial Advisors — Analyst

Okay. Yeah. Got it. And my second question is, your gross broking income to your order? If I calculate this, INR22.4 per order, and that is, I think we have seen the bottom in Q4, which was INR22.1, and it has gone up now INR22.4. So it’s like — it has improved or because of mix change between discount scheme and traditional plan or direct to channel revenue because of that the fee, broking income, the number of orders has gone up sequential?

Dinesh D. Thakkar — Chairman & Managing Director

I’m not sure whether we are tracking it. Devender, you have any like clarity on this.

Devender Kumar — Head-Online Revenue Management

So we track it. It’s in stable nature. But we don’t really disclose, how it is turning to the market.

Dinesh D. Thakkar — Chairman & Managing Director

Yeah. Okay. Fine.

Gautam Jain — GCJ Financial Advisors — Analyst

Okay. And lastly, take up of interest income between interest received from the client and interest on ours investment book?

Dinesh D. Thakkar — Chairman & Managing Director

Vineet, do we disclose that?

Vineet Agrawal — Chief Financial Officer

No. We don’t disclose. But I can give you a directional view. So as we mentioned in our annual report as well, about 75%, 80% of the interest that we generate on the fixed deposits comes from the client margins and the balances on our own proprietary funds. So that’s how the trend is. But the number that we’ve disclosed in the quarterly financials is the consolidated number of the interest earned from MTF as well as interest earned on fixed deposits.

Gautam Jain — GCJ Financial Advisors — Analyst

Okay. What will your cost of borrowing?

Vineet Agrawal — Chief Financial Officer

Well, the cost of borrowing is remaining in that same ballpark of about 8% and 8.5%.

Gautam Jain — GCJ Financial Advisors — Analyst

Okay. Great. And lastly, the other cost has gone up sequential despite number of orders have declined. So was any one-off in that or have increased some variable cost to acquire the client or some fixed sources gone up. How to read that?

Vineet Agrawal — Chief Financial Officer

No. It’s aligned with the growth of the business. So that’s what I mentioned in the comment as well, that the other — other expenses are growing in line in terms of the number of clients that we are acquiring and the growth in the volume of the business.

Gautam Jain — GCJ Financial Advisors — Analyst

Okay. Great. And are you seeing any improvement in number of orders since market has started doing good? Even after June than the number of orders?

Vineet Agrawal — Chief Financial Officer

You will see the number being published at the end of — or the early part of August for the July month. We will not be able to disclose any number right now.

Gautam Jain — GCJ Financial Advisors — Analyst

Okay. Great. Thank you so much. I’m done.

Operator

Thank you. Our next question comes from the line of Pallavi Deshpande with Sameeksha Capital. Please go ahead.

Pallavi Deshpande — Sameeksha Capital — Analyst

Yes sir. Thank you for taking my question. Just wanted to understand on this SIP book, how much would be from a regular plan, was this direct plan? And second, would be on this — on the credit business that you’re looking? Have we hired the Chief Credit Officer and the tie up with the NTFC system?

Dinesh D. Thakkar — Chairman & Managing Director

Thank you. Pallavi — Saurabh, if you can just answer this.

Saurabh Agarwal — Chief Experience Officer-New Business

Sure. So in terms of the breakup between the direct book and the regular book, that is not something that we are disclosing for now. And the second question around credit rate? Since we are largely into the distribution of credit products and not being a lender ourselves, we don’t need to hire a Chief Credit Officer. Having said that, I mean, the team in terms of building the lending business is getting hired and we are hiring top quality talent there to take the lending business forward.

Pallavi Deshpande — Sameeksha Capital — Analyst

And what would be the size of the team you would be looking at?

Saurabh Agarwal — Chief Experience Officer-New Business

That is not something we tend to disclose.

Pallavi Deshpande — Sameeksha Capital — Analyst

Okay. Thank you, sir.

Dinesh D. Thakkar — Chairman & Managing Director

It’ll be commensurate to the kind of business that we develop. So it’s not something that will be static.

Pallavi Deshpande — Sameeksha Capital — Analyst

Right, right, right. Thank you so much.

Operator

Thank you. Our next question comes from the line of Sanketh Godha with Avendus Spark. Please go ahead.

Sanketh Godha — Avendus Spark — Analyst

Thank you for the opportunity. Sir, we — what I understand from the mutual funds strategy is that you typically sell largely direct plan on the app, on the Super App, but the incremental strategy, what you have been seeing on affiliate people selling the third party products, which is mutual fund, insurance and everything. So just wanted to understand that 21,000 people who, in your view, how many are already into this product distribution and incrementally, why they need to switch it to Angel to distribute on your behalf. And also wanted to understand that when you are going offline, which means that with the tech solution to them, whether you will be focusing unlike app, Super App story, more selling regular plans there, so that your third-parties income will grow. So just wanted to understand the broader strategy there, how you are looking at it and how much it could potentially contribute since you have already looking to hire a Chief Business Officer to — cater to this particular segment. How much revenue you are targeting to generate from this particular base?

Dinesh D. Thakkar — Chairman & Managing Director

Just coming to your second question, that is very important. So when we talk about affiliate channel, currently 21,000 are authorized persons primarily focused on stock market activity, plus they’re selling over third-party products. But we feel that if we want to be successful in all the products, because when we are introducing everything on FinTech platform, it makes sense for us to have a scale of that business. We look at all consummate third-party product apart from this stock, including stock. Sorry. Yeah. There is an audience who would like to have some assistance when they are going for that service or buying product like insurance lending product and all that. And given the fact that we have a best technology platform already for stock broking, we extend a platform called NXT. Because of that, they’re able to be more effective in terms of serving their client need.

So we want to enhance that kind of like capabilities of our service people plus attract the people who are into distribution of mutual fund, IFAs and all that. So that they are also able to take benefit of advanced technology platform that we have. And plus, as I said, that we have — we are getting deep into data science and all that. So all said, and then we want to see that affiliate channel everywhere, all the channel, whatever they’re selling, they have a right [Indecipherable] information for products they’re selling. So that we are able to include more people in this financial service. So this is one way we have proved that we are able to acquire customers, serve in that.

But when we look at mutual fund industry, when you look at insurance, when you look at lending, still we feel that there is enough connection like business in those affiliate channels. But what is a gap between currently what is happening is a good technology bridge, a good technology platform, which can help them to be more effective in terms of servicing customers. So our approach of Super App giving all kinds of services on platform remains same, but we feel this is then kind of like natural extension to digital capabilities that we have created and that will help us to get more market share.

So we are not — as in broking also, we are not focused that affiliate channel should sell only like traditional products and all that. We are going to extend all digital, all kind of like — latest kind of like services to them also, they can sell traditional, they can sell whatever we think is right calling customer, it is up to them. But what we are going to give them a scale, better price and better connection like data management and information management of a customer.

Sanketh, I just missed your first question. Direct plan. What your —

Sanketh Godha — Avendus Spark — Analyst

Because Super App, we preferably sell direct mutual fund plans, so that your customer remains more engaged with the app and probably ends up trading more that’s broadly the strategy, which I understand. Then if it is the offline mode, which is AP model then the mutual funds, what you will distribute there would be typically the regular ones, where you will earn commission. That there is the whole idea is what I wanted to understand or it’ll be very similar to?

Dinesh D. Thakkar — Chairman & Managing Director

See what happens Sanketh when somebody is providing some kind of like, additional service, he is entitled — he or she is entitled to charge some fee. And it makes sense for customer also who is not total digital or you want some connection like assistance in terms of their services. So it makes sense for them to pay some small premium so that their asset management and everything is managed properly.

Sanketh Godha — Avendus Spark — Analyst

Got it. But sir, just wanted to understand, but given our distribution income quarterly run rate is say INR8 crores today. So which is coming from third-party products? So given the strategy, any number you have in mind, this quarterly run rate maybe in two years or three years, can become three times or four times compared to what you generate on per quarter basis?

Dinesh D. Thakkar — Chairman & Managing Director

Sanketh, our expirations are very high in terms of gaining market share and gaining revenue also from that. But if you see third-party product, which is sold in affiliate channel, it has revenue attached to that. So difficult to put a number right now, but as you know that whichever division or vertical will go into would like to be a leader in that. So fairly you can say that what the market share of a leader in that segment would like to be closer to that.

Sanketh Godha — Avendus Spark — Analyst

Okay, sir. Great. And last, Vineet, one small question. This 90 — our finance cost or interest cost is INR18.3 crores. And we have guided that the number would be INR40 crores because of the changing rules with respect to up-streaming of client money. So just wanted to understand, out of the INR40 crores of nine months FY’23, how much is already sitting in first quarter ’24?

Vineet Agrawal — Chief Financial Officer

So Sanketh, this INR18 crores does not include this INR40 crores. So INR40 crores, we calculated effective 1 of July. If you read it carefully, we said that the up-streaming circular is going to be implemented from 1 of July. And that’s how we calculated it for a prorated period of nine months in the current financial year to INR40 crores. And the annualized cost we had estimated to be about INR50 crores, INR52 crores. We more or less stand by that. Again, there could be some changes due to the change in volume and growth in the business, but as I mentioned earlier, it’s not going to be a very significant number.

Sanketh Godha — Avendus Spark — Analyst

So basically, if I go by that run rate INR18 crores, which you reported in first quarter FY’24, probably will become maybe INR30 crores odd or INR32 crores odd in next year as this rules get implemented, right?

Vineet Agrawal — Chief Financial Officer

Again, it’s very difficult to estimate because the cost of finance cost is also linked to what my client funding book is going to be and what the benefits of the efficiency in the clearing corporations are going to come back to us. So it’s difficult to estimate that number.

Sanketh Godha — Avendus Spark — Analyst

Okay, Vineet. Thanks for that. That’s it from my side.

Operator

Thank you. [Operator Instructions] Our next question comes from the line of Nitesh with Investec. Please go ahead.

Nitesh — Investec — Analyst

Thanks for the opportunity again. So on the — again, on the question on this SIPs, so can you some share some data around how much SIPs are taking from active customers and how from non-active customers, I’m trying to understand that because of SIPs, because of these new product additions, are we able to get incremental engagement from non-active customers, or largely the active customer are providing — are coming for the SIPs and other products?

Dinesh D. Thakkar — Chairman & Managing Director

Nitesh, we don’t have breakup of that. But I can tell you this, all this — whatever in mutual fund we are selling, we are selling to only our existing customer base. And Saurabh would be able to add more life to this.

Nitesh — Investec — Analyst

So the idea is to understand basically the existing customer base is divided into two parts, active and inactive. Active customers are giving us revenue, non-active are not giving us revenue. So if you’re able to engage more with non-active in future, there is a possibility of — to monetize them from that point of view, I was trying to understand.

Dinesh D. Thakkar — Chairman & Managing Director

Yeah. Saurabh, if you can just take.

Saurabh Agarwal — Chief Experience Officer-New Business

Yeah. I’ll just give you a directional flavor, right? Active versus inactive, what is the share in terms of SIP that we can’t disclose? But what we have already started to see is because of the customers who are buying mutual funds from us and having a portfolio with us, their engagement and their retention on the platform has started to already show green shoot. And that will materialize into decent broking numbers going forward. We are till quite early into the mutual fund journey, so it is difficult to really quantify those numbers. But in terms of engagement and retention, we are already seeing good traction.

Nitesh — Investec — Analyst

Sure. That is from the active customers, but any color on the inactive customers, are we able to send mutual funds to the customers who are not trading, they have app — our app, but not trading, but maybe interested in mutual funds?

Saurabh Agarwal — Chief Experience Officer-New Business

Yeah. I mean, so in terms of the mix of the customers of active versus inactive, as I just told a few moments back, we can’t give the exact split, but we are seeing good chunk of inactive customers also starting to buy SIPs and do lump sums with us.

Nitesh — Investec — Analyst

Sure. Okay. Thank you, sir. Thank you. That’s it from me.

Operator

Thank you. Our next question comes from the line of Prayesh Jain with Motilal Oswal. Please go ahead.

Prayesh Jain — Motilal Oswal — Analyst

Yeah. Hi. Just a couple of questions again. Firstly on this finance — consumer finance business, I missed that part of when you mentioning about what kind of strategy you would be implementing there. Just throw some — if you could throw some light again on what is the strategy about distribution of finance product? That is one. And I’ll ask the second question after that.

Dinesh D. Thakkar — Chairman & Managing Director

Saurabh, if you can just take this.

Saurabh Agarwal — Chief Experience Officer-New Business

So in terms of the strategy around consumer credit, right? We’ll be starting with launching personal loans, the opportunity is quite large there and we are looking to tap into that business. In terms of the model, we’ll be undertaking distribution without taking any risk on our books, which can actually help us scale big. And however in the medium term, we don’t intend to just be a vanilla distributor. We are building intelligence around AI/ML based models to assist our lending partners in all aspects of the lending journey using internal and external customer data. And this can potentially enable us to get high distribution margins going forward. What looks good for us primarily with the initial analysis that we have done and the engagements that we are in the process of with our lenders is one the overall base quality in terms of the credit profile of the customer looks quite good.

Secondly, the engagement of the — on the platform with our customers is already high. And mutual fund scaling in a very short timeframe without any external marketing is a testimony to that which can enable us higher uptake even for credit from the platform. And third is, we have proprietary data around clients and high quality data intelligence, which is — which will enable us to get higher approval rates and higher commissions from a lender. So this is largely our consumer credit strategy, personal loans being the product to go live within a few months. We’ll also look at credit card in some time, but still early to comment on that.

Prayesh Jain — Motilal Oswal — Analyst

Okay. And have you tied up with any NBFC or bank currently?

Saurabh Agarwal — Chief Experience Officer-New Business

Yeah. We are in the process. I mean, discussions are happening with the top banks and NBFC in the country, and you could hear something good for us — from us in the coming quarter.

Prayesh Jain — Motilal Oswal — Analyst

Okay. Got it. And this one is finance book again. So does Angel also charge to customers who give, bring in 100% collateral and the 50% is funded by Angel, interest rate charge to those customers?

Vineet Agrawal — Chief Financial Officer

No. We do not charge anything for that. So any customer who brings in incremental non-cash collateral at over and above 50%, we allow them to bring that collateral, but we do not charge anything for that.

Prayesh Jain — Motilal Oswal — Analyst

Okay. Got it. And just last you on this the strategy on the associated person, so your associates with certain network is a franchisee network, right? Is that the right way to understand? Or there could be just individuals also having working from their own home?

Dinesh D. Thakkar — Chairman & Managing Director

You’re talking in terms of affiliate channel that we are talking about —

Prayesh Jain — Motilal Oswal — Analyst

Yeah. Associated persons network. So could you just give some more clarity? These are having a brick and mortar presence in their area or they could working from home.

Dinesh D. Thakkar — Chairman & Managing Director

Sure, yeah. Ketan — Ketan, if you can address this?

Ketan Shah — Chief Strategy Officer

Yeah. So it’s a mix of this authorized person, they’re individual, they’re corporate, so all mix people are there.

Prayesh Jain — Motilal Oswal — Analyst

Okay. Okay. And you mentioned that you’ll be also looking at hiring ISAs and these individuals who can bring us volumes on distribution, right? Is that what I got it correctly?

Ketan Shah — Chief Strategy Officer

Yes. Yes. Correct.

Prayesh Jain — Motilal Oswal — Analyst

Yeah. Got it. Got it. Thank you so much.

Operator

Our next question comes from the line of Sumit Rathi with Centrum PMS. Please go ahead.

Sumit Rathi — Centrum PMS — Analyst

Yeah. So on the lending business segment only sir, you given a lot of clarity already. Just wanted to check that the risk is not on our balance sheet, but are we going to also get, engage ourself into collection process over there? Or that collection would also be the responsibility of your NBFC partner?

Dinesh D. Thakkar — Chairman & Managing Director

Saurabh?

Saurabh Agarwal — Chief Experience Officer-New Business

Yes, sir. So in terms of collection, just nudging the customers to remind them that their emails are new, etc., which is what we call soft collections, it’s something that we can help our lenders with, but hard collections where — which is what we call collections in the industry, is something that the lenders only will undertake.

Sumit Rathi — Centrum PMS — Analyst

All right, sir. Thank you for the clarification.

Operator

Thank you. Our next question comes from the line of Sumit Jankar with Sai Ganga Nivas. Please go ahead.

Sumit Jankar — Sai Ganga Nivas — Analyst

Thank you for providing the opportunity. I had question regarding the active plan. What is the share of active plans who are trading into derivatives and how much share contribution in — of derivatives clients has increased in active plans? And my next question is that derivatives clients tends to make loss, so the tendency or the lifespan of derivatives clients is lower as compared to cash. So is there any way that you are looking to for retention of this type of clients?

Dinesh D. Thakkar — Chairman & Managing Director

Okay. Sumit, first of all, we don’t give breakup of active clients in derivatives and all that. So and second question, when you look at customer’s journey, always it start — whenever it start from equity, especially trader most probably they’re going to make losses. All you’re seeing people around you who are starting the equity journey, and if they’re a bit kind of risk taker, they’ll get into a product which meant resulting losses. But that does not mean they stop being into the market. So when we talk about lifetime value, what happens that the customer comes is looking for some extra income, initially one or two years. So he’s trading or she’s trading, but after third year, they tend to look into wealth creation opportunities. They don’t shy away from kind of totally from equity market. So they change their approach, they change their strategy, they change their terms like investment in this market.

So when we calculate lifetime value, it includes all this scale. When we are saying, now we are looking beyond just the people who are active as a trader into the equity, where you would like to expand this like value by giving — offering them so that they can continue with mutual fund some insurance product or some lending product and all that. So overall, we should not put any color to cater that they come to the market, they make losses and they whatever go away from the market, there is no other asset class where they can invest, where they can get a good wealth commission opportunity. So we have seen across like whatever my experience is in this industry for 30 years. Initially everybody trade, they make some losses, and people who understand what’s your equity they remain in equity market for almost ever.

Sumit Jankar — Sai Ganga Nivas — Analyst

Okay. Thank you, sir. Thank you for answering it and all the best.

Dinesh D. Thakkar — Chairman & Managing Director

Thank you.

Operator

Thank you. Our next question comes from the line of Sahil Shah with Bridge Capital. Please go ahead.

Sahil Shah — Bridge Capital — Analyst

Yeah. Hi. Am I audible?

Dinesh D. Thakkar — Chairman & Managing Director

Yeah.

Sahil Shah — Bridge Capital — Analyst

Yeah. So I have three questions. First is on the account of the aggregator and [Indecipherable], will it be playing a level field for — level playing field for everyone right now?

Dinesh D. Thakkar — Chairman & Managing Director

You want to ask all three questions or you want one by one?

Sahil Shah — Bridge Capital — Analyst

Yeah, I ask all three. So yeah, second would be on the mortality. So I just wanted to ask on active versus inactive and how do we currently make our inactive clients active? And the last question is on the cohort analysis. So we have highlighted for FY’22, this analyst place, how do we see this trend in the past four, five quarters? How was it?

Dinesh D. Thakkar — Chairman & Managing Director

Okay. On account aggregator, Ankit, if you can just answer that.

Ankit Rastogi — Chief Product Officer

Hi. Sorry, Ankit here. So we have gone live with account aggregator and account aggregator as a service from [Indecipherable] available for all the FinTech players. We are one of the consumers, and we see the beauty of account aggregation is that as more and more aggregators and including suppliers and the requesters come to the platform, it’ll be the commercial group for all. So more and more accounts that linked, irrespective to who does that, it’ll be beneficial for all. Right now our on-boarding has been powered by that, and we also look into further use cases of that.

Dinesh D. Thakkar — Chairman & Managing Director

Okay. Sahil, can you repeat your question on mortality?

Sahil Shah — Bridge Capital — Analyst

Yeah. So basically, it was on active versus inactive, and how do we make our inactive clients active again? So with the process band?

Dinesh D. Thakkar — Chairman & Managing Director

Yeah. Processes to introduce more services like we are working out with cash on like coming out with lots of terms like new services. Devender, if you would like to continue from here.

Devender Kumar — Head-Online Revenue Management

Yeah. Hi. Hi. Hi, Sahil. So from an — from the point of making an inactive client, active and inactive mortality and active and inactive client, so there are two points here. From an overall point of view, there are multiple services that we have now — we have launched MF and we have know multiple insurance as well. So we look at the overall spectrum where IPO, ETF, all services come into picture, where we look at exposing our clients and making them learn about these new services to get them into it. From the point of view of getting the clients active again in the broking segment, different clients have different activation rate. Let’s say some clients will know, let’s, like a delivery clients will activate maybe six — once in six months and once in two years maybe. And some clients are active on a daily basis.

So we have a very clear program for each cohort of clients where they’re looking at a daily client who has done delivery investment, let’s say one year back. And now what are they looking at and how are they going to look at rebalancing? Similarly, trader who are trading for a monthly cycle, for a weekly cycle, so we actually cohortize them in every aspect and the way we actually make them active is, basically offering them a lot in — lot of education in terms of what are the tools that there are different clients are using within the app, which is what is making the progress into a better mature state of usage of a service as well.

And obviously, we do a lot of know discounting offer in terms of a pricing to an extent to know for clients who are inactive for a very large period of time. So as to see, how we can initiate them back into the system as well. So we’ll look at these two prone strategies plus multiple of strategies to really, really work on the overall base of our clients.

Sahil Shah — Bridge Capital — Analyst

Okay. Thank you. And lastly, just wanted to ask about the train over the past four, five quarters on the core analysis?

Dinesh D. Thakkar — Chairman & Managing Director

Devender, if you can just take this.

Devender Kumar — Head-Online Revenue Management

No. So we’ll not be sharing this data on a quarterly basis because this data gets curated. We test the data and then we publish it. So you will have to wait for some time for us to refresh this data.

Sahil Shah — Bridge Capital — Analyst

No problem. Thank you so much and all the best.

Dinesh D. Thakkar — Chairman & Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] Our next question comes from the line of Hardik Jain with White Stone Financial Advisors. Please go ahead.

Hardik Jain — White Stone Financial Advisors — Analyst

Yeah, good afternoon, sir. Thank you for the opportunity. So my question is on the distribution platform for the lending business that we’re trying to build. So from what I understand, you’ll help your NBFC and bank clients to source borrowers or clients based on who on — from our app. And also you’ll use machine learning and other technologies to assess the credit quality of the borrower. So you will do this business only through your platform, or you can also give this API of this — of your software to the lending partner, where your credit assessment engine can run behind the frontend of your credit partner?

Dinesh D. Thakkar — Chairman & Managing Director

See currently, objective is to use our platform so that we are able to give more services to our customer. Saurabh would be a right person to take it from here.

Saurabh Agarwal — Chief Experience Officer-New Business

Yes. So I mean, the thing that you’re trying to mention is us being a TSP, right? Just a technology service provider. So fundamentally, TSP as a business is or is starting to become a low margin business because there are too many players offering the same services to NBFC in terms of just the platform play. And there is much more money to be made by being a distributor and by being an intelligent distributor. So we don’t intend to just hive out our technology platform to other lenders to underwrite their customers and without us being a distributor there.

Hardik Jain — White Stone Financial Advisors — Analyst

Okay. Okay. Good. Thank you. Thank you very much.

Operator

Thank you. [Operator Instructions] Our next question comes from the line of Pratik Shah, an Investor. Please go ahead.

Pratik Shah — Investor — Analyst

Yeah. Am I audible?

Dinesh D. Thakkar — Chairman & Managing Director

Yeah, you’re audible.

Pratik Shah — Investor — Analyst

Yeah. Yeah. So thanks for taking my question and congratulations Angel team for putting great set of numbers and increased market share. I have couple of questions. The first one is, as we know that company is in a process of hiring a new CEO, just wanted to check the status of that and by when we can expect this announcement. And second one is, how Angel One is incorporating machine learning and artificial intelligence in this broking service or any advisory service?

Dinesh D. Thakkar — Chairman & Managing Director

Yeah. So process of like looking out for a right candidate is on, it could be very difficult to put a timeline, because we are looking at someone very senior and season. But also than that there are — like hiring agencies who are looking out for candidate. Second on use of AI/ML on broking or any other services, Jyoti, you would like to take this question?

JyotiSwarup Raiturkar — Chief Technology Officer

Sure, DT. Hi. So —

Dinesh D. Thakkar — Chairman & Managing Director

And then Deepak can add, because Deepak is just joined. So maybe you can just give a perspective on our business and Deepak can talk about new technologies and everything, what you would be using.

JyotiSwarup Raiturkar — Chief Technology Officer

Sure. So we use AI/ML across the customer journeys on our platform. For example, just in this in our release, we have — we talked about customer support. So we have leveraged LLM model with contextual data specific to us to help answer customer queries. And it has got a 70% success rate. Besides this, we also leverage it from our acquisition during KYC for various things like signature recognition, etc. And even for our activations, right, for churn management of clients, we figure out what is the right campaign or right campaign needed for a particular persona to get activated on the platform. Deepak?

Dinesh D. Thakkar — Chairman & Managing Director

Deepak would like to add on this your vision strategy I’ve seen the world.

Deepak Chandani — Chief Data Officer

Yes. Thank you very much. I’m very excited to be here today. I think as Jyoti mentioned, a lot of things are going on here. I see a lot of technology play while we can use artificial intelligence, machine learning, data science, to kind of enhance customer, engagement, experience and further revenue increase for us. So I’m looking into all the initiatives, which are running right now and have a lot of ideas from the past. We have done journeys at Apple in which we have a lot of customer base, and we use that hallo effect in which a customer comes in and then we push them onto various journeys. That’s what we are planning to do it in Angel One. So I’m in process of building a strategy roadmap and using technology, I’m hoping we will be able to enhance customer engagement, experience and revenues for us. So please hold on for more coming quarter and we’ll come up with exciting ways on how our customers get benefit. Thank you.

Pratik Shah — Investor — Analyst

Yeah. Thanks sir. And one more question, sir. Like we — as all we know that BSE has also introduced this derivative segment with launching of SENSEX and BANKEX, but we are still not supporting that. So any plans to introduce that with our Super App?

Dinesh D. Thakkar — Chairman & Managing Director

Yeah. Bhavin you can take this question and Ankit can add on product site?

Bhavin Parekh — Head-Operations, Risk and Surveillance

Sure. Yes. The BSE has actually started the SENSEX weekly options and the BANKEX as well. We have evaluated that and we have started working on this. In the start of quarter three, we should be live or a little before that, but there is an integration, which is already started in towards that as well. Ankit?

Ankit Rastogi — Chief Product Officer

Yeah. Yeah. Nothing to add.

Pratik Shah — Investor — Analyst

Yeah. Yeah. Thanks a lot, sir. And all the best to Angel team for coming quarter.

Dinesh D. Thakkar — Chairman & Managing Director

Thanks. Thank you.

Operator

Thank you. Our next question comes from the line of Prathamesh with Proinvest Nirmiti. Please go ahead.

Prathamesh — Proinvest Nirmiti — Analyst

Hello. Thank you for the opportunity. So I wanted to know what the impact will be with the changes in the expiry on our older orders [Technical Issues] so weekly expiries that [Technical Issues]

Operator

Prathamesh, if you could please lift your handset and ask your question?

Prathamesh — Proinvest Nirmiti — Analyst

Hello? Am I audible?

Dinesh D. Thakkar — Chairman & Managing Director

Yeah, I can hear you now. Yeah.

Prathamesh — Proinvest Nirmiti — Analyst

Yeah. So I wanted to understand what impact will be there on our order volumes with the recent changes in the weekly expiries that has been done by NSE and BSE?

Dinesh D. Thakkar — Chairman & Managing Director

See when this weekly expiry increase, definitely there is some kind of uptick on customers engagement and all that. Devender, you would like to answer this question?

Devender Kumar — Head-Online Revenue Management

So generally when the weekly expires are coming up we have seen improvement in line with market. And I think what we are seeing is much more distributed behavior rather than concentrated behavior is what we are able to see, and which is overall increasing the engagement of people as multiple instruments are getting distributed across the week. So it is overall increasing the engagement of people in a much more focused way which was concentrated earlier in nature and which is helping the overall business. We can’t quantify, how much impact it will bring, but it is a benefit for the overall business that we are able to see.

Prathamesh — Proinvest Nirmiti — Analyst

Okay. Thank you. That’s it from me.

Operator

Thank you. As there are no further questions, I would now like to hand the conference over to Mr. Dinesh Thakkar for closing comments.

Dinesh D. Thakkar — Chairman & Managing Director

Thank you for joining us on the call today. I hope we have been able to answer all your queries. Should we require any assistance, please feel free to get in touch with Hitul Gutka at IR or SGA or Investor Relationship Advisor. Good day.

Operator

[Operator Closing Remarks]