Computer Age Management Services Ltd (NSE: CAMS) Q3 2025 Earnings Call dated Jan. 30, 2025
Corporate Participants:
Shiwani Karwat — Analyst
Anuj Kumar — Director and Chief Executive Officer
Ram Charan Sesharaman — Chief Financial Officer – Designate
Analysts:
Prayesh Jain — Analyst
Abhijeet Sakhare — Analyst
Devesh Agarwal — Analyst
Madhukar Ladha — Analyst
Dipanjan Ghosh — Analyst
Supratim Datta — Analyst
Sanketh Godha — Analyst
Pranuj Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q3 and 9M FY ’25 Earnings Conference Call of Computer Age Management Services Limited, hosted by Orient Capital. We have with us today Mr, Anuj Kumar, Managing Director of CAMS; Mr, Ram Charan SR, CFO; and Mr, Anish Savlani, Head, Investor Relations. As a reminder, all participant lines will be in a listen-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 an operator by pressing star and zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Ms. Shivani Karwad from Orient Capital. Thank you, and over to you, Ms, Karwad.
Shiwani Karwat — Analyst
Good morning, everyone. Welcome to the Q3 and 9M FY ’25 Earnings conference call for Computer Age Management Services Limited.
Before we proceed to start the call, I would like to give a small disclaimer that this conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on-date. These statements are not guarantees of future performance and involve risks and uncertainties, which are difficult to predict. A detailed disclaimer has also been published in the investor presentation, which was released to the stock exchange. I hope everybody had a chance to go through the presentation.
I will now hand over the call to Mr. Anuj Kumar, Managing Director. Thanks, everyone, and over to you, sir.
Anuj Kumar — Director and Chief Executive Officer
Thanks, Shivani, and good morning, everyone. I appreciate all of you taking time-out to join the 3rd-quarter earnings call for FY ’25. I have and Anish in the room with me today. We will commence the presentation, spend about 2025 minutes on the content, which I’m sure you’ve gone through and then have enough time left at our hands for questions-and-answers.
I will commence. Overall, I would classify this as a strong quarter despite the fact that especially in the capital markets, not just in the mutual fund space, but across broking and other-related businesses, there was some element of slowdown and some element of, you know, the past trends were not sustained with the same momentum. Despite that, I think the team has done a stellar job in reporting revenues, profits, wins, product launches, market-share gains. At a level which frankly has been unprecedented. I will just take you through individual products and businesses so that you begin to appreciate how this looks like.
But as a brief summary, our revenue grew — overall company, revenue grew just short of 28%. This number was about 32% in the last quarter. At 28%, it remains one of our best quarters so-far, but of course, lower than the last quarter. MF revenues on the back of about 38%, 39% growth in assets were in excess of 28% growth. So that translates to the — to the standard yield to asset expansion ratio, 28.5% revenue expansion or about 38% AUM expansion.
Non-MF revenue, which was upwards of 30% was 32% last quarter, is at about 22%. It’s a great number, not as good as it was in the last quarter. If we had the momentum in some of the markets, this number would have been closer to 30% or in excess of 30. We believe that we have all the intrinsic foundational components of product, sales, delivery, technology, all of that in-place to get back to that number very quickly. So I would attribute some of this compression over the last quarter to what happens in the market. Our share of non-MF revenue, therefore, because MF expanded faster is at about 12.5%.
In the face of all of this, given the fact that we had almost seven straight quarters of significant revenue expansion, I think the overall book was managed very well. EBITDA grew by 34%. So in excess, significantly in excess of revenue growth. Despite these times, we had EBITDA percentage at 47%, almost 220 basis-points up year-on-year, which I think from an execution discipline, cost management perspective is very sound. PAT grew over 40% and PAT percentage is at 32.6% and this is almost 300 basis-points up year-on-year.
So I think overall from a cost-efficiency delivery perspective, despite the large investments we are making across product lines in technology, in data centers, in security and in talent, especially, including some of the money which we continue to spend on the rearchitecture of the core platform program. If I put all of that together, I think holding numbers at this level is just a very strong outcome of how we run place.
Go to the next. I will take you through some of the operational highlights and very, very pleased to share with you in the large revenue base of mutual funds. I think the way things are panning out and this is not just about quarterly performance, all of this is foundational, the way the market perceives or performance, our superiority, our capability to deliver the very stringent outcomes that the industry now needs. I think there’s everything pointing in that direction. I need not give more evidence than I have on the chart.
We won all three all three MFRTA mandates on offer. Geo BlackRock which was kind of agreed some time back. We were waiting for the execution so we are formally announcing now, MF, which is a emerging but large AIF player in the country, Choice, which is a listed Holdco, which has a large broking operation, but also a lot of stuff and distribution and other alliance capital markets activities. So with these three, while we have claimed the superiority of the significant, I would say undeniable superiority over the last three years, I think winning six out-of-the seven, including the very prestigious deal to win, which was Geo BlackRock is very, very pleasing.
We also won — and this was an inbound. I think we’ve shared with you in the past that right now we are not doing any formal bid process for overseas contracts. But this is an inbound, the CEO wrote to me on Linder and there was competition, obviously, but they were kind of predispose. And I think that’s the other thing which pleases me immensely that a lot of the buyers are predisposed towards us. It means that they have a strong reason to buy from us. Of course, you have to win every contract, you have to fight for it. It is not that it gets thrown in a lapse. But getting an inbound like was extremely pleasant. So we closed this. We’re going-live in sometime in the next two months. Overall AUM grew about 38%, equity assets, which have had a green run grew 51%, but at 38% strong growth, although slower than some of the past quarters, but still very committable.
We also won the second MFRTA migration mandate from competition. I think a lot of you are curious about knowing the name, tenor and some of the salient details about this. So while we have a signed contract, I think we’re still needing — we’re still waiting for formal from the client to disclose their names. It’s a smaller AMC, again, an inbound. You know that as business strategy, we are busy expanding in new clients and new areas, whichever we’ve defined. So churning the base has not been core strategy for us. Whenever somebody comes with an inbound and it looks worthwhile and determined to migrate because migration of operation is not simple, then we move ahead. So this is a name that we will announce in a bit.
But it also kind of does one more thing that for a long-time it’s been said in the market that CAMS is perhaps more positioned for very large AMCs and that’s a franchise and that’s also kind of a headline which got created for some time. In the last three years, we’ve been conscious that we must give the impression that we are good for emerging people and we will pay them the attention and the focus that they need to be successful in their business because actually NRTA is not just a supplier or I would say partner. It’s also an enabler in their success.
Very happy to state that all of these are not licensed mutual funds, some have got in principal, some most are in operation. Some have got final licenses and are about to launch in the next two, three months, at least three of those. And there are two, three which have got an in principal approval, whose names we’ve already told you. So that takes us to 26 out of 50. It’s a gap. You’ve known that we are not in a chase for any number. We are not doing that. We want to build our portfolio and continue sustaining it so that it is right designed for the future that a DSE want to win and some of this is just good annunciation of our strategy in terms of how things went.
So six out-of-the seven new LCs in recent times, all the three MFR markets in the last quarter, including the very prestigious name of, the inbound, the first official international contract, second migration from the competition. I think this just gives you a flavor of how things stand-in the core. And when I go outside the core and tell you about the other businesses, I think your excitement will be as sustained, but this is just great, you know, building the franchise and building insurance for the future.
Overall again, equity assets cross the INR25 lakh crore mark. I know that till about the month of September, but even till December, you know that net sales and collections in the number — in the markets have been pretty good. So our equity assets crossed INR25 lakh crore. This number used to be about INR12 lakh crore in March, April of ’23. So it’s taken 18 months for this entire number to double.
Equity net inflows were at about INR97,000 crores. So close to a INR1 lakh crore number of equity net inflows is a staggering remarkable number. Remember that this number has typically been half in a year, year and a half time-frame. So it’s grown from the late 40s to about mid to-high 90s.
NFO sales, which you know, I mean, new AMCs have to do that, but some of the established do that just to broaden the product portfolio and rightsize the offerings, 35 new schemes. So almost the scheme of the third day, it just creates significant operational demands in the team, but we’ve come out very well. 70% share of NFO collections. You know that in NFO Collections this metric has largely been favoring service funds. So that 70% has been a great number.
SIPs, new registrations, while they climbed almost 50% year-on-year were not as strong as the second-quarter. And again, you know that some of the sentiment of the market started correcting starting late September. So we had a full-quarter of what I would say is perhaps an era of correcting settlement. But within that growing 50% year-on-year was a great number again. For the quarter, very neat share gain. Our net registration share increased to 64% from 60%. And similarly, a very similar trend on unique investor base, which charged INR3.9 crore just short of INR4 crore. Our share grew 31%, industry was 25%. So again, significantly ahead of industrial competition.
On the — on the non-mutual fund side, again, I would say a very sustained story. And you know that we have often described this business as ever plus six. And I think quarter-after-quarter after quarter in your eyes to the credibility of how the individual businesses are performing would have gone up. This is not just some area of what I would say, marginal work. It’s becoming core work.
A lot of these businesses are growing ahead of the market. They are taking share from a logo well perspective and inside the base, they’re taking share in terms of transaction and revenue and there’s never a better description of success than that because you have to be unlike some people who may just sell on price for some time just to show some numbers.
I think this is a sustained now almost a two-year history, eight to 10 quarters and I can assure you that you will be seeing this in the coming years and quarters. B, you know we reported a 26% revenue growth last year in FY ’25 has been touching 50% plus. So still a revenue growth of 53%, despite the fact that any slowdown in consumer investments happy kind of things does impact us, but the business grew 53%, digital payments as opposed to the physical, et etc., have been driving this. KRA, which grew almost high-90s last year had been growing 50% plus in the last quarter, grew 27% and I would say they grew — we grew 27% despite a slowdown in new account opening. Where did the slowdown happen, the slowdown happened, obviously in MF being bought in new for low creation in-demand accounts being opened, which is a contro for the service. Is being opened by consumers to trade stock markets, all of those things slowed down.
You track the sector, so you know the numbers. And despite that, I think the 27% year-on-year growth has been a fantastic achievement. We continue to take share in this market like you know and continue to grow revenue ahead of market. New client acquisition from the non-MS segment has scaled. We have some of the smaller brokerages. I think you guys have often asked the question do we are one of the top-five brokerages. One of the top-five has got signed during the quarter, at least one more should follow in the next three to four months. So I think this is a good starting, a very strong commencement and scale-up on the non-MF side, which is a segment we started focusing in the last two years. But the product is being bought, which means the brokerages that the look like this and that’s pretty strong.
On alternatives, you’ve continued to scale. We’ve added 21 new clients, 21 new clients during the quarter. City has been a great story. We now have 25 clients managing over $1 billion of AUM. We continue although I’m not naming specific contracts, I know it’s possible to name them, but we’re not naming specific contracts. We’ve got the churn mandate from the competition, which means they may have won a contract, two years back, the clients are churning to us.
But again, base churn is not a core strategy. If somebody is unhappy with the provider, they come to us and we will take them. But in the gift is quickly decidedly underscoring our leadership. Having set-up a new office back-in October with the capability received over 30 people. In AI of adding 21 new clients during the quarter in digital onboarding and I’ll show you one of us next, we are at least four to five times bigger than any competitor. I think all of that is very, very gratifying in terms of how the business has scaled.
On repository, on insurance, you’ve seen the INR1 crore number that we declared some time back. So you know that our — our organic pace of building policies under management used to be about 0.5 billion or 5 lakh a quarter. We’ve now scaled it to 10 lakh quarter and I’m sure this number can scale further and our aim is to bring it in-line to about INR50 lakh.
But the thing I also wanted to mention is that we now have a second life insurer. Now you can ask me why it is not one of the top-10, but this is the second life insurer in our history who’s opted to give 100% of their policy base to us. So you can argue that there is conviction not just in our minds or in some end consumers’ minds, but insurance companies and life insurance companies who are complete believers are bringing 100% of their policy base to us. So is the second one.
So there’s a small life insurer there already. And we expect — we expect this is part of a trend. It’s not a flash in the pan, it’s not a one-off event. So in the year, we expect one or two more deals of this kind to come. And to me, it’s very heartening because it’s the shape of things to come as more-and-more insurers continue to believe in insurance repository and choose to take the whole decision of handing over 100% of the coverage policies and I think that’s a great place to be in. People central unique base crossed 4 lakh consumers, volumes grow 40%. Of course, the base is very small. So percentage growth is in the right metric, but I’ll show you how the overall business done.
And then CAM has just won a mandate recently, both account aggregator, TSP and Analytics for one of the largest game banks in the country and where the account aggregator — analytics that business actually because they are the experts and they have the capability. We won a TSP plus is basically an analytics mandate from one of the largest banks in the country. It’s a long-term three-year contract with some in terms.
So again, very heartening to see not just at MF, I think if I told you the entire story of how this thing has happened, but in payments in KRA, in alternatives, those three significantly because that uptrend has been there for more than a couple of years. But in repository continuing to see investor and insurer interest in scaling and then in sense of some very, very-high quality deals have come away. So that’s on the summary performance.
Although you’ve seen these numbers, I don’t want to inordinately spend time on taking you through these individual numbers, but suffice to say that a big metric of scale is how many transactions we processed a year back-in a quarter INR15 crore. This year, same quarter INR24 crores. So it’s grown 40%. You haven’t seen anything coming up, you haven’t seen this payments, delays, past service, any negative press or any bad. And I think that’s just a commendable job done by the entire team. So between technology process, compliance operations, all of them and I’ve done with them.
Overall unique investor growth has spoke about 31% against. So ahead of industrial growth, equity AUM 51%, net sales almost doubling in a year and new SIPA registration is also in a year growing about 50%. So I think this is a good enunciation of what a great quarter will look like. Now, obviously, the market will have great times and also great times. And I think we have to look-through them and this quarter far as a slowdown, it’s going away in a little day. But I think the 3rd-quarter, despite the slowdown, I think on individual metrics, very, very hard for me to see everything from the levers were able to accomplish.
Go to the next. Again, you’ve seen these numbers. I don’t want to inordinately be labor every one of them if there are any questions, we are happy to take questions during the Q&A session. I spoke about all of this, the cost of not being repetitive, we are just describing in a little more detail some of the individual businesses. I spoke about as a percentage revenue growth. I think from a logo addition perspective, I didn’t speak about that, almost 24 new logos added in Q3. And some of this well record, 21 in AI, 24 in payments is unprecedented because some of these are real scale clients.
Also happy to share with you about 3/4 back we said we’ve been panel by LIC for services, authentication services, these have gone live. We’ve also got a panel for payment services. These are extremely high-quality, high tenor clients that we certainly wanted to acquire. Some good news is they’re beginning to use us and scale-up in services, obviously take some time to go-live, but that’s a good thing.
On the QRA side, I spoke about the revenue growth. We’ve added almost 20 plus different financial entities of fintechs, MFs continue to scale-up in and added one of the five brokerages. One of the emerging brokerages then we will disclose over a period of time from the largest go out, they have chose we have as a partner. So good set of bids. You saw some mention of the in the last presentation in March, what’s, all future-ready futuristic things that will help us scale business and we have service to our client and especially gain share at good price.
As spoke about alternatives, we spoke about 21 new wells, but including wealth serve the onboarding platform almost 53 new mandates, wealth serve almost 185 plus time-up. So if you think of that industry domestic PMS at about 1,100 serious operating activities, almost one-fifth of the market buys from us and the competition probably has any competition, not one competition has maybe one-fourth month of that number.
Gift we said we are putting our money where our mouths are, we new office. We’ve crossed 25 clients, planning to add another two or three in a month’s time and then is now in addition to everything else that we build and sell is focusing on NBS as a segment where we will build itselves of integration rep, I think I’ve spoken about most of the things.
One of the — one of the fallouts of having INR1 crore e policies that we also have e3 lakh EIAs or e-insurance accounts, you understand that every citizen might be — every investor is allowed to have work. So some of the of this is that those 80 lakh investors now come and add a second and a third policy, which means we have to do a small campaign, some of the policy growth is not just sell, sell-sell growth. It’s also organic growth because the investor reinsured now has the he has one let’s life insurance policy has two other, he was the policy. Some of the growth you are saying is also just based growth.
Central, great beginning, three integrations both in-progress. Of course, we would have liked the speed to be higher than this, but it takes some time to just get the physical integration off. So that’s great 4 lakh user base actual volume growth or 40% saw the recognition, including the chann, which was had a strong quarter.
Think had a strong quarter. This TSP plus mandate is from, well, I can say the top — one of the top banks in the country. A very competitive one against competition. So that was great. Bob Financial Services, which is a subsidiary of Banco for whom we already do UKYC came in with expansion in KMIC for cards. Algo 360 won a contract with Unity Smart Finance Bank. We are building schools, Gen AILT early, whether there are any fill influencers who are making claims or even financial service houses or product houses making clips and products that aren’t exactly right.
The amazed analytics solution workout aggregator against the inside 60. If I multiple brokerages at. This is largely used for the first finance management portfolio and then some recognition forward a challenge level by the banking at we spoke about the wins and the overall year-on-year revenue growth caps and PS grew over 100% on subscriber so that’s what I had.
I’m happy to take questions. Hand it over now to so that he can take you through maybe financial numbers.
Ram Charan Sesharaman — Chief Financial Officer – Designate
Thank you, Anuj. So I’ll just spend a few minutes on elaborating the financial numbers. So we did post very strong numbers this quarter with the growth in MF revenue largely in-line with the AUM growth with stable yields and the non-MF also growing on a year-on-year basis closer to our long-term expectations of growth.
But we also posted strong profitability. In fact, our PAT increased by 280 bps quarter-on-quarter and EBITDA increased by — on a year-on-year basis and EBITDA increased by 230 bps. There was a small creep-up in the quarter-on-quarter margins also in-spite of it being quarter where assets did not grow as much as it did in the earlier quarters.
So we ended the year with a revenue of around INR370 crores, which is a 27% growth year-on-year and a 1.3% quarter-to-quarter quarter, largely driven by the AUM growth. It was INR46.77 trillion average AUM versus 33.95 in the last quarter. So that’s a significant growth in AUM, which has contributed to the increase in mutual fund revenue. The asset-based and the non-asset-based revenue largely grew on similar — similar margin — similar percentages with the transaction revenue on a year-on-year basis growing significantly. On a quarter-on-quarter, as you would have noted, the transactions did not grow a lot.
From a non-MF revenue, I think the details were given by earlier — earlier discussion. So we did grow 22% on a quarter-on-quarter basis with almost all the verticals posting growth on a year-on-year basis, while there was some slowdown on the quarter-on-quarter because of the underlying market conditions for KRA and payments. But overall, year-on-year 22% growth, largely in-line with what we actually expect so that to make our non-MF revenue 20% of overall revenue within the period of five years, which is probably another two to three years from now. Asset mix was again favorable. Equity did — did have a mix of 54.6 percentage, which was again favorable from a yield perspective for us.
From a profitability, as I mentioned, we actually posted very strong numbers on margins, aided by our cost-control as well as the operating leverage that we have. So on operating EBITDA, we actually closed the quarter with a 47% operating EBITDA, which was in fact slightly higher than the earlier quarter in-spite of the challenges we had on the AUM growth in this current quarter.
And on a year-on-year significant growth from 44.8% to 47 percentage in terms of the overall margin. So there has been a slight in margins even on a quarter-on-quarter basis with the operating EBITDA growing around 34% year-on-year and 1.5% quarter-on-quarter on the PAT showing a similar trend of more than 40% growth year-on-year and at 32.6 percentage, we are close to the historic highs that has achieved in terms of bottom-line.
Our return on-network continues to be extremely impressive with a 48% and we entered the quarter with a very comfortable cash-and-cash equivalent of INR770 crores.
The Board was pleased to declare an interim dividend of INR17.5 per share. With this, the total dividend payout only for the current year, which is the — the first-quarter dividend, the special dividend that we declared the second-quarter and this put together is INR260 crores of payout of dividend is what we are doing only for the current year, keeping in-line with our dividend policy. So overall, it has been a very, very strong quarter.
I just wanted to-end this with a small commentary on the yields. So yields have been largely stable for the last few quarters, right? And in fact, some quarters have surprised on the positive side also. We have over the last year renewed a lot of the major contracts and other customer contracts, you know with a limited impact on the yields. And we do expect, however, in the future, there could be some strain — more than usual reduction in the yields over the coming year due to some price changes. While we are in discussions and we will know the exact impact once the discussions conclude.
But we think it is prudent to kind of alert this point that there could be a more than usual reduction in yields over the next few quarters. Of course, we will ensure that the impact on margin is not material. Obviously, we have a lot of tools at our disposal and including automation and the process improvements and the operating leverage that exists in the business to ensure that the impact on margins is muted.
But I think it is prudent to tell you that there could be a reduction in yields more than usual over the next few quarters. We will get back to you with more details in the next quarter when there is more clarity on this particular point. But for this, this has been a very, very strong quarter. As said, a lot of foundational things are happening, which is — which ensures that the long-term financial metrics of the company will continue to be impressive, whether it’s in terms of wins in the new MF logos, in share in the equity flows or new logos that we are winning in the non-MF and MF business, all these things points to a very positive future in terms of financial metrics also.
So with this, I will just pause and hand it over back to the moderator for any questions that you may have.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Prash Jain from Motilal Oswal. Please go-ahead.
Prayesh Jain
Good morning, Anuj. Congrats on a great set of numbers. Just. Just a few questions from my side. First one on this international mandate. First of all, what is the size and what are the realizations, yields and what can be the timeframe that we will look at and whether it is the entire asset-base or one particular geography that you have won the mandate, that would be helpful. That would be my first question.
Second, you mentioned on the shift of AMC, right? And so does this kind of open the can and increase the competition or allow a third player to start entering this space. Does the competitive landscape change because like we’ve been that has been one of the key strengths that the shift of AMCs in RTA business is a very difficult one and generally does not happen. But does this mean that if it is a meaningful one, then there could be furthermore transitions.
A third one was on brokerage. You said that on EKYC, you added one of the top-five players. Would this — is it more clarificatory whether this would be replacing an existing one or you are getting the — or you would start getting share of incremental business or it’s an exclusive — exclusive deal that you would get only — you would be the only one.
And last question is just on this yield pressure that you mentioned, Ram, you know, what has changed in the recent past that is causing this change? Because on the other hand, if you look at this quarter, the AMCs have reported flattish to marginal improvement in yields and we are talking about a — and the corrective actions that they’ve taken, some of the AMCs which have taken for, you know, the commission structures that is benefiting the yields. So why in this kind of an environment, we are taking the pain and we are taking the pressure of reduction in yields. Those would be my questions. Thank you.
Anuj Kumar
No, sure. So on feedbank, it’s I think an operation which will think of it like as a as a 1,000 crore AUM Indian client it’s approximately that size perhaps a little smaller. This is not a sign. We are not announcing some big bank global entry. This was like I said, an inbound inquiry. We’ve just rightsized the software because you need some of the regulatory setup to get into those currencies, those kind of things and the processes that they follow.
We should be live by April. I think right now, you have to think of it as a — as a contract, which will bill a few crore a year. It’s not a very large contract will bill a few crore a year. So the only reason we are stating it here is that it’s a nice inbound for us to get because there was inquiry and then it came in. We don’t have yet a dedicated sales force to go after these things. So that’s my number-one.
Point number two, you asked whether clients will begin to churn or not. If you want my honest answer, the churn in MFR, I mean the movement between two RTAs continues to be as tough as it used to be, perhaps tougher. It is despite the digital era, actually, digital imposes a lot more constraints on the physical world. So it’s not that there’s anything easy in terms of shifting. I think these cases, you saw one case about two, 2.5 years back, you’re seeing the second case now where people — and none of this is for commercial considerations.
Now, of course, you know that those came across that in public, you can also see what are being charged. It’s just that people want to work with us. I mean, I think the evidence that people who want to work with us seek us out and that’s how this is happening. Can a third player come in, a third player cannot just come in because it’s either easy or tough to churn. They need to have the product and the entire suite, which is we’ve told you in the past.
So comprehensive that’s very tough to build. It’s maybe a five, six, seven-year curation process, maybe longer than that. And you’ve seen some examples of competitive entities which came up but could not — could not sell. So this does not make churning any easier, does not create any room for a third player. I would still say think of it as a very uncommon event, someone with great determination and grit would like to cross-over. So those were your first two.
Prayesh Jain
Yeah. The third one was on brokerage.
Anuj Kumar
Okay. Upon the brokerage part, so this question has been asked of us often for obvious reasons because some of the large brokerages, both Ziruda and Agil happen to be MFRTA clients and we often ask this question, are they coming in? Right now, this is someone else. They will come in at some time. This is someone else, one of the top-five. Typically how a KRA or a payment operation inducts a second part.
Broadly, think of it as about 20% to 25% share, which means they will still keep the first guy. They will keep the first guy, they will not yank and rip them out. So it doesn’t work like part year does, but you have a single partner, you can easily have a two-partner solution. They start giving — nobody does this to just add 5% or 10% volumes to us. So the expectation should be that about 20% to 25% of the payload will start coming to us. That’s item number three.
On item number four, I think what said, I’ll just divide the argument into two-parts. One part is that is almost the entire renewal cycle of large, medium and small contracts done. The, yes, you know that last year was part of the asset test year, we had a lot of these contracts come up and we have successfully renewed all of them, almost all of them.
So there are one or two where there may have been a historical backdrop of uneven prices. And given the fact that in the last six quarters after March of ’23, so starting April of ’23 till December of ’24, we have a runaway six, seven quarters of extremely strong growth. We may be doing something for one or two clients. I think that’s the mention. For most of the base, the renewals are all done. They are typically three year renewals. So that large task which belong to 2024 and early ’25 has been accomplished.
Prayesh Jain
So this is — so this is like a one-off hit that will come to your book for a very long period. Is this kind of resetting of the base also of the back? So this will all come in probably 1/4 or something, the yield impact?
Anuj Kumar
No, no, it won’t be like that, whatever adjustment we do. So I think the bottom-line is like this. We have assessed obviously the task at hand. I think the broader statement from us is that we are confident that we will hold margins and everything else. You know that we’ve done — we’ve had to do these things once or twice in the last six, seven years from time-to-time as the market expands. And if there are any, I would say pricing unevenness it plays out. So it will play-out in our case also. Don’t read it bigger than what it is. But yes, it will happen over financial year ’26 — FY ’26.
Prayesh Jain
Thank you and all the best.
Operator
Thank you very much. The next question is from the line of Abhijit Sakhare from Securities. Please go-ahead.
Abhijeet Sakhare
Hello. Hey, hi, good morning. See, first question is coming back to the yields part. So if it’s possible to quantify your comment around higher-than-usual compression. And putting that in context, I think this nine months so-far, we have seen on a calculated basis almost like a 5% to 6% compression. So does that mean it’s higher than this number is how we should look at next 12 months?
Ram Charan Sesharaman
So, the way we look at it, the long-term compression of yields, if you see over a longer — and I don’t think one or two quarters will do justice to it is to actually look at it at a number closer to 3% to 3.5 percentage, right? So that’s been the long-term range in terms of the yields compression. What we feel is that the 3.5% might not hold good going-forward, at least for the next year. And so as for the reasons Anuj mentioned that there could be some pressure on it subsequently, whether it will be double of this unlikely, but that could be something that is higher than that. As I said, the impact will have to be — will have to be assessed after we do it. So we don’t want to give a better or worse picture than what it is going to be finally.
But as Anuj said, should not be more than what it is intended to be, which is a guidance to you saying that if you are building your models using the usual yield depletion, please add something to it so that it becomes more accurate. So it will not be double of what it is now. It’s not going to be a depletion like that, but it’s definitely going to be higher than the 3.5% that we are seeing historically to be the year yield depletion.
Abhijeet Sakhare
Got that. So moving on to the KRA question. So here, just wanted to understand what would be the mix between mutual fund related revenues as against broking? Because we’ve seen, let’s say, a similar growth in terms of mutual fund account additions in 3Q. But obviously, I think the broking side has seen like a, 20% 25% dip, which is similar to the decline you’ve also seen on that revenue line. So a mix there would be helpful.
Anuj Kumar
Thank you. Sure. So largely look at it this way that the non-MF is about 18% to 20% of revenue contribution. It’s a much larger market, so we want to scale it, but right now it’s about 80% to 20% of the KRA business in terms of revenue.
Abhijeet Sakhare
Got it. And last one is how should we look at the expense growth for next few quarters or next 12 months or so-so.
Anuj Kumar
I’ll let answer and-answer this. I think from a broad perspective, we have been in an investment mode on products and technology for over for the last two years. We spent and you’ve seen some of this that we spent for workforce modernization. We’ve brought in — we did get-in a substantial number of IT kind of hires in the last year. We continue to work on the platform rearchitecture program, which continues to advance. And although a lot of the cost will get capitalized, there will be some cost setting in the P&L. Our capex this year has been larger than usual also the ulty opex, but I’ll let kind of give you a little more detail in terms of exact numbers.
Ram Charan Sesharaman
Sure. So Abhijit, you would have seen that during the current quarter on a quarter-on-quarter basis, the expense growth was a little muted, right, especially on the salary cost. This is after considering the talent infusion that’s happened in terms of the IAT, IMs and other senior hires that we have done. So what we expect overall is, there are three things I’ll split into, the employee cost, the operating expenses on the fixed-cost.
From an employee perspective, we have seen it to be stable around 32% to 33 percentage of revenue. So barring this 1/4 in the April to April, May-June where there could be some increase because of the annual appraisal impact, it has traditionally been around 2% of revenue. Apart from that, we don’t see that to be very different. I think we have a fully staffed organization. Whatever we do in terms of talent will continue to happen. But I don’t think it’s going to be significantly increasing the cost by 4%, 5 percentage. At most it would be a couple of percentage increase there.
But I think you’ll see remarkably stable operating expenses. It has traditionally been if you take-away the OP, it’s traditionally been around 8% to 8.5 percentage of the revenue, be it the sponsored bank charges for payments or the data entry charges for CAMs or for software-related direct expenses that we’re incurring. So we don’t see any change in that ratio too. And fixed expenses, it just goes with inflation.
So the short answer is, I think the next quarter we see very stable expense expenses we’ve been around INR195 crore INR196 crores other than depreciation at the total quarterly expenses. If anything, you would see probably a couple of crores of increase in expenses, but we see a stable expense base. And the year-after barring the salary increase that we see, we don’t see a big expense in the opex part of it.
The capex, we continue to make investments in terms of the, in terms of the other compliances that we need to do for purposes or for IT infra purpose purposes. But from opex perspective, in-spite of continuing to invest in talent and in-spite of buying the latest cybersecurity tools we continue to invest in, we don’t see a significant change in the cost base. It will be probably driven by the factors that I mentioned earlier.
Abhijeet Sakhare
Very helpful. Thank you.
Operator
Thank you very much. The next question is from the line of Devesh Agarwal from IIFL Securities. Please go-ahead.
Devesh Agarwal
Thank you for the opportunity, sir. My first question is on the yield that you mentioned about. So can you just clarify whether this is limited to one or two clients or this is slightly more broad-based.
Ram Charan Sesharaman
No, Devesh, this is not broad-based. As we mentioned, almost all the contracts have been renewed even with most of the major customers. This could be limited to one or two. I think broadly, we have reached a stage where we are in equilibrium in terms of rates for almost all of our base, right? So I think this will be limited to probably one or two customers.
Devesh Agarwal
Okay. And historically, you have always mentioned for a 20% AUM growth, one should assume a 15% kind of a revenue growth. So in that parallelance, if you can quantify for a 20% AUM growth, what could be the revenue growth that we should be assuming post this changes in the yield?
Ram Charan Sesharaman
So I think this indication was more to do with a three, five-year, 10-year kind of projection, right, sir. We say on a medium-to-long term, we would always have this 2015 playing out. I don’t see that will be significantly different, probably a percentage point down at most two percentage points term could be the impact. But I think on a base-case scenario, I don’t think it will be down by more than a percentage point.
Devesh Agarwal
Right, sir. And this would be play-out over the coming three, four quarters. Is that the understanding?
Ram Charan Sesharaman
Yes. It will play-out over the next financial year start probably for the next three, four quarters, you will see some impact. Again, I do not expect that this should alter — just reiterating, this should not alter our projections for the profitability per se, right, which I don’t think will be — will be range. It will not be very adversely affected because of this. But yes, this will play-out over the next four quarters or so.
Devesh Agarwal
Right, sir. And sir, recently, SEBI has come out that they want to ensure that every AMC is kind of coming up with a INR2 SIP and they’ve also announced some incentives for those. So that in a way kind of increase your scope of work and even the number of transactions are likely to go up. So how would that kind of impact your cost structures?
And also given this entire thing that the AUM growth is slowing down. So again, the timing is very precarious that on one-hand, the AUM growth is slowing down, your costs are likely to go up because of the new regulations. And then at the same time, you’re facing some yield pressure. So how do you see the overall thing?
Anuj Kumar
So, Divesh, we are extremely bullish on the overall market. I think AUM growth has slowed down maybe for a quarter, but the entire building blocks are still intact and I would say that the or the INR250, whichever name you want to take, is a very foundational building block. The thinking behind that is that SIP has been a salaried versus product, somebody who gets a payroll on the first of every month. And now this is distributing it to people who are non-salaried, maybe daily wages or weekly wages. So it significantly expands the market.
When it expands the market, just think of it like this that when the AUM comes in, so there are three parts to it. The AMC obviously incurs AYC charges, they incur trigger charges and then they pay us for the AUM. I think once you get the money in the door, it’s part of your assets, then that’s a great place to be in that because that will grow like the rest of the money will grow and you will charge on it.
For SIP triggers and KRA, there is a — there is a more beneficial rate regime only for those customers, only for those customers, which is a one-time gift from us, but we are very confident that we would like to scale it in partnership with the marketplace. And think of it as a foundational building block, just like you saw the normal SIP change the market in these 10 years, let’s say, in 2014, ’15, think of this small-ticket SIP to be the next change agent for the next decade. It’s a very positive occurrence.
Devesh Agarwal
Right, sir. And sir, in terms of new mandates that you have won, if we see over the last, say, two years, some of the names like Navi,, they have kind of now ramped-up on — in terms of AUM. I think these two, three new mandates that you had won are contributing INR13,000 crore 14,000 crores of the AUM. So can you share some bit of what is the revenue yield that we have here or what is the profitability of this account?
And secondly, in terms of your newer AMCs that you have won, which one do you think has the — looks to have a good potential in terms of revenue and which is the one which is likely to start operation soon?
Anuj Kumar
So think of it this way that in the base, the Helios are the two which launched in about the last 12 to 15 months, now we migrated again in the last two years. So those are new. But what’s likely to happen in the next six to nine months is that a large number of ones are ready to launch because they’ve got final approval.
And what is visible on the horizon, although the dates are still not announced is Geo BlackRock, Angel and Unified. I rate at least the first two of them who express their ambitions to be scale players and they have been scale players in various markets by now. So those two will certainly be scale players. Unify has been not a mass-market player so-far. So they are moving from niche market to mass-market, but they are a very high-quality operator, very popular in their set of customers and franchise. And we’re expecting all the three to be very strong launches.
Outside of this, then we have the other customers who signed-up, whose names you’ve seen, which is Choice, which is a scaled player in broking., which is an emerging player, but has scaled in AIF, significantly scaled with several thousand crores of AUM. And then we have the license, they haven’t got final license yet. So those are like three. I think the first three will certainly add significantly to scale and profitability. Some of them already speaking to you and to the media about their impacting clients.
Ram Charan Sesharaman
So on your question on the scale they are in and do they actually contribute to your profitability and revenue. See, the philosophy has been that the — and it is a thumb-rule is that AMC will start making money for you once they reach a particular scale, a threshold, so to say, it could be INR10,000 crores, it could be INR15,000 crores when they start making money.
But understand a lot of this is also platform, right, which is that just because a new person is getting added to the platform, you’re not going to create an entire new infrastructure for them. So there’ll be some incremental people costs that go into it and there’ll be obviously some improvements that we’ll do from a process perspective or customization we do from a process perspective.
But the philosophy for new customers has been that we will kind of go — take it slow on the first one or two years, help them grow to a particular stage and then we will get to the steady-state pricing, right? So significant revenue contribution generally will come from probably year two or year three, in some cases year three and after which I think it will be a question of ramping-up profitability.
Within that, given that the investments will not be extremely significant on a new customer coming on-board, it actually does not impact our profitability or revenue too much. Yes, there is definitely some increment that happens from day-one they start using our allied services and some of our TA services. But for it to make a difference, I think our threshold is generally around — close to INR10,000 crores, they start actually making some interesting contributions to the bottom-line.
Devesh Agarwal
So this thresholds that you talk about, INR10,000 cro I think, will this also hold to in case of somebody doing only passage because some of the newer names, they’re talking about only passive strategies. So will this number hold true for that as well?
Ram Charan Sesharaman
Well, this could be much lesser in terms of breakeven for people who do only purely digital-only passives. But those — so-far, we have to see on-the-ground how this works out, right? We’ve never seen AMC specifically that barring to an extent Navi. So once these passive only or like zeros or rampsups beyond what it is now, you will get to know, but our confidence comes from the fact that we will be able to make it reasonably profitable in quick time. And post that it is going to be kind of an increasing trend of profitability. That’s been the philosophy in which we have been handling these accounts.
Devesh Agarwal
Right, sir. And one last one on the non-MF side. So you did mention that CRA is because of a decline in revenues, we have seen some moderation. But payments I thought is largely an annuity kind of a revenue stream because it’s more driven by the triggers and which hasn’t seen any decline in terms of your number of transactions. So despite that, we have seen a sequential decline in the revenues for payments. Any particular reason for that, sir?
Ram Charan Sesharaman
No, no, this is basically one-off. There will be some annual maintenance revenue that they get from MPCI that they have to collect from the customers and give it to MPCI. So that kind of was at a higher number last month. But from a triggers perspective, we have not seen a decline in the either UPA auto transactions, which has shown an increase or the ACH transaction, which has broadly remained stable, right? So those two have kind of been.
There has been some validations in terms of IMPS that we have done for mutual fund customers that has come down a little and some AMC revenue that has come a little. But the UPI and ACH continues to remain very stable. UPIs, in fact, auto has in fact grown in transaction over quarter-on-quarter.
Devesh Agarwal
Okay, sir. Thank you so much and all the best.
Ram Charan Sesharaman
Yeah.
Operator
Thank you. The next question is from the line of Madhukar Landha from Nuvama Wealth Management Limited. Please go-ahead.
Madhukar Ladha
Morning. Thank you for taking my question. So most of my questions have been answered. Just one on this move by this AMC from your competition to you. Can you elaborate a little bit on why this is happening? Is it because of pricing or is it because what is the value that he is seeing in? Is it because your platform is more robust, a quality of service, what is driving? So some little bit more specification and color around why this move, that would be very helpful.
Second, when — by when do we expect this move? And if you could give some sort of number in terms of how much revenue potential this has you know, immediately in FY ’26 and thereon. So yeah, those would be my questions. Thank you.
Anuj Kumar
Sure. So, broadly think of it this way that in a competitive market, yes, still sometimes self a price. A lot of times customers buy value like we have said and I want to emphatically reiterate that we do not actively churn competitor’s basis. We don’t. So we don’t write to them that we can do this at a cheaper price, would you like to get it done? None of our competitive wins, you will see that color, whether new or in somebody’s base.
Both Navi and this contract were inbound inquiries, which means they wanted to explore a change, change came to us. We wanted to see the determination in terms of whether they are really determined or not. And once we believe that this is a dialogue and we always end-up charging a premium. There is a consistent philosophy that we don’t sell it any cheaper than we would do it to our base clients because that’s just being unfair to your own base if you sell it any cheaper. So we sell it at a premium.
Why do they come? I mean, I will not get into the gory details of this, but it could be the quality of the platform, the service, the business controls, principles of consumer complaints, other things going wrong, our ability to integrate KRM payments much better because that’s in-house, our ability of scale digital properties, which allow them access to a much larger customer-base. I think it’s a mix of all of these and people will always have one or two reasons. Nobody has a set of 10. And that’s how they take the decision.
I think the vindication of what’s happening in the marketplace, how I see it is that when we predominantly win at a price differential in new contracts, when we win at a price differential in somebody’s base, I think that then just creates a very nice feeling and things like CBANC are just adding gravy because that’s a market where we don’t — which we don’t even cover, which others cover, but we don’t cover. We don’t have a sales force, but people who have heard about CAM just want to come in and talk to us and work with us.
At our end, we are focused, like we’ve said in the past that we have a large growing portfolio. We’re very happy with the quality of the portfolio. So we are also reasonably selective in terms of what we want to go after and we are not taking on every piece of work which comes out of it. The last thing is through price discounting, we don’t do that as a habit.
Madhukar Ladha
Understood. And any indication on the size?
Anuj Kumar
Yeah. It’s a small — it’s an old AMC, it’s a small AMC, the annual billing will be a few crore. Think of it at that size and we will announce the name maybe in the next week or two.
Madhukar Ladha
Understood. Understood. Thank you and all the best.
Anuj Kumar
Thank you.
Operator
Thank you very much. The next question is from the line of Ghosh from Citi. Please go-ahead.
Dipanjan Ghosh
Hi, good morning, sir. So just going back to the yield part. When I look at your equity schemes and the RTF fees that you charge, let’s say, for your top-five partners or top six partners, there seems to be a clear distinction between two players versus the remaining three or four players. And if they were to realign with the other 44, it seems that the overall impact on the book, be it this year or the next three to four years can be maybe around — maybe as you said, it may be 0.1 to 0.2 basis-points on the overall book. Is that a fair assumption that one should work with? And if I thinking in the right direction?
Second, on the non-MF businesses, you have a vision to kind of scale it up to 20% of the mix. Now if your MF business with this yield pressure, let’s say, growth at 10% to 15%, that calculation will suggest that non-MS has to grow at 30% to 35%, while currently this quarter it has slowed down to 22% sort of a percentage. Now, obviously, the capital market activity momentum is something that maybe we can’t really forecast. But if markets would remain subdued or maybe the last year, four year doesn’t repeat, how is this feasible? I mean, what are the levers that you really have to drive this sort of a revenue growth on the side here?
Third, on the AIF business, your AUM, if I look at it for the last seven quarters has been almost stagnant at that 2 trillion INR2.3 trillion. Trillion in-spite of new logo wins. So is this new client wins smaller in size or has there been some sort of change? Just wanted to get some color on that.
And lastly, on the businesses, has the pricing across multiple business lines really stabilized or should one continue to expect that the revenue growth may lag the underlying volume or asset growth in this segment?
Ram Charan Sesharaman
I think, four questions you had,. So I’ll probably try and-answer them and Anuj can obviously, you know come in when needed. So on the yield pressure, I think largely after the reset that happened this year, this year basically in April and you see the results of that for the first top two, three customers of the top-five have been reset. When I say reset, I mean that the pricing contracts have been renewed for the next three years and we did one-for-one of the largest customers a couple of years back.
So while there is some amount of difference between and you can never have the same yield across all customers, obviously because of various factors including — including kind of retail intensity, the additional work that we do, the allied services that we provide or don’t provide what we do from a software perspective. So there are several other things like whether they are a KRA, not KRA, whether we do payment services, don’t do payment services. So there are several tentacles to this and it’s not a base-to-base yield comparison. That is the way that both of us look at customers and us look at.
Having said that, is there a difference that exists? Yes, there is a difference that exists among probably one or two people and which is the commitment that we have to kind of get it this to a negligible level over the next few years. The impact we calculated is not as much as you have. It’s much, much less than what you have, which is based on our discussions with our customers and all those things.
So I don’t think that the impact that you have, which is 0.1 bps is going to be the impact that we face. It’s going to be much, much lesser than that. What it is, we’ll know only when the absolute price discussions happen over the course of the year. But this is basically where we are. The difference is absolutely explainable for at least of three or the top — top-five, six. And probably for one or two, we are getting there. That’s basically the leave on the yield part of it.
Now the non-MF, mathematically, you are right, we’ll have to grow at more than 30% for us to get this. And we do have visibility to do that. That a quarter here of 22% down, but then if you see earlier few quarters, it was much more than 30%. So I don’t think we should read too much into 1/4 of 22%. I think the building blocks are in-place and the new logo wins are in — are what Anuj actually explained in the earlier part of the presentation and a lot of it is annuity business, which is that you get attached to them and they grow along with you, be it a payment kind of a business or being a KRA kind of a business where multiple downloads happen, we get paid-for every download.
And we are getting into new areas like cars and we are getting to new areas in KRA like capital markets and our products are getting ambellished. So very, very confident of doing it. Of course, across — along the way, there could be a scope for an inorganic acquisition that will happen. But all put together, I think we are reasonably confident that we will reach this 20% in terms of the non-MF share of overall revenue.
In terms of non-MF pricing, see, largely stabilized, largely stabilized. If you see the basic churn we were having was on the account aggregator stuff. I think they have reached a stage where obviously there could be some variations here and there, but it’s not a steep decline of say 50% from what it was in the earlier — earlier years or something. It’s largely stabilized with a small variation here and there.
It — in terms of payments, it’s again largely stablished or could be there will be one-off deals because of volume that there could be higher discount asked. But otherwise, I think this dynamics are largely settled and we don’t see much of a difference. And we already had reasonable amount of visibility and the stability on the AA pricing, you know, which over the last one year. So that kind of continues.
So under rep is barring some large insurance company contracts, which may come where there could be discounted prices. I think the pricing has again stabilized at INR1 to INR5 in terms of the new policy conversion or for AMC. So I don’t think we’ll see significant — significant pricing pressure on the non-MF businesses, although there could be pockets where for large deals that would be less than usual price that we will charge.
On the AAF, our AUM has grown more than 15 percentage in terms of — it was less than INR2 trillion and we have kind of come to 2.38, I think 35 trillion is the current AUM that we service. Yes, there is no — we will — Anuj take that.
Anuj Kumar
So when you see the large base that we have acquired over the last 10 to 12 years, while other companies where the base heavy just two, three years-old, some of the old funds do fall-off. So you will have a part of the AUM, which is falling off. It does get made-up from new launches too. But sometimes in a quarter, these numbers may not exactly be the same.
Secondly, it also takes some time for people to launch and scale. Some are very, very aggressive entities, which will launch and scale immediately and some will take time. I think on-balance, both for domestic and for Gift City from a quality of the franchise, we almost hold the entire a significant part of the market in terms of NIMs, you can go through that. So we are very happy with the quality of the portfolio, the way it is growing. Growing and net of — net of falloffs, we believe it’s a reasonable growth in terms of AUM.
Dipanjan Ghosh
Got it, understood. And sir, thanks for the explanation. But the reason I was asking about the AIF portion is because if you repeat this sort of a revenue run-rate or maybe a marginal increase in next one or two quarters and suddenly, the Y-o-Y revenue trajectory starts looking quite weak. And so maybe the only way you can do it is more schemes or more logo wins. So is that a fair assumption? I mean, some of these things will play-out over the next few quarters?
Anuj Kumar
So broadly, what we’ve said is that we would like to grow MF revenue at 15%, non-MF in excess of 20%. Last few quarters, we’ve grown in excess of 20%, sometimes in excess of 30% too. AIF, our belief is domestic AIF and GIF is perhaps at 20% growth market is not a, 30% 35% growth market in AUM. At that level, we are confident we should be able to deliver a baseline 20% growth in the AIF revenue over the coming quarters.
Dipanjan Ghosh
Got it. Thank you, sir and all the best.
Anuj Kumar
Thank you.
Operator
Thank you very much. Next question is from the line of Supratim Gatta from Ambit. Please go-ahead.
Supratim Datta
Thank you for the opportunity. My first question is on the business and it’s pertaining to yields, but a bit more fundamental. So if I look at some of your large mutual fund clients, they would — could be paying somewhere roughly around INR1500 crores to INR150 crores in revenue to you based on their AUM size. Now at this size or if it further grows like you would expect the AUM to grow within a certain period of time, it could start touching INR200 crores as well.
Now at this size, why wouldn’t they start looking at maybe in-housing these services because after a certain threshold, they could potentially spend this much money and build some of these services in-house. So what stops them at maybe at INR200 crore INR250 crore RPA when the fees becomes INR200 crore INR250 crores to in-house this service, spend that on capex and we build in-house? That’s my first question.
And the second question is on the — yeah, the repository business, while there has been a strong pickup in the policy numbers, but the revenue growth has still been only around 12% Y-o-Y. So just wanted to understand how does the policy growth really translate into revenues? If you could help us understand that, that would be very helpful. Thank you.
Anuj Kumar
No, sure. So outsourcing versus insourcing, I think not just for MFRTA, globally, you see anywhere, any industry. The trend has always been outsourcing, irrespective of the size of the book or the amount of money that people spend. And that’s largely because in our kind of outsourcing when you see, we run a common platform. It’s a common platform. Our assets are in the range of INR46, INR47 lakh crore. The cost of the entire platform and the operation, the common cost is spread over almost a INR50 lakh crore base.
Even if you have a single mutual fund which is, let’s say, INR1 lakh INR12 lakh crore of active monies, it is very difficult for them to mimic the efficiency, the steady-state efficiency of doing this kind of work because in rupee terms, it will not compare. Just to give you a number, we have over INR9 crore folios with balances and about INR1,200 crore-plus overall AUM and mutual funds. It translates by the revenue by folios. It comes to about INR130 per full-year per year cost and it’s a falling cost.
And we do all the work that in the world of direct equity, the stock exchange, the depository and the clearing Corporation do. So owning the scope, delivering the results at this cost at the accuracy levels that we do, amortizing the cost of the platform over a very large and growing asset-base. I think those are the determining building blocks of the business.
Even if somebody was willing, wanted to put the money and was able to build the capability, the net result of having the economics layout the way I’m describing to you will not be possible. And that is one of the strong detriments not just here, but in any part of the world for this work to get insourced in a large way. So that was your first question.
On the second part, on the repository growth, I think growth has been very, very consistent. Almost half the rep portfolio has got built-in the last 18 months and we believe in the next maybe two years, we will build the next INR1 crore policy. So the growth is very steady. The revenue is still split between repository, which is the platform-based business and outsourcing, which is a labor-based business. There is still some labor-based business sitting there.
I think the real kicker in scale, so repository by itself is perhaps still not a INR10 crore business if you just take the platform part, getting close to breakeven, but still not there. I think the next one year is crucial as we move from INR1 crore to INR1.5 crore, INR1.5 crore to INR2 crore policies. Close to somewhere in this year, you will see a revenue spike in the pure repository business. It is very efficiently run like any of our platform businesses. You know that most of our book is platform, whether it is KRA, RTO payments or whether it is things like Central and MS Central, the true attributes of being a platform business where you have a common platform, common infrastructure, the users continue to double or triple, but your cost remains almost the same apart from IT. That part will start playing out. I think we are perhaps six months away from that point.
Supratim Datta
Got it. Thank you.
Operator
Thank you very much. The next question is from the line of Sanket Goda from Avendus Spark. Please go-ahead.
Sanketh Godha
Yeah. Thank you for the opportunity. And the EBITDA margin improvement what you have seen in the current year or for the quarter, is it largely because the profitability of the non-MF business has improved or is it largely led by MFRTA itself?
And second, the reason I’m asking this question is that next year there is naturally yield pressure because of the repricing. Then is it fair to say that if it is MFRPA driven, then the margins could be under pressure next year or your business will compensate for any loss in margin because of yield pressure? So that’s my first question.
Ram Charan Sesharaman
Yeah, Sanket, it is contributable both. As we have seen that as the revenue is ramping-up for the non-MF platform-based business, right, the profitability profile of the non-MF bucket assets has seen an increasing trend. But however, you know, this is obviously — MF is still 87% of my portfolio. So the profitability increase has also contributed at a big extent by the MF increase also.
How the confidence that we will let — we will not let any yield pressure have a disproportionately higher impact on the profitability stems from two things. Number-one is, you know, this is basically we are reached a stage where, let’s say a lot of automation is there. For example, there was a question earlier on SIB and the increase in cost assets. It’s not as if we pay incremental cost for every that we do, right? A lot of these processes are automated in terms of not requiring additional manpower. Obviously, there will be some hiring that will happen. So that will be one lever that we have in terms of ensuring that the profitability depletion is not seen.
The second is what you mentioned, which is the non-MO as a business. And as I told you, they were between 10% and 15% EBITDA. And there is nothing that prevents us from increasing this toward 20-plus percentage EBITDA in the next year, right, given that we have reached steady-state in some of these businesses, it is going to be a disproportionately higher increase in profitability going-forward on lot of these businesses, right, whether it’s a reduction of loss in some cases or it is an increase in profitability in some cases, at least from the — from the base bottom-line perspective, it is going to be very beneficial. So a combination of these two, we will ensure that the impact on profitability is not going to be significant. It’s a combination of these.
Sanketh Godha
Yeah. But, is it fair to say that because of the yield pressure given still 87% of the business is MF. So there is a fair probability that margins what you saw in the current year might not hold-up largely for the next year, even if you see an improvement in business.
Ram Charan Sesharaman
So what we have seen over the last three, four years, Sanket, you will notice that we have seen a creep-up in the margins of more than 100 basis-points on a yearly basis, right? If you remember, when we did these calls for the first one or two years, we used to say that we guide a margin of around 40 percentage and a good year probably 42% 43 percentage. Now in the last couple of quarters, we are clocking margins of 47 percentage, right?
So there is an inherent way in which we run the business as well as the business model, which ensure that there is a creep-up in profitability that happens. And we’ve also said that we are not in it for-profit area and we don’t expect a margin of more than 50% also. So I think inherently there is a profitable bias in this model, which will continue to play-out. The fact that there is an yield depletion that happens would probably lead into some part of it. But on an overall basis, yes, obviously there could be some pressure on margins, but we don’t expect that this will be significantly declining or that will be an impact on the margins even when we account for these steel pressures. That is basically reality you’ve seen over the last four years also.
Sanketh Godha
Got it. Got it. And the next second question which I had was that, so the one or two contracts which you said two mutual funds which see repricing. So after repricing, is it fair to say that these companies yield will be very similar to the similar-size AUM what you already charge or there still will be a gap and therefore there could be one more round of negotiation in the future to bring it to closer to the singular sized AMC.
Anuj Kumar
No, so look at it this way. And this is — this is the right process that we are following in the market. In any perfect market, all buyers get to know the price that others are paying. Pricing asymmetry is difficult to have for a cluster of customers. The cluster of customers who have assets of, let’s say, greater than INR5 lakh crore in the range of INR10, there are people who are 1 and 5, the people who are smaller than that.
And I think we have been able to rightsize these clusters. We do not have pricing, I would say, asymmetries anywhere now in the market apart from this one or two cases. It’s always good to attend to them. Like Ram said, we attended to some of this in ’21, ’22. There was some impact for one year. We will again rightsize everything. So you see profitability in the range of 47% because intrinsically incremental assets come at very small cost and an efficient operation will turn a lot of that revenue into profit.
So look at it like that, it is the right thing to do. We will be doing it over this year. And don’t read too much into it in terms of having a large impact on profitability, et-cetera. We are taking measures so that most of that will be contained completely.
Sanketh Godha
Got it. Perfect. That’s it from my side. Thanks for the answer.
Anuj Kumar
Thanks.
Operator
Thank you very much. The next question is from the line of Pranoj from JPMorgan. Please go-ahead.
Pranuj Shah
Hi, thank you for taking my question. Sir, just a couple of clarifications. One is on your KRA business model. So I think the revenues are largely linked to, if you get any pinks for the records that are already there in your system. So if new account openings, you have already seen demat account openings slowing down. So if that happens on mutual funds also, does this remain a risk for this particular business going ahead?
Anuj Kumar
No, that’s correct. That’s correct. You have to think of the business as being tightly coupled to the capital markets and the right metric to look at it in those markets is account opening because that is when the entity or the intermediary comes and downloads our account and they pay for it. Every time they create a new account, they upload the record and they also pay for it. So that’s the primary activity on which our KRA business is largely dependent.
You saw a tremendous scale coming up because that activity was heightening. In those time periods when that activity falls to, let’s say, 60%, 70% of its traditional momentum, you will see some compression in KRA demand and KRA revenue.
Pranuj Shah
Okay, understood. Thank you. That is helpful. And second question, sorry to just come back on the mutual fund that is shifting from Kayfin to you guys. And you said that the pricing that you are giving is a premium to your current customer-base. But would it be possible for you to disclose if compared to Kayfin, you guys would be perhaps charging lower or we can’t disclose that right now.
Anuj Kumar
No, no, we will be charging higher. That is a term we offer to anyone who wants to come in. We don’t sell for price. I mean, broadly if you see philosophically, so both our principles, we will not sell lower than our installed-base. We will not charge lessel what is cover us.
Pranuj Shah
Okay, got it. Thank you. That’s helpful. And sorry, one last question was, will it be possible to disclose the EBITDA margins in your non-mutual fund business? Thank you. That’s it from my segment.
Ram Charan Sesharaman
Yeah. I think while we generally give a range and I again always caution saying that all these businesses are very different at different stages of where they are in terms of go-to-market. But then just for ease of understanding, the bucket of non-MF has got a margin of close to 15%.
Pranuj Shah
15% EBITDA margin strength.
Ram Charan Sesharaman
Yeah.
Pranuj Shah
Got it. Thank you, sir.
Operator
Thank you very much. Ladies and gentlemen, since we are — since we have had a spin over 15 minutes and we have a few questions. The management will be happy to answer these questions offline and Orient Capital will reach-out to set these up. I would now like to hand the conference over to Mr. Ram for closing comments.
Ram Charan Sesharaman
So thanks, Liba. On behalf of CAMS, we thank — thank you for your time and participation in this call and your continued support and coverage of CAMS. And for any further information, please do feel free-to reach-out to Korean Capital or Ani Savlani and we’ll be happy to answer any questions that you have. Thank you once again.
Anuj Kumar
Thanks. Thanks everyone.
Ram Charan Sesharaman
Thank you.
Operator
On behalf of Computer Age Management Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.