Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
CarTrade Tech Limited (NSE: CARTRADE) Q4 2026 Earnings Call dated May. 07, 2026
Corporate Participants:
Aryan Sumra — Company Representative
Vinay Sanghi — Chairman & Managing Director
Aneesha Bhandary — Executive Director and Chief Financial Officer
Analysts:
Siddhartha Bera — Analyst
Shrenik Mehta — Analyst
Vijit Jain — Analyst
Sachin Dixit — Analyst
Nishit Jalan — Analyst
Unidentified Participant
Vimal Jamnadas GoeL — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Car Trade Tech Limited Q4 and FY26 earnings conference call organized by MUFG in Time India Private Limited. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on a Touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Aryan Somra from MUFG in time India Private Limited. Thank you. And over to you sir.
Aryan Sumra — Company Representative
Thank you. Good afternoon everyone. I welcome you all to the Q4 and FY26 earnings conference call for Cartier Tech Limited to discuss this quarter’s financial performance. We have from the management, Mr. Vinay Sanghi, Chairman and Managing Director, Ms. Anisha Bhandari, Executive Director and CFO and Mr. Varun Sanghi, Chief Strategy Officer. Before we proceed with the call, I would like to mention that some of the statement made in today’s call may be forward looking and may involve risk and uncertainty.
For more details, kindly refer to the investor presentation and other filings that can be found on the company’s website. Without further ado, I would like to hand over the call to the management for their opening remarks and then we can open the floor for Q and A. Thank you. And over to you sir.
Vinay Sanghi — Chairman & Managing Director
Thank you and welcome to Everybody to the Q4 FY26 earnings call and thank you for taking the time out today. I just want to start off by saying we’ve completed a year which has been a very strong year for the company. Its growth in revenues, its growth in profits and it’s obviously growth in margins. If you look at the investor presentation shared with all of you, if you go to slide three which is really looking at the last three year story of the company, at the center of a company is really innovation and that drives our growth and profits.
If you look at the three year growth story and if you look at the compounding of the company from a revenue standpoint, the three year CAGR is 29% of revenue, EBITDA, the 98% three year CAGR and the PAT CAGR is 82%. As you all have seen over the last many quarters, margins have continuously gone up. Margins have now gone from 9% to 33%. And if you look at the strength of the company in terms of the capital strength, We’ve now got 1,244 crores of cash Reserves. Last year we added a cash balance of approximately 300 crores based on profitable growth.
And as you can see, the return on equity is getting better and better. If you look at the real growth on various other metrics, EPS is up 86% over the last three years. CAGR, this is the earnings per share now is actually 47 rupees a share. And if you also look at the profit after taxes jumped to 244 crores. It’s among India’s most profitable listed digital platforms. If you go to the next slide and look at the consolidated accounts which is slide 4. As you can see here, revenue growth is 22% for the year, 20% operating growth for the quarter, EBITDA growth is 70% for the year, margins are 33% for the quarter, margins are 35% and EBITDA is up 55%.
If you look at profit after tax is up 54% and first time cross, 70 crores is 70.84 crores in a quarter. So 54% up PAT and Pat for the year has jumped from 145 crores to 243 crores which is up by 68% for the year. So it’s been a very, very strong yearly performance and we obviously feel very optimistic about not only the year gone by but we also feel very, very optimistic about the years going ahead. So yeah, we feel competitive dynamics have improved for the company. Overall customer engagement has improved and as you can see here, revenues have improved and margins have improved and obviously profitability has dramatically gone up as well.
So we feel very strong and in a good position to really guide the future of this company. If you go to slide 5, which is the consumer group, as you know, Bai Quali Car, one of these brands, it has a really, really strong year at a growth of 30% and not only has it grown revenue at 30% for the year, it’s grown EBITDA by 96% and profit after tax at 55% due to the increase in the deferred tax provisions of the company. If you look at the quarter quarter revenue is up 25%, EBITDA is up 72% and pre profit after tax is up 64%.
So it’s been a really strong quarter for the consumer group as well. If you look at the remarketing business and I want to highlight here that in the year, this year gone by, every company of ours, all the three businesses have achieved the highest ever revenue, the highest ever margins and the highest ever profits, all of them. So it’s been a really, really strong year for us gone by. So the remarketing group is up 22% on yearly revenues, profits EBITDA is up 57%, margin has jumped to 28% and profit after tax is up 66%.
And if you look at for the quarter, revenue is up again 22%, EBITDA is up 56% and profit after tax is up 42%. So it’s been as I said again, a really strong quarter for the remarketing business as well. If you look at Overlakes India for the year, revenues up, total income is up 22%, EBITDA is up 54% and profits up 77% and for the quarter it’s 16%, EBITDA 34% and profit after tax 44%. So they’ve had a strong year as well. These are the high level financial metrics which I want to share with all of you.
Obviously I’m happy to take all your questions and share, you know and clarify all the doubts you might have as well. So we can take questions now.
Questions and Answers:
Operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to withdraw yourself from the question queue you may press Star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Siddhartha Bera from Namura. Please go ahead.
Siddhartha Bera
Yeah, thanks for the opportunity and congrats sir on a good set of numbers. Sir, first question is the classified business. I mean we have taken quite a few initiatives in the last few quarters and have rolled out new products as well on both light buyer as well as verification. But the growth momentum seems to be taking longer to sort of see an acceleration. So if you can share some more color on where are we in terms of monetization? How is the response for some of these products which we have launched and how should we expect the growth to be for the next few years?
Vinay Sanghi
Sure, I think we mean in the OLEX business OLEX has grown by 16% in a quarter and we obviously any buyer and both verification. Verification was launched in the last few weeks of the quarter Verification and any buyers been around for a few months. The adoption of both these products is extremely strong. I think very soon maybe this quarter start seeing the impact of it because in fact it’s been almost very rarely in platform that these are buyers Monetized and we’ve actually had, I would say, strong success in both the products verification and any buyer.
And like I said, you start seeing these numbers play out immediately, in my opinion, and we can already see it on a daily basis. But I think from this quarter onwards you’ll start seeing the impact of these products. When you look at OLX as a whole, we feel very optimistic about the monetization opportunities within olx. Last quarter we launched a couple of other AI initiatives as well in olx. And as we go on this year, there’ll be a series of launches of new products. So you feel very, very confident about Elite Buyer Verification and the other B2C and C2C initiatives being done by the company.
I think you should see the momentum of monetization step up now. Immediately. You should see it.
Siddhartha Bera
So any more products, can you sort of elaborate what are we planning to do for the coming years which you said that we should see a pickup?
Vinay Sanghi
Sure. First within Ellie Buyer itself, Elite Buyer is a product, is a suite of products for us. Right. So we started off with visibility, bringing in trust with Elite Buyer. We’re moving to agentic AI with Elite Buyer. So it’s got a very unique matchmaking tool which has gone live. So if you are looking to buy a product, it helps you find that product and match makes it exactly what you want, which enables you to do transactions. It’s of course using what we call a matchmaking agent which has been built grounds up.
It is moving also as we disclosed earlier in presentations to various other agents which suppose you’re buying any product used product, it’ll help you price it. So if you don’t know what price to pay, it’ll instantly tell you what price you should pay for it. And in many products it also gives you a condition check. So what we’re able to do today with photographic image recognition, we’re able to judge condition. So I think what we’re trying to do is when you buy a product, we buy a program with multiple agents now which will get launched and as I said, you’ll see them one after the other as consumers to use.
You will be able to buy a used product by understanding how to find and match make a product a seller, understand the price, understand the condition. So that’s one family of initiatives. There’s another family of initiatives that we’re going to sell your product. And this is also, you know, got rolled out. There’s a matchmaking on that side too. So if you’re going to sell a car or a bike Or a refrigerator or something. How do we instantly give you a customer waiting for this product? Right. And that also requires a matchmaking agent which has been built.
Also when you’re going to sell your product, you understand price, are you able to negotiate price? So there’s pricing agent, negotiation agents on the other side as well. So these are various AI initiatives which are using OLX core proprietary data to give you a better experience. These are at various stages of rollout. So the matchmaking in a very small way is already rolled out to consumers on olex. And as I said, these are all at various stages of this launch. There’s also a verification product which you’ve talked about.
This brings further trust and safety in a platform like this. So it tells you, you know, it tells you who can be trusted or not trusted, who can be trusted. And you know, it also comes on the fact that a very large number of OLEX users are more than five years old. So we, from their behavior we are able to analyze, you know, intelligently who can be trusted or not who can be trusted actually at this point. So that’s another family we’ve talked about, you know, building fintech and there are various stage of development or building a financing product for people who want to buy used products and then there are multiple such initiatives.
But the intent is to keep building products which help transactions on the platform and obviously help us monetize in a far better manner.
Siddhartha Bera
Understood, sir. Lastly, sir, on the consumer business, I mean good performance here as well. Can you just elaborate a bit more on the OE dealer mix? How has it changed in the quarter and in terms of outlook, given some of these rising steep cost pressures we are seeing across the industry, how do you see the growth, I mean going from here for the next year? Do you see any risk of deacceleration or do you think this growth momentum can continue for you? So some thoughts there.
Vinay Sanghi
So one is that the car industry in the last seven months has had steep growth, including April as well as you know that the car industry grew by approximately 20% in April itself. We feel very optimistic about the year ahead for growth for the consumer business. So any growth rate which we’ve already shown last year or the year before, the year before that, we obviously feel very optimistic about the next year or the years ahead as well. We also feel reasonably optimistic about the car industry itself that there should be some growth momentum.
Just looking at the GST tax reduction and demand escalation which has taken place post that, we continue to see that. So we completely feel Very optimistic about the growth in the car industry or the bike industry for that matter for the next year or two, three years ahead actually. So nothing has changed. If you feel as optimistic as we did three months ago or five months ago, market conditions in the car industry are quite favorable or the two wheel industry for businesses like ours. Anisha, you want to do the breakup of this dealer and oem?
I don’t think much has changed but you want to give a breakup.
Aneesha Bhandary
Sure. So it’s about 70, 30, OEM being 70 and dealer being 30 or 5. Everything non consumer group. What’s it that.
Siddhartha Bera
Yeah, yeah, okay, sure. Thank you. I’ll come back in the queue.
Shrenik Mehta
Thank
Aneesha Bhandary
You.
Operator
Thank you. Next question is from the line of Vijit Jain from Citigroup. Please proceed.
Vijit Jain
Hi, thank you. My question is on Super Dost. So first off, you know, good to see a unified C2B product. Do you need to spend on advertising and promotions to popularize superdost?
Vinay Sanghi
So superdost already launched. It is in initial phase launched for all the dealers in India. As you know, Alex and Carvalho has almost all used car dealers in India listing or buying vehicles from the platform. And what it does today it basically which is already live if you’re a dealer looking to sell your car and the dealer can just take a photograph of a car they want to sell and instantly match makes customers around in a local environment which can buy that car. So it is, it is basically something we promised in an earnings call earlier as well.
It’s something called Instant sale which basically uses AI to align customers to a particular kind of car and does it instantly so that if a dealer keeps inventory for 60 to 90 days, how do you bring that to five days of stock? Because it gives you customers immediately. And I think it’s been very well received. It’s just been launched about 30 odd days ago. So it’s done extremely well and very well received its early days as. Yeah, so we are using AI in that form and subadhows will get more functionality as we go on for dealers.
There’s a consumer version of that which I talked about in the previous question which is really this is matchmaking actually. But pricing and condition check will come with matchmaking and it’ll come to consumers too. So subados for consumers will get launched very soon where they can instantly do the same as dealers can. If someone, you and me is looking to buy a car, you’ll get a feature like this available to you with the elite buyer program.
Vijit Jain
Understood. So Vinay, so essentially right now from what I can understand, this works on WhatsApp. So the idea being a dealer gets onto WhatsApp or a consumer gets onto WhatsApp and they put those messages and get those messages right to what you’re mentioning, it seems like this, you would build this out into a full fledged platform. And I also feel we won’t build an
Vinay Sanghi
Independent platform. It’s rendered on WhatsApp the underlying technology, it’s only a communication. WhatsApp is the communication or the tool at this point. So you could put a photo on WhatsApp and it’ll instantly give you three customers. The back end technology is being built at OLEX and Cartrade. Right. So it can be rendered across on any platform. It’ll go live on olx, it could go live on Carvalho, it could go live on any platform. We have to render it. We’ve just started WhatsApp because that’s been very convenient for consumers and dealers, but it’ll go across all our platforms.
Vijit Jain
Understood. And then when you, in the presentation you mentioned that there are 2 million plus buyers and sellers. So is this the count of people who have already engaged with or messaged superdost as of now? Is that how one should know?
Vinay Sanghi
The 2 million buyers and sellers are people who come every month to buy or sell cars on OLEX or car value. I
Vijit Jain
See
Vinay Sanghi
Used cars. Only used cars. Sorry, only used is not new.
Vijit Jain
So it’s a significant
Vinay Sanghi
Scale every month. This is not a one off just like every every month. So. Yeah,
Vijit Jain
Right. And so sorry, just to get, get back to that question, would you, do you think you would need to, you know, kind of promote superdost as is? You don’t need to actually because
Vinay Sanghi
As you know, we have almost like 31 million people on Olex every month and you know, 50 odd million on Kar Valley Bike. So we don’t. It’ll be available to the 80 million people. So it’s right now available for dealers for cars. It is also, by the way, a version of it, matchmaking will be available for all our products on olx, not just cars. That will go live soon. Yeah, so it started at Cars, but it’s going to go to. Even if you’re buying a, I don’t know, a refrigerator, it would apply the same way it goes across everything.
Vijit Jain
Understood. And then, you know, just imagining that, you know, people use this for cars, for refrigerators, everything. And then if they’re engaging with this on these different platforms, the proposition here is not that, you know, people can hold an account on Super Those separately as such. That’s not the proposition. No, you
Vinay Sanghi
Actually have to buy something on OLEX to get onto. Even today that is the case. Super Dose is a brand of a tool which assists you. You have to buy something on OLEX to be give access to it anyway. So if you, if you are an OLEX elite buyer, you might get access. We have to buy something on OLEX to become okay even today by the way, to get access to superdose.
Vijit Jain
Understood.
Vinay Sanghi
It’s not a free product. It’s not a free product. Yeah.
Vijit Jain
Okay, understood. My next question is on the remarketing business. So you know there are two components to it. One is of course the institutional sellers, the corporate sellers where you can have these macro cyclical driven growth momentum and the other is obviously the retail one. Any broad sense you can give me on what is the underlying growth that you think you can sustain in the retail segment? I’m not necessarily asking for the next quarter, but maybe just to kind of visualize and help understand how much of that cyclicality has been blunted by retail from an ongoing basis.
Vinay Sanghi
Sure. I think the first thing is the institution is not cyclical. I think there was a period for about a year in between post Covid where repossession dropped because loans were not given at Covid time. That is a one off. It is not a cyclical cycle where it goes up and down every quarter or every year. So that’s the first correction it even the institutional business is not necessarily cyclical. But I actually think both the repossession side and the retail side will keep growing is our view. The retail side is of course small dealers, small owners coming in buying or selling vehicles.
The institutional side is just a bulk mentor coming in bulk. That’s the difference. But we see actually strong momentum of growth in both areas. To be honest, we don’t see any reason not to believe that for the next few years ahead. Like I said, as long as new loans have been given in India, which is happening for any automotive product, I think you’re going to have reposition. Right. There’s just a period in Covid when that for about a year and a half and that did not happen.
Vijit Jain
Understood. One last question from my side. Any thoughts on, you know, acquiring the auto mall business? 100% I know it.
Vinay Sanghi
No, not, not at this point. Nothing I can comment on? No, I don’t think so. I think, I think for us the partners we’ve got there are fantastic partners to have. So I think we’ve not nothing to update on it or nothing to say on it at this point. So no,
Sachin Dixit
But
Vinay Sanghi
Having them obviously is a huge, huge advantage for the company and for us.
Sachin Dixit
Oh, understood. Got it. Thank you so much. Those are my questions.
Vinay Sanghi
Thank you. Thanks.
Operator
Thank you. Next question is from the line of Nishid Jalan from Access Capital. Please proceed.
Nishit Jalan
Yeah. Hi. Hi Vinay. Hi Anisha. Congrats on very good set of numbers. Again, just two questions from my side. On OilX, this initiative of Elite Buyer, Elite Seller has been is doing well and you have now included super boast. Just wanted to understand in olx, can you share some breakdown in terms of revenues coming from advertisement and subscription? Subscription as in used card dealer taking a subscription. Right. And advertisement versus from these new initiatives like Elite Buyer, Elite Seller or Super Boost where buyer and seller needs to pay because this could become a much bigger opportunity.
And my second question is on remarketing, just wanted to understand what would be the broad mix now of on repossessed and retail segment and if you can throw some light on remarketing in terms of which segment is witnessing stronger growth compared to others. Right. In terms of retail or repossessed or anything. Right. And if you can also add apart from take rate. Right. We do offer some value added activities in remarketing. So what would be the share of revenues coming from that value added activities and is it on the rising trend?
Vinay Sanghi
Sure. I think the first part is what whether it’s any buy verification, what part of the revenue is it and what is the traditional revenue? The traditional revenue is pretty much most of it. It’s very insignificant at this point. The Elite Buyer, I mean it’s really kicked off in the last two, three months. It’s very insignificant in the last year. But one thing is going to change is that from this year I feel in the next few quarters you will see any buyer and verification becoming significant for the company.
We’re very optimistic or definitely Elite buyer in terms of monetization in the very near term. So you start seeing that significant. It is not. It would be when I say insignificant, probably probably less than 5% last year for sure. So it is going to become significant in our opinion this year which you start seeing maybe from this quarter to the next quarter. We can already see that trend as I said in the last month or so. That’s one. The second question is around the new, what are the new segments apart from repossession or retail in Sriram Automal we feel really optimistic about that.
We are focused heavily on is commercial vehicles, for example, where we feel we are right now working closely with the OEM on trade in for all their commercial vehicles. Right. So if you want to buy a new commercial vehicle and you want to trade in your old one, we’re building a partnership and a product with one OEM right now where the vehicles can go back to Shira Motomal for auction all the trading vehicles. So there are multiple such initiatives on commercial vehicle side. I also feel very optimistic about the farm equipment side apart from repossession, retail and all the other things we do.
So here are some of the initiatives on new supply sources we are building. I think the third question was around what is the value added service income versus the auction income? The value added service and the auction income here are correlated, right? In a way. So because if you have a buyer fees or buyer management fees or you have, you know, some, some small clients think a little bit of parking fees, they’re very correlated with the auction revenue. So I would, I would take it, you know, really say these are all correlated with each other.
So very large percentage fees are option related in a way because they’re all bunched together. I think the one area of fees which is slightly outside it’s about 10% or less is the inspection fees. But otherwise all these other are very auction related by itself.
Nishit Jalan
So thanks for answering Vinay. My thought process to this time on remarketing was like I asked from the OLX side, is the share of value added revenue in remarketing going up? Right. Because there is always a limit to how much take rate can you take from consumers, right? I think
Vinay Sanghi
Yeah, the growth comes from two different places. If you’re talking about take rate, it’s to be answered slightly differently where if the take rate was to grow like for example, one of the initiatives we’re thinking about is financing dealers who buy on our platform, not ourselves again a marketplace model. So thousands of people buy vehicles every month. In fact the total turnover is Almost transaction turnover, almost 4,5000 crores. Is a question that can you finance some of those that could be value added financing?
So. So we think value added is not the core auction fees or related. We think value added is completely a new line of fees. Right. So those are the kind of fees we’d work on. Inspection is completely a new fees which I’ve told you it’s about 10% or so. But we think value added is not related directly to an auction of a vehicle. It’s something people need when they auction a vehicle buying or selling.
Nishit Jalan
Yeah, that’s the reason I’m Asking, that’s the reason I’m asking. We actually
Vinay Sanghi
Think financing is one area. Marketplace financing is something we’re looking at very close to that to increase margins.
Nishit Jalan
So what I was also trying to understand was like you mentioned, inspection is 10% of revenues, right.
Vinay Sanghi
Similarly,
Nishit Jalan
Are there any other big value added activity that has already started contributing to revenues apart from take rate and parking fees?
Vinay Sanghi
No, I wouldn’t say anything significant at this point. No. It’s mostly auction fees.
Nishit Jalan
Okay, okay. And, and, and one question on, on, on oil X side again in terms of follow up, right. When you talk about that active buyer seller will become significant, right? So let’s say let’s not 1, 2, 3 quarters, right? Let’s say three years time, right? In three years time, where do you see this segment? Can it contribute like a 30, 40? It could be.
Vinay Sanghi
No, no, it could be actually more than that. I would say it could be more than that. I actually think. Because just remember one thing that I think one data point is very important is that there are six times buyers who sellers on the platform. It’s an obvious. If someone is selling the many buyers, right. I mean the bulk of the users in this platform come to buy, right. So on a daily basis. So the monetization opportunity is multiple fold there. Multiple fold, I would say, yeah. Which is why it’s such a significant initiative for the company.
Nishit Jalan
Okay. And sorry, sorry, just to harp on it and maybe if I could just ask one more follow up. Obviously this buyer can become really big for you in the next three years. What kind of growth should we assume in the traditional channel in terms of advertising or in terms of the subscription fees that you charge from used car dealers that would be more linked to inflation or whatever annual increase?
Vinay Sanghi
I actually think. No, no, no. There’s so many new products for sellers
Nishit Jalan
Which
Vinay Sanghi
Are being built today and the seller base is going. So it is to me. There is no inflation or any growth rate which you would apply. It can be completely disproportionate in the years ahead. The way the products being created. I would not put it. I would not. I would not. I would not, I would not. I don’t want to give a guidance anyway, but I would not
Vijit Jain
Think
Vinay Sanghi
That this is going to be inflation. We’re just way too early in the day to look at the number of seller products or buyer products being created right now that like I said, the growth could be any percentage. There’s a sole limit.
Nishit Jalan
Thanks. Thanks Vinay. And all the rest for the people. Thank
Vinay Sanghi
You, thank you, thank you,
Operator
Thank you next question is from the line of Sachin Dixit from JM Financial. Please go ahead.
Nishit Jalan
Two questions both on olx. The first is obviously I think you have explained already that you there are some initiatives which will work out well in the near future. I just wanted to understand what happened this quarter. Right. Because you had guided very clearly about there being higher momentum in the coming quarter when we were discussing the same result last quarter. I mean why did IT drop from 18 odd percent growth to 15 and a half this quarter? What happened?
Vinay Sanghi
No, I don’t think. I think it is pretty similar. I mean first of all, I mean not that it matters but this quarter is two days less and some of the online platform it does matter. Yeah, no, no. Bioware is anyway grown 16%. Right. So that’s one I think it is. Normally Q3 for us is a slightly better quarter. It’s just the October phase of consumer products in India generally. You know, honestly Sachid, it’s not much difference and we feel pretty similar to what we felt the previous quarter. Some of the initiatives like verification.
My question on
Nishit Jalan
This Vinay is I mean OLX obviously has a checkered track record. Finally in the last couple of quarters we noticed that yeah, we are seeing some momentum pick up and which is what you highlighted in the last semicolon as well. Are we in Y growth is dipped. Which is why I’m asking is it a sign of something falling apart for us or. No, I don’t think is my question.
Vinay Sanghi
No, no. I actually feel the other way around. I feel I’m more optimistic than I was last quarter. So in my opinion it’s the other way around I think. And like I said, we did launch verification like about 45 days later than we thought. It’s a completely new product and we wanted to go out with it completely done. So a lot of these things sometimes in product development may take a little longer but we feel extremely optimistic as we did the previous quarter. Nothing has changed for us at olex.
Nishit Jalan
Understood, Understood. And just one more question. On OLX only and which is on the employee cost side, there is a lot more variability in OLX employee cost compared to what we see in New auto for example or in the country consumer growth.
Vinay Sanghi
Sure.
Nishit Jalan
Is there a significant portion of our employee workforce here which is slightly more variable that revenue goes up. It goes up. Revenue goes down. It goes down. Compared to most of our other businesses where it’s largely fixed sort of employee base?
Vinay Sanghi
No, the employee base is same. Just one moment. Employee base, absolutely same. In fact the Employee cost year on year, the 4%. Right.
Nishit Jalan
So I do understand that there will be appraisals in a certain quarter, but.
Vinay Sanghi
Yeah, but
Nishit Jalan
Every quarter it seems to be like moving up 1,2 crore on a 19 base. So seems a decent sort of movement.
Vinay Sanghi
So if you see here, employee cost of the year is up 4%. It’s 73 crores or 75 crores. So the movement it could be in a provisioning but there is not really those. And anyway the other way to answer the question is the cost of people or the kind of people are very similar to other businesses, especially Karvale. We also don’t see much change in employee cost next year. For that question that I can give you guidance on
Nishit Jalan
The rise in employee cost is not a concern. What I was trying to understand if there is a significantly more variable component. No, there is in
Vinay Sanghi
Fact here the variable is the least income in the, in the group it will be the least variable. People
Nishit Jalan
Understood the real company the least in
Vinay Sanghi
OLEX because it’s a very online tech driven business. So it’d be the least. Got
Nishit Jalan
It, got it. Sure. Thanks. Thanks so much. The way I would think almost
Vinay Sanghi
Is. Yeah. If you, if you look at the cost growth of olex is actually 1% for the year and 4% in employee cost. Yeah,
Nishit Jalan
Yeah, that’s what I was saying. Cost growth is not a concern. I was just trying to understand the nature of the cost. There’s
Vinay Sanghi
Not, not, not different, it’s not different from. In fact, like I said, it’s even less variable than in other companies. And I think that’s one of the reasons the margins are also up. Right. If you see the margins are up year on year margins I’ve gone up 23 to 31%. I think that also shows.
Sachin Dixit
Yeah, right.
Operator
Thank you.
Vinay Sanghi
Thank you.
Operator
Before we move to the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please restrict yourself to two questions only. Should you have a follow up questions, please rejoin the queue. Next question is from the line of Hardik Doshi from White Whale Partners. Please proceed.
Sachin Dixit
Yeah, thanks for taking my question. Thank you. You know, last is clear. And Even going into FY27, the business momentum is very strong. But I just want to kind of ask more from a let’s say medium term perspective. Obviously the big elephant in the room is AI and I appreciate all these, you know, the efforts that. And initiatives that it taken to embed AI into our business. But from a more let’s Say larger picture perspective. How do you view the risk of, you know, ChatGPT, Claude Gemini, kind of, you know, the traffic shifting from Google to the, to these platforms and thereby supplementing the traffic that comes onto our platform.
Vinay Sanghi
Yeah, so the first part is, you know, we are 95% organic, right? So as a company, for example Olex, almost all his traffic comes on an app directly. So it’s 100% of his traffic actually is organic. So you want us remember that when you, when you, when you look at the opportunity ahead for us. The first thing is people come to our platform because the brand and the trust in those brands. The second is because there is differentiated IP and platform experience. You know, buying a used car on OLEX or finding a used car on OLEX or finding the price for the car you need to buy is almost impossible in any third party platform, horizontal or vertical.
A lot of our data sits behind which is not publicly available. So the underlying data, whether it is, you know, customer data, vehicle data, other data which we have sit behind, which obviously LLMs and others cannot access. And therefore the fact that the brand trust the IP or technology platform services as well as the data is proprietary, makes AI for us a massive opportunity. That is why when you’re looking to sell your car, we can in 1 second match 3 customers right for you in your locality.
Because of the data we carry, we’re able to matchmaker understand the car you’re selling, what price people should pay, what the condition of the car might be through all the data we carry and then how do we give three customers that suit you or 10 customers which suit you. So to me AI is a massive opportunity. What we’re doing this year is building a series of agents, matchmaking agents, pricing negotiation agents, condition checking agents. Tomorrow it’ll be listing agents, buying agents, loan agents, which actually help, which will use all our proprietary data and technology and make the consumer experiences platforms even better than what it is today.
So for us it’s a massive, massive opportunity for the next few months, few years ahead as well, we just see is like a massive, massive benefit for the company going ahead.
Sachin Dixit
Got it. So I appreciate that Remarketing and OLX and on used car platform difficult. But on the consumer side, you know, how are you viewing the potential risk of, you know, the people using agents and kind of directly dealing with dealers and not coming onto your platform?
Vinay Sanghi
Yeah, so, so the two parts here like versus when you’re looking to buy a car, it’s a 12 lakh car, it’s not like booking a An airplane ticket for 20,000 rupees. Right. So it’s not commoditized. You’re looking to buy a car. The process may take 30 to 60 days depending on what your center of urgency is. But you’re going to a deep amount of work to buy that car. I think when you see Google AI mode or anything come out, search has gone up, but the relevance to platform like ours has gone up even more.
Our traffic has gone up as search has gone up. In fact, during this phase of the last 18 months as well, as you can see the numbers always, our traffic has continuously gone up in this phase. Number one. Number two is a lot of the data we carry on platform like Car Valley or Bike Valley are proprietary to us and to our users. It’s not available on third party platforms at this point. Right. Or not likely to be available. Number three, the integration we have with OEMs and dealers, for example, if you want to know the exact price or the discount on the car, or you want to get a loan immediately approved, or you want to get a trade in price for your car, these are not accessible to third party horizontal platforms.
Right. So there’s enough differentiated data, enough differentiated depth of experience, which makes us feel very optimistic obviously of greater use of platforms like ours. And that’s exactly what is happening. As you use Google AI more, which is probably the larger use platform in the country, you come to Karwali even more because it may answer one question, but when you buy a car, you want more than one answer. You want to go to a series of immersive experiences to really decide what you want to do with it and then where you want to buy from and what price you want to pay.
So we feel actually this is actually worked heavily in our favor in the last 16 to 18 months.
Sachin Dixit
Thank you.
Vinay Sanghi
Thank you.
Operator
Thank you. Next question is from the line of ritvik Agarwal from 3P Investment Managers. Please go ahead.
Unidentified Participant
Thank you for the opportunity. I had two questions. First was on the lines of quality of dealer leads. Are there any measures that we are planning to take or we have taken to improve the quality of dealer leads in the consumer business and additionally, anything on the pricing side for the leads. Any sense on the value proposition that you are hearing from dealers?
Vinay Sanghi
No, not really. I mean we continuously continued for the company every day to work closely with dealers to improve conversion ratios. Right. Whether conversion ratios involves improvements in our platform or improvement in dealer follow up and closing, it’s a permanent exercise which has been going on for years and years. And we continue to do that. We obviously have lots of metrics in place to track this and measure this, but this is a absolutely important initiative for the company and we keep doing this every single day.
What is the second question? Sorry, it is around needs and what is the second question?
Unidentified Participant
Yeah, basically just wanted to get a feedback on the pricing. The pricing is pretty
Vinay Sanghi
Static. You know, we don’t. We mostly focus on volume increases and depth of, you know, and the depth of the impact to make of the dealer. There are price increases, but they’re more inflationary in nature. The bulk of the growth comes from higher elements and volume.
Unidentified Participant
Okay, and one more question on the AI aspect. Is there any change in discussions that you’re having with OEMs basically that, you know, from the onset of AI, is there any change in the discussions or the tone of OEMs regarding their marketing expenses being diverted towards you? Yeah,
Vinay Sanghi
There is a lot of initiative from our side and with OEMs too on how we can improve the experience using AI for consumers which come on a platform. Right. So can we have agents which gives us different. More data from an OEM which helps the customer buy? Can we have agents which integrate the consumer, us and the OEM and the bank even closer? So there are everyday discussions on how we can improve experience for our users on our platform with the help of the oem, sometimes on our own, sometimes with banks, helps with all our partners.
Actually, it’s a very central conversation across all our companies to improve consumer experience on the platform or enhance it with multiple AI tools. And that also involves integrating people with banks and OEMs and dealers.
Unidentified Participant
Understood. Any. Sorry, last question. Just on the traffic on the website, across the websites, was there any dip or any seasonality that you saw in this quarter? Maybe increase in the volume or a decrease?
Vinay Sanghi
We saw traffic grow last year actually in this quarter. So ymy growth normally post Q3 traffic is. Q3 is the highest in traffic for the year always. So slight decrease of Q3. But why? And why we saw traffic increases actually.
Unidentified Participant
Okay, got it. Thanks.
Vinay Sanghi
Thank you.
Operator
Thank you. Next question is from the line of Deepshah from NV Capital. Please go ahead.
Nishit Jalan
Thank you for taking my question. Am I audible?
Vinay Sanghi
Yes, we can hear you.
Nishit Jalan
My question is again on olx. Sorry for hopping on this again, but
Vinay Sanghi
I
Nishit Jalan
Mean, just want to understand monetization a bit better. So if you just could give me some metrics as to how much. How much? I mean revenue is from like consumers, how much is from dealers. And currently, like do we monitor, do we only like Monitors dealers currently or I understand we launch new products like verification Eric Buyer. So I mean, consumers also are also being monetized, but just over a medium like two to three year period. You said this could be the new verticals could, I mean, give you 30 to 40% of the revenues.
Right. So just want to get like more understanding on what drivers you have, what products
Vinay Sanghi
We’ve got, you know, we’ve got two basic sets of customers, the sellers and the buyers. Right. In sellers, there are consumers and their dealers. We monetize both today, sellers like you and we can also come for free. But many times sellers like you and me come and pay for, you know, more visibility or other services or if they want to multiple. I mean, I think the first time for a lot of consumers who come in this, a car or any other product, it’s free, but the second time is chargeable. So many people come multiple times and therefore we charge consumer sellers.
Even today we charge dealers at all times in the cell for selling. The Elite Buyer program is aimed at charging for consumers and dealers for buying services. Right. So as a consumer, if you come to buy today, it’s completely free unless you use an Elite Buyer service. The early buyer service is superior to obviously buying without the service. And that product is getting better and better every day. And that’s another monetization tool. Verification is really for consumers like you and me again.
So there are dealer initiatives and consumer initiatives across all the spectrum of activities. At this point. The consumer listing business, which is people like you and me selling a product, the revenue is quite high actually from that business. And as we go on, we think even the Elite Buyer program primarily right now is monitoring consumers like me more than dealers at this point. We actually think the consumer side of monetization, buyers or sellers will become a large part of the company. And even within that consumer buyer, which is the largest population of people on the platform, is going to become extremely significant in this year and probably very large in the next two to three years.
Nishit Jalan
Got it, sir. Secondly, on margins for the consumer platform, I think we are at, for the full year, we did, I think 38% EBITDA margins for. We did around 31. So I mean, just speaking next, I mean, do you see this trend continue for the consumer business? I would say we are at a pretty high 38 margin. So do you see this still? Yes, margins will.
Vinay Sanghi
Yeah, margin will expand this year. And on olex, do you see this converging? Yeah, yeah, I think so. Margin across all businesses will expand. I do see Olex is already close to consumer business, but it’ll probably get there, if not quite even. I think margins across the business will go up in the current year. Costs are likely quite stable. And also here, even if you look at a 3, 4, 5 year, how we think about the business, we got a profitable tax as you’ve seen, is 243 crores this year. We are pretty, I mean one of the goals we set ourselves is to get to approximately 1,000 crore profit in the next four years or four to four, maybe five years between four and five, which is forex.
So we’ll see margins shoot up in all these businesses as we head towards that thousand core objective, you know, in the next four to maybe five years.
Nishit Jalan
That answers my question. Thank you so much and all the best.
Operator
Thank you. Next question is from the line of Srinik Mehta from Indol Wealth GmbH. Please proceed.
Shrenik Mehta
Hello. Am I audible?
Nishit Jalan
Yes.
Shrenik Mehta
So I had only one question. This was about your ROE. So your EBITDA has already gone up to 33%. Margins are looking healthy, but still the ROE is very low at 10% which is below the cost of capital. One of the major,
Vinay Sanghi
The cash in the company. Yeah, the major reason for the rob at 10 is because.
Shrenik Mehta
Yeah. So this, the business re is much higher, as you know, the business.
Vinay Sanghi
Yeah. I feel like in due course, you know, whether it is, you know, returning money to shareholders or other modes is something we will consider. I think at this point the current regulation because of our tax shelter and California losses prevents us from doing that. But, but you’re right, I think the ROE is at 10% because of the cash balance. The cash balance didn’t exist. The I would be very much, much higher. Of course.
Shrenik Mehta
Yeah. So when do you think that possibility would come in from your regulation?
Vinay Sanghi
You want to answer that question? I think maybe two to three years. I think we’ve also got tax shelters that the company benefits from. So I think maybe two to three. Is that correct?
Aneesha Bhandary
Yes, yes. And you’re absolutely right.
Vinay Sanghi
Yeah.
Shrenik Mehta
Okay, so you’re not looking at any acquisition in the meantime or any other way of utilizing this cash, right?
Vinay Sanghi
No, there’s nothing at this point to report on a prospective M and A or utilization of cash at this point. We obviously keep looking at M and A, but there’s nothing at a level where we can at this point, you know, give feedback on our report.
Shrenik Mehta
All right, all right, thank you so much.
Vinay Sanghi
Thank you.
Operator
Thank you. Next question is from the line of Vimal Jamnadas Goel from Alchemy Capital Management. Private limited. Please proceed.
Vimal Jamnadas GoeL
Yes, thank you so much and congrats on a good set of numbers. Thank you. I just want to make sure one aspect. Whether we have any seasonality in our consumer business, which is Karwali Baikwali in the March quarter
Vinay Sanghi
There’s always seasonality. Actually not in the March quarter. There’s a seasonality, a little bit of seasonality in the October to December quarter because of the festivities in India. Typically Diwali Dashera, the automotive market tends to be far more buoyant. A lot more launches, a lot more going on. So there’s a little bit of uptake which is higher then and then so other gently quite even actually after that it’s only the one quarter which tends to be slightly different.
Vimal Jamnadas GoeL
Understood, understood. And just on your comments on olx, you mentioned the Elite programs. Both buyer seller may contribute roughly 5 or maybe less. Given the fact that you are seeing an immediate impact of these from Q1 onwards, is it a fair argument that these. The contribution may double in 27.
Vinay Sanghi
You mean. You mean the contribution by margins. The revenue might double? Is your question? Is that your question?
Vimal Jamnadas GoeL
From Elite only?
Vinay Sanghi
Oh yeah, from Elite. I mean the Elite is very small base. So I don’t. I don’t think we should think of it doubling or tripling or anything because the place last year very small.
Vimal Jamnadas GoeL
Okay, fair enough. A couple of data points. Sir, if I may have the auction listings for this quarter and the auction volumes.
Vinay Sanghi
Anisha, you want to give that?
Aneesha Bhandary
Sure. So auction listings about 1.7 million and volumes is about 3 lakhs.
Vimal Jamnadas GoeL
3 lakhs. Okay, fair enough. Thank you sir. And all the very best. Thank
Vinay Sanghi
You. Thank you.
Operator
Thank you. Next question is from the line of Ujwal Sil from ANR Capital. Please go ahead.
Nishit Jalan
Hi sir, I’m audible.
Vinay Sanghi
Yes, we can hear you.
Nishit Jalan
Yeah. Congratulations on a good set of results. Almost all of the questions have been answered. I just wanted to reconfirm about the ROEs because actually my line got disconnected. I just wanted to confirm that there are no acquisition plans or utilization plans in the near future. And we’re looking at like giving back to the shareholders after two or three years. Right.
Vinay Sanghi
Well, at this point, as I said, you know, there is nothing which you can report back any M and A. Obviously our attempt would be that if there’s no utilization of cash and we of course are generated, as you know, last year we generated 300 crores of additional cash. So we obviously believe that there is a significant cash generation for the next two to three years. As well, and obviously based on that, you know, at that point we’ll have to take an appropriate decision whether there is an M and A in play or the natural thing would be to when possible return money back to shareholders.
Of course.
Nishit Jalan
Got it, got it. So next question was again on WellX, just a follow up question on one of the previous questions that was asked. I just wanted to understand that
Vinay Sanghi
It’s an important question because one of the things, you know, which you know, it’s very evident also is that the company has also generated EPS has gone 47 rupees a share. So I think one should keep in mind that, you know, there’s a significant cash generation in the company and obviously profit creation pool in the company. Just further to your return money question.
Nishit Jalan
Exactly. That was, that was the main thing. That is why I asked the question because a lot of cash generation and ultimately that is why Roe was depressed. Secondly, I want to ask about again on the Oleg side that we have taken a lot of initiative in the last few quarters and shouldn’t we have seen like a quarter on quarter growth as well? Because we were very optimistic in the quarter three con collapse. So I just wanted to understand, is there a seasonality? Because yeah, that is October, like I
Vinay Sanghi
Said earlier in the call, in October, November, there tends to be some seasonality in any buying, whether it’s a new car, used car, etc. So it tends to be every year. We feel very optimistic about the growth, I’ll be honest, and all the product creation and even the consumer traction to the platform. So we feel the next few quarters ahead. You will start seeing the growth momentum dramatically changing.
Nishit Jalan
Got it, Got it. That’s it from my side. Thank you so much.
Vinay Sanghi
Thank you.
Operator
Thank you. Next question is from the line of Arpit Shah from Stallion Asset. Please go ahead.
Nishit Jalan
Hi Vinay.
Vinay Sanghi
Hi Arpit. Ali.
Nishit Jalan
Yeah, I just wanted to understand revenue aggregation, let’s say from the verification product and the elite buyer product, what kind of revenues are we currently and what kind of growth are we seeing month on month since we launch it in Feb and March? And can it add up, let’s say 5, 10 crores of revenues every month? Do you think that is possible or is already happening in the month of April? Just wanted to understand that bit.
Vinay Sanghi
Yeah, first of all, as I said, growth is impossible to say because it’s very early. I mean it’s obviously rapidly growing, but it’s impossible to give a growth rate.
Nishit Jalan
What are those early trends that you’re seeing right now? I
Vinay Sanghi
Would say both on elite buyer and verification. The early trends are really strong
Nishit Jalan
Consumer
Vinay Sanghi
As I said right now the revenue is just insignificant. I think we’ll all have to wait out maybe this quarter to actually be able to give you some stable answer to the question. But like I said, the early signs are very, very strong that I can put it this way. And like I said, this year will be significant to the company. You know, as we go on in the next it’ll be significant. Last year is not significant because it was launched very late. But in the next year you’ll find it significant. And I think in the years ahead we also get the guidance that will be probably one of the largest sources of revenue.
Nishit Jalan
Got it. There is acceleration in revenues from the newer products and is growing very strong. Do you think 360 crore is a conservative pat estimate according to you?
Vinay Sanghi
Sorry, so just repeat the last question. Last part of the question. 350
Nishit Jalan
Crore pad is a conservative estimate according to you? 353.
Vinay Sanghi
I, I don’t want to come in and give you a guidance actually just gave you a view that a goal when I don’t want to comment on next year’s profitability. We did tell you that our goal of course is to get from the 243crores last year to about thousand crores of, you know, profit in about four years or five years. So you know, that’s the line we’re drawing it. We don’t want to give a year by year guidance but we have told you what last, you know, within four, maybe five years we want to get to the thousand per number which is little more than forex today.
Right.
Nishit Jalan
And the kind of momentum that you are seeing, the new products. You think the OLX revenue can start stepping up from here on what we saw last quarter about 18. We believe that. Absolutely
Vinay Sanghi
Right. Absolutely we believe that you’re right. You think this number can start
Nishit Jalan
Crossing 35, 40%.
Vinay Sanghi
I don’t give a guidance but obviously we believe the growth will be stronger than what it is today. We believe that.
Nishit Jalan
Are you seeing that earlier times in April?
Vinay Sanghi
I can’t tell you about it. I don’t want to give a guidance for this quarter either so. But, but
Nishit Jalan
What you’re seeing already. I don’t want to guidance what you are seeing. Yeah, yeah,
Vinay Sanghi
Yeah. Yes. Like I said, it’s only one month over. We definitely see April better than obviously some of the other months because new products have also got launched. But it’s early days and I don’t want to give a guidance of this quarter or this year I’ve given you a four to five year profit objective of the company and the group as a whole. And we definitely giving also a guidance that we feel very optimistic about monetization and the consumer attraction at Olex both.
Unidentified Participant
Hi Vinay, this is Amit Jeswani here. Hi. Hi. Hi. So would that be right that for us to go forex in profit our revenues will have to go 3x and by that point of time OLX which is a 200 crore product will become like a 1000 crore kind of product. Like a 5.6x.
Vinay Sanghi
You don’t want to give a revenue guidance
Unidentified Participant
Or will it be consumed?
Vinay Sanghi
I think it’ll come across all our three platforms. To be honest, we feel optimistic about all three. I don’t want to give you a revenue guidance. Whether it’s 3x or 2x or 4x. I feel our margin structure is strong and therefore we feel optimistic that in all the work we do that normally when we add a rupee of revenue a very large part goes to profit which continues. And our margins will become they’re already best in class and get even better in the next three, four years ahead. Which will contribute to getting us to this longer term goal of the company.
But yeah, this is where we’re at. We are in the journey at this point. So I don’t want to give a further guidance on revenue. But yeah, generally we feel good about the fact that enough opportunity and time in the company that we can aspire get to this goal. What we give into you today.
Unidentified Participant
And at this point of time there’s no see that our stock price has fallen 40% or only because of the AI at this point of time. Vinay, you don’t see AI as a risk. You see it as an opportunity. For us,
Vinay Sanghi
Of course we believe AI is a massive opportunity for the company. I think for us because of just the brand trust, technology, platforms, differential IP data. It’s a massive opportunity for the group across all its businesses actually. So
Unidentified Participant
If AI is a risk, the first point. Sorry to interrupt,
Operator
Mr. Shyam and please request you to rejoin the queue sir for the follow up question. Thank you. Ladies and gentlemen, please restrict yourself to two questions only. Should you have a follow up question, please rejoin the queue. Next question is from the line of Rehan Sayed from Traynetra Asset managers. Please go ahead.
Nishit Jalan
Yeah, good afternoon to the team and thanks for taking my question. I have a two questions. First of all, over the last few quarters we have observed that even when overall auto industry growth was effectively muted. So the Company advertising and platform revenues continue to grow strongly. So. However, with auto sales now recovering after GST related benefits, so advertising growth appears to have moderated slightly. So is there any counter decreasing behavior in this business model or is this more related to changes in OEM marketing spend and content timing?
Vinay Sanghi
I think over the last many years we’ve shown growth in the consumer business in Kar Valley, Baik Vale, across all kinds of markets. Right. There were times when the market did not grow for 18 months and we grew at a rapid rate. The time when the market grew and we grew a rapid rate. So I like to think we are completely agnostic to, you know, beyond a level to new car growth or new bike growth sales. We benefit when car and bike sales grow. I think we’re seeing that trend also in the last six months which we’ve shown to you in both the quarters.
We also feel optimistic with the GST cut rate, you know, that the two wheeler and the car market should have a reasonable headway to grow for the next one, two, three years ahead. So it’s become far more affordable for every consumer. So naturally we feel optimistic in this market situation where car sales, bike sales grow, we normally always grow, but even in the slowdown we grow. But it is always better than industry growth. And that growth for us is far more impactful. I would say.
Nishit Jalan
Just wanted to confirm, is there a correlation between the ESD card sales and TK momentum?
Vinay Sanghi
Are you saying the growth rate of the car industry is because of that? Is that the question?
Nishit Jalan
Yeah, it’s
Vinay Sanghi
Not clear. The car industry growth rate has changed from the GST cut. So that is, that is clear. That’s from the October sales of automotive cars. I mean new cars in India or new bikes in India. The growth rate is obviously impactful because of the excellent decision to cut taxes on cars and bikes. So it has had the impact in India. Of course.
Nishit Jalan
Okay, my second question is around. The company has built a very large physical auction infrastructure across India. So how difficult is it for a new player to replicate this network today? And have you seen any additional pricing or aggregating competition in the auction business?
Vinay Sanghi
It is, I mean we carry I think almost 130 auction sites, right. Where a lot of our customers parkway because in the middle of an online sale, I think in a country like India, the defensibility for us in that business in our remarketing business is multiple. It is of course the physical infrastructure, it’s impossible to recreate. But it’s also the technology, the underlying IP in the platform. It’s a buyer and seller. The network effects of buyers and sellers. Thousands and thousands of millions of buyers and sellers across the platform.
So it’s many things which create a defensibility. It is difficult to duplicate the physical infrastructure. But there are many more defensible, I mean, or many more moats in that business.
Nishit Jalan
Okay, okay, okay. That’s it for myself and thank you.
Vinay Sanghi
Thank you.
Operator
Thank you. Next question is from the line of Nikhil Gupta from Vayu Capital. Please go ahead.
Nishit Jalan
Hi. Thank you for the opportunity. Can you please provide the percentage of our revenue from advertisement in our consumer business?
Vinay Sanghi
It’s insignificant. I mean I would say advertising less than Anisha from normal Google advertising or third party advertising less than 5% would be.
Nishit Jalan
Yes. So is it a fair understanding that in all our three segments the revenue share from advertisement is almost insignificant? Right?
Vinay Sanghi
No, no, no, that’s not correct. I said in Sri Lanka motor model doesn’t exist. In Kar Valley, it may be less than, you know, I said very insignificant. And OLX also would be less than, less than 10%. That is correct.
Nishit Jalan
Okay. And you already mentioned that you do not have any plans to use the cash to maybe acquire some other business. Why is it so? Because we have. If I see all the three segments we operate in, we have acquired almost all the three businesses. So why the strategy has changed and do we not see any significant value in the market? Just wanted to know the opinion.
Vinay Sanghi
No, what we said at this point we do not have anything to report back on. It doesn’t mean we’re not looking at acquisitions or we won’t do acquisitions or anything of the sort. We just said at this point there’s no update to be given. And I think at this point we also have to remember that we’re a company which has done M and A very successfully over the last many years. We had three major M and A s, all have been extremely successful. We always continue to look out for MA which is strategic in nature, which is the teams are good.
Where we feel there’s synergy value where we feel we can add value to our own customers. These are things we do every day. So it’s part of our whole cartridge ventures initiative. We are normally very picky and choosy. So obviously, you know, valuation is to match and many things have to match. So you know, but when we do come out of something then we aggressively go after it. Like with an olex. Like an olex. So it’s not like we’re not looking or we don’t look. It’s just that we haven’t got something which we feel at this point we can close on.
That’s what the point is.
Nishit Jalan
But we are. It’s. But we’re actively looking for M and A. Whenever we find opportunities, we will go about it. I don’t want to say actively.
Vinay Sanghi
I don’t. Yeah, I don’t want to say actively or non. Actively or looking or not. I just think that if something. We do. We do well, if something came around, we would definitely, you know, look at it. If we felt it could add value to our customers or our shareholders, you know, or. Yeah, or there’s some synergy, value, strategic value. Of course we would look at it.
Aneesha Bhandary
Thank you so much.
Vinay Sanghi
Thank you.
Operator
Thank you. Ladies and gentlemen, we’ll take this as the last question for the day. I now hand the conference over to Aryan Sumra from MUFG in time for his closing remarks. Over to you, sir.
Aryan Sumra
Thank you. I would like to thank the management for taking the time out for the conference today and also I would like to thank all the participants to join the call. If you have any queries, feel free to contact us. We are MUFG in time. Investor Relations Advisors to Cartier Technical. Thank you.
Vinay Sanghi
Thank you, everybody. Thank you. Thank you.
Operator
Thank you, sir. On behalf of Cartrade Tech limited. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.
Vinay Sanghi
Thank you.